13Liability to pay charge

13 Liability to pay charge

(1) Charge is payable by the parent entity of a service group for a financial year if:

(a) the service group’s 12‑month financial reporting period ending during the financial year is a reporting period that starts on or after 1 January 2025; and

(b) one or more members of the parent entity’s service group provide one or more significant social media or search services on the last day of that reporting period (the final reporting day); and

(c) the sum of the totals worked out under subsection (2) for those services exceeds $250 million.

Note: While charge is not payable by a controlled entity in the service group, such a controlled entity may be jointly and severally liable to pay the charge that is payable by the parent entity (see section 129‑15 in Schedule 1 to the Taxation Administration Act 1953).

(2) For each service covered by paragraph (1)(b), work out the total of the following:

(a) the service group’s relevant Australian digital advertising revenue for the financial year and each of the following:

(i) the service;

(ii) any other service that will become the service before the final reporting day;

(b) if earlier in that reporting period:

(i) the service; or

(ii) any other service that will become the service before the final reporting day;

was provided by one or more members of another service group—that other service group’s relevant Australian digital advertising revenue for the financial year and the service so provided by that other service group.

Note 1: If a service group is providing more than one service on the final reporting day, then apply this subsection separately for each of those services.

Note 2: If a service group provides the same service throughout the entire reporting period, then the total revenue from this subsection is only that worked out under paragraph (a) (see subparagraph (a)(i)).

Note 3: If the parent entity’s service group makes changes to a service during the reporting period that are significant enough to result in a new service, then the total revenue from this subsection for the new service is the sum of:

(a) the revenue from providing the new service during the reporting period after the changes are made (see subparagraph (a)(i)); and

(b) the revenue from providing the original service during the reporting period before the changes are made (see subparagraph (a)(ii)).

Example: Assume service group A provides service X throughout the entire reporting period. Assume service group A also provides service Y for the last half of the reporting period after a merger with service group B in the middle of the reporting period. For paragraph (1)(c), group A’s revenue is the sum of the following totals: