The federation was established to represent and preserve the interests and rights of Australian licensed broadcasting stations, providing representation on such common concerns as use of the term "B-class", royalty and copyright payments, and transmitter requirements.

[6] By the middle of the 1930s, B-class stations started to be referred to as "commercial" instead, although the older term remained in use until World War II.

Such codes of practice are registered with and enforced by the Australian Communications and Media Authority (ACMA), the broadcasting regulator.

[10][11] ACMA has, however, had difficulty in enforcing commercial radio's compliance with these codes of practice, in particular broadcasts made by Alan Jones and Kyle Sandilands.

[17] The organisation aimed to provide representation on copyright and royalty payments, as well as the relationship between national and commercial radio services.

In so doing, they exerted significant power over individual stations, and acted as a key spokesman for the Australian commercial radio industry.

[18] Subsequently, FARB issued its own Standards of Broadcasting Practice in 1946, regulating children's programs, and Sunday and medical advertising.

[19] FARB played an important role in major decisions concerning the commercial radio sector, maintaining a position of self-regulation; opposing intrusion by the government and industry bodies such as the Australian Building Codes Board (ABCB).

[31] In response, the government instituted an "open" bifurcated broadcasting system in 1924[5] – consisting of "A" and "B" class stations which were licensed differently.

[5] The National Service was designed as a "completely coordinated public utility",[33] and aimed to maximise audience reach by ensuring that programmes could be heard by at least 90 per cent of the Commonwealth.

[41] The Board also acted to prevent a Government monopoly; ensuring the preservation of the bifurcated national and commercial radio system.

The introduction of television in 1956 consolidated the Board's position; as additional officers were assigned and assumed control of the program and administrative functions of radio.

[43] Initially, commercial radio stations were prohibited from accessing FM, with its first use being for public broadcasting – as ABC-FM, now known as ABC Classic, was established the same year.

[48] The development and management of the Commercial Radio Code of Practice is a principal role of the organisation; and serves to ensure that content is in line with community expectations.

[49] It establishes the minimum standards for programs on commercial radio stations to uphold community safeguards in relation to news and current affairs, music and entertainment, and material unsuitable for broadcast.

[51] It operates for the purposes of Part 9 of the Broadcasting Services Act 1992,[50] as well as Section 123, which requires a co-regulatory Commercial Radio Code of Practice administered by ACMA.

[53] The modified final draft, alongside additional written commentary, is then submitted to ACMA for registration as a Part 9 code.

These serve to clarify acceptable practices in commercial radio, particularly regarding the broadcast of emergency information, and the portrayal of: Indigenous Australians, women, as well as those affected by suicide, mental illness and domestic violence.