The federal government has quietly delayed its plans to introduce local content requirements for major streaming platforms, with no indication of when it might resume work on the policy.

Local content quotas were a centerpiece of Labor’s major arts policy, which aimed to rejuvenate the local industry after the pandemic and published almost two years ago.

However, concerns over how this policy could interact with the Australia-US free trade agreement are seen as a major concern.

Supporters of local content rules have accused streaming platforms of seeking to “use the trade deal as a weapon” to block the changes.

The plans have already been delayed by several months, with the government initially hoping to have the new rules in place by July 1, 2024.

Some in the industry now expect the policy to be delayed until late next year at the earliest, after the next federal election.

There had been speculation that the rules would have required streaming giants, such as Netflix, Amazon, Paramount and others, to devote a percentage of their revenue to producing local content.

The government consulted streaming platforms and local creative industry advocates on models earlier this year.

Arts Minister Tony Burke told the Labor caucus on Tuesday that the interaction of any new local content rules with the US Free Trade Agreement was a stumbling block.

Additionally, the timing of the US elections has made it difficult to directly negotiate this issue with the United States.

Screen Producers Australia, which has lobbied hard for local content rules for streaming platforms, has expressed hope that commercial issues could be resolved.

Chief executive Matthew Deaner claimed streaming platforms were relying on free trade issues to try to block the changes.

“There is no doubt that streaming companies, mainly American, have used the US free trade agreement as a weapon to delay promised regulations this year,” he said.

“Australia has not been afraid to take on powerful interests in the past…we must regain that resolve, otherwise these digital platforms will continue to play by their own rules and ignore local audiences.

“This situation deprives Australian audiences of access to their own content and makes commercial conditions difficult for many independent producers.”

Greens criticize delay in changes

Mr Burke suggested key stakeholders were happy not to see the policy rushed to avoid any problems in its implementation.

Although some key players in the industry are disappointed by the delays, they agree it would be a problem to see the changes botched.

Greens senator Sarah Hanson-Young, however, was scathing about the delays and the suggestion that the United States was to blame.

“We should not let Americans dictate whether or not we protect and support our Australian stories and culture,” she said.

“The Albanian government has broken its promise to the cinema sector and the Australian public. They missed the July 1 deadline and now everything is put on ice.

In a statement, a spokesperson for the Ministry of Infrastructure, Transport, Regional Development, Communications and the Arts said the delays were regrettable, but work on the policy was continuing.

“The Government is undertaking a genuine consultation process and taking the time to consider views on how best to support continued investment and production of Australian stories,” he said.

“The consultation is taking longer than we would have liked, but we are determined to get it done.

“The government aims to introduce legislation as soon as possible.”