{"id":"C2004L02074","name":"Telecommunications Universal Service Obligation (Eligible Revenue) Regulations 1998","slug":"telecommunications-universal-service-obligation-eligible-revenue-regulations-1998","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"repealed","isInForce":false,"actNumber":"180 of 1998","makingDate":null,"administeringDepartment":null,"currentVersion":{"id":25695,"registerId":"commonwealth-C2004L02074-current","compilationNumber":null,"startDate":"2026-04-01","status":"Repealed","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"DICTIONARY Regulation 3","sectionType":"schedule","heading":"DICTIONARY Regulation 3","content":"![Commonwealth Coat of Arms of Australia](image.001.png)\n\nStatutory Rules 1998 No. 1801\n\n\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\n\nTelecommunications Universal Service Obligation (Eligible Revenue) Regulations 1998\n\nI, WILLIAM PATRICK DEANE, Governor\\-General of the Commonwealth of Australia, acting with the advice of the Federal Executive Council, make the following Regulations under the Telecommunications Act 1997.\n\nDated 30 June 1998.\n\nWILLIAM DEANE  \nGovernor-General\n\nBy His Excellency’s Command,\n\nRichard alston\n\nMinister for Communications, the Information Economy\n\nand the Arts\n\n\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\n\n  \nPART 1—PRELIMINARY\n\nName of Regulations\n\n1. These Regulations are the Telecommunications Universal Service Obligation (Eligible Revenue) Regulations 1998.\n\nCommencement\n\n2. These Regulations commence on gazettal.\n\nDefinitions—the dictionary\n\n3. (1) The dictionary at the end of these Regulations defines certain words and expressions, and includes signpost definitions to words and phrases used in these Regulations.\n\n> Note A signpost definition of a word or expression is included in the dictionary only if the definition is used outside the section defining the word or expression.\n\n(2) The dictionary also includes certain words and expressions used in these Regulations that are defined in the Act.\n\n(3) The dictionary is part of these Regulations.\n\n(4) A definition in these Regulations applies to each use of the word or expression in the Regulations unless the contrary intention appears.\n\n  \nPART 2—WHAT IS ELIGIBLE REVENUE\n\nUniversal service regime\n\n4. (1) Part 7 of the Act establishes a universal service regime for Australian telecommunications.\n\n(2) Under subsection 149 (1) of the Act, the universal service obligation is the obligation:\n\n(a) to ensure that standard telephone services are reasonably accessible to all people in Australia on an equitable basis, wherever they reside or carry on business; and\n\n(b) to ensure that payphones are reasonably accessible to all people in Australia on an equitable basis, wherever they reside or carry on business; and\n\n(c) to ensure that prescribed carriage services are reasonably accessible to all people in Australia on an equitable basis, wherever they reside or carry on business.\n\n(3) The key elements of the universal service regime are as follows:\n\n(a) the specification of the universal service obligation;\n\n(b) the declaration of universal service providers;\n\n(c) the carrying out of universal service plans;\n\n(d) the regulation of universal service charges;\n\n(e) the assessment, collection, recovery and distribution of the levy imposed by the Telecommunications (Universal Service Levy) Act 1997.\n\nPurpose of eligible revenue\n\n5. (1) The universal service regime is supported by a universal service levy imposed on all participating carriers.\n\n(2) The universal service levy is worked out using a number of factors, including a participating carrier’s eligible revenue.\n\n(3) The participating carrier’s eligible revenue is also used in working out the amount of levy that the carrier is required to pay to support the National Relay Service mentioned in Part 7A of the Act.\n\n(4) Under section 147 of the Act, the eligible revenue of a participating carrier for a financial year is the amount that, under the regulations, is taken to be the participating carrier’s eligible revenue for the financial year.\n\n(5) These Regulations explain how to work out a participating carrier’s eligible revenue for a financial year.\n\n  \nPART 3—ACCOUNTING ARRANGEMENTS\n\nPurpose of Part 3\n\n6. (1) This Part applies if:\n\n(a) 2 or more participating carriers have the same ultimate Australian parent entity; and\n\n(b) the entity’s audited annual consolidated financial statements include the carriers’ sales revenue, with or without including revenue from the other entities.\n\n(2) This Part explains how these carriers may make calculations required by these Regulations.\n\nParticipating carriers with the same ultimate Australian parent entity\n\n7. (1) Each carrier may make all of the calculations required by these Regulations in its own right, identifying and accounting for its own revenue and deductions in accordance with these Regulations.\n\n(2) However, carriers with the same ultimate Australian parent entity may make all of the calculations required by these Regulations on a group basis, identifying and accounting for revenue and deductions as a whole in accordance with these Regulations.\n\n> Note Although carriers would be able to make calculations on a group basis, the final stage of the eligible revenue process requires carriers to identify their revenue on an individual basis: see regulation 39.\n\nPART 4—HOW TO WORK OUT GROSS TELECOMMUNICATIONS SALES REVENUE\n\nDivision 1—Purpose of Part 4\n\nPurpose\n\n8. (1) Under these Regulations, the source of a participating carrier’s eligible revenue for a financial year is its gross telecommunications sales revenue for the financial year.\n\n(2) This Part explains how to work out gross telecommunications sales revenue.\n\nDivision 2—Working out gross telecommunications  \nsales revenue\n\nGross telecommunications sales revenue\n\n9. A participating carrier’s gross telecommunications sales revenue for a financial year is worked out using the steps in Schedule 1.\n\nDivision 3—Revenue of a declared related party\n\nPurpose of Division 3\n\n10. (1) To work out the gross telecommunications sales revenue of a participating carrier, it may be appropriate to treat some or all of the telecommunications sales revenue of another entity as the carrier’s gross telecommunications sales revenue.\n\n> Note The sales revenue of a consolidated related party will already be included in the audited consolidated financial statements mentioned in Schedule 1.\n\n(2) This Division explains when another entity’s telecommunications sales revenue needs to be treated as a carrier’s gross telecommunications sales revenue.\n\nDeclared related party\n\n11. (1) The ACA may, in writing:\n\n(a) specify a participating carrier and 1 or more entities other than a consolidated related party; and\n\n(b) declare that each entity is a declared related party for the carrier.\n\n(2) The ACA may, in writing:\n\n(a) specify 1 or more kinds of entities other than a consolidated related party; and\n\n(b) declare that each entity is a declared related party for 1 or more participating carriers, or for all participating carriers.\n\nDeclarations about declared related party\n\n12. (1) The telecommunications sales revenue of a declared related party is part of the gross telecommunications sales revenue of the participating carrier for which the party is a declared related party.\n\n(2) However, the ACA may make any of the following declarations in writing for:\n\n(a) 1 or more declared related parties specified in the declaration; or\n\n(b) a specified kind of declared related party.\n\n(3) The ACA may declare that the declared related party’s telecommunications sales revenue is not part of the gross telecommunications sales revenue.\n\n(4) The ACA may declare that only a specified proportion of the declared related party’s telecommunications sales revenue is part of the gross telecommunications sales revenue.\n\n(5) The ACA may declare that only a proportion of the declared related party’s telecommunications sales revenue, worked out in a specified way, is part of the gross telecommunications sales revenue.\n\n(6) The ACA may declare that the value of a benefit or service of a declared related party is:\n\n(a) telecommunications sales revenue; and\n\n(b) part of the gross telecommunications sales revenue.\n\n(7) The ACA may declare that a specified proportion of the value of a benefit or service of a declared related party is:\n\n(a) telecommunications sales revenue; and\n\n(b) part of the gross telecommunications sales revenue.\n\n(8) The ACA may declare that a proportion of the value of a benefit or service of a declared related party, worked out in a specified way, is:\n\n(a) telecommunications sales revenue; and\n\n(b) part of the gross telecommunications sales revenue.\n\n(9) The ACA must explain in the declaration how it worked out:\n\n(a) the value of any benefit or service mentioned in the declaration; and\n\n(b) any proportion of revenue or value mentioned in the declaration.\n\n> Note The effect of a declaration is that a participating carrier must include the telecommunications sales revenue of a declared related party, as mentioned in the declaration, as part of its gross telecommunications sales revenue.\n\n> Note: The ACA will accept the telecommunications sales revenue of a declared related party as part of gross telecommunications sales revenue if it was worked out on the basis of a declaration.\n\n> Note: The ACA cannot guarantee that it will accept the telecommunications sales revenue of a declared related party as part of the gross telecommunications sales revenue if it was not worked out on the basis of a declaration.\n\nDivision 4—Unbundling of a declared related party’s telecommunications sales revenue\n\nBundled revenue of declared related party\n\n13. (1) To work out the telecommunications sales revenue of a declared related party, it may be appropriate:\n\n(a) to separate telecommunications sales revenue, or a kind of telecommunications sales revenue, from other amounts received by the party with which the revenue is bundled; and\n\n(b) to deal only with the telecommunications sales revenue, adding it to the gross telecommunications sales revenue of a participating carrier.\n\n(2) An amount of money is bundled revenue if it:\n\n(a) comes from different sources or acts; and\n\n(b) is received in a way that does not show how much of the amount came from the individual sources or acts.\n\n(3) Bundled revenue may also include the value of a benefit or service.\n\n> Note: Examples of bundled revenue\n\n> Note: 1. Revenue from providing telecommunications, electricity, gas or water connections.\n\n> Note: 2. Revenue from selling telecommunications services, and revenue from selling electricity, gas or water.\n\n(4) If a participating carrier is required to account for the telecommunications sales revenue of a declared related party, that has been bundled with other revenue, when working out its gross telecommunications sales revenue, the carrier must identify:\n\n(a) the total amount of the bundled revenue; and\n\n(b) the amount of the bundled revenue it is treating as part of its gross telecommunications sales revenue; and\n\n(c) how it worked out the amount.\n\nDeclarations about bundled revenue of a declared related party\n\n14. (1) The ACA may, in writing, declare that a specified amount, or kind of amount, is bundled revenue of a declared related party.\n\n(2) If the ACA makes a declaration, it must also declare that:\n\n(a) a specified amount or proportion of the bundled revenue of the declared related party is telecommunications sales revenue, and is to be added to the gross telecommunications sales revenue of the participating carrier; or\n\n(b) the amount of the bundled revenue of the declared related party that is telecommunications sales revenue, and is to be added to the gross telecommunications sales revenue of the participating carrier, should be worked out in a specified way.\n\n(3) The ACA must also state, in writing, how it worked out the value of a benefit or service included in the bundled revenue.\n\n> Note The ACA will accept an amount from bundled revenue as a declared related party’s telecommunications sales revenue if it was worked out on the basis of a declaration.\n\n> Note: The ACA cannot guarantee that it will accept an amount from bundled revenue as the party’s telecommunications sales revenue if it was not worked out on the basis of a declaration.\n\n  \nDivision 5—Non-telecommunications sales revenue\n\nNon-telecommunications sales revenue\n\n15. (1) To work out the gross telecommunications sales revenue of a participating carrier, it may be necessary:\n\n(a) to identify revenue that is not from telecommunications sales (non-telecommunications sales revenue); and\n\n(b) to deduct the non-telecommunications sales revenue from the total amount of revenue before identifying the gross telecommunications sales revenue.\n\n> Note See step 2 in Schedule 1.\n\n(2) This Division explains when revenue may be treated as non-telecommunications sales revenue.\n\nDeclarations about non-telecommunications revenue\n\n16. (1) The ACA may, in writing, declare that a specified amount, or kind of amount, is non-telecommunications sales revenue.\n\n> Note: Example of non-telecommunications revenue\n\n> Note: Revenue from the supply of electricity, gas or water.\n\n(2) The amount may include the value of a benefit or service.\n\n(3) The ACA must also state, in writing, how it worked out the value of a benefit or service declared to be non‑telecommunications sales revenue.\n\n> Note The ACA will accept an amount as non-telecommunications sales revenue if it was worked out on the basis of a declaration.\n\n> Note: The ACA cannot guarantee that it will accept an amount as non‑telecommunications sales revenue if it was not worked out on the basis of a declaration.\n\nDivision 6—Unbundling non-telecommunications  \nsales revenue\n\nDeducting bundled revenue\n\n17. (1) To work out an amount of non-telecommunications sales revenue to be deducted, it may be appropriate:\n\n(a) to separate the deductible revenue, or a kind of deductible revenue, from other amounts with which the deductible revenue is bundled; and\n\n(b) to deal only with the deductible revenue.\n\n(2) An amount of money is bundled revenue if it:\n\n(a) comes from different sources or acts; and\n\n(b) is received in a way that does not show how much of the amount came from the individual sources or acts.\n\n(3) Bundled revenue may also include the value of a benefit or service.\n\n(4) If a participating carrier separates bundled non-telecommunications sales revenue from other amounts for this Part, the carrier must identify:\n\n(a) the total amount of the bundled revenue; and\n\n(b) the amount of bundled non-telecommunications sales revenue it is deducting; and\n\n(c) how it worked out the deductible amount.\n\nDeclarations about deducting bundled non-telecommunications sales revenue\n\n18. (1) The ACA may, in writing, declare that a specified amount, or kind of amount, is bundled revenue.\n\n(2) If the ACA makes a declaration, it must also declare that:\n\n(a) a specified amount or proportion of the bundled revenue is deductible non-telecommunications sales revenue; or\n\n(b) the amount of the bundled revenue that is deductible non-telecommunications sales revenue should be worked out in a specified way.\n\n(3) The ACA must also state, in writing, how it worked out the value of a benefit or service included in the bundled revenue.\n\n> Note The ACA will accept an amount from bundled revenue as a deduction of bundled non-telecommunications sales revenue if it was worked out on the basis of a declaration.\n\n> Note: The ACA cannot guarantee that it will accept an amount from bundled revenue as a deduction of bundled non-telecommunications sales revenue if it was not worked out on the basis of a declaration.\n\n  \nDivision 7—ACA declarations about gross telecommunications sales revenue\n\nDeclarations about revenue\n\n19. (1) The ACA may declare, in writing, that a specified amount is part of a participating carrier’s gross telecommunications sales revenue for a financial year.\n\n(2) The ACA may declare, in writing, that a specified kind of amount is part of a participating carrier’s gross telecommunications sales revenue for a financial year.\n\n> Note: Examples of amounts that may be declared\n\n> Note: 1. Revenue from sales of goods and assets.\n\n> Note: 2. Revenue from leases and rentals (including rental of leased lines and telephone handsets).\n\n> Note: 3. Revenue from interest and dividends.\n\n> Note These examples represent revenue sources that might not be included in the audited consolidated or other financial statements to be used by a participating carrier under the title of “sales revenue”, or revenue sources that a participating carrier might try to omit improperly from its gross telecommunications sales revenue.\n\n> Note: The ACA’s power to declare a revenue source will allow it to make it clear, in a disagreement with a carrier, that the ACA regards the revenue as gross telecommunications sales revenue. The ACA’s power will also allow it to take account of revenue that is not sales revenue, but should, in the ACA’s view, still be included in the carrier’s gross telecommunications sales revenue.\n\nDeclarations about value of benefit or service\n\n20. (1) The ACA may declare, in writing, that the value of a specified benefit or service is part of a participating carrier’s gross telecommunications sales revenue for a financial year.\n\n(2) The ACA may declare, in writing, that the value of a specified kind of benefit or service is part of a participating carrier’s gross telecommunications sales revenue for a financial year.\n\n(3) The ACA must also state, in writing, how it worked out the value of the benefit or service.\n\n> Note The benefit or service, or kind of benefit or service, includes:\n\n> Note: a benefit or service received by a participating carrier (for example, a payment in kind); and\n\n> Note: a benefit or service provided by the participating carrier without receiving remuneration for it at reasonable market rates (for example, a subsidy in kind).\n\n  \nPART 5—HOW TO WORK OUT NET TELECOMMUNICATIONS SALES REVENUE\n\nDivision 1—Purpose of Part 5\n\nPurpose\n\n21. (1) After a participating carrier has worked out its gross telecommunications sales revenue for a financial year, it may be able to deduct amounts from its gross telecommunications sales revenue.\n\n(2) The revenue left is the participating carrier’s net telecommunications sales revenue for the financial year.\n\n> Note A participating carrier is not required to deduct an amount from its gross telecommunications sales revenue.\n\n(3) This Part explains how to work out amounts that may be deducted from the gross telecommunications sales revenue.\n\n> Note If a participating carrier’s gross telecommunications sales revenue includes the telecommunications sales revenue of a consolidated or declared related party, the deductions are available for that revenue.\n\n  \nDivision 2—Working out net telecommunications  \nsales revenue\n\nNet telecommunications sales revenue\n\n22. A participating carrier’s net telecommunications sales revenue for a financial year is worked out using the steps in Schedule 2.\n\nDivision 3—Specific kinds of deductible revenue\n\nActs outside Australia\n\n23. (1) The participating carrier may deduct from its gross telecommunications sales revenue an amount earned from an act that was:\n\n(a) carried out in a place outside Australia; and\n\n(b) part of the participating carrier’s activities outside Australia in the telecommunications industry.\n\n> Note Although satellites, cables and other facilities may be located outside Australia, their use may be related to the participating carrier’s Australian operations. Revenue earned from these operations would not generally be deductible.\n\n(2) However, the participating carrier may not use subregulation (1) to deduct an amount earned from supplying an international listed carriage service to or from Australia.\n\n> Note: Examples of revenue from supplying international listed carriage service\n\n> Note: 1. Customer charges for international telephone calls.\n\n> Note: 2. Settlement payments made to the carrier by a foreign carrier.\n\nActs in Australia for services outside Australia\n\n24. The participating carrier may deduct from its gross telecommunications sales revenue an amount earned from an act:\n\n(a) carried out in Australia; and\n\n(b) done solely for the supply of a carriage service originating and terminating outside Australia.\n\n> Note: Example\n\n> Note: Revenue from providing in Australia management, switching or transit carriage services for a carriage service originating and terminating outside Australia.\n\nSelling customer equipment\n\n25. The participating carrier may deduct from its gross telecommunications sales revenue an amount earned from selling customer equipment.\n\nLevy credit balance\n\n26. The participating carrier may deduct from its gross telecommunications sales revenue a payment of levy credit balance it received under section 214 of the Act in the financial year for which the gross telecommunications sales revenue is being used to calculate eligible revenue.\n\nContent services\n\n27. (1) The participating carrier may deduct from its gross telecommunications sales revenue an amount earned for the content of a content service.\n\n> Note: Examples of content of a content service\n\n> Note: 1. The programming of a broadcasting service, including a subscription broadcasting service.\n\n> Note: 2. A message on a 0055 telephone service.\n\n(2) However, the participating carrier may not use subregulation (1) to deduct an amount earned from carrying a content service.\n\nExempt base station\n\n28. The participating carrier may deduct from its gross telecommunications sales revenue an amount earned from the use of an exempt base station in the financial year.\n\n> Note: Example of using an exempt base station\n\n> Note: Using the station to distribute a subscription broadcasting service by microwave or other radiocommunications means.\n\nDivision 4—Deduction entitlements\n\nSuspension of deduction entitlements\n\n29. (1) The ACA may, in writing, declare that 1 or more participating carriers specified in the declaration are not entitled to deduct a specified amount or payment under Division 3.\n\n(2) The ACA must state that the declaration is to have effect:\n\n(a) for any financial year mentioned in the declaration; or\n\n(b) while the declaration is in force.\n\n  \nDivision 5—ACA declarations\n\nDeclarations about deductible revenue\n\n30. (1) The ACA may declare, in writing, that a specified amount of a participating carrier’s gross telecommunications sales revenue may be deducted.\n\n(2) The ACA may declare, in writing, that a specified kind of amount in a participating carrier’s gross telecommunications sales revenue may be deducted.\n\n> Note The amount may include the value of a benefit or service.\n\nDivision 6—Unbundling deductible revenue\n\nDeducting bundled revenue\n\n31. (1) To work out an amount to be deducted, it may be appropriate:\n\n(a) to separate deductible revenue, or a kind of deductible revenue, from other amounts with which the deductible revenue is bundled; and\n\n(b) to deal only with the deductible revenue.\n\n(2) An amount of money is bundled revenue if it:\n\n(a) comes from different sources or acts; and\n\n(b) is received in a way that does not show how much of the amount came from the individual sources or acts.\n\n(3) Bundled revenue may also include the value of a benefit or service.\n\n(4) If a participating carrier separates bundled deductible revenue from other amounts for this Part, the carrier must identify:\n\n(a) the total amount of the bundled revenue; and\n\n(b) the amount of the bundled revenue it is deducting; and\n\n(c) how it worked out the deductible amount.\n\nDeclarations about deducting bundled revenue\n\n32. (1) The ACA may, in writing, declare that a specified amount, or kind of amount, is bundled revenue.\n\n(2) If the ACA makes a declaration, it must also declare that:\n\n(a) a specified amount or proportion of the bundled revenue is deductible revenue; or\n\n(b) the amount of the bundled revenue that is deductible should be worked out in a specified way.\n\n(3) The ACA must also state, in writing, how it worked out the value of a benefit or service included in the bundled revenue.\n\n> Note The ACA will accept an amount from bundled revenue as a deduction if it was worked out on the basis of a declaration.\n\n> Note: The ACA cannot guarantee that it will accept an amount from bundled revenue as a deduction if it was not worked out on the basis of a declaration.\n\n  \nPART 6—HOW TO WORK OUT ELIGIBLE REVENUE\n\nDivision 1—Purpose of Part 6\n\nPurpose\n\n33. (1) After a participating carrier has worked out its net telecommunications sales revenue for a financial year, it must work out its eligible revenue.\n\n(2) To do this, the participating carrier may:\n\n(a) deduct amounts from its net telecommunications sales revenue; and\n\n(b) attribute eligible revenue where it is being worked out on a group basis.\n\n> Note A participating carrier is not required to deduct an amount from its net telecommunications sales revenue.\n\n(3) This Part explains:\n\n(a) how to work out amounts that may be deducted from the net telecommunications sales revenue; and\n\n(b) how eligible revenue is to be attributed where it is being worked out on a group basis.\n\n  \nDivision 2—General\n\nEligible revenue\n\n34. A participating carrier’s eligible revenue for a financial year is worked out using the steps in Schedule 3.\n\nInput payments made to other carriers\n\n35. (1) A participating carrier may deduct an amount from its net telecommunications sales revenue if:\n\n(a) the amount (an inter-carrier input payment) has been incurred by the participating carrier for an act done by another participating carrier, or a consolidated related party or a declared related party for the other carrier; and\n\n(b) the act allows the participating carrier that incurred the amount, or a consolidated related party or a declared related party for the carrier, to provide a listed carriage service; and\n\n(c) the participating carrier that incurred the amount believes that the other participating carrier is required to include the amount in its gross telecommunications sales revenue.\n\n(2) A participating carrier may deduct an amount from its net telecommunications sales revenue if:\n\n(a) the amount (an inter-carrier input payment) has been incurred by a consolidated related party or a declared related party for the carrier for an act done by another participating carrier, or a consolidated related party or a declared related party for the other carrier; and\n\n(b) the act allows the consolidated related party or declared related party that incurred the amount, or the carrier for which it is a party, to provide a listed carriage service; and\n\n  \n\n(c) the consolidated related party or declared related party that incurred the amount believes that the other participating carrier is required to include the amount in its gross telecommunications sales revenue.\n\n(3) The amount deducted must not be more than the amount of the input payment.\n\n> Note A payment for an input obtained from another carrier, for producing a product, can be called an “input payment”.\n\n> Note: Examples of inter-carrier input payments\n\n> Note: 1. A payment for interconnection.\n\n> Note: 2. A payment for a carriage or other service for which access has been declared under Part XIC of the Trade Practices Act 1974.\n\n> Note: 3. A payment for a carriage or other service bought on a wholesale basis.\n\n> Note: 4. A payment for a retail carriage or other service that the participating carrier buys from the other participating carrier for the purpose of resale.\n\nDeclarations about inter-carrier input payments\n\n36. The ACA may, in writing, declare that a specified amount, or kind of amount, is an inter-carrier input payment.\n\nOther input amounts\n\n37. A participating carrier may deduct an amount from its net telecommunications sales revenue if it is an input amount declared by the ACA.\n\nDeclarations about other input amounts\n\n38. (1) The ACA may, in writing, declare that a specified input cost or amount, other than an inter-carrier input amount, is an input amount.\n\n(2) The ACA may, in writing, declare that a specified kind of input cost or amount, other than an inter-carrier input amount, is an input amount.\n\n> Note: Example of other input amount\n\n> Note: The cost to the participating carrier of providing its own services of a kind that would create an inter-carrier input amount if another carrier had supplied them.\n\nDivision 3—Participating carriers with the same ultimate Australian parent entity\n\nPurpose\n\n39. (1) This Division applies if:\n\n(a) the audited annual consolidated financial statements of an ultimate Australian parent entity include the sales revenue of 2 or more participating carriers for which the entity is the parent entity; and\n\n(b) a carrier is working out its eligible revenue as the member of a group.\n\n> Note See regulation 7.\n\n(2) This Division explains how eligible revenue is attributed to individual carriers when it is being worked out by the carrier as a member of a group.\n\nAttribution of group revenue\n\n40. (1) After working out the eligible revenue on a group basis, each participating carrier must state:\n\n(a) how much of the eligible revenue is its own eligible revenue; and\n\n(b) how much of the eligible revenue is the eligible revenue of the other participating carrier or carriers for which the entity is the parent entity; and\n\n(c) how it worked out the amounts.\n\n(2) The ACA may, in writing, declare that the eligible revenue of the carrier is to be attributed in a particular way when it is being worked out by the carrier as a member of a group.\n\n> Note The ACA will accept an amount as eligible revenue if it was worked out on the basis of a declaration.\n\n> Note: The ACA cannot guarantee that it will accept an amount as eligible revenue if it was not worked out on the basis of a declaration.\n\n  \nPART 7—ACA DECLARATIONS\n\nDeclarations of general application\n\n41. (1) This regulation applies if the ACA proposes to make a declaration mentioned in Schedule 4 (a declaration of general application).\n\n(2) Before the ACA makes the declaration, it must consult each participating carrier.\n\n(3) The ACA must:\n\n(a) give the participating carrier a notice that the ACA proposes to make the declaration; and\n\n(b) invite the carrier to comment on the proposal, and make submissions.\n\n(4) The ACA must allow the carrier at least 14 days after the date of the notice to comment and make submissions.\n\n(5) If the ACA makes a declaration after consulting each participating carrier, the ACA must give the carrier a notice stating that:\n\n(a) it has made the declaration; and\n\n(b) the declaration is available from the ACA, and may also be inspected on the ACA’s Internet site.\n\nOther declarations\n\n42. (1) This regulation applies if the ACA proposes to make a declaration that is not a declaration of general application.\n\n(2) Before the ACA makes the declaration, it must consult each participating carrier to which the declaration would apply.\n\n  \n(3) The ACA must:\n\n(a) give the participating carrier a notice that the ACA proposes to make the declaration; and\n\n(b) invite the carrier to comment on the proposal, and make submissions.\n\n(4) The ACA must allow the carrier at least 14 days after the date of the notice to comment and make submissions.\n\n(5) If the ACA makes a declaration after consulting the participating carrier, the ACA must give the carrier a notice stating that:\n\n(a) it has made the declaration; and\n\n(b) the declaration is available from the ACA, and may also be inspected on the ACA’s Internet site.\n\n(6) The ACA:\n\n(a) may consult other participating carriers, to which the declaration would not apply, about the declaration; and\n\n(b) is not required to comply with subregulations (3), (4) and (5) when consulting the other carriers.\n\nReview of decisions\n\n43. Application may be made to the Administrative Appeals Tribunal for review of a decision set out in a declaration that is not a Declaration of general application.\n\n  \nPART 8—REGULATIONS CEASE TO HAVE EFFECT\n\nOperation of Regulations\n\n44. These Regulations apply to working out eligible revenue for each financial year in the period starting on 1 July 1997 and ending on 30 June 2002.\n\n## DICTIONARY Regulation 3\n\n> Act means the Telecommunications Act 1997.\n\n> Australia has the meaning given by section 139 of the Act.\n\n> bundled revenue see subregulations 13 (2), 17 (2) and 31 (2).\n\n> consolidated related party, for a participating carrier, means an entity other than the carrier whose revenue is included in the annual audited consolidated statements of the carrier’s ultimate Australian parent entity.\n\n> content service see sections 7 and 15 of the Act.\n\n> customer equipment see sections 7 and 21 of the Act.\n\n> declaration of general application see regulation 41.\n\n> declared related party see regulation 11.\n\n> entity has the meaning given in the accounting standards mentioned in subsection 294A (3) of the Corporations Law.\n\n> exempt base station see section 34 of the Act.\n\n> gross telecommunications sales revenue see regulation 9.\n\n> international listed carriage service means a carriage service mentioned in paragraph 16 (1) (b) or (c) of the Act.\n\n> listed carriage service see section 16 of the Act.\n\n> net telecommunications sales revenue see regulation 21.\n\n> non-telecommunications sales revenue see regulation 15.\n\n> participating carrier see section 146 of the Act.\n\n> subscription broadcasting service see section 16 of the Broadcasting Services Act 1992.\n\n> DICTIONARY—continued\n\n> telecommunications industry see section 7 of the Act.\n\n> telecommunications sales revenue means sales revenue earned from an activity in the telecommunications industry.\n\n> ultimate Australian parent entity means an entity described in that capacity under accounting methods commonly used in Australia.\n\n## SCHEDULE 1 Regulation 9\n\nSTEPS FOR WORKING OUT A PARTICIPATING CARRIER’S GROSS TELECOMMUNICATIONS SALES REVENUE\n\nSTEP 1 The participating carrier identifies sales revenue as follows:\n\nA. If the participating carrier’s financial year ends on 30 June, and its revenue is included in the audited annual consolidated financial statements of an ultimate Australian parent entity, the carrier identifies the amount that:\n\n(a) is described as sales revenue for the financial year in the entity’s annual consolidated financial statements; or\n\n(b) is likely to be described as sales revenue for the financial year when the entity’s annual consolidated financial statements are prepared and audited.\n\n> Note For a carrier that is not a public body (see Act, s 52), the description of sales revenue should be based on audited statements for the financial year, prepared using information and accounting methods that comply with Corporations Law accounting standards.\n\n> Note: The participating carrier must give the ACA a return of its eligible revenue within 90 days after the end of the financial year (see Act, s 191). However, the audited statements may not be completed within the 90 days.\n\n  \n\nSCHEDULE 1—continued\n\nB. If the participating carrier’s financial year ends on 30 June, and its revenue is not included in the audited annual consolidated financial statements of an ultimate Australian parent entity, the carrier identifies the amount that:\n\n(a) is described as sales revenue for the financial year in its annual financial statements; or\n\n(b) is likely to be described as sales revenue for the financial year when its annual consolidated financial statements are prepared and audited.\n\n> Note For a carrier that is not a public body (see Act, s 52), the description of sales revenue should be based on audited statements for the financial year, prepared using information and accounting methods that comply with Corporations Law accounting standards.\n\n> Note: The participating carrier must give the ACA a return of its eligible revenue within 90 days after the end of the financial year (see Act, s 191). However, the audited statements may not be completed within the 90 days.\n\nC. If the participating carrier’s financial year does not end on 30 June, and its revenue is included in the audited annual consolidated financial statements of an ultimate Australian parent entity, the carrier identifies the amount that is described as sales revenue for the financial year in:\n\n(a) the entity’s last completed and audited annual consolidated financial statements; or\n\n(b) another audited consolidated statement approved by the ACA.\n\n  \n\nSCHEDULE 1—continued\n\nD. If the participating carrier’s financial year does not end on 30 June, and its revenue is not included in the audited annual consolidated financial statements of an ultimate Australian parent entity, the carrier identifies the amount that is described as sales revenue for the financial year in:\n\n(a) its last completed and audited financial statements; or\n\n(b) another audited financial statement approved by the ACA.\n\nSTEP 2 The participating carrier deducts from the sales revenue any amount that is earned from an activity outside the telecommunications industry.\n\n> Note The deductions include amounts of non-telecommunications revenue (see Division 6 of Part 4), which may also include non‑telecommunications revenue unbundled from bundled revenue (see Division 6 of Part 5).\n\n> Note: Example of non-telecommunications revenue\n\n> Note: The supply of electricity, gas or water.\n\nSTEP 3 The participating carrier adds any amount of telecommunications sales revenue that:\n\n(a) has not been identified under step 1; and\n\n(b) would reasonably be described as its telecommunications sales revenue for the financial year.\n\nSTEP 4 The participating carrier adds any amount that:\n\n(a) has not been identified under steps 1 and 3; and\n\n(b) is to be treated as part of its gross telecommunications sales revenue for the financial year under Part 4.\n\n  \n\nSCHEDULE 1—continued\n\nSTEP 5 The result is the participating carrier’s gross telecommunications sales revenue for the financial year.\n\n> Note Part 5 deals with deducting amounts from the gross telecommunications sales revenue.\n\n## SCHEDULE 2 Regulation 22\n\nSTEPS FOR WORKING OUT A PARTICIPATING CARRIER’S NET TELECOMMUNICATIONS SALES REVENUE\n\nSTEP 1 The participating carrier adds up all of the amounts mentioned in Divisions 3 and 5 of Part 5 that it wishes to deduct from its gross telecommunications sales revenue.\n\nSTEP 2 The participating carrier deducts the total from its gross telecommunications sales revenue.\n\nSTEP 3 The result is the participating carrier’s net telecommunications sales revenue for the financial year.\n\n## SCHEDULE 3 Regulation 34\n\nSTEPS FOR WORKING OUT A PARTICIPATING CARRIER’S ELIGIBLE REVENUE\n\nSTEP 1 The participating carrier adds up all of the amounts mentioned in Part 6 that it wishes to deduct from its net telecommunications sales revenue.\n\nSTEP 2 The participating carrier deducts the total from its net telecommunications sales revenue.\n\nSTEP 3 If the revenue has been worked out on a group basis, the carrier identifies the amount of eligible revenue that is its own revenue.\n\nSTEP 4 The result is the participating carrier’s eligible revenue for the financial year.\n\n## SCHEDULE 4 Regulation 41\n\nACA DECISIONS OF GENERAL APPLICATION\n\n1. A declaration under subregulation 11 (2) that a specified kind of person is a declared related party for all participating carriers.\n\n2. A declaration under regulation 12 for a specified kind of declared related party.\n\n3. A declaration under subregulation 14 (1) that a specified kind of amount is bundled revenue for all declared related parties.\n\n4. A declaration under regulation 16 that a specified kind of amount is non-telecommunications sales revenue for all participating carriers.\n\n5. A declaration under subregulation 17 (2) that a specified kind of amount is part of the gross telecommunications sales revenue for all participating carriers.\n\n6. A declaration under subregulation 20 (2) that the value of a specified kind of benefit or service is part of gross telecommunications sales revenue for all participating carriers.\n\n7. A declaration under subregulation 29 (1) that all participating carriers are not entitled to deduct a specific payment or amount under Division 3 of Part 5.\n\n8. A declaration under subregulation 30 (2) that a specified kind of amount in any participating carrier’s gross telecommunications sales revenue may be deducted.\n\n9. A declaration under subregulation 32 (1) that a specified kind of amount is bundled revenue for all participating carriers.\n\nSCHEDULE 4—continued\n\n10. A declaration under regulation 36 that a specified kind of amount is an inter-carrier input payment for all participating carriers.\n\n11. A declaration under regulation 38 that a specified kind of amount, other than an inter-carrier input payment, is an input amount for all participating carriers.\n\n\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\n\n> Note: NOTE\n\n> Note: 1. Notified in the Commonwealth of Australia Gazette on 30 June 1998.","sortOrder":0},{"sectionNumber":"SCHEDULE 1","sectionType":"schedule","heading":"Regulation 9","content":"## SCHEDULE 1 Regulation 9\n\nSTEPS FOR WORKING OUT A PARTICIPATING CARRIER’S GROSS TELECOMMUNICATIONS SALES REVENUE\n\nSTEP 1 The participating carrier identifies sales revenue as follows:\n\nA. If the participating carrier’s financial year ends on 30 June, and its revenue is included in the audited annual consolidated financial statements of an ultimate Australian parent entity, the carrier identifies the amount that:\n\n(a) is described as sales revenue for the financial year in the entity’s annual consolidated financial statements; or\n\n(b) is likely to be described as sales revenue for the financial year when the entity’s annual consolidated financial statements are prepared and audited.\n\n> Note For a carrier that is not a public body (see Act, s 52), the description of sales revenue should be based on audited statements for the financial year, prepared using information and accounting methods that comply with Corporations Law accounting standards.\n\n> Note: The participating carrier must give the ACA a return of its eligible revenue within 90 days after the end of the financial year (see Act, s 191). However, the audited statements may not be completed within the 90 days.\n\n  \n\nSCHEDULE 1—continued\n\nB. If the participating carrier’s financial year ends on 30 June, and its revenue is not included in the audited annual consolidated financial statements of an ultimate Australian parent entity, the carrier identifies the amount that:\n\n(a) is described as sales revenue for the financial year in its annual financial statements; or\n\n(b) is likely to be described as sales revenue for the financial year when its annual consolidated financial statements are prepared and audited.\n\n> Note For a carrier that is not a public body (see Act, s 52), the description of sales revenue should be based on audited statements for the financial year, prepared using information and accounting methods that comply with Corporations Law accounting standards.\n\n> Note: The participating carrier must give the ACA a return of its eligible revenue within 90 days after the end of the financial year (see Act, s 191). However, the audited statements may not be completed within the 90 days.\n\nC. If the participating carrier’s financial year does not end on 30 June, and its revenue is included in the audited annual consolidated financial statements of an ultimate Australian parent entity, the carrier identifies the amount that is described as sales revenue for the financial year in:\n\n(a) the entity’s last completed and audited annual consolidated financial statements; or\n\n(b) another audited consolidated statement approved by the ACA.\n\n  \n\nSCHEDULE 1—continued\n\nD. If the participating carrier’s financial year does not end on 30 June, and its revenue is not included in the audited annual consolidated financial statements of an ultimate Australian parent entity, the carrier identifies the amount that is described as sales revenue for the financial year in:\n\n(a) its last completed and audited financial statements; or\n\n(b) another audited financial statement approved by the ACA.\n\nSTEP 2 The participating carrier deducts from the sales revenue any amount that is earned from an activity outside the telecommunications industry.\n\n> Note The deductions include amounts of non-telecommunications revenue (see Division 6 of Part 4), which may also include non‑telecommunications revenue unbundled from bundled revenue (see Division 6 of Part 5).\n\n> Note: Example of non-telecommunications revenue\n\n> Note: The supply of electricity, gas or water.\n\nSTEP 3 The participating carrier adds any amount of telecommunications sales revenue that:\n\n(a) has not been identified under step 1; and\n\n(b) would reasonably be described as its telecommunications sales revenue for the financial year.\n\nSTEP 4 The participating carrier adds any amount that:\n\n(a) has not been identified under steps 1 and 3; and\n\n(b) is to be treated as part of its gross telecommunications sales revenue for the financial year under Part 4.\n\n  \n\nSCHEDULE 1—continued\n\nSTEP 5 The result is the participating carrier’s gross telecommunications sales revenue for the financial year.\n\n> Note Part 5 deals with deducting amounts from the gross telecommunications sales revenue.","sortOrder":1},{"sectionNumber":"SCHEDULE 2","sectionType":"schedule","heading":"Regulation 22","content":"## SCHEDULE 2 Regulation 22\n\nSTEPS FOR WORKING OUT A PARTICIPATING CARRIER’S NET TELECOMMUNICATIONS SALES REVENUE\n\nSTEP 1 The participating carrier adds up all of the amounts mentioned in Divisions 3 and 5 of Part 5 that it wishes to deduct from its gross telecommunications sales revenue.\n\nSTEP 2 The participating carrier deducts the total from its gross telecommunications sales revenue.\n\nSTEP 3 The result is the participating carrier’s net telecommunications sales revenue for the financial year.","sortOrder":2},{"sectionNumber":"SCHEDULE 3","sectionType":"schedule","heading":"Regulation 34","content":"## SCHEDULE 3 Regulation 34\n\nSTEPS FOR WORKING OUT A PARTICIPATING CARRIER’S ELIGIBLE REVENUE\n\nSTEP 1 The participating carrier adds up all of the amounts mentioned in Part 6 that it wishes to deduct from its net telecommunications sales revenue.\n\nSTEP 2 The participating carrier deducts the total from its net telecommunications sales revenue.\n\nSTEP 3 If the revenue has been worked out on a group basis, the carrier identifies the amount of eligible revenue that is its own revenue.\n\nSTEP 4 The result is the participating carrier’s eligible revenue for the financial year.","sortOrder":3},{"sectionNumber":"SCHEDULE 4","sectionType":"schedule","heading":"Regulation 41","content":"## SCHEDULE 4 Regulation 41\n\nACA DECISIONS OF GENERAL APPLICATION\n\n1. A declaration under subregulation 11 (2) that a specified kind of person is a declared related party for all participating carriers.\n\n2. A declaration under regulation 12 for a specified kind of declared related party.\n\n3. A declaration under subregulation 14 (1) that a specified kind of amount is bundled revenue for all declared related parties.\n\n4. A declaration under regulation 16 that a specified kind of amount is non-telecommunications sales revenue for all participating carriers.\n\n5. A declaration under subregulation 17 (2) that a specified kind of amount is part of the gross telecommunications sales revenue for all participating carriers.\n\n6. A declaration under subregulation 20 (2) that the value of a specified kind of benefit or service is part of gross telecommunications sales revenue for all participating carriers.\n\n7. A declaration under subregulation 29 (1) that all participating carriers are not entitled to deduct a specific payment or amount under Division 3 of Part 5.\n\n8. A declaration under subregulation 30 (2) that a specified kind of amount in any participating carrier’s gross telecommunications sales revenue may be deducted.\n\n9. A declaration under subregulation 32 (1) that a specified kind of amount is bundled revenue for all participating carriers.\n\nSCHEDULE 4—continued\n\n10. A declaration under regulation 36 that a specified kind of amount is an inter-carrier input payment for all participating carriers.\n\n11. A declaration under regulation 38 that a specified kind of amount, other than an inter-carrier input payment, is an input amount for all participating carriers.\n\n\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\n\n> Note: NOTE\n\n> Note: 1. Notified in the Commonwealth of Australia Gazette on 30 June 1998.","sortOrder":4}],"analysis":{"kimi_summary":{"_metrics":{"model":"kimi-k2.5","source":"moonshot-realtime","completionTokens":2438},"content_quality":"ok","complexity_score":7,"scope_assessment":{"changed":false,"description":"The regulations maintain a precise technical focus on calculating eligible revenue for the Universal Service Obligation levy as originally intended, with no evidence of scope expansion beyond the revenue assessment methodology."},"complexity_factors":["Three-stage calculation methodology (gross → net → eligible) detailed across Schedules 1, 2, and 3","15+ defined terms including technical accounting concepts like 'consolidated related party' and 'bundled revenue'","Extensive discretionary declaration powers for the ACA spanning 11 categories in Schedule 4","Complex unbundling rules for separating telecommunications revenue from mixed/bundled revenue streams","Conditional logic for carriers with financial years ending on dates other than 30 June","Group accounting provisions requiring revenue attribution for carriers with shared ultimate Australian parent entities","Cross-references to Telecommunications Act 1997, Corporations Law, and Trade Practices Act 1974","Strict temporal limitation (sunset clause) restricting operation to financial years 1997-2002"],"plain_english_summary":"These regulations provide the mathematical recipe for telecommunications companies to calculate their **eligible revenue**, which determines how much they must pay into the Universal Service Obligation (USO) levy.\n\n**What is this for?**\nThe USO ensures all Australians can access standard phone services and payphones regardless of where they live. To fund this, the government charges a levy on phone companies (\"participating carriers\"). The levy amount depends on each company's eligible revenue—essentially their telecom income after specific deductions.\n\n**The three-step calculation:**\n1.  **Gross telecommunications sales revenue**: Start with sales revenue from audited financial statements. Add revenue from related companies (if the ACA declares them \"declared related parties\"). Remove money from non-telecom activities (like selling electricity or gas). The Australian Communications Authority (ACA) can issue declarations to include or exclude specific amounts.\n2.  **Net telecommunications sales revenue**: Deduct specific items from the gross amount, such as revenue earned entirely outside Australia, sales of customer equipment (handsets), payments from levy credits, and content services (like TV programming or 0055 numbers).\n3.  **Eligible revenue**: Deduct payments made to other carriers for network access or interconnection (to prevent double-counting). Companies in the same corporate group can calculate this together but must then divide the final amount between themselves.\n\n**Key special rules:**\n*   **Bundled revenue**: If a company bundles telecom services with other products (like phone + electricity), they must \"unbundle\" and separate the telecom portion.\n*   **ACA declarations**: The ACA has broad powers to decide what counts as revenue, what can be deducted, and how to value benefits or services. Declarations can apply to all carriers or specific ones, with AAT review available for non-general declarations.\n*   **Group accounting**: Companies sharing the same ultimate Australian parent can work out revenue on a group basis, but must ultimately attribute specific amounts to each carrier.\n*   **Sunset clause**: These rules only applied for financial years between 1 July 1997 and 30 June 2002."},"flash_summary":{"complexity_score":6,"scope_assessment":{"changed":false,"description":"These Regulations implement a time‑limited, mechanical method for calculating participating carriers' eligible revenue for the universal service levy and related National Relay Service support. The text confines application to financial years 1 July 1997 to 30 June 2002 (reg 44) and does not, on its face, expand or contract that statutory purpose beyond setting procedural and valuation rules for eligible revenue (Parts 1–8 and Schedules 1–4)."},"complexity_factors":["Multi‑stage numerical procedure with cross‑referenced Schedules (Schedule 1–3 and Parts 4–6).","Wide range of ACA discretionary declaration powers that can alter inclusion/exclusion and valuation (regs 11–12, 14, 16, 19–20, 29–32, 36–38).","Unbundling rules requiring carriers to separate bundled revenue and document allocation methods (regs 13, 17, 31).","Group accounting option with required final per‑carrier attribution (regs 7, 39–40) introduces allocation methodology complexity.","Frequent reliance on audited consolidated financial statements and possible timing mismatch with reporting deadlines (Schedule 1 notes).","Multiple deduction categories and exclusions (Parts 5–6) with special‑case rules (e.g. international listed carriage services exception in reg 23)."],"plain_english_summary":"# What these Regulations do\n\nThese Regulations set the mechanical rules for calculating a \"participating carrier\"'s eligible revenue for the purpose of the universal service levy under the Telecommunications Act 1997 (the levy that funds the universal service regime and support for the National Relay Service) (reg 5(1)–(3), reg 34). The calculation is a three‑stage arithmetic process: start with gross telecommunications sales revenue (Schedule 1; reg 9), subtract permitted deductions to reach net telecommunications sales revenue (Schedule 2; reg 22), then subtract further permitted amounts and, where relevant, allocate group totals to individual carriers to arrive at eligible revenue (Schedule 3; reg 34). These Regulations apply only to the financial years from 1 July 1997 to 30 June 2002 (reg 44).\n\n# Who this affects\n\n- Participating carriers (as defined in the Act) — they must compute and report eligible revenue and will have the levy assessed against that amount (reg 5(1)–(4); Schedule 1 note referencing Act, s 191).\n- Carriers that share an ultimate Australian parent entity can elect to calculate on a group basis, but each carrier must ultimately identify its own share of eligible revenue (Part 3, regs 7 and 39–40).\n- Entities declared by the regulator (the ACA) as \"declared related parties\" can have their telecommunications revenue treated as part of a carrier's gross telecommunications sales revenue (regs 11–12).\n\n# How the calculation works, step by step (mechanics)\n\n- Gross telecommunications sales revenue: identify sales revenue reported in audited financial statements (Schedule 1, STEP 1), deduct revenue from non‑telecommunications activities (STEP 2), then add any telecommunications sales revenue not captured in the financial statements or included under Part 4 (STEPs 3–5) (Schedule 1; regs 8–9, 15).\n\n- Net telecommunications sales revenue: add up the deductible items listed in Part 5 (acts performed outside Australia except some international services (reg 23), sales of customer equipment (reg 25), content fees vs carriage revenue distinctions (reg 27), use of exempt base stations (reg 28), levy credit balance receipts (reg 26)), then subtract them from gross revenue (Schedule 2; reg 22).\n\n- Eligible revenue: after net revenue is worked out, carriers may deduct inter‑carrier input payments (payments to other carriers for acts that enable supply of listed carriage services) and other input amounts declared by the ACA; if the calculation was done on a group basis, the group total must be attributed to individual carriers (Part 6; regs 33–40; reg 35–38; Schedule 3).\n\n# Regulator's power and decision procedure\n\n- The ACA has broad written‑declaration powers to: name declared related parties and specify what of their revenue counts (regs 11–12); specify bundled revenue and the portion that is telecommunications revenue (regs 13–14); declare non‑telecommunications revenue or deductible amounts (regs 15–18); treat particular amounts or kinds of revenue or benefits as part of gross telecommunications sales revenue (regs 19–20); identify inter‑carrier input payments and other input amounts (regs 36–38); and declare how group attribution is to be made (reg 40).\n\n- Many of the ACA's declarations must explain how the value or proportion was worked out (see regs 12(9), 14(3), 16(3), 18(3), 20(3), 32(3)).\n\n- Process requirements: where the ACA proposes a declaration of general application the ACA must consult every participating carrier and give at least 14 days for comments (reg 41); for other declarations the ACA must consult the carriers to which the declaration would apply and give at least 14 days (reg 42). Declarations that are not of general application may be reviewed by the Administrative Appeals Tribunal (reg 43).\n\n# Who pays, who decides, and what changes in behaviour\n\n- Who pays: participating carriers are the payers of the universal service levy; their levy share is calculated using eligible revenue (reg 5(1)–(4)).\n\n- Who decides: the ACA decides — by written declaration — whether particular third‑party revenues count, what proportions to include or exclude, and whether particular costs count as deductible input payments (see regs 11–12, 14, 16, 19–20, 29–32, 36–38).\n\n- Behavioural effects created by the rules (mechanisms not judgements): carriers must assemble audited financial statements or approved audited statements, identify and unbundle bundled revenues where necessary, document how they allocated proportions, and decide whether to calculate individually or on a group basis (Schedule 1; regs 7, 13(4), 31(4), 40). Carriers can deduct inter‑carrier input payments where those payments meet the stated conditions (reg 35). The ACA can suspend entitlement to particular deductions for specified carriers (reg 29).\n\n# Compliance burden, implementation points and discretion\n\n- Compliance burden: carriers must prepare audited sales figures (or approved audited statements) and give a return of eligible revenue within the statutory time (Schedule 1 note referencing Act, s 191). Where amounts are bundled, carriers must identify total bundled revenue, the amount treated as telecommunications or deductible revenue, and how the amount was worked out (regs 13(4), 17(4), 31(4)). Declarations by the ACA must state valuation methods (see regs 12(9), 14(3), 16(3), 18(3), 20(3), 32(3)).\n\n- Regulator discretion: the ACA has repeated powers to declare revenue items and input amounts and to set valuation methods (see Parts 4–6 generally). The Regulations make acceptance of amounts conditional on having been worked out on the basis of an ACA declaration (see the repeated notes after regs 12, 14, 16, 18, 20, 32, 36, 38) — that creates a formal link between ACA declarations and the predictability of acceptance.\n\n- Practical implementation friction: audited accounts may not be final within the 90‑day reporting window (Schedule 1 note). Group accounting is permitted but requires a final per‑carrier attribution and documentation of how numbers were split (reg 7 note, reg 40).\n\n# Trade‑offs and incentives (mechanism summary)\n\n- The Regulations give carriers specified deduction opportunities (inter‑carrier input payments; certain overseas activities; sales of customer equipment; content vs carriage distinctions; exempt base stations) that reduce eligible revenue and therefore levy exposure (Part 5, regs 23–28; Part 6, regs 35–38). The ACA can disallow or limit those deductions for specified carriers (reg 29) and can declare what counts as input payments or deductible amounts (regs 36–38).\n\n- Because the ACA must publish and consult on general declarations and must provide 14 days for comments (regs 41–42), carriers have a structured route to influence how particular categories will be treated; declarations not of general application are reviewable by the AAT (reg 43).\n\n# Time coverage\n\nThese Regulations operate only for financial years starting 1 July 1997 through 30 June 2002 (reg 44)."}},"importantCases":[],"_links":{"self":"/api/acts/telecommunications-universal-service-obligation-eligible-revenue-regulations-1998","history":"/api/acts/telecommunications-universal-service-obligation-eligible-revenue-regulations-1998/history","analysis":"/api/acts/telecommunications-universal-service-obligation-eligible-revenue-regulations-1998/analysis","conflicts":"/api/acts/telecommunications-universal-service-obligation-eligible-revenue-regulations-1998/conflicts","importantCases":"/api/acts/telecommunications-universal-service-obligation-eligible-revenue-regulations-1998/important-cases","documents":"/api/acts/telecommunications-universal-service-obligation-eligible-revenue-regulations-1998/documents"}}