Govt passes laws on Prominence, Anti-Siphoning & Location & Producer Offsets

• New Smart TVs and devices must put Free to Air networks on the primary interface / homepage.
• Streamers cannot acquire Sports ahead of Free to Air networks. But digital rights are not included meaning there is a “loophole.”
• Increases to Location Offset at 30%
• Producer Offset minimum expenditure of $35 million per season.

Here are statements around legislation which passed in Parliament yesterday.

Prominence and Anti-Siphoning.

New laws passed through Parliament yesterday by the Albanese Government will enhance access to media services for all Australians by supporting free TV services and sports coverage in the streaming era.

The passage of the Communications Legislation Amendment (Prominence and Anti-siphoning) Bill 2024 today marks a significant step in modernising Australia’s media laws and delivers on a key election commitment of the Albanese Government.

These new laws ensure that Australians can easily find and access free-to-air television services on new smart televisions.

The prominence framework will prohibit the manufacturers of internet-connected televisions from suppling a device that doesn’t comply with a set of minimum prominence requirements.

As part of new regulations to be established for devices, manufacturers must:

• install applications providing broadcasting-video-on-demand television services provided by free-to-air television broadcasters; and
• make those services available on the primary user interface of regulated devices.

Australians will continue to be able to customise their devices, and manufacturers will otherwise be able to operate their services as they see fit.

The reforms to the anti-siphoning scheme will regulate online streaming services for the first time. The ‘broadcast safety net’ approach affirms the ongoing importance of free-to-air broadcasting in the provision of free access to coverage of iconic sporting events.

The reforms mean that no media content service may acquire a right to televise or provide coverage of a listed event to audiences in Australia until a free-to-air broadcaster has a right to televise the event on a broadcasting service.

The reforms support continued free access to nationally important and culturally significant sporting events – now and into the future.

Minister for Communications, the Michelle Rowland said, “The Albanese Government has delivered its commitment to support access to local TV and free sports coverage in the streaming era.

“These reforms improve access to free-to-air television services on new connected television devices by ensuring local services aren’t crowded out by global streamers.

“Bringing streaming companies into the anti-siphoning scheme for the first time will help prevent iconic sporting events from slipping behind online paywalls.

“These important reforms mark an important step in bringing Australia’s media laws into the 21st century.”

Free TV Australia:

Free TV Australia today expressed its disappointment that the Prominence and Anti-Siphoning legislation passed by the Senate today does not deliver for all Australians.

Anti-siphoning and prominence laws that were supposed to guarantee free sports and easy access to local TV have passed—but the laws presented to the Parliament by Minister Rowland have failed to ensure that every Australian can share the unforgettable sporting moments that unite us. And only those who can afford a new TV set will get the benefit of prominence rules designed to make it easy to find local news and Australian stories on our screens.

“Free to Air broadcasting is meant to be the universally accessible destination that binds all Australians together. Sadly, with the passing of this bill we will now see a nation of the haves and have-nots when it comes to accessing the broadcasts and online services of our beloved commercial and national networks. How could this be allowed to happen in a country that has always celebrated the fair go for all?” said Free TV CEO Bridget Fair.

“We know that increasing numbers of Australians are watching their free TV services online but these laws leave those people with no guarantee of free sport. Research shows that 69 per cent of Australians access their TV via the internet, so it’s hard to understand why these laws do not look after their interests and guarantee free sport for the millions who watch TV online.

“The laws contain significant gaps that will ultimately undermine the whole anti-siphoning framework and force Australians to pay thousands of dollars to streaming services to access the sporting events that Australians expect to watch for free”.

The prominence regime was meant to ensure that free local TV services are available and easy to find on connected TVs, not just the global streaming services who pay for prime real estate on viewers’ screens. But the new laws will only apply to new TVs supplied in 18 months’ time.
So if you’ve already got a connected TV it will be the paid apps you’ll continue to see at the top of your screen.

“The prominence rules should apply to both new and existing connected TVs. We all know that not everyone can afford a new TV – especially at the moment – when people are already struggling to balance weekly grocery budgets and pay energy bills. Even the Government’s own research shows that less than 1 in 10 people buy a new TV set each year.

“And just like with our smart phones, our connected TVs get automatic software updates on a very regular basis. There is simply no reason to limit these new requirements to new TVs. Similar laws that passed in the UK only weeks ago do not include this inexplicable limitation and apply to all sets not just new ones.”

The laws are subject to mandatory legislative review and Free TV has vowed to work actively to improve them for the benefit of all Australians.

“Whether it’s the debate about these laws, policies to support public interest journalism in the face of rising mis- and disinformation, and Meta’s refusal to pay for news, or prohibitive spectrum taxes, Free TV will continue to stand up for Australian audiences, local news and local stories”.

Sarah Hanson-Young, Greens:

Australians will be forced to use their credit card to pay for sport locked behind streaming paywalls after the Labor, Liberal and National parties caved in to the Murdoch media and the US streaming giants today, ramming their weak sports streaming bill through the Senate.

The Greens have been fighting to ensure sport is free for all to watch on both old-school aerial broadcast television, and on smart TVs, iPads, iPhones and Broadcast Video On Demand (BVOD) platforms.

Senator Sarah Hanson-Young is Greens Spokesperson for Communications, Manager of Greens Business in the Senate:

“The Government and the Coalition have sold out free sport today, doing the dirty work of the Murdoch media and giant American streaming corporations like Amazon and Netflix.

“Labor, Liberal and the Nationals have colluded to ram through a law that is going to make it harder for millions of households around the country to access sport for free.

“We could have fixed this sports streaming law to protect free access to significant events like the Matildas, the rugby, the footy and the Olympics in our digital age. Now, Australians will need to pull out their credit card and pay Mr. Murdoch on Kayo for the privilege of barracking for their own team.

“Regional communities where local television stations are increasingly closing down, you’ve been sold down the river today by the National Party who chose big corporate profits over the community’s right to free sport in a digital age.

“This Government is out of touch on the cost of living, out of touch with young people, out of touch with regional Australia. They are technological troglodytes.”

Location Offset / Producer Offset

Australian film and television actors, creators, workers and businesses will benefit from new legislation passed by Parliament today that will boost investment in our screen industry and stories.

Amendments to the Income Tax Assessment Act 1997 give effect to changes to two streams of the Australian Screen Production Incentive – the Location Offset and Producer Offset.

The Location Offset aims to encourage large-scale screen productions to film in Australia by providing eligible productions with a tax rebate.

By increasing the rebate from 16.5 to 30 per cent, the amendments are set to attract more large-budget productions to Australian shores – with all the economic, employment and skill development opportunities they provide for local screen workers.

The amendments also introduce new eligibility requirements for productions to meet minimum training obligations or contribute to the broader workforce and infrastructure capacity of the sector, and use one or more Australian providers to deliver post-production, digital and visual effects for the production.

Changes to the Producer Offset will mean more Australian drama series can benefit from the scheme, which gives a tax rebate to producers for expenditure on eligible Australian films, television and other projects.

Alongside the current per hour threshold, the amendments introduce a new minimum expenditure threshold for drama series of $35 million per season in qualifying Australian production expenditure – that is, expenditure incurred for goods and services used or provided in Australia.

The new per season threshold means a drama series that films significant numbers of hours over a season but does not meet the per hour threshold can now benefit from the offset.

Minister for the Arts, Tony Burke, said, “The more productions that choose Australia as their filming location, the more our Australian screen workers have the opportunity showcase their talents and hone their craft here at home – that’s why we’re increasing the Location Offset to encourage more large-budget productions to our shores.

“We’re also backing iconic Australian drama, with changes to the Producer Offset to support more Australian stories being told and shared by the people who know them best.”

The increased Location Offset rebate will apply retrospectively to eligible productions that commenced filming on or after 1 July 2023.

The new Producer Offset minimum expenditure threshold will apply to drama series that commence filming on or after 1 July 2024.

AusFilm:

Ausfilm applauds the passage of legislation in Parliament today increasing the Location Offset to 30%, delivering a huge win for the Australian screen industry and broader Australian economy by bringing millions of dollars of direct foreign investment into local businesses, delivering sustainable careers, creative innovation, skills and training, and complementing existing funding for Australian projects.

Kate Marks, Ausfilm CEO said, “This is fantastic news for the industry. The 30% Location Offset will provide certainty for international productions, supporting a stable pipeline of work for thousands of Australian screen workers and businesses, and triggering investment into new industry capacity and capabilities.

“After years of advocacy, it is incredibly gratifying to see it finally come to fruition. Ausfilm is thankful to all of our members and partners who have helped our efforts over the years, and we look forward to working with our international clients to help build the industry’s capacity across skills, training and infrastructure into the future.”

The increased Offset will create a cascade of benefits beyond direct work for crew, cast and businesses. The certainty provided will enable Australian businesses across production and post-production to invest in their people, technology and equipment, and focus on research and development. The reform will also encourage new investments into infrastructure, which will support the local industry. Large-scale international productions provide opportunities for local creatives such as directors, actors, writers and producers, and build capacity and capabilities, underpinning the industry’s ability to keep telling Australian stories.

The benefits flow outside the industry as well, to drivers and taxis, construction and labourers, restaurants and caterers, and creative industries like music. International production also drives significant benefits to regional locations and businesses, and promotes increased tourism, while innovations in screen sector technology have aided in other fields such as medical research and disaster management.

Marks continued, “Australia has always been a great place to make films and TV: now, we are one of the most competitive. Foreign spend on drama production and post-production reached record-breaking levels in 2022/23 per Screen Australia’s Drama Report, driven by large-scale titles such as Anyone But You, The Fall Guy, Godzilla x Kong: The New Empire, Kingdom of the Planet of the Apes and Ricky Stanicky, alongside post, digital and visual effects (PDV) work on titles that did not shoot in Australia such as Halo, Hocus Pocus 2 and Indiana Jones and the Dial of Destiny.

“It’s so rewarding to see studios and film and TV makers discover Australia and then come back again, testament to the incredible businesses and creative talent Australia has to offer, alongside our world-class facilities and diverse locations. The increased Location Offset sets us up for sustained success and exciting growth across production and post-production. We look forward to welcoming a raft of new projects, such as Amazon MGM Studios / AGBO’s The Bluff and Amazon MGM Studios/Skydance’s Balls Up, both in Queensland, and Sony’s untitled shark thriller in Victoria, and seeing Australian creativity, ingenuity and industry shine through on the world’s biggest and best productions.”

Ausfilm sincerely thanks the Australian Government, particularly Australia’s Prime Minister, the Hon Anthony Albanese MP; Minister for the Arts, the Hon Tony Burke MP; Treasurer, the Hon Dr Jim Chalmers MP; and Minister for Finance, Senator the Hon Katy Gallagher for this milestone legislation, which demonstrates the Government’s meaningful support of the Australian screen sector, the thousands of Australians who work in it, and the significant economic and cultural contributions it makes. Support for international production is an important element of Australia’s National Cultural Policy: Revive: a place for every story, a story for every place. Ausfilm also thanks the many representatives from across the Parliament that have supported this reform.

Thresholds & Eligibility:

The increased rebate will apply to projects that commence production after 1 July, 2023. Minimum qualifying Australian production expenditure thresholds have been increased from A$15 million, and A$1 million per hour for television series, to A$20 million, and A$1.5 million per hour for television series.

New eligibility requirements will be introduced. Productions must:

• • Meet minimum training obligations or contribute to the broader workforce and infrastructure capacity of the sector.
  • Engage one or more Australian providers to deliver post, digital and visual effects for the production.
  • Provide new reporting to capture data including employment of Australian crew and use of Australian businesses.