10Meaning of relevant Australian digital advertising revenue

10 Meaning of relevant Australian digital advertising revenue

(1) A service group has relevant Australian digital advertising revenue, for a financial year and a service, if one or more members of the service group provide the service for a period (the delivery period) that:

(a) is all of the service group’s 12‑month financial reporting period that ends during the financial year; or

(b) is a part of that 12‑month financial reporting period.

(2) The amount of the service group’s relevant Australian digital advertising revenue for the financial year and the service is worked out by:

(a) working out, for each member of the group, the member’s gross revenue, determined in accordance with the accounting standards, for that 12‑month financial reporting period; and

(b) working out, after complying with any requirements prescribed by the rules, the portion of a member’s gross revenue from paragraph (a) that is both:

(i) attributable to advertising on the service during the delivery period; and

(ii) attributable to transactions within or into Australia, or to assets within Australia, during the delivery period that are attributable to the service; and

(c) working out the sum of the portion from paragraph (b) for each member of the group.

The sum from paragraph (c) is the service group’s relevant Australian digital advertising revenue for the financial year and the service.

Example: Service group A provides a service for the first half of the group’s 12‑month financial reporting period that ends in a financial year. As a result of a merger with service group B, group B provides the service for the rest of the reporting period. Under this section:

(a) group A has relevant Australian digital advertising revenue for the financial year and the service attributable to the provision of the service before the merger; and

(b) group B has relevant Australian digital advertising revenue for the financial year and the service attributable to the provision of the service after the merger.

There is no double counting of revenue because of this attribution to different delivery periods within the reporting period (see paragraph (2)(b)).

(3) For the purposes of (but without limiting) subparagraph (2)(b)(ii):

(a) the expression “transactions”, including as used in the expression “transactions within or into Australia”, includes transactions of any kind (including those of a non‑financial nature); and

(b) the expression “transactions within or into Australia” includes transactions relating to active Australian users of the service in a month of the delivery period.

(4) Without limiting paragraph (2)(b), requirements prescribed by the rules for the purposes of that paragraph could deal with the working out of one or more of the following: