Government to enhance telco consumer protection with strengthened ACMA enforcement powers

The Australian government has announced plans to introduce a range of reforms aimed at bolstering protections for telecommunications consumers. 

The Telecommunications Amendment (Enhancing Consumer Safeguards) Bill 2025 (Bill) was introduced into Parliament on 12 February 2025, significantly enhancing the Australian Communications and Media Authority’s (ACMA) enforcement and compliance powers under the Telecommunications Act 1997 (Cth) (Telecommunications Act). It also seeks to introduce higher penalties for breaches of certain industry codes and standards and establish a Carriage Service Provider (CSP) registration scheme. This would increase transparency and visibility of providers operating in the market, particularly telecommunications retailers.

The reform follows the new standards and determinations for telco consumer protection introduced by ACMA over the past year, reflecting the federal government’s heightened focus on protecting telecommunications customers. It also reflects ongoing reviews and consultations undertaken by industry bodies. These new standards and determinations include: 

• The Telecommunications (Financial Hardship) Industry Standard 2024, effective 29 March 2024, which requires telcos to develop and promote financial hardship policies, proactively identify affected customers, and provide support options.

• Updates to the Telecommunications (Emergency Call Service) Determination 2019, effective 28 October 2024, requiring telcos to notify customers with 3G mobile phones that cannot access Triple Zero, and provide assistance to access alternative low-cost or no-cost mobile phones.

• The Telecommunications (Customer Communications for Outages) Industry Standard 2024, effective 31 December 2024, which sets out obligations for telcos during major network outages, including customer notifications via website and social media.
  
  
• Upcoming updates to the Telecommunications (Consumer Complaints Handling) Industry Standard 2018, which ACMA will update by April 2025, outlining telcos’ obligations for responding to customer complaints.

In addition, the Australian communications industry body is currently reviewing the Telecommunications Consumer Protections Code (TCP Code), which sets minimum customer protection requirements for interactions between telecommunications service providers and their residential and small business customers.

Proposed reforms under the Bill

Enhanced enforcement power

One of the key proposed changes is making compliance with registered telecommunications industry codes mandatory. The change would enable ACMA to take direct and immediate enforcement action against telecommunications providers that breach customer obligations. The current two-step process, which requires ACMA to first issue a direction to comply before taking enforcement action, would be replaced. This change aims to enhance ACMA’s ability to swiftly address consumer harm, particularly in cases involving significant breaches and substantial consumer harm.

Increased penalty

The proposed penalty regime would introduce a maximum penalty equal to the greater of:

• 30,300 penalty units (approximately $10 million);
  
  
• three times the value of the benefit obtained by the body corporate and related entities from the contravention; and
  
  
• if this value cannot be determined, 30% of the body corporate’s adjusted turnover during the breach turnover period for the contravention.

This change would increase the maximum civil penalty for breaching industry codes and standards from $250,000 to $10 million, aligning penalties across telecommunications industry codes, standards and service provider determinations. The new regime would also harmonise penalties with those in other sectors, such as energy and banking, and under the Australian Consumer Law.

Strengthened infringement notice penalties

The proposed reform would grant the Minister for Communications more flexibility in increasing infringement notice penalties for breaches of telecommunications rules, particularly those related to consumer protections.

Currently, the Minister can only issue determinations specifying penalties for breaches of carrier license conditions or service provider rules. Under the new drafting, the Minister’s powers would be expanded to allow the Minister to increase penalties for any contravention that ACMA can issue an infringement notice for, including breaches of industry codes and standards.

Carriage Service Provider registration scheme

The proposed reforms also introduce a Carriage Service Provider registration scheme, which will apply to the following CSPs:

• A CSP who supplies:
  
  
  • a standard telephone service to residential or small business customers;
    
    
  • a public mobile telecommunications service;
    
    
  • a carriage service that enables end‑users to access the internet;
    
    
• A carriage service intermediary that arranges for the supply of any of the above services; and
  
  
• A CSP declared by the Minister to be a registrable CSP.

The scheme is expected to enhance the accountability of telecommunications providers, particularly retailers, in the Australian market. Additionally, ACMA would gain the power to prevent CSPs that pose unacceptable risks to consumers or have caused significant harm from operating in the market.

Under this scheme:

• Unregistered CSPs would be prohibited from supplying listed carriage services to the public. This would require existing CSPs operating in Australia (including those that may be based overseas) to obtain registration.
  
  
• Wholesale CSPs would also be prohibited from providing listed carriage services to these unregistered CSPs.
  
  
• ACMA would have the ability to impose conditions on a CSP’s registration to promote compliance with its obligations under the Telecommunications Act.
  
  
• ACMA would also have the power to refuse registration applications and revoke existing registrations, including for reasons such as posing a significant risk to consumers or contravening telecommunications laws.

However, the government has indicated that excluding a CSP from the market is expected to be used only as a last resort.

Key takeaways

Telecommunications providers are advised to prepare ahead of its enactment to ensure a seamless transition.

Recommended preparatory steps include:

• Reviewing and uplifting consumer protection policies, practices and procedures to ensure regulatory compliance, as ACMA’s strengthened enforcement powers and increased maximum penalties heighten the risk profile for telecommunications providers;
  
  
• Assessing whether registration under the CSP Registration Scheme will be required and monitor developments to ensure readiness to comply with registration requirements when they take effect; and
  
  
• Monitoring upcoming regulatory changes, such as the registration of an updated TCP Code, and prepare to comply with any additional or enhanced telco requirements.