Introductory Info
Date introduced: 27 August 2020
House: House of Representatives
Portfolio: Communications, Cyber Safety and the Arts
Commencement: As set out in the body of this Bills Digest.
Purpose of
the Bills
This Bills Digest relates to three Bills which are part of
a legislative package.
The purpose of the Radiocommunications
Legislation Amendment (Reform and Modernisation) Bill 2020 (the Reform
Bill) is to amend the Radiocommunications
Act 1992 to implement some of the recommendations of the 2015 Spectrum
Review and to modernise the legislative framework for spectrum management.[1]
Currently receiver licensees can choose whether to pay
upfront or in instalments. The purpose of the Radiocommunications
(Receiver Licence Tax) Amendment Bill 2020 (Receiver Licence Tax Bill) is
to amend the Radiocommunications
(Receiver Licence Tax) Act 1983 (Receiver Licence Tax Act) to allow
the Australian Communications and Media Authority (ACMA) to specify how holders
of specified classes of receiver licence (as determined by the ACMA) pay their
tax (either upfront or by instalments). Only those receiver licensees that are
not covered by an ACMA determination will retain the right to choose how to pay.
The purpose of the Radiocommunications
(Transmitter Licence Tax) Amendment Bill 2020 (Transmitter Licence Tax
Bill) is to amend the Radiocommunications
(Transmitter Licence Tax) Act 1983 (Transmitter Licence Tax Act)
to allow the ACMA to determine whether, for specific classes of transmitter
licences with longer than 12 months duration, the tax imposed should be paid in
full on the issue of the licence or by instalments.
Structure of
the Bills
The Reform Bill has 11 Schedules:
Both the Receiver Licence Tax Bill and the Transmitter
Licence Tax Bill comprise two Parts. In each case, Part 1 contains the
operative amendments and Part 2 contains application provisions.
The Bills together comprise more than 200 pages. This
Bills Digest discusses the provisions of Schedules 1–7 and Schedule 11 of
the Reform Bill.
Background
Introduction
When policy actors speak of radio
spectrum, they often reference ‘the future’. For instance, in 2016,
then Minister for Communications, Mitch Fifield, gave an address to the annual
RadComms Conference in which he quoted Cisco futurist Dave Evans on how
technological innovation promises to solve a range of complex challenges.
…within 10 years, there will be 50 billion connected
things in the world, with trillions of connections among them.
As he [Evans] says: “These connections will change the
world for the better in ways we can’t even imagine today.”
From healthcare and education, to agriculture, business and
the environment, the implications of these digital innovations are profound and
will affect all areas of our lives.[2]
The prospects for the future are, as the Minister noted,
exciting. But at the same time he cautioned his audience to think about some of
the ‘tricky questions’ posed for legislators by the rapid pace of
technological change.
How does Government prepare for ground breaking innovations
that we can’t predict?
How does Government ensure that we’re ready to harness
new opportunities as they emerge?
And how can Australia position itself at the forefront of this
digital revolution, so that we can fully capitalise on the social and economic
advantages it will bring?[3]
Understanding how radio spectrum is governed can indeed be
challenging. It is both technically and administratively complex. Governments
and regulatory authorities have to consider a range of different factors, not
just of ‘the future’ but of the ‘here and now’,
including, for example: the technical affordances of different parts of the
radio spectrum; the objectives and capacities of device manufacturers and
service providers; current trends in different categories of use; and the
economics of investment.
What is spectrum?
A recent Deloitte report described radio spectrum as the
‘the lifeblood of our wireless world’.[4]
Radio spectrum has also been described as a scarce natural resource,[5]
and a key enabler of important social and economic objectives.[6]
A 2017 departmental consultation paper on the question of how best to manage
radio spectrum reserved for use by public sector agencies, described radio
spectrum as ‘essential to a digitally networked economy and a major
contributor to Australia’s economic and social wellbeing’, a
resource that both ‘supports essential services such as safety-of-life
and security and improves the quality of life of users’, and a
‘critical infrastructure enabling production for industrial, commercial,
educational and other social services’.[7]
Radio spectrum is, in other words, an essential ingredient
in the everyday making of our modern digitally networked lives. We routinely
make use of radio spectrum to operate mobile phones, GPS navigation systems,
home wireless networks, radios and televisions, baby monitors, garage door
openers, and so on. All these devices – and many, many more – use
some portion of the radiofrequency spectrum.
Technically, spectrum is the term used to refer to the
‘continuous range of electromagnetic radiation waves’, which
‘extends from the longest radio waves to the shortest X-rays and gamma
rays’.[8]
The radiofrequency spectrum (which we refer to here as simply radio spectrum)
sits in the lower part of the electromagnetic spectrum. Like waves in the
ocean, radio waves have physical properties: they have a wavelength (a distance
between peaks) and a frequency (the number of wave peaks passing any given
point over a period of time).
A spectrum band is the portion of spectrum allocated for
use by a communications system. For example, the Australian
Radiofrequency Spectrum Plan 2017 (a legislative instrument made in
accordance with section 30 of the Radiocommunications Act) notes that
‘parts of the radiofrequency spectrum, including the band 520–694
MHz, are designated as being primarily for broadcasting purposes and referred
for planning in accordance with Part 3 of the Broadcasting Services Act 1992’.[9]
The development of contemporary wireless communication
technologies has, in part, been enabled by the corresponding implementation of
regulatory systems which confer a right to use radio spectrum, which cannot be
purchased and stored, or owned, in the same way as most other productive
resources.
A departmental consultation paper described radio spectrum
as a ‘finite natural resource’ which has some unique
characteristics: ‘it is a “commons” good where the actions of
one user can impact the experience of others (for example, by degrading the use
by others through congestion and interference), and users cannot be excluded
from use except through allocation and licensing arrangements’.[10]
If there were no licensing rules governing access to radio spectrum, users
would simply crowd into the ‘prime’ bands (that is, those most
suitable for their devices and applications), creating interference and
confusion.
Assessing and managing value
However, avoiding interference is just one objective.
Governments have also taken on the role of maximising the net benefit to the
community, of the renewable but scarce resource that is radio spectrum. A key
question for governments in this context has been how best to measure the value
of radio spectrum.
Financial value
Some crude measures of current value are available. The
size of the sector is indicated by the sheer number of licences issued by the
regulator, the Australian Communications and Media Authority (ACMA). In its 2018-19
Annual Report, the ACMA reported it had allocated or issued 13,829
radiocommunications licences, and that in the same period 144,777
radiocommunications licences were renewed.[11]
Income derived from radio spectrum regulation is another
measure of value. Table 1 shows that income derived from apparatus and spectrum
licence renewal taxes, and from spectrum auctions, as reported in ACMA Annual
Reports between 2014-15 and 2018-19, amounted to $6.86 billion.
Table 1: Income derived from radio
spectrum regulation
|
2014-15
$m |
2015-16
$m |
2016-17
$m |
2017-18
$m |
2018-19
$m |
Apparatus licence taxes |
149.14 |
231.86 |
163.46 |
201.42 |
231.15 |
Spectrum licence renewals |
172.39 |
125.92 |
0 |
1,440.64 |
0 |
Spectrum licence auctions |
1,953.77 |
26.71 |
527.65 |
1,637.48 |
0 |
Total |
2,275.30 |
384.49 |
691.11 |
3,279.54 |
231.15 |
Source: ACMA
Annual Reports, 2044-15 to 2018-19.[12]
The importance of radio spectrum to the wider economy was underlined
by figures in a report prepared by the Centre for International Economics
indicating the economic benefits of spectrum could be as high as $177 billion
over a 15 year period.[13]
Further useful insight into the value of radio spectrum
are provided in a report published in 2016 by the International
Telecommunications Union (ITU),[14]
which included guidelines for regulators and spectrum licensees on determining
the price of spectrum. That report summarised some of the key economic and
market issues affecting the valuation of spectrum, including:
- the
level and growth in demand
- the
level of competition and respective market shares of operators
- differences
in the attractiveness of particular bands, for the introduction of new services
and technologies
- assumptions
about current and future costs of equipment, operating costs, and the timing of
investments and
- assumptions
about business finances and weighted average cost of capital.[15]
Social value
That same publication also offers a list of social values,
which indicate further dimensions of the overall value of radio spectrum such
as:
- access
and inclusion (e.g. value derived from universal access and facilitating access
to public services)
- quality
of life (e.g. value derived from providing access to services that improve
quality of life by promoting work/life balance or family life)
- belonging
to a community (e.g. value derived from allowing people with similar interests
to communicate and/or participate in the local community)
- educated
citizens (e.g. value derived from services with educational content or child
oriented services)
- cultural
understanding (strengthened cultural identities or promote diversity and
understanding of other cultures)
- better
informed democracy (e.g. value derived from services that provide information
facilitating democratic debate)
- negative
value derived from any of the elements above.[16]
Historically, governments have played the dual roles of
town planner and traffic controller, licensing and managing access to different
parts of the radio spectrum, and policing the boundaries of defined behaviours
(such as, regulating the manufacture and sale of goods tuned to an assigned
frequency, and using an appropriate level of power).
Public benefit
Determining public benefit has proved to be a delicate
balancing act of planning and administration, which is called to respond to a
number of different priorities. The statement of objectives in the current Radiocommunications
Act points to the challenges involved: it speaks of maximising ‘the
overall public benefit’ that can be derived from radio spectrum, of
providing a ‘responsive and flexible’ approach to administration,
and of providing an ‘efficient, equitable and transparent system of
charging’ for use of spectrum.[17]
As stewards of national economic development, which is
increasingly digital, governments in recent years have been eager to support
new commercial users of radio spectrum, such as mobile telephone and broadband
carriers. The importance of guaranteeing space for commercial interests is
reflected in the amendment of section 3—the objects of the Radiocommunications
Act—proposed in the Bill where ‘commercial purposes’ is
to be more clearly indicated as a priority for spectrum management.[18]
At the same time the Government is required to make radio
spectrum available for a wide range of non-commercial uses, such as defence,
aviation, maritime, police, emergency services, scientific, meteorological, and
so on. Availability of that spectrum can become controversial: for example, one
news report on the recent Natural Disaster Royal Commission indicated there
were some different views, between the NSW Telco Authority and the current
Minister for Communications, about the allocation of spectrum by the
Commonwealth for the purpose of establishing a new emergency services broadband
network.[19]
Spectrum regulation in Australia
There have been three distinct periods of radio spectrum
regulation in Australia. For most of the twentieth century the Australian
government enacted a top-down command-and-control style of regulation, however
the aspiration of policy makers in the 1990s was to engineer a shift to a mixed
mode of centralised and market-based control.
Phase 1: 1905-1983
The Parliament’s power to make laws about the use of
radio spectrum is specified in section 51(v) of the Constitution,
which grants to the Commonwealth the right to make laws governing
‘postal, telegraphic, telephonic, and other like services’.
Use of the radio spectrum was first governed in Australia
by the Wireless
Telegraphy Act 1905 (the 1905 Act), which managed interference
by allocating bands of spectrum for specific uses. A review of the Radiocommunications
Act 1992 by the Productivity Commission in 2002, offers useful historical
background.
The Postmaster-General’s department administered the 1905
Act, but the Minister had the exclusive right to grant licences to operate
radiocommunications devices. Unlicensed operation of radiocommunications
devices was prohibited. Licences were assigned to users on a first-come,
first-served basis and administrative fees were charged.[20]
Phase 2: 1983-1992
The Wireless Telegraphy Act was replaced by the Radiocommunications
Act 1983 (the 1983 Act). According to the Productivity
Commission’s 2002 review, the replacement system maintained the
administrative arrangements of the earlier Act.
Licences (referred to as apparatus licences) were still
assigned on a first-come, first-served basis and were not transferable.
Licences were usually renewed every 12 months and annual licence fees were
charged.[21]
But in the 1983 Act the Commonwealth started, for
the first time, to charge for the use of spectrum, beyond fees used to recover
the cost of administration. This was justified, in part, by the principle of
charging a ‘fair return’ for private uses of a community resource.[22]
Phase 3: 1992-current
The 1983 Act had been developed in an era of
relatively low spectrum demand and a slow rate of technological change. The
command-and-control logic of the earlier 1905 Act was still firmly in
place. But as an array of new technologies developed, and as market conditions
changed, pressure mounted for a new approach to spectrum management.
The Radiocommunications
Act 1992 (1992 Act) established a market-based system for managing
a growing and often competing set of demands, for an efficient and effective
system of allocating spectrum rights to licence holders, and for managing
activity within the radio spectrum.[23]
It was widely regarded as a progressive intervention in the field. In a paper
presented to an ITU workshop on radio spectrum management in 2004, Paul Leite (cited
in Hazlett) described the reforms as ‘profound’, and then
summarised their key elements.
The presence of an independent, strong and skilled spectrum
regulatory body, the establishment of market-driven approaches—such as
the attribution of property rights on spectrum to licensees allowed to trade
their assets, the spectrum licensing scheme based on technological
neutrality and trading, the allocation of spectrum using price-based methods,
the delegation of licensing powers to assigned persons within the industry, a streamlined
self-declaration compliance arrangement for radio equipment, electronic and
electrical products, and a highly effective consultation-based process
for the implementation, revision and improvement of the regulatory framework—make
Australia a unique benchmark of modern spectrum management administration.[24]
[emphasis added]
While some sections of the Radiocommunications Act
have been amended in the intervening years, these core features remain intact:
three distinct licence types, a market-based approach to allocation and
re-allocation, and a complex administrative system for allocating and renewing
licences, and for regulating use.
The path to reform
Work to reform the current Radiocommunications Act
started in May 2014 when then Minister for Communications, Malcolm Turnbull,
asked his department and the ACMA to undertake a review of spectrum management.
In his media release, the Minister noted that the last
formal review of spectrum management, by the Productivity Commission in 2002,
had been ‘two years before Google went public and five years before the
first iPhone was released’.[25]
Considerable technological and commercial innovation and change had shown up
some key issues in the overall framework of regulation. The Terms of Reference
attached to that media release pointed to issues of ‘complexity, cost and
responsiveness’, and to ‘rigidities in the system that work against
flexible and adaptive responses’. The current radio spectrum licensing
framework, it asserted, is complex and hard to understand.[26]
Spectrum Review report
The Spectrum Review was subsequently published in March
2015. It summarised feedback from stakeholders, which it said was supported by
the Department’s assessment of the current Act, as follows:
- licensing
of spectrum is too complex and rigid to efficiently accommodate new
technologies and stakeholders’ evolving and increasing spectrum needs
- allocation
and reallocation of spectrum takes too long and decisions lack transparency and
consistency especially when weighing up commercial and non-commercial uses
– for example reallocating the digital dividend (694‐820MHz) took
approximately three years with 16 legislative instruments being issued by the
Minister or the ACMA
- there
is too much uncertainty around spectrum access and renewal, impacting on
investor and user confidence. For example it took nearly two years for
government to assess that reissuing the 15 year spectrum licences would be in
the public interest. Following this decision the ACMA then had to assess
whether the licences had been used over the licence period before they could
reissue the licences
- stakeholders
are not clear on the different (and appropriate) responsibilities of the
Minister, the Department and the ACMA
- pricing
of spectrum does not always reflect its value, changes in value over time or
the benefit spectrum provides to society; and the rationale for pricing
discounts lack clarity
- market‐based
activity – specifically trading or leasing spectrum – while
available, is not being made use of extensively
- technical
regulation is too detailed and administratively burdensome
- compliance
and enforcement arrangements do not provide users and the regulator with the
right set of tools.[27]
The Review recommended the following:
1. replace the
current legislative framework with outcomes focussed legislation, that
facilitates timely allocations, greater flexibility of use, including through sharing
and trading of spectrum, and delivers improved certainty for market participants
2. improve the
integrity and consistency of the framework by incorporating the management of
broadcasting spectrum and better integrating public sector agencies through the
reporting of their spectrum holdings and allowing those agencies to lease, sell
or share that spectrum for their own benefit
3. review
spectrum pricing arrangements to make these consistent and transparent in order
to support efficient use and to facilitate secondary markets.[28]
The Review recommended simplified regulatory structures,
streamlined processes, and clarification of the respective roles of the
Government and the ACMA.[29]
Consistent with the Government’s deregulation agenda, it urged greater
use of market mechanisms, a single licensing system, and reform of current
allocation processes and device supply regulations. It recommended also that
the government provide more opportunities for spectrum users to participate in
spectrum management, through delegation of functions and user driven dispute
resolution procedures, incorporation of broadcasting spectrum into the same
framework as other radio spectrum, and introduction of a ‘proportionate
and graduated’ set of enforcement mechanisms for policing breaches of the
licencing conditions.[30]
The Government agreed to the Review recommendations in
August 2015,[31]
and ultimately an exposure draft for a Bill to create an entirely new Act was
released in May 2017.[32]
However, the process then stalled.[33]
In the middle of 2019, the Minister for Communications, Paul
Fletcher, told CommsDay he was not eager to restart the reform process until he
was satisfied it was absolutely necessary:
“Essentially, I want to be satisfying myself that the
bill makes tangible improvements to the current arrangements, so that we are
committed to a reform process in relation to spectrum,” he explained.
“In particular, I guess, the way that spectrum is allocated, but I think
it’s important to start from a premise that in the broad, we’ve got
a system that has served us reasonably well”.[34]
The Government then announced a short period of
consultation on a draft Bill to amend the current Act, in June 2020.[35]
The current Reform Bill was subsequently introduced into the Parliament on 27
August 2020.
Committee
consideration
Senate Environment and
Communications Legislation Committee
The Bills were referred to the Senate Environment and
Communications Legislation Committee (the Senate Committee) for inquiry and
report by 4 November 2020.[36]
The Senate Committee recommended that the Bills be passed.[37]
Australian Labor Party
(ALP) members of the Senate Committee stated that they ‘broadly support
the Bills’.[38] However, they expressed concerns about the extent of
the delays between the announcement of the Spectrum review and the introduction
of the Bills to the Parliament noting that ‘the delay means the
ACMA has conducted spectrum auctions without the benefit of the streamlined
approach that was identified as a key area in need of reform’.[39]
Further, the ALP members of
the Senate Committee noted:
… despite years of delay, the Bills do not address all
of the recommendations of the Spectrum Review … the Bills do not
integrate the management of broadcasting spectrum or create a single licensing
system, for example, and that the Government could provide no advice or forward
plan as to when these things may be addressed in future, beyond a general ‘business
as usual’ commitment to continuous reform.[40]
Senate Standing Committee for the
Scrutiny of Bills
The Senate Standing Committee for the Scrutiny of Bills
has commented on the Reform Bill.[41]
Those comments are canvassed under the heading ‘Key issues and
provisions’ below.
Policy
position of non-government parties/independents
Rebekha Sharkie of Centre Alliance expressed her support
for the Bills. She acknowledged that the legislation was ‘the result of
an extensive and exhaustive review’ which had ‘developed a targeted
set of amendments which will add flexibility and provide greater certainty’.[42]
Shadow Minister for Communications, Michelle Rowland also
spoke in favour of the Bill, with some qualifications.
The Bill also amends the act
to provide for the Minister to issue ministerial policy statements, which the
ACMA must have regard to in exercising its spectrum management. The roles of
the Minister and the ACMA are clarified. The Minister will have less
involvement in day-to-day spectrum management decisions that are properly the
responsibility of the regulator and will have the power to issue Ministerial
policy statements to guide the ACMA in its spectrum management functions.
Spectrum allocation and reallocation processes have been streamlined. The ACMA
will have greater flexibility to develop fit-for-purpose allocation
arrangements in order to bring spectrum to market within shorter time frames
where this is appropriate. This fixes some known issues such as the need for
bespoke solutions to shortcomings in the system. However, it does not address
the growing need for the ACMA to be able to defragment spectrum at the end of
20-year spectrum licences to ensure the most efficient use of spectrum while
minimising the cost and disruption to government and other operators of having
to clear spectrum ….[43]
Position of
major interest groups
The reform of the spectrum management legislative
framework has been the subject of extensive consultation over an extended
period of time. The Senate Committee received eight submissions. Submitters to
the Senate Committee were broadly supportive of the proposed amendments with
some exceptions.[44]
The concerns raised are canvassed under the relevant schedules set out below.
Financial
implications
According to the Explanatory Memoranda to the Bills, the
amendments will have no financial impact.[45]
Statement of Compatibility with Human Rights
As required under Part 3 of the Human Rights
(Parliamentary Scrutiny) Act 2011 (Cth), the Government has assessed
the Bills’ compatibility with the human rights and freedoms recognised or
declared in the international instruments listed in section 3 of that Act. The
Government considers that the Bills are compatible.[46]
Parliamentary Joint Committee on
Human Rights
The Parliamentary Joint Committee on Human Rights (the
Human Rights Committee) considered the creation of offences and civil penalties
in Schedule 4 of the Reform Bill and their enforcement in accordance with
Schedule 6.[47]
The Human Rights Committee sought further information from the Minister in
relation to:
- whether
the proposed civil penalties in Schedules 4 and 6 of the Bill could apply to
members of the public, including volunteers working under an organisation which
holds a radiocommunications licence and
- whether
any of the civil penalties in Schedule 4 could be characterised as criminal for
the purposes of international human rights law, and if so, how are they
compatible with criminal process rights.[48]
In relation to the civil penalties in Schedules 4 and 6, the
Minister advised:
Schedule 4 of the Bill repeals and substitutes Part 4.1 of
the Act which deals with the regulation of radiocommunications equipment and
prohibitions regarding possession and use…
While these provisions can apply to individuals, the high levels
of civil penalty available under section 176 would not apply until processes
specified in the Bill had been undertaken. These include the Australian
Communications and Media Authority (ACMA) issuing a permanent ban by
legislative instrument, following public consultation, and the expiry of any
amnesty period determined by ACMA, during which the individual would have the
opportunity to forfeit the equipment without penalty. It is also expected that
alternative enforcement options will generally be more appropriate in the case
of non-compliance by individuals …
Schedule 6 of the Bill introduces a graduated set of
enforcement tools to enable ACMA to take proportionate action in response to
non-compliance with the provisions of the Act. As part of this, Schedule 6
introduces several civil penalty provisions and also repeals a number of the
current criminal penalties and replaces these with civil penalty provisions
where this provides a more appropriate response than a criminal sanction.
Schedule 6 also contains a number of civil penalties that
could, in some circumstances, apply to an individual. These provisions include
amendments to section 46, which concerns the operation of a radiocommunications
device without a licence; section 47, which concerns the unauthorised
possession of a radiocommunications device; and section 197, which concerns
reckless conduct that may result in substantial interference, disruption or
disturbance to radiocommunications.
Sections 46 and 47 would not apply to individuals who were
working for an organisation that holds an appropriate licence under the Act.
Section 197 concerns conduct that can cause significant harm to
radiocommunications and risks to health and safety.
The remaining civil penalty provisions in Schedules 4 and 6
to the Bill apply to either licensees or businesses that deal with
radiocommunications equipment and … this class of persons can reasonably
be expected to be aware of their obligations under the legislation.[49]
In relation to the characterisation of the civil penalty
provisions the Minister stated:
Having regard to the aims, quantum, exemptions and broader
regulatory context, I consider it is appropriate to conclude that these civil
penalty provisions should not be regarded as criminal penalties for the purposes
of human rights law.
The civil penalties in the Bill are intended to regulate
conduct in a manner proportionate with reference to the regulatory context, and
the nature of the regulated industry.[50]
And further:
It is also important to note that the criminal process
guarantees contained in the [International Covenant on Civil and Political
Rights] are not limited by the provisions of the Bill. This includes the right
to the presumption of innocence, the right to a fair trial and the right not to
be tried twice for the same offence.[51]
In light of the Minister’s response, the Committee
had no further comment and concluded its consideration of the Reform Bill.[52]
The Committee had no comment on the other Bills.[53]
Schedule 1
Commencement
The amendments in Schedule 1 to the Reform Bill commence on
the earlier of a day to be fixed by Proclamation or six months after Royal Assent.
Key issues and provisions
Currently, section 3 of the Radiocommunications
Act states that the object of the Act is to provide for management
of the radiofrequency spectrum and specifies eight separate aims that are to be
achieved.
Item 1 of Schedule 1 to the Reform Bill repeals and
substitutes section 3 to provide a simplified objects clause. It operates so
that the object of the Radiocommunications Act is to promote the long‑term
public interest derived from the use of the spectrum by providing for the
management of the spectrum in a manner that:
- facilitates
the efficient planning, allocation and use of the spectrum
- facilitates
the use of the spectrum for commercial purposes and for defence purposes,
national security purposes and other non‑commercial purposes (including
public safety and community purposes) and
- supports
the communications policy objectives of the Commonwealth Government.
Stakeholder comments
The ABC submitted that in order:
… to underline the importance of public broadcasting,
the new Object section of the Act should explicitly include the term
“national broadcasting purposes” as one of the non-commercial uses
of spectrum, as it delivers significant benefits to the Australian public.[54]
Schedule 2
Commencement
The amendments in Schedule 2 to the Reform Bill commence at
the same time as the amendments in Schedule 1 to the Bill.
Key issues and provisions
Item 2 of Part 1, Schedule 2 to the Reform Bill
inserts proposed Part 1.5—Ministerial policy statements and
proposed Part 1.6—The ACMA’s work program into the Radiocommunications
Act.
The amendments in Schedule 2 to the Reform Bill dovetail
with the requirement in the updated objects clause that the Radiocommunications
Act ‘supports the communications policy objectives of the Commonwealth
Government’. They respond to the recommendation of the Spectrum Review
that ‘the roles and responsibilities of the Minister and the ACMA’
are clarified.[55]
Ministerial policy statements
Within new Part 1.5, proposed section 28B empowers
the Minister, by notifiable instrument, (called a Ministerial policy
statement) to specify Commonwealth Government policies in relation to
ACMA’s performance of its spectrum management functions or
ACMA’s exercise of its spectrum management powers.
According to the Explanatory Memorandum to the Reform Bill, the matters that
could be addressed in a Ministerial policy statement include:
- criteria to be considered by ACMA when setting
allocation limits
- guidance
on what is considered to be in the long-term public interest, in line with the
object of the Act, and considerations to be taken into account by ACMA in
making renewal decisions or when applying a public interest test
- guidance on direct allocation of spectrum licences
- guidance on the exercise of any or all of
ACMA’s other new powers under these amendments.[56]
Where a Ministerial policy statement has been made, proposed
section 28C requires the ACMA to have regard to it.
Scrutiny of Bills Committee
comments
The Scrutiny of Bills Committee pointed out that
notifiable instruments ‘are not subject to the tabling, disallowance,
sunsetting or consultation requirements applying to legislative
instruments’ and were, therefore, not subject to Parliamentary scrutiny.[57]
The Explanatory Memorandum to the Reform Bill describes
the use of a notifiable instrument as fitting ‘within the broader policy
intent of the Bill, to empower ACMA, as the regulator, to manage the
administration of the spectrum and to reduce the Minister’s involvement
in the day-to-day administrative processes of ACMA’.[58]
However the Scrutiny of Bills Committee sought advice from
the Minister as to:
- why
it is necessary and appropriate for guidance from the Minister under proposed
section 28B to be a notifiable instrument and
- whether
the Bill can be amended to provide that any instrument made under proposed section
28B will be a legislative instrument.[59]
The Minister subsequently advised:
As part of efforts to better delineate the role of the
Minister and ACMA, in line with the recommendations of the 2015 Spectrum
Review, these policy statements are intended to provide a new tool that enables
the Minister to set strategic policy and to require ACMA to have regard to this
policy guidance.
As such, they are designed to provide guidance, without
compelling ACMA by legislative instrument or Ministerial direction. This means
that MPSs are not legislative in nature, as they do not determine or alter the
content of the law, nor do they create, vary or remove an obligation or right.
MPSs are not intended as a prescriptive approach and instead serve to emphasise
the Minister's role in setting strategic policy priorities.
As policy guidance from the Minister to the regulator, it is
not appropriate that MPSs be subject to parliamentary disallowance, as would
generally be the case for a legislative instrument. However, it is appropriate
to provide a high level of transparency on the matters covered by MPSs.
In this context, making MPSs notifiable instruments will help
provide the necessary and appropriate transparency, and allow for parliamentary
and stakeholder visibility of the content of MPSs.[60]
ACMA’s work program
Within new Part 1.6, proposed section 28E requires
the ACMA to determine a work program in relation to its spectrum management
functions and its spectrum management powers. This must be undertaken at least once
in each financial year and must be for a period of not less than five financial
years. The work program is to be published on the ACMA’s website.
Proposed section 28F of the Radiocommunications
Act requires the ACMA to consult the Minister and to undertake any other
consultation that is appropriate and reasonably practicable to undertake before
determining a work program.
Item 3 in Part 2 of Schedule 2 to the Reform Bill
makes a consequential amendment to section 57 of the ACMA Act so that
ACMA’s annual report will contain information on the extent to which ACMA’s
activities in the relevant financial year gave effect to the work program.
According to the ACMA the ‘provisions give
legislative recognition to current ACMA practice, in place for the past 11
years, of publishing a Five-Year Spectrum
Outlook, including an annual work program’.[61]
Comment
The Spectrum review states:
Stakeholders want greater transparency and accountability in
decision‐making, and a clear distinction to be made between the
responsibilities of the Minister/Government to set policy and the ACMA to
implement policy …
Essentially the approach recommended in this review aims to
improve the arrangements for transparent government policy setting, whilst
reducing Ministerial involvement in ACMA process steps.[62]
The amendments in Schedule 2 are consistent with that aim.
Schedule 3
Commencement
The amendments in Schedule 3 to the Reform Bill commence at
the same time as the amendments in Schedule 1 to the Bill.
Key issues and provisions
The Radiocommunications Act defines three separate
licence categories for spectrum.
First, spectrum licences authorise exclusive use of
specific portions of spectrum in a particular geographic area (including
national licences). Spectrum licences afford the most protection from
interference, and because of this and their technological neutrality, they are
generally more suitable to trading. Spectrum licences are issued using a
price‐based method, through auction, tender or pre‐determined or
pre‐negotiated price, for a period of up to 15 years.[63]
Second, apparatus licences authorise a person to
operate a specified transmitter or receiver in a defined part of the spectrum,
in accordance with licence conditions. These licences are generally issued for
up to five years and are renewable upon expiry, subject to the ACMA’s
consent.[64]
Third, class licences authorise users of designated
segments of spectrum to operate a low‐power or localised service (such as
Wi‐Fi networks or cordless telephones), provided the device complies with
the licence conditions. Class licences establish parts of the spectrum as
commons, do not involve licence fees and provide users with no protection from
interference.[65]
The Bill retains these three separate licence classes.
However, Schedule 11 of the Reform Bill amends provisions in
relation to the duration of licences so that the maximum duration of a spectrum
licence[66]
and of an apparatus licence is 20 years.[67]
Move to a single licensing system
The Spectrum review recommended a ‘single licensing
system’, with allocation and reallocation processes that were streamlined
and made consistent—thereby reducing regulatory burden.[68]
Many of the provisions in Schedule 3 to the Reform Bill operate
to align the processes for spectrum licences and apparatus licences. This Bills
Digest identifies where equivalent provisions are inserted in respect of those
licences.
Issuing spectrum licences
Currently subsection 60(1) of the Radiocommunications
Act requires the ACMA to determine, in writing, the procedures be applied
in allocating spectrum licences. These procedures are auction, tender or
allocation for a pre-determined price or a negotiated price. The Reform Bill
expands the range of procedures that may be determined to include direct
allocation and a combination of any or all of those procedures.[69]
The determination is a legislative instrument.[70]
Importantly a legislative instrument made under subsection 60(1) of the Radiocommunications
Act is not disallowable.[71]
Where the allocation is to occur by auction, existing
subsection 60(2) gives examples of matters that procedures may deal with, such
as:
- the
types of auction
- the
advertising of auctions
- entry
fees for prospective bidders
- reserve
prices (if any)
- deposits
(if any) payable by successful bidders and
- the
methods of payment for licences.
The Reform Bill inserts two additional examples of matters
that may be dealt with in auction procedures being:
- eligibility
requirements (if any) for participation in auctions and
- credits
(if any) for prospective bidders.[72]
Items 28 inserts paragraphs in equivalent terms
into subsection 60(3) which deals with procedures for allocation by tender. Item
30 inserts paragraphs in equivalent terms into subsection 60(4) which deals
with allocation for a pre-determined or negotiated price.
Allocation limits
Currently subsection 60(5) of the Radiocommunications
Act provides that the procedures determined by the ACMA may impose certain
limits. The Reform Bill amends that subsection so that the procedures
determined by ACMA may either:
- impose
limits on the aggregate of the parts of the spectrum that may be used by any
one person or a specified person under transmitter licences and existing
spectrum licences; and as a result of the allocation of spectrum licences or
- impose
limits on the aggregate of the parts of the spectrum that may, in total, be
used by the members of a specified group of persons under transmitter licences
and existing spectrum licences; and as a result of the allocation of spectrum
licences.[73]
According to the Explanatory Memorandum to the Reform
Bill:
Allocation limits are an important tool to help promote
competition and allocative efficiency in markets that rely on spectrum, which
in turn can help promote the long-term public interest derived from the use of
the spectrum. They can be imposed to limit the amount of spectrum any one
licensee can acquire through an allocation process (thereby preventing
monopolisation of the spectrum), or may be used to establish conditions that
encourage the participation of new entrants in the market.[74]
Before determining procedures which may impose such limits,
the ACMA must consult the ACCC about whether the procedures should impose
limits and, if so, the nature of those limits.[75]
Direct allocation of spectrum
licences
Currently, the Radiocommunications Act does not
allow the ACMA to allocate spectrum licences directly. The Reform Bill provides
that a reference to direct allocation of a spectrum licence means
an allocation to a person determined under section 60, or a person ascertained
in accordance with the procedures determined under section 60.[76]
The ACMA must not exercise its power to make a direct allocation of spectrum
licence where the relevant part of the spectrum is licensed under another
spectrum licence.[77]
According to the Radiocommunications consultation outcomes
paper:
The amendments propose to grant ACMA the power to directly
allocate spectrum licences in situations where it is preferable to allocate a
spectrum licence to a particular person and as a partial replacement for the
conversion process currently in the Act.[78]
And further:
Direct allocation is intended to be just one of a number of
tools ACMA can use to allocate spectrum as part of a more flexible and
fit-for-purpose framework. It is not necessarily envisaged as a common
practice.[79]
Contents of spectrum licences
The Reform Bill inserts a new process for the renewal of
spectrum licences.[80]
Renewal statement
Once the provisions in Schedule 3 to the Reform Bill
commence every spectrum licence that is issued must include a renewal
statement which specifies one of the following:
- the
licence cannot be renewed
- the
licence may be renewed at the discretion of the ACMA or
- the
licence may be renewed at the discretion of the ACMA so long as specified
circumstances exist.[81]
In that case, ‘the renewal statement will specify what these
circumstances are in each case, so licensees have clarity on what is required
for their licence to be eligible for renewal’.[82]
Renewal application period
Where the renewal statement provides that the licence may
be renewed at the discretion of the ACMA or may be renewed at the discretion of
the ACMA so long as specified circumstances exist, the licence must also contain
a renewal application period statement for the licence.[83]
The renewal application period for a spectrum licence must begin
at a time when the licence is in force and end before the licence is due to
expire.[84]
A spectrum licence may include a statement to the effect
that a specified period is the renewal decision‑making period
statement for the licence.[85]
Public interest statement
If a spectrum licence provides that the licence may be
renewed at the discretion of the ACMA or may be renewed at the discretion of
the ACMA so long as specified circumstances exist the licence may also
include a statement to the effect that the ACMA will not renew the licence
unless the ACMA is satisfied that it is in the public interest to do so. This
is called a public interest statement.[86]
According to the Explanatory Memorandum to the Reform
Bill:
… some of the matters that ACMA may consider in making
a decision regarding the public interest of renewing a spectrum licence
include: if the licence is used to supply essential public services and there
is the potential that a change in licensees may put at risk delivery of
services to a significant number of people, whether the incumbent can
demonstrate substantial investment and past long-term use of the licensed
spectrum, and considerations of the highest value use of the spectrum.[87]
Stakeholder comments
Some stakeholders sought greater clarity on what a
‘specified circumstance’ might be and how this differed from the
‘public interest test’.[88]
Communications Alliance Ltd was also concerned about the
‘public interest’ test stating:
The purpose of such a test appears to be to prevent spectrum
being locked up in uses that are no longer considered to be ‘the highest
value use’. While this is a valid consideration, this must be balanced
against the high upfront and long-lasting investments that are typically
made—especially in the satellite sector—for the provision of
valuable services to the public.[89]
Varying with agreement
Section 72 of the Radiocommunications Act provides
for the ACMA to vary a spectrum licence with the written agreement of the
licensee by including one or more further conditions or by revoking or varying
any conditions of the licence. (See the discussion about conditions under
Schedule 5.) The Reform Bill expands on the ways in which a spectrum licence
may be varied with the agreement of the licensee to include:
- varying
the renewal statement included in the licence
- omitting
the renewal statement included in the licence and substituting another renewal
statement
- varying
the renewal application period statement included in the licence
- omitting
the public interest statement included in the licence
- omitting
the renewal decision‑making period statement included in
the licence or
- varying
the renewal decision‑making period statement included in the licence.[90]
Variation with no agreement
Section 73 of the Radiocommunications Act allows the
ACMA to vary a spectrum licence by including one or more further conditions or
by revoking or varying any conditions of the licence, other than core
conditions.
Item 43 of the Reform Bill applies where a spectrum
licence includes a renewal statement which operates so that the licence may be
renewed at the discretion of AMCA provided that specified circumstances exist.[91]
In that case, the ACMA may, by written notice to the licensee vary the licence
by
- varying
the circumstances specified in the renewal statement included in the licence or
- omitting
the renewal statement and substituting a statement to the effect that the
licence may be renewed at the discretion of the ACMA so long as specified
circumstances exist.[92]
Where a renewal statement is changed using either of the
above methods, the ACMA must not vary the licence unless it is satisfied that exceptional
circumstances exist that warrant the variation.[93]
A decision to renew a spectrum licence with different
conditions may be subject to reconsideration by the ACMA.[94]
Renewal of spectrum licences
According to the Australian Mobile Telecommunications
Association (AMTA):
Spectrum licences typically involve significant investment
and such investment, in turn, requires long term certainty. A clearly defined
pathway for renewal of spectrum licences as well as the associated processes
and timelines is therefore critical to enable the continued multi-billion
dollar investment in Australia’s mobile networks.[95]
The Reform
Bill provides that a
licensee of a spectrum licence may apply to the ACMA for the licence to be
renewed.[96]
In that case, the application must be made within the renewal application
period if one is specified in the licence—otherwise the application must
be made within two years of the date that the licence is due to expire.[97]
This two year period is referred to by submitters to the Senate Committee, but
not in the Bill itself, as the ‘default renewal period’.
The Reform Bill contains a deeming provision so that if the
ACMA gives a person a notice that is expressed to be a licence renewal notice, and
the person responds to the notice by paying to the ACMA (on or before the due
date) the amount specified in the notice, the person is taken to have made an
application for the licence (or licences) to be renewed.[98]
Further information
If an application is made for the renewal of a spectrum
licence, the ACMA may, by written notice given to the applicant, require the
applicant to provide further information within the period specified in the notice.
Where the applicant does not comply with the requirement, the ACMA may notify
the applicant that it refuses to consider the application or that it refuses to
take any action, or any further action, in relation to the application.[99]
Stakeholder comments
Some stakeholders considered that a longer ‘default
renewal period’ is required. For instance, AMTA proposed a five year
period rather than the two years specified in the Reform Bill on the grounds
that ‘it usually takes at least two years for a licensee to exit a band
and this process could take as long as five years’.[100]
Telstra echoed this sentiment stating:
In the worst case, after allowing for the ACMA’s
decision making process, a two year default renewal application period for
spectrum licences could mean a mobile network operator may receive notification
that a spectrum licence is not to be renewed with less than one year remaining
on its licence term—during which time all services reliant on that
spectrum licence would need to be cleared. This is insufficient notice for a
mobile operator, with several million customers, to clear a band.[101]
Renewal of spectrum licences
When an application is made for the renewal of a spectrum
licence, the ACMA may, without following the procedures determined under
section 60, renew the licence by issuing to the applicant a new spectrum
licence.[102]
If the licence included a renewal statement
to the effect that the licence may be renewed at the discretion of the
ACMA so long as specified circumstances exist, the ACMA must be satisfied that
the specified circumstances exist.[103]
The ACMA must not renew the licence by issuing a new
spectrum licence that specifies a period that is 10 years or longer
unless the ACMA is satisfied that it is in the public interest to do so.[104]
In deciding whether to renew the licence, the ACMA may have regard to the
following matters:
- whether
the applicant has an outstanding liability to pay an amount of apparatus
licence tax, spectrum licence tax, spectrum access charge or interim tax
- whether
the applicant has contravened a condition of the licence
- whether
a person authorised by the applicant has contravened a condition of the licence
and the applicant was aware, or ought reasonably to have been aware, of the
contravention—but failed to take reasonable steps to prevent it
- whether
the applicant held another licence that was cancelled during the previous two
years.[105]
Notice of refusal to renew
If the ACMA refuses to renew a spectrum licence or renews
a spectrum licence but not on the same conditions, the ACMA must give the
licensee a written notice stating that fact.[106]
A decision to refuse to renew a spectrum licence, or a decision to renew a
spectrum licence with different conditions may be subject to reconsideration by
the ACMA.[107]
Timeline for decision making
Existing section 286 of the Radiocommunications Act
provides that where a person makes an application to the ACMA for such
decision, that decision must be made within 90 days of ACMA receiving the
application. The exception to that general rule is where the ACMA has requested
further information from the applicant in writing, in which case the decision
is to be made within 90 days of ACMA receiving that further information. If ACMA
fails to advise the applicant within these time frames, it is deemed to have
made a decision to refuse the application.
What the Reform Bill does
First, the Reform Bill expands on these provisions so
that there are distinctions between the decision-making timeframes for spectrum
licences and apparatus licences.[108]
The effect of the amendments is to maintain the existing decision-making time
frame for apparatus licences.
Second, it creates new decision-making timeframes with
respect to applications for renewal of a spectrum licence.
A renewal decision‑making
period statement is included in a spectrum licence
Where a renewal decision‑making period statement is
included in a spectrum licence, the ACMA must make a decision about the
renewal of the spectrum licence:
- before
the end of the renewal decision‑making period specified in the statement or
- if
the ACMA has, within that period required the applicant to give the ACMA
further information then the decision-making period is extended by the number
of days between when the notice was given and when the further information is
received.[109]
If the ACMA has not informed the applicant of its decision
within this timeframe—then the ACMA’s decision is deemed to be to
refuse the application.[110]
In that case, it must prepare a written statement explaining why it was unable
to make its decision within the required timeframe and give the statement to
the applicant as soon as practicable after the end of that period.[111]
Renewal decision making period is
not included in the licence
If a renewal decision‑making period statement is not
included in a spectrum licence, the ACMA must make a decision about an
application for the renewal of the spectrum licence:
- within
six months after receiving the application or
- if
within that period the ACMA required the applicant to give it further
information—within six months of receiving the further information.[112]
Otherwise, the ACMA is deemed to have made a decision to
refuse the application.[113]
In that case, the ACMA must prepare a written statement explaining why it was
unable to make its decision within the required timeframe and give the
statement to the applicant as soon as practicable after the end of the six
month decision-making period.[114]
Stakeholder comments
Some stakeholders have raised concerns about the deemed
decision to refuse a renewal application—stating that it ‘should be
reversed’.[115]
However, it seems unlikely that a deemed decision to renew a spectrum licence
would not be in the public interest, given the duration of the licence and the
implications for the ACMA in having to manage spectrum that may have been
inappropriately allocated.
Issuing further licences
Existing section 78 of the Radiocommunications Act requires
the ACMA to, from time to time, publish on its website a notice that:
- states
where information may be obtained about the spectrum licences that will expire
during a period specified in the notice and the parts of the spectrum to which
they relate and
- invites
expressions of interest from persons who wish to have issued to them spectrum
licences relating to those parts of the spectrum.
Apparatus licences
Existing section 97 provides that the ACMA may issue transmitter
licences and receiver licenses. Item 54 of Schedule 3 to the Reform Bill
repeals and replaces subsections 97(2) and (3) of the Radiocommunications
Act to restate what transmitter and receiver licences authorise the licence
holder to operate.
Many of the provisions relating to licences are in
equivalent terms as shown above. The matters discussed below are specific to
apparatus licences.
Price-based allocation system
Currently Part 3.3 of the Radiocommunications Act
sets out matters relating to issuing apparatus licences. Within that Part,
existing section 106 provides that the ACMA may determine, in writing, a
price-based system for allocating and/or issuing specified transmitter
licences. That determination is a legislative instrument.[116]
Importantly a legislative instrument made under subsection 106(1) of the Radiocommunications
Act is not disallowable.[117]
Items 67–73 of the Reform Bill amend existing
section 106 to, amongst other things:
- add
additional examples of the types of eligibility criteria a prospective licensee
must meet[118]
- provide
flexibility in terms of how the ACMA can impose allocation limits in
price-based allocations[119]
and
- impose
a requirement on the ACMA to consult with the ACCC about limits in any
particular allocation process.[120]
Class licences
Currently Part 3.4 of the Radiocommunications Act governs
the issuing of class licences. In particular subsection 138(1) provides that
the ACMA must not issue a class licence that authorises the operation of
radiocommunication devices at certain frequencies.
The Reform Bill repeals subsection 138(1) and inserts proposed
subsections 138(1) and (1A) so that where a spectrum licence authorises the
operation of radiocommunications devices at one or more frequencies and within
one or more areas then the ACMA must not issue a class licence that authorises
the operation of radiocommunications devices at those frequencies and within those
areas.
Similarly if a marketing plan is in force in relation to
the issue of a spectrum licence that authorises the operation of
radiocommunications devices at one or more frequencies and within one or more
areas then the ACMA must not issue a class licence that authorises the
operation of radiocommunications devices at those frequencies and within those
areas.[121]
The exception to these general rules lies in existing
subsection 138(2) of the Radiocommunications Act which is not changed by
the Reform Bill. That exception is:
- the
ACMA must be satisfied that issuing the class licence would not result in
unacceptable levels of interference to the operation of radiocommunications
devices operated, or likely to be operated, under spectrum licences and issuing
the class licence would be in the public interest and
- the
ACMA must consult all licensees of spectrum licences who may be affected by the
proposed class licence.
Re-allocating spectrum
Currently Part 3.6 of the Radiocommunications Act
deals with re-allocating spectrum which is encumbered.
The Reform Bill makes a range of amendments, including
deletions[122]
to ensure that the ACMA rather than the Minister is the decision-maker in
relation to re-allocation declarations.[123]
Schedule 4
Commencement
The amendments in Part 1 of Schedule 4 to the Reform Bill
commence at the same time as the amendments in Schedule 1 to the Bill.
The amendments in Part 2 of Schedule 4 commence immediately
after the commencement of the amendments in Part 1 of Schedule 4 or on the
commencement of the Federal Circuit and Family Court of Australia Act 2020—whichever
is the later. However, the provisions do not commence at all if the Federal
Circuit and Family Court of Australia Act 2020 does not commence.[124]
The amendments in Parts 3 and 4 of Schedule 4 commence at
the same time as the amendments in Schedule 1 to the Reform Bill.
Key issues and provisions
Currently the ACMA is empowered under the Radiocommunications
Act to:
… make standards applying to devices and labelling
notices that apply to manufacturers and importers of devices for purposes
including managing electromagnetic compatibility, managing interference and the
protection of health and safety.
The Bill proposes to allow the ACMA to make equipment rules
which could broaden the range of parties in the equipment supply chain on whom
compliance obligations may be imposed, specifically recognising online supply.[125]
The Reform Bill inserts proposed Part
4.1—Equipment into the Radiocommunications Act.[126]
Relevant to the terms of new Part 4.1 are the following definitions which are inserted
by the Bill.
The term, equipment means:
- a
radiocommunications transmitter or radiocommunications receiver
- anything
designed or intended for radio emission
- anything,
irrespective of its use or function or the purpose of its design, that is
capable of radio emission or
- anything
that has a use or function that is capable of being interfered with by radio
emission.[127]
For the purposes of the Reform Bill, the term interference
means:
- in
relation to radiocommunications—interference to, or with,
radiocommunications that is attributable, whether wholly or partly and whether
directly or indirectly, to an emission of electromagnetic energy by equipment
or
- in
relation to the uses or functions of equipment—interference to, or with,
those uses or functions that is attributable, whether wholly or partly and
whether directly or indirectly, to an emission of electromagnetic energy by
equipment.[128]
The term, operate
- when
used in relation to a radiocommunications transmitter, receiver or device; a
transmitter that is a radiocommunications transmitter; or equipment that is a
radiocommunications transmitter or receiver means operate for the purposes of,
or in connection with, radiocommunications
- when
used in relation to a transmitter that is not a radiocommunications
transmitter—means operate (within the ordinary meaning of that
expression) or
- when
used in relation to equipment that is neither a radiocommunications transmitter
nor a radiocommunications receiver—means operate (within the ordinary
meaning of that expression).[129]
Making equipment rules
The ACMA may, by legislative instrument, make rules (called
equipment rules) relating to equipment.[130]
The relevant equipment rules are intended to achieve certain objectives,
including but not limited to:
- ensuring
the electromagnetic compatibility of equipment[131]
- containing
interference to radiocommunications[132]
- containing
interference to any uses or functions of equipment[133]
- protecting
the health or safety of individuals from any adverse effect likely to be
attributable to radio emissions resulting from a reasonably foreseeable use (or
misuse) of radiocommunications transmitters[134]
and
- ensuring
that radiocommunications transmitters and designated radiocommunications receivers
are not supplied to persons intending to operate those transmitters and/or
receivers unless those persons are authorised by or under the Radiocommunications
Act.[135]
The equipment rules may make provision in relation to a
matter by conferring a power on the ACMA.[136]
In addition, the equipment rules may make provision in relation to a matter by
conferring a power on a person who holds a specified kind of accreditation.[137]
(See the discussion about accreditation under Schedule 5.)
Prescribing standards
The equipment rules may prescribe standards which require
that equipment has particular design features or meets particular performance
requirements.[138]
Importantly an equipment standard must also be consistent
with the objectives for equipment rules which are set out above.[139]
Obligations and prohibitions
The equipment rules may impose obligations in
relation to equipment such as ensuring:
- quality
assurance programs in relation to equipment are conducted
- tests
in relation to equipment are conducted
- labels
are applied to equipment
- records
are kept or retained
- things
that are specified in the legislative rules are done.[140]
In addition, the Reform Bill provides that the equipment
rules may impose prohibitions on a person in relation to equipment, for
instance:
- prohibiting
a person from applying a specified kind of label to equipment other than in
specified circumstances[141]
and
- prohibiting
a person who supplies (or offers to supply) equipment from publishing certain
material about the equipment on the person’s website other than in
specified circumstances.[142]
Permits
The equipment rules may also prohibit the doing of an act
or thing by a person unless the person holds a permit issued by the ACMA which authorises
the person to do that act or thing.[143]
About
offences and penalties
Breaching the equipment rules and
permit conditions
The Reform Bill creates criminal offences broadly speaking
where:
- a
person is subject to a prohibition imposed by the equipment rules and
the person engages in conduct which contravenes the prohibition[145]
and
- a
person is subject to an obligation imposed by the equipment rules and the
person engages in conduct which contravenes the obligation.[146]
The maximum penalty in each case is 500 penalty units.[147]
In addition, the Reform Bill creates a criminal offence
where a person is subject to an obligation imposed by the equipment
rules, that obligation is an obligation to do an act or thing within a
particular period or before a particular time and the person engages in conduct
which contravenes the obligation.[148]
The maximum penalty in this case is 500 penalty units.[149]
However, the offence is a continuing offence. This means that for each day that
the offence continues the maximum penalty is equivalent to 10 per cent of the
maximum penalty—that is 50 penalty units per day.[150]
As the provisions creating
these offences do not specify a fault element, the automatic fault element is
intention.[151]
Where there is insufficient evidence to prove beyond a reasonable doubt that
the person intended the conduct, the Reform Bill provides for the imposition
of civil penalties in respect of the same circumstances as an alternative. In
that case the maximum amount of the civil penalty is also 500 penalty units.[152]
Using protected symbols
About protected symbols
The Reform Bill empowers the ACMA to make legislative
instruments setting out the design of a symbol, the purpose of which is to
indicate compliance by equipment with any standards that apply to the equipment
and are prescribed by the equipment rules. This is called a protected
symbol.[153]
Where a label which embodies such a symbol is applied to
equipment, it is taken to indicate that the equipment meets the requirements of
any standards that apply to the equipment and are prescribed by the equipment
rules.[154]
Using a protected symbol
Generally speaking the Reform Bill imposes civil penalties
on a person who applies a protected symbol (or a symbol so closely resembling a
protected symbol as to be likely to be mistaken for it) to goods that are imported,
manufactured, produced, sold, offered for sale or let on hire. In that case,
the maximum amount of the penalty is 50 penalty units.[155]
Interim bans
The ACMA may, by notifiable instrument, impose an interim
ban on equipment of a specified kind if:
- the
ACMA has reasonable grounds to believe that equipment of that kind is designed
to have an adverse effect on radiocommunications
- the
ACMA has reasonable grounds to believe that a reasonably foreseeable use (or
misuse) of equipment of that kind would be likely to substantially interfere
with, disrupt or disturb radiocommunications or
- the
equipment consists of radiocommunications transmitters and the ACMA has
reasonable grounds to believe that radio emissions resulting from the operation
of that equipment would be likely to adversely affect the health or safety of
individuals.[156]
An interim ban comes into force on the day specified in
the instrument imposing the ban and remains in force for 60 days. The ACMA may,
by notifiable instrument, extend the period of the interim ban by up to 30
days.[157]
In the alternative, the ACMA may, by notifiable
instrument, revoke the ban with effect from the day specified in the
instrument.[158]
The Reform Bill imposes a civil penalty where a person
supplies, or offers to supply, equipment for which an interim ban is in force
to another person if the other person intends to operate the equipment. In that
case, the maximum penalty is 200 penalty units.[159]
In addition the Reform Bill provides that a person must not operate equipment
in respect of which an interim ban is in force.[160]
This is also subject to a maximum penalty of 200 penalty units. Where a person
suffers loss or damage because of conduct that contravened these provisions,
that person may recover the amount of the loss or damage by action in the
Federal Court or the Federal Circuit Court of Australia.[161]
Scrutiny of Bills Committee
comments
The Scrutiny of Bills Committee questioned the use of
notifiable instruments (rather than legislative instruments) to impose an
interim ban on equipment.[162]
As with the Committee’s comments in relation to Schedule 2, it was
concerned that notifiable instruments are not subject to the tabling,
disallowance, sunsetting or consultation requirements that apply to legislative
instruments, and are therefore not subject to parliamentary scrutiny.[163]
The Committee considered that the Explanatory Memorandum to the Reform Bill did
not provide an adequate justification for the use of notifiable instruments and
accordingly requested the Minister’s advice as to why it is necessary and
appropriate for interim bans on equipment, the extension and revocation of
interim bans and the declaration of amnesty periods for permanent bans to be
made by notifiable instrument. The Committee also sought advice on whether the
Bill could be amended to provide that these matters will be dealt with by
legislative instrument.[164]
The Minister advised that ‘[t]he power to make an
interim ban is intended to be used as a temporary, short-term administrative
measure to appropriately manage risks of immediate harm’.[165]
In relation to the declaration of amnesties, the Minister advised:
An amnesty is designed as an administrative tool to increase
the effectiveness of a permanent ban by ameliorating the potential harshness of
a permanent ban on persons who are in possession of prohibited equipment and
the time the ban comes into force…While not designed to be legislative in
nature, transparency is critical for the effective administration of amnesties
and as such, providing that an amnesty may be made by notifiable instrument is
appropriate.[166]
In light of the Minister’s response, the Committee
made no further comment on this matter, but asked that an addendum to the Explanatory
Memorandum containing the key information provided by the Minister be tabled as
soon as practicable.[167]
An addendum to the Explanatory Memorandum has since been
published, stating that it responds to concerns raised by the Scrutiny of Bills
Committee.[168]
Permanent bans
The ACMA may, by legislative instrument, impose a permanent
ban on equipment of a specified kind if:
- the
ACMA is satisfied that equipment of that kind is designed to have an adverse
effect on radiocommunications
- the
ACMA is satisfied that a reasonably foreseeable use (or misuse) of equipment of
that kind would be likely to substantially interfere with, disrupt or disturb
radiocommunications or
- the
equipment consists of radiocommunications transmitters and the ACMA is
satisfied that radio emissions resulting from the operation of that equipment
would be likely to adversely affect the health or safety of individuals.[169]
Criminal offences and civil penalties
The Reform Bill creates criminal offences where a person supplies,
or offers to supply, equipment for which a permanent ban is in force to another
person if the other person intends to operate the equipment. In that case, the
maximum penalty is imprisonment for two years or 1,000 penalty units, or both.[170]
In addition, the Reform Bill provides that a person must not operate equipment
or possess (for the purpose of operating or supplying) equipment in respect of
which a permanent ban is in force.[171]
The maximum penalty in either of those circumstances is also imprisonment for
two years or 1,000 penalty units, or both.[172]
In the alternative, the Reform Bill imposes civil
penalties for equivalent conduct. In each case, the maximum penalty is 1,000
penalty units.[173]
A breach of the civil penalty provisions may give rise to an action for loss or
damage by another person as a result of the conduct which led to the breach.[174]
ACMA may declare an amnesty
The ACMA may, by notifiable instrument, declare an amnesty
period for a specified permanent ban. In that case, the owner of relevant equipment
may, during the amnesty period, agree with the ACMA to forfeit the equipment to
the Commonwealth. Where this occurs the owner of the equipment will not be
guilty of a criminal offence or liable for a civil penalty in respect of
possession of the equipment.[175]
If the ACMA takes possession of the equipment, it must
give the owner a receipt for the equipment. If it is subsequently determined
that the ACMA was not entitled to take possession of the equipment then the
ACMA must take all reasonable steps to return the equipment to its owner.[176]
Once at least 90 days have passed since the ACMA gave the
owner a receipt for the equipment the ACMA may declare, in writing, that the
equipment is forfeited to the Commonwealth. A copy of the declaration must be
given to the owner of the equipment.[177]
The equipment may then be sold, destroyed or otherwise disposed of in
accordance with the directions of the ACMA.[178]
Equipment recalls
The Reform Bill empowers the ACMA to issue a recall
notice, by legislative instrument, in respect of certain equipment. The recall
power applies to:
- equipment
that will or may cause substantial disruption, substantial disturbance or
substantial interference to radiocommunications
- equipment
designed to have an adverse effect on radiocommunications and
- equipment
likely to adversely affect health or safety.[179]
In addition, the ACMA may, by legislative instrument,
issue a recall notice for equipment of a specified kind if a
person, in trade or commerce, supplies, or has supplied, equipment for which a
permanent ban is in force and it is satisfied that one or more suppliers have
not taken satisfactory action to recall the equipment.[180]
In each of those cases, the Reform Bill imposes an
obligation on the ACMA to publish a notice stating:
- a
recall notice has been issued
- the
time when the recall notice commences, or is to commence
- the
kind of equipment to which the recall notice relates and
- the
reason or reasons for issuing the recall notice.[181]
Obligations of a supplier
Once a recall notice has been published a supplier has
certain obligations. These depend on the matters to which the recall notice
refers. They require the supplier to either:
- repair
or modify the equipment specified in the recall notice[182]
or
- replace
it or give a refund.[183]
The supplier bears the cost of repair, modification or
replacement including any necessary transportation costs.[184]
Criminal offences and civil
penalties
The Reform Bill creates a criminal offence where a recall
notice for equipment is in force which requires the person to do one or more
things and a person engages in conduct that contravenes the notice. The maximum
penalty is 1,000 penalty units.[185]
The Bill also imposes a civil penalty in near equivalent terms with an
equivalent maximum penalty of 1,000 penalty units.[186]
Human Rights Committee comments
The Human Rights Committee noted that the Reform Bill
confers on the ACMA the power to make rules prescribing standards of
radiocommunications equipment, and imposing obligations and prohibitions on
equipment, including by establishing penalties for non-compliance. In addition,
the Human Rights Committee noted that these measures may promote the right to
health, by addressing any potential adverse health or safety effects of radio
emissions.
However, of concern to the Human Rights Committee was that
some of the proposed civil penalties in the Reform Bill:
… may engage criminal process rights, if those civil
penalties are more properly to be regarded as criminal penalties for the
purposes of human rights law. The committee notes that if this were the case,
the civil penalty provisions in question must be shown to be consistent with
the criminal process guarantees.[187]
The response from the Minister to the Human Rights
Committee is set out under the heading ‘Parliamentary Joint Committee on
Human Rights’, above.[188]
Stakeholder comments
Communications Alliance Ltd
considers:
… this framework
provides the necessary flexibility and recognition of the wide variety of
supply models and the roles of the various parties in modern supply chains and
will assist in promoting innovation and industry development opportunities within
Australia.[189]
Schedule 5
Commencement
The amendments in Schedule 5 to the Reform Bill commence at
the same time as the amendments in Schedule 1 to the Bill.
Key issues and provisions
Conditions on a spectrum licence
Section 64 of the Radiocommunications Act provides
that a spectrum licence authorises the person specified in the licence as the
licensee—or a person authorised by that person—to operate a
radiocommunications device in accordance with the licence. Operation of a
radiocommunications device is not authorised by the spectrum licence if it is
not in accordance with the conditions of the licence. Matters
that those conditions must or may cover are currently set out in sections
66–71 of the Radiocommunications Act.
Item 4 in Part 1 of Schedule 5 to the Reform Bill inserts
proposed subsections 71(3)–(5) to add the following matters that
may be covered by conditions to a spectrum licence:
- a
condition included in a spectrum licence may confer a power to make a decision
of an administrative character on the ACMA
- a
condition included in a spectrum licence may confer a power to make a decision
of an administrative character on a person who holds a specified kind of
accreditation and
- the
legislative rules may authorise a person who holds a specified kind of
accreditation to charge fees in relation to the exercise by the person of a
power conferred by a condition included in a spectrum licence.
Item 4A in Part 1 of Schedule 5 to the Reform Bill
inserts proposed section 73A to allow a condition of a spectrum licence included
by a variation of the licence to confer administrative decision-making powers
for spectrum licences on the ACMA or on a person who holds accreditation.
Conditions on an apparatus licence
Similarly, section 107 of the Radiocommunications Act
provides that an apparatus licence is subject to the condition that the
licensee—or a person authorised by the licensee to operate a
radiocommunications device under the licence—must comply with the Act.
Item 10 of Part 1 in Schedule 5 to the Bill inserts proposed
section 110A into the Radiocommunications Act to empower the ACMA,
by legislative instrument, to determine that an apparatus licence is taken to
include certain conditions.
Proposed subsections 110A(5)–(7) allow the
legislative instrument to confer administrative decision-making powers for apparatus
licences on the ACMA or on a person who holds accreditation.
Accreditation
Sections 263–266 of the Radiocommunications Act
currently allow the ACMA to accredit persons and, in certain circumstances, to
withdraw that accreditation, based on accreditation principles.
The Reform Bill repeals sections 263, 264 and 266 and
replaces them so that the ACMA may, by legislative instrument, make rules (called
the accreditation rules).[190]
The accreditation rules may:
- deal
with the accreditation process[191]
- provide
for procedures that must be followed in relation to deciding whether to
accredit persons or to withdraw that accreditation[192]
- provide
for the kinds of accreditation and the qualifications and other requirements
required before a person can be given that kind of accreditation.[193]
The Reform Bill makes consequential amendment so that:
- the
ACMA may, by written notice, give a person accreditation, consistent with the accreditation
rules[194]
- the
conditions of any accreditation are consistent with the accreditation
rules[195]
and
- the
ACMA may withdraw accreditation in accordance with the accreditation
rules where it is satisfied that the relevant accreditation is no
longer in accordance with the accreditation rules
or the person has contravened the accreditation rules.[196]
Registration of licences
Section 143 of the Radiocommunications Act requires
the ACMA to establish and keep the Register of Radiocommunications Licences. The
matters to be contained in the Register for spectrum licences and apparatus
licences are set out in sections 144 and 147 of the Radiocommunications Act
respectively.[197]
Currently the ACMA may refuse to include details of a
radiocommunications transmitter that is proposed to be operated under a
spectrum licence on the Register if the ACMA is satisfied that its operation
could cause an unacceptable level of interference to other radiocommunications
devices.[198]
Item 12 in Part 1 of Schedule 5 to the Reform Bill
amends existing subsection 145(3) so that the ACMA may require, before details of
a radiocommunications transmitter are included in the Register, that it be
presented with a certificate, issued by an accredited person (consistent
with the new accreditation regime). The certificate must state that operation
of the device under the licence satisfies any conditions that are required to
be satisfied. The Reform Bill also provides that the legislative rules may
authorise a person who holds accreditation to charge fees in relation to such a
certificate.[199]
Schedule 6
Commencement
The amendments in Part 5 of Schedule 6 to the Reform Bill
commence on the day after Royal Assent.
The amendments in Parts 1, 2 and 4 of Schedule 6 to the
Reform Bill commence at the same time as the amendments in Schedule 1 to the
Bill.
The amendments in Part 3 of Schedule 6 commence on the
later of the following:
- immediately
after the commencement of the provisions in Parts 1 and 2 of Schedule 6 to the
Reform Bill or
- the
commencement of the Federal Circuit and Family Court of Australia Act 2020.
However, the provisions in Part 3 of Schedule 6 do not
commence at all if the Federal Circuit and Family Court of Australia Act
2020 does not commence.[200]
Key issues and provisions—enforcement
Item 31 in Part 1 of Schedule 6 to the Reform Bill
repeals and replaces existing Part 5.5 of the Radiocommunications Act. Proposed
Part 5.5–Enforcement applies the Regulatory Powers (Standard
Provisions) Act 2014 (Regulatory Powers Act) which provides a
framework of standard regulatory powers exercised by agencies across the
Commonwealth. It reflects the Guide to Framing Commonwealth Offences,
Infringement Notices and Enforcement Powers[201]
and applies to regulatory schemes which trigger its provisions through primary
legislation—as this Bill does.
Civil penalties
The Reform Bill creates a number of civil penalties that
are enforceable under Part 4 of the Regulatory Powers Act.[202]
According to the Explanatory Memorandum to the Reform Bill:
The Regulatory Powers Act civil penalty framework has been
included in the Act as part of a graduated enforcement regime. Amongst a number
of policy reasons, the inclusion of civil penalties will reduce the regulator’s
reliance on criminal sanctions. The provisions will allow ACMA to take
enforcement action that is commensurate with the seriousness of a
person’s breach of the Act.[203]
Infringement notices
Within
new Part 5.5, proposed section 270 lists those sections of the Radiocommunications
Act which are subject to an infringement notice under Part 5 of the Regulatory
Powers Act.
Part 5 of the Regulatory Powers Act operates so
that an infringement notice may be given if an infringement officer believes on
reasonable grounds that a person has contravened a provision subject to an
infringement notice. An infringement notice must be given within 12 months
after the day on which the contravention is alleged to have taken place.[204]
The Chair of the ACMA and a member of the staff of the
ACMA who has been appropriately authorised are infringement officers
for the purposes of the Radiocommunications Act.[205]
The contents of an infringement notice are set out in
detail in section 104 of the Regulatory Powers Act including amongst other things:
- the
day the notice is given and the name of the person to whom it is given
- the
name and contact details of the person who gave the notice and brief details of
the alleged contravention
- the
amount that is payable under the notice and how payment may be made
- the
requirement to pay the amount specified within 28 days after the day the notice
is given and the consequences of a failure to do so—including the
possibility of proceedings for a contravention of a civil penalty provision.
Under the Regulatory Powers Act, the maximum
penalty that may be imposed for each contravention covered by an infringement
notice is the lesser of one-fifth of the maximum penalty amount that a court
could impose on the person for that contravention, and 12 penalty units for an
individual[206]
or 60 penalty units for a corporation.[207]
Enforceable undertakings
Proposed section 271 states that the provisions of
the Radiocommunications Act are enforceable under Part 6 of the Regulatory
Powers Act, which deals with enforceable undertakings. The Reform Bill
provides that the ACMA is an authorised person in relation to those provisions.[208]
The Regulatory Powers Act operates so that the ACMA
may accept undertakings that a person will take specified action or refrain
from taking specified action. The ACMA may, by written notice given to the
person, cancel the undertaking.[209]
In addition, the ACMA may apply to a relevant court (that is, the Federal Court
or the Federal Circuit Court of Australia[210])
for an order where it believes that a person has breached their undertaking.[211]
The ACMA must publish an undertaking on its website.[212]
Injunctions
Within new Part 5.5, proposed section 272 lists
those sections of the Radiocommunications Act which are enforceable
under Part 7 of the Regulatory Powers Act, which deals with injunctions.
The ACMA is an authorised person in relation to those provisions.[213]
The Regulatory Powers Act will operate so that if a
person has engaged, is engaging or is proposing to engage in conduct in
contravention of a provision enforceable under Part 7 of the Regulatory
Powers Act,[214]
the ACMA may apply to a relevant court for the grant of an injunction to restrain
a person from engaging in specified conduct or requiring the person to do a
thing.[215]
Forfeiture notices
Specified
sections of the Radiocommunications Act will be subject to a forfeiture
notice.[216]
The forfeiture provisions will
operate as follows:
- the Chair of the ACMA or a member of the staff of the ACMA who
is authorised for this purpose will be designated forfeiture officers[217]
- a
forfeiture notice may be given in circumstances where a designated
forfeiture officer believes on reasonable grounds that:
- a
person has contravened a provision that is subject to a forfeiture notice and
- a
thing was used, or otherwise involved, in the contravention of the provision[218]
- the
forfeiture notice must set out certain matters, including but not limited to,
the alleged contravention and a description of the thing to which the notice
relates[219]
- the
forfeiture notice must state that the owner of the thing may choose not to
agree to forfeit it to the Commonwealth and, if the owner so chooses,
proceedings seeking a civil penalty order or orders may be brought in relation
to the alleged contravention or contraventions [220]
- the
person to whom a forfeiture notice is given may be the owner of the thing to
which the notice relates[221]
- a
person to whom a forfeiture notice has been given may make written
representations to the ACMA seeking the withdrawal of the notice[222]
in which case the ACMA is required to take into account those written
representations in making its decision about whether or not the notice is to be
withdrawn[223]
- the
ACMA may take into account other specified matters in making that decision,
including but not limited to:
- whether
a court has previously imposed a penalty on the person for a contravention of a
provision subject to a forfeiture notice and
- the
circumstances of the alleged contravention or contraventions[224]
- a
notice of the withdrawal of a forfeiture notice must be given to the person to
whom the forfeiture notice was given setting out the matters specified in the
Reform Bill[225]
- where
a person agrees to forfeit the thing specified in the notice to the Commonwealth
then:
- any
liability of the person for the alleged contravention or contraventions is
discharged
- proceedings
seeking a civil penalty order or orders may not be brought and
- the
person may not be prosecuted in a court for an offence that is constituted by
conduct that is the same, or substantially the same, as the conduct alleged to
constitute a contravention in the notice.[226]
Once a forfeiture notice relating to a thing is given to a
person and the owner of the thing agrees to forfeit it to the Commonwealth, the
ACMA is able to take possession of the thing and must give the owner a receipt
to that effect.[227]
Ninety days after that occurs the ACMA may declare, in writing, that the thing
is forfeited to the Commonwealth.[228]
In that case, the thing may be sold, destroyed or
otherwise disposed of in accordance with the directions of the ACMA.[229]
Court ordered forfeiture
In addition to the process outlined above, the Reform Bill
provides that where a court convicts a person of an offence against the Radiocommunications
Act, or makes a civil penalty order in relation to the contravention of a
civil penalty provision of that Act, the court may order the forfeiture to the
Commonwealth of anything used, or otherwise involved, in the commission of the
offence or the contravention of the civil penalty provision.[230]
In that case, the forfeited goods may be sold, destroyed
or otherwise disposed of in accordance with the directions of the ACMA.[231]
Inspectors
Proposed section 284 of the Radiocommunications
Act establishes the position of inspector for the purposes of
the Act. An inspector is:
- a
Commonwealth officer appointed by the ACMA, by written instrument
- a
Commonwealth officer included in a class of Commonwealth officers appointed by
the ACMA, by notifiable instrument
- an
eligible State officer appointed by the ACMA, by written
instrument, to be an inspector for the purposes of the Act[232]
- an
eligible State officer included in a class of eligible State officers appointed
by the ACMA, by notifiable instrument, to be inspectors for the purposes of
this Act or
- a
member (other than a special member) of the Australian Federal Police.
General
powers of inspectors
The Reform Bill sets out the general powers of inspectors.
In particular, if an inspector suspects on reasonable grounds that a person has
done an act in respect of which the person is required to hold an apparatus
licence, an authorisation under section 114, a spectrum licence, an
authorisation under section 68, a certificate of proficiency or a permit
the inspector may, by written notice given to the person, require the person
to:
- produce
the licence, authorisation, certificate or permit or evidence of its existence
and contents and
- do
so within the period—being no less than 14 days—and in the manner
specified in the notice.[233]
Directions to licensees
An inspector may give a written direction to the holder of
an apparatus licence or a spectrum licence for the purpose of avoiding,
minimising or reducing interference with radiocommunications in relation to
either or both of the following:
- the
installation, maintenance or operation of a radiocommunications device that is,
or is to be, operated under the licence;
- anything
that is, or is to be, installed or used in connection with a
radiocommunications device that is, or is to be, operated under the licence.
A person who is given such a direction must comply with it.[234]
Other powers of inspectors
The Reform Bill sets out a range of additional powers for
inspectors including the power to:
- direct
a person to operate a transmitter for the purpose of investigating interference
(or the risk of interference) with radiocommunications[235]
and
- enter
premises and adjust transmitters in emergencies.[236]
Monitoring and investigation powers
Proposed section 284A of the Radiocommunications
Act applies the monitoring powers in Part 2 of the Regulatory Powers Act,
which creates a framework for monitoring whether legislative provisions are
being complied with and whether information given in compliance (or purported
compliance) with an Act is correct. It includes powers of entry (by consent or
under a monitoring warrant[237])
and inspection. The following provisions are subject to monitoring powers:
- an
offence against a provision of Part 4.1 of the Radiocommunications Act
- a
civil penalty provision of Part 4.1 or
- an
offence against subsection 284J(8) of the Radiocommunications Act.[238]
Basic monitoring powers
The relevant monitoring powers include the power in
section 19 of the Regulatory Powers Act to:
- search
the premises and any thing on the premises
- examine
or observe any activity conducted on the premises
- inspect,
examine, take measurements of or conduct tests on any thing on the premises
- make
any still or moving image or any recording of the premises or any thing on the
premises
- inspect
any document on the premises
- take
extracts from, or make copies of, any such document and
- take
onto the premises such equipment and materials as the authorised person
requires in order to exercise powers in relation to the premises.
For the purposes of the monitoring powers in the Radiocommunications
Act, an inspector is the authorised person.[239]
There are additional powers in the Regulatory Powers
Act which permit an authorised person to:
- operate
electronic equipment on the premises, to put relevant data in documentary form
and remove those documents from the premises[240]
- secure
electronic equipment where an authorised person enters premises under a
monitoring warrant[241]
- secure
a thing for a period of 24 hours in circumstances where the thing is found
during the exercise of monitoring powers on the premises and an authorised
person believes on reasonable grounds that it relates to the
contravention of a provision that is subject to monitoring[242]
and
- to
ask questions and seek production of documents once on the premises.[243]
Issuing a monitoring warrant
A monitoring warrant may be issued if the issuing
officer[244]
is satisfied that it is reasonably necessary for one or more authorised persons
to have access to premises for the purpose of determining whether a provision
that is subject to monitoring has been, or is being, complied with or that
information subject to monitoring is correct.[245]
The specific requirements of a monitoring warrant are set out in section 32 of
the Regulatory Powers Act.
Investigation powers
Nature of investigation powers
Proposed section 284B of the Radiocommunications
Act sets out the provisions that are subject to the use of investigation
powers under Part 3 of the Regulatory Powers Act. They are:
- an
offence provision of the Radiocommunications Act or
- a
civil penalty provision of that Act.
Part 3 of the Regulatory Powers Act applies to evidential
material in respect of the above.[246]
Under the Reform Bill an inspector is an authorised applicant in
relation to evidential material.[247]
The investigation powers which are imported from section 49 of
the Regulatory Powers Act include the power to:
- where
the occupier consents to entry—search the premises and any thing on the
premises for the evidential material the authorised officer suspects on
reasonable grounds may be on the premises
- where
the entry is under warrant—search the premises and any thing on the
premises for the kind of evidential material specified in the warrant and to
seize evidential material of that kind if the authorised officer finds it on
the premises
- inspect,
examine, take measurements of, or conduct tests on, the evidential material
- make
any still or moving image or any recording of the premises or evidential
material and
- take
onto the premises such equipment and materials as the authorised officer
requires for the purpose of exercising powers in relation to the premises.
There are additional powers in the Regulatory Powers
Act which permit an authorised person to:
- operate
electronic equipment on the premises, to put relevant data in documentary form
and remove those documents from the premises[248]
- secure
electronic equipment where an authorised person enters premises under an
investigation warrant[249]
and
- where
an authorised person enters premises under an investigation warrant, seize a
thing that is not evidential material specified in the warrant in circumstances
where the authorised person believes on reasonable grounds that
the thing is evidence of the contravention of a related provision.[250]
Issuing an investigation warrant
Where an authorised person suspects on reasonable grounds
that there may be evidential material on any premises, he or she may enter the
premises and use the investigation powers so long as the occupier consents or
the authorised person has an investigation warrant.[251]
The provisions in Part 3 of the Regulatory Powers Act set out the
requirements for applying for an investigation warrant and its contents.[252]
Schedule 7
Commencement
The amendments in Schedule 7 to the Reform Bill commence at
the same time as the amendments in Schedule 1 to the Bill
Key issues and provisions
Item 1 in Part 1 of Schedule 7 to the Reform Bill
inserts proposed Part 5.5A—Information-gathering powers into the Radiocommunications
Act.
Within new Part 5.5A, proposed section 284S
empowers the ACMA to require a person to provide information, or produce a
document that relates to the supply or operation of radiocommunications devices
and compliance or non-compliance with conditions of licenses. According to the
Explanatory Memorandum to the Reform Bill:
These information gathering powers also enable ACMA to seek
information from a person that operates a radiocommunications device under a
current licence or a licence that may be issued in the future, to assist ACMA
in its spectrum management functions associated with planning the future use of
the spectrum. ACMA will use these new powers to seek information and documents
that are reasonably likely to assist ACMA in managing, limiting or preventing
interference, or managing health and safety concerns.[253]
Stakeholder comments
According to SBS:
The proposed introduction of information-gathering powers for
the ACMA should be carefully considered to avoid duplicating existing
regulatory requirements or additional administrative burdens on industry
participants. They should not be used to require market-sensitive information
which, if disclosed, may have an adverse impact on spectrum users’ commercial
positions or negotiations.[254]
The ABC also expressed concern that there is a risk
arising from the information-gathering powers as they ‘could force the
ABC to disclose commercially sensitive matters’.[255]
Concluding comments
The current legislative framework for the management of
spectrum is over 20 years old. The Spectrum review found the existing spectrum
management arrangements to be slow, rigid and administratively cumbersome.
The Reform Bill responds to some of the recommendations of
the Spectrum review by clarifying the roles and responsibilities of the
Minister in setting government policy and of the ACMA in implementing that
policy. In addition the Reform Bill aligns the processes for spectrum licences
and apparatus licences.
Stakeholders are largely supportive of the measures in the
Reform Bill which have been mooted since the Spectrum review published its
recommendations in 2015.