The Abbott government is planning to double the amount of advertising that SBS can air during prime time programs, setting it on a collision course with the powerful commercial television networks.
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The move would allow the multicultural broadcaster to offset government funding cuts by airing more advertisements in popular programs such as the FIFA World Cup, the Tour de France and the Eurovision Song Contest.
Under the changes planned by Communications Minister Malcolm Turnbull, SBS could air 10 minutes of advertisements an hour - up from five minutes an hour. This would put SBS on an almost even footing with the commercial networks, which are allowed to air 13 minutes of "non-program matter" in prime time on their main channels.
SBS would still be limited to broadcasting only 120 minutes of advertisements a day.
The amendments to the SBS Act could be introduced by the end of the year depending on the size and timing of the government's funding cuts.
Modelling by the Communications Department shows the increase will add an extra $20 million to SBS's coffers over five years while having a minimal impact on the commercial networks' revenues.
The $20 million figure is said to be conservative given SBS now airs the A League football on its main channel. Friday's season opener - Melbourne Victory v the Western Sydney Wanderers - was watched by 647,000 people, up 16 per cent on last year.
The move has infuriated the commercial TV sector, which says more prime-time advertising will drive SBS towards more populist, advertiser-friendly programming.
"This would create by stealth a fourth commercial network," Free TV Australia chairman Harold Mitchell said.
"SBS is a taxpayer-funded organisation. It is not a place for high-level amounts of advertising. This would skew completely the purpose of SBS."
Mr Mitchell, a veteran of the advertising sector, said networks Seven, Nine and Ten would campaign against the move.
"If this happens, the free-to-air television networks will be up in arms," he said.
"I don't believe the minister will allow this to happen."
Increased advertising on SBS was a recommendation of the government's efficiency review into the public broadcasters.
SBS recorded $58 million in sponsorship and advertising revenue in 2012-13 on top of government funding of $222m. The government cut SBS's budget by $8 million over four years in the May budget and deeper cuts will be announced later this year.
A spokeswoman for Mr Turnbull said the government was discussing the findings of the efficiency review with the management of ABC and SBS. No final decisions on the size of budget cuts or new revenue measures have been made, the spokeswoman said.
SBS declined to comment.
