Australia's parliament has passed laws allowing more foreign investment and mergers in the country's media companies, in the first overhaul of ownership controls in the industry in more than 20 years.
However, the communications minister, Helen Coonan, said the changes would not come into force until 2007.
Ms Coonan said any current activity within the £4.8m Australian media sector would take place under existing rules as the government had not yet decided when the new ownership rules would start. "The media ownership changes will not take effect until a date to be proclaimed, some time next year, so the changes being effected must have regard to existing laws or else those companies run the risk of having breached current laws," she told the Senate on Wednesday.
The legislation - passed by the Senate last week - got the seal of approval from the House of Representatives today, where the prime minister John Howard's centre-right government has a clear majority.
The new laws will come into effect between February next year and January 2008.
Media laws introduced in 1985 bar foreign companies from controlling more than 15% of a television company and more than 25% of a newspaper publisher.
Those restrictions have been eliminated, although foreign investment in the media sector would require government approval.
More mergers will be on the cards with the relaxation of cross-media ownership laws that prohibit newspaper, radio and television companies in the same city from holding more than 15% of each other.
A government regulator will ensure that each state capital's market is left with at least five media owners and each regional market at least four.
No single owner would be allowed to dominate a market with all three major media - television, radio and newspapers - but could own two of the three. Opponents of the new laws believe they will stifle diversity of ownership and opinion in Australia's media, and will lead to job losses.
But media companies have already begun positioning themselves for the changes coming into effect.
Television broadcaster Seven Network announced today it had bought 8.4% of West Australian Newspapers Holdings and wants to increase its stake to 14.9%.
Meanwhile, Publishing and Broadcasting, controlled by Australia's richest man, James Packer, said it would shift its media interests into a new company, to be co-owned by PBL and private equity firm CVC Asia-Pacific
And Australia's largest media and gaming company, Publishing and Broadcasting, is expected to set out a £1.4bn part sale of its media assets soon. ·
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