Arts and culture

Educational Lending Right - Guidelines for claimants

Educational Lending Right - Guidelines for claimants

Information for Australian creators and publishers

What is Educational Lending Right?

Students in school libraryEducational Lending Right (ELR) is an Australian Government cultural program administered by the Department of the Environment, Water, Heritage and the Arts.

The payments available under the ELR scheme are made to eligible Australian creators and publishers whose books are held in educational libraries, such as school, TAFE and university libraries on the basis that income is lost from the availability of their books in these libraries.

ELR complements the existing Public Lending Right (PLR) scheme which covers books held in public lending libraries.

What are the objectives of ELR?

How does ELR work?

Creators and publishers register for ELR (and/or PLR) at the time of their first title claim.

Payment is determined by the estimated number of copies of eligible books which are held in the Australian educational lending libraries.

Creators and publishers submit claims for books that are registered for the scheme after meeting eligibility criteria. An annual survey of the book stock of a representative sample of educational libraries provides an estimated number of copies of each eligible book. Payment is calculated by multiplying the number of copies by a rate that is determined each year. The rate is tiered, for example the rates in 2006-07 were:

Total Equivalent No. of  Book Copies Rates of Payment
  Creator Publisher
First 50 $1.00 25 cents
51 – 500 58.5 cents 14.625 cents
501 – 5 000 38.5 cents 9.625 cents
5,001 – 50,000 14.945 cents 3.73625 cents
More than 50,000 9.2512 cents 2.3128 cents

The PLR Committee, which represents Australian creators, publishers and libraries, provides advice on the administration of ELR to the Minister for the Environment, Heritage and the Arts and his delegate.

Which creators are eligible for ELR?

Eligible creators include:

*Creators who have only received a lump sum or upfront payment from their publisher are not entitled to ELR. If you have received an advance against royalties, you may lodge a title claim provided you are also entitled to receive royalties from the sale of your book. If you have arranged for your royalty payment to be paid to another person/organisation, you must indicate who is receiving your royalty payment.

The Minister or his/her delegate may approve a final payment in the financial year in which a creator died. Following this final payment, books cease to be eligible.

Which publishers are eligible for ELR?

For each publisher claim submitted, the book must have been published in Australia to be eligible for an ELR payment.

Payment is only made to a publisher where an eligible creator is also entitled to payment for a book.

Which books are eligible for ELR?

Eligible books are those that have:

ELR does not encompass audio-visual kits, compact discs, computer disks, electronic books, magazines or other serial publications.

Which libraries in Australia will be representatively surveyed?

Libraries surveyed are in:

Lodging a claim with ELR

Creators or publishers may make a claim by completing an approved claim form and submitting it to the Lending Rights office before 31 March each year.

Claimants need only submit one claim for a book unless a new edition or version of the book is issued, or there are changes to its title, or there are alterations to the number or names of its creators.

The commencing year for a book is the first financial year after the calendar year in which the book was first published. This allows time for new books to become established in educational lending libraries. For example, the commencing year for a book first published  on or before 31 December 2007 is 2008–09, 2006 is 2007–08.

Claims from creators and publishers are invited by advertisements that appear in national daily newspapers and book industry trade journals each year.

ELR payments

Under the ELR scheme payments may be made to eligible creators and publishers. Separate rates of payment are determined each year for creators and publishers. These are multiplied by the estimated number of book copies obtained by the library survey to determine the ELR payment.

A limit may be placed on the number of copies of a book that will be counted at individual libraries.

If there is more than one eligible creator of a book, each receives an ELR payment in proportion to their share of the royalty payments.

Amounts of less than $50 are not payable.

ELR payments are not subject to GST. However, claimants need to declare their ELR payments for income tax purposes.