For the first time in over a quarter-century, the sound of Australian music on the radio is carrying a significantly different price tag. In a landmark decision handed down on January 15, 2026, the Copyright Tribunal of Australia ruled that royalty rates paid by broadcasters to record labels and artists will increase by 38%. This long-awaited adjustment signals a major shift in how the industry values the “promotional power” of traditional radio in the modern streaming era.
The ruling officially moves the needle from a 0.4% royalty rate to 0.55% of the broadcast industry’s gross revenue. While a 0.15% increase might sound modest on paper, the real-world impact is substantial: it is expected to inject millions of additional dollars into the pockets of rights holders. Crucially, the decision is retroactive to July 2023, meaning a significant windfall of back-pay is headed toward local artists and labels who have been operating under month-to-month extensions of a deal first signed in 1999.
Historically, radio stations paid lower royalty rates because their airplay was seen as a primary driver of physical album sales. However, the Tribunal’s reasoning highlights a new reality. With the dominance of streaming and social media, radio is no longer the discovery engine it once was.
The Tribunal noted that while a listener might hear a song on the radio and later stream it, there is no longer a “direct correlation” between airplay and a physical sale. Consequently, the industry can no longer justify the heavy discounts that broadcasters have enjoyed for decades.
While the 38% hike is a win for creators, the Phonographic Performance Company of Australia (PPCA) argues it’s only a starting point. Current Australian law contains a 1% cap on radio royalties—a legal ceiling that limits how much artists can ever be paid, regardless of market value.
“The Tribunal’s reasoning makes it clear that the 1% cap was a decisive factor… and has constricted Australian artists’ ability to receive royalties comparable to other markets,” stated PPCA CEO Annabelle Herd.
Industry advocates are now turning their eyes toward Canberra, pushing for legislative reform to remove this cap entirely and bring Australia in line with international standards.
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