The industry is scrutinizing the details of the government’s proposed local content obligations for streaming services following the bill’s introduction to parliament last Thursday, and while acknowledging the limitations of the proposed framework, it is expressing cautious optimism.
Following the surprise announcement on Melbourne Cup Day that the government would go ahead with its long-standing promise to revive the National Cultural Policy, Arts Minister Tony Burke tabled the Telecommunications Amendment (Australian Content Requirements for Subscription Video-on-Demand (Streaming) Services) Bill 2025 two days later, setting up a potential vote in the final week of Parliament later this month.
The framework requires services with more than 1 million subscribers to allocate 10% of their total Australian programming spend to new Australian programming for their services. Alternatively, there is an optional option to calculate the duty as 7.5% of Australian income.
To be eligible, your program must fall within the Drama, Children’s, Documentary, Arts or Educational genres and be classified as an Australian program. New Zealand program. Australia/New Zealand program. or an official Australian co-production. The Act utilizes the definitions set out in the Broadcasting Services (Australian Content and Children’s Television) Standards 2020.
Building on the previous government’s proposed Streaming Services Reporting and Investment Regime, SVOD services will be required to submit annual reports to the Australian Communications and Media Authority (ACMA) and could face civil penalties if the requirements are not met. Services are allowed a three-year carryover period before being cleared of program expenditures, but small services with at least 250,000 subscribers must notify ACMA. The statutory review is to take place four years after the commencement of the requirement.
Introducing the bill last Thursday, Mr Burke said the bill was “not a criticism of the Australian streaming business” but “supports Australian stories, celebrates Australian creatives and shows respect for Australian audiences”.
“This bill will ensure Australians have access to Australian stories now and in the future,” he said.
“No matter which remote control you have, Australia’s story will be at your fingertips. Australians will discover ourselves, we will know each other, and the world will meet us.”
So far, only one major SVOD service, Paramount+, has commented on the bill, which was widely welcomed by industry groups when it was first announced last Tuesday.
RMIT digital communications lecturer Alexa Scarlata, who was among those speaking after the bill’s introduction to parliament, said it was a “positive step”, but noted it did not set out a specific amount of content streamers would need to produce or outline requirements for the promotion of local content. This is a provision found in similar laws in regions such as Canada.
Mr Scarlata told the IF that targeted programs need to be further clarified as a “top priority” and that issues of prominence need to be addressed “in the coming years”.
“Once they start making things and we start doing research on how Australian-looking they are and whether they are actually buried, that’s when we can address what stands out,” she said.
“I think the key question now is the interpretation of the programs that are targeted. It’s great that we’re focusing on the major genres, but how much do we actually have to make within those genres? Do we have to make one of everything? Or do we just have to make one documentary or one children’s show?”
In the bill’s explanatory memorandum, the government outlines how the 10% program spend model would work, using the simplified example of SVOD, where 1 million Australian subscribers generate $150 million in annual revenue, of which around $60 million (40%) is typically spent on programming.
While this will vary from company to company depending on business size, ownership structure and programming strategy, the memorandum estimates that applying this 10 per cent requirement to all major SVODs would result in a total annual spend of $175 million to $200 million on new content in Australia. It claims this is “in line with current spending on Australian adult drama, children’s and documentary programming on SVOD, which averages $193.4 million.”
The status quo is unlikely to satisfy some in the industry, many of whom have reported reduced or disrupted levels of work after the bill’s initial deadline passed.
Screen Producers Australia (SPA) is at the forefront of industry lobbying, something Mr Burke acknowledged in his speech on Thursday.
“There are clearly positives and negatives to this bill for the Australian screen business,” CEO Matthew Diener said.
“While this is a hugely important step forward for our industry and something we have been advocating for for over a decade, it alone will not address the decline in Australian film commissioning due to delays in the bill,” he said.
“On the positive side, this bill largely fulfills the Government’s commitments to audiences and industry in the National Cultural Policy ‘Resurrection’. But, like any complex reform, implementation will be key. SPA will examine this closely and identify areas where further action is needed.”
“While this legislation creates a framework with very specific obligations for streaming platforms to ultimately contribute meaningfully to the commissioning of Australian content, it is only a small but important part of what is needed to rebuild a thriving screen sector.”
“The data generated from this regulation will be the beginning of a new phase of accountability and the real test will be how these rules work in practice and whether we can truly get more Australian stories on screen.”
This is an issue also raised by independent MP Zali Steggall, who conducted a roundtable with industry stakeholders earlier this year and has since become a leading advocate of the Save Australian Story campaign.
In a statement to IF, she said she would “continue to advocate strongly to ensure Australia’s culture, creativity and national identity remain prominent on our screens.”
“I am pleased that the Albanon Government has moved to legally require global streaming giants to invest in Australian productions,” she said.
“The details of the requirements for streaming companies are still being worked out. I have requested a meeting with Arts Minister Tony Burke to ensure the final bill applies to Australia’s film industry and audiences. I look forward to discussing with the Minister the proportion of streamers’ income and expenditure that will require local investment and how this will be calculated.”
