PPCA Welcomes Federal Review of Radio Royalty Caps Amid Push for Fairer Artist Pay

The Phonographic Performance Company of Australia (PPCA) has welcomed the Federal Government’s support for a cost-benefit analysis into removing long-standing caps on licence fees paid by radio broadcasters for the use of sound recordings.

The move signals renewed momentum on a decades-old policy issue that has drawn increasing scrutiny from rights holders and industry bodies, particularly as Australia remains the only market globally to impose such restrictions.

The caps — which were introduced more than 55 years ago — limit the Copyright Tribunal’s ability to set market-based rates for sound recording royalties. According to PPCA, six independent reviews have previously recommended their removal, arguing the current framework distorts fair remuneration outcomes for artists and rights holders.

Recent data has added weight to those calls. An independent study by Mandala found that removing the caps could generate an additional $4.8 million in royalties for Australian artists. Those whose recordings receive radio airplay could see income increases of up to 78%.

The analysis also highlights a significant disparity between Australia and comparable international markets. Commercial radio broadcasters locally pay around 0.4% of revenue in sound recording royalties — well below the 3% to 7.5% typically paid in markets such as Canada, the UK and Germany — despite maintaining some of the highest per capita revenues globally.

PPCA Chair and ARIA Award-winning artist Josh Pyke said removing the cap was long overdue.

“Removing the 1% cap is simply the right thing to do,” Pyke said. “It’s impossible to defend an artificial cap set as a short-term measure over 40 years ago. Artists and rights holders deserve the right to negotiate free of this artificial constraint.”

Australian Recording Industry Association (ARIA) and PPCA CEO Annabelle Herd said the proposed analysis would reinforce what many in the sector already consider settled.

“The evidence base for removing these caps is already overwhelming,” she said. “A cost-benefit analysis will confirm what Australian artists have long known: that a billion-dollar radio industry, built on the back of their music, can afford to pay a fair rate for the recordings it relies on.”

Herd also acknowledged political support for progressing the issue, thanking David Pocock, Sarah Hanson-Young and Sophie Scamps for backing the push in Parliament.

The outcome of the cost-benefit analysis is expected to play a key role in determining whether legislative reform proceeds, with potential implications for royalty flows across Australia’s recorded music sector.