Free TV Australia welcomed today’s announcement in MYEFO of a one-year suspension of the Commercial Broadcasting Tax from June 2025, estimated to cost the local commercial television industry $50.3 million.
“The temporary suspension of the Commercial Broadcasting Tax is an important step towards supporting the long-term sustainability of Free TV broadcasters, and we are grateful for the Government’s recognition of the important role of local commercial television services to a healthy media sector,” said Bridget Fair, CEO of Free TV.
The tax, which is levied on transmitter licences associated with commercial broadcasting licences, was introduced in 2017 as part of regulatory reforms aimed at improving the financial health of Australia’s free-to-air broadcasters. It was positioned as an “interim” measure for up to five years.
“The Commercial Broadcasting Tax is really just a hangover from the old super-profits tax of the past. It is well and truly time for it to be permanently abolished. The tax disproportionately affects regional broadcasters who need more transmitters to broadcast to regional and remote areas. It undermines the ability of all broadcasters to compete fairly with digital platforms and global streamers, who do not face the same tax or regulatory obligations, yet compete with and sell advertising against commercial broadcasters,” Ms Fair said.
As the Government moves forward with its recently-announced review of broadcast spectrum bands, Free TV looks forward to working with Government to remove this tax burden on a permanent basis. It is out of step with comparable jurisdictions, and is no longer justifiable, given the changing competitive landscape and public policy benefits of a sustainable local television sector.
“If the CBT is permanently removed, broadcasters could redirect these payments to creating the Australian content they are regulated to provide, and towards maintaining broadcast infrastructure, to ensure free TV remains available to all Australians.”
“Free TV has a strong future ahead, reaching over 20 million Australians each week,” said Ms Fair. “We urge the Government to recognise the vital role that free-to-air television plays in our media landscape and to permanently remove this tax.”
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