Telecommunications (Consumer Protection and Service Standards) (Levy Formula Modification) Determination 2019

The Determination hinges on a small number of interlocking concepts. All are defined or used in the instrument and should be identified before attempting any calculation.

• Participating person: The instrument refers to "participating person" as a defined term used in the Act (s 4). The Determination does not itself restate the Act’s definition, but every formula in s 6 applies only where "a person is a participating person for the eligible revenue period" (ss 6(2)-(5)). That means the Determination is a rule that manipulates the levy amount only after the Act’s test for participation has been met.

• Eligible revenue period and eligible levy period: The instrument uses those expressions as in the Act (s 4 note). It explicitly fixes the "current eligible levy period" as 2019-20 and the "future eligible levy period" as 2020-21 or later (s 4). The timing relationship is important: the formulas in s 6 apply to the eligible levy period "starting immediately after the relevant eligible revenue period".

• Date of assessment: Defined as the date decided by the ACMA, subject to being no earlier than the end of the relevant eligible revenue period and no later than the date the ACMA issues its written assessment under s 51 of the Act (s 4). The date of assessment determines which class an entity falls into for the calculation: whether it "ceases to exist" on or before that date (s 6(2)), is a "Chapter 5 body corporate" on or before that date (s 6(3)), or neither (ss 6(4)-(5)).

• Adjustment factor: Defined as the sum of the levy contribution factors for that eligible levy period worked out under section 49 of the Act for all participating persons covered by subsections 6(4) and 6(5) (s 4). In plain terms, the adjustment factor aggregates the levy contribution factors of the cohort labelled "all other participating persons" whose levy amounts are computed under ss 6(4) and 6(5).

• Levy contribution factor and overall levy target amount: These are expressions defined in the Act (s 4 note). The Determination uses them as numerical inputs to its formulas. "Previous levy deficit" is defined in the instrument as "the total of any shortfall between the 'overall levy target amount' for the eligible levy period immediately before the relevant eligible levy period and the amounts paid by all participating persons to the Commonwealth for that earlier eligible levy period" (s 4). The "previous levy deficit" therefore rolls forward any earlier shortfall into the numerator used for subsequent levy calculations (ss 6(4) and 6(5)).

• Distinct formulas by class: The Determination creates three distinct mechanical outcomes:

  • Ceased-to-exist: levy amount for the next eligible levy period is zero (s 6(2)).
  • Chapter 5 body corporate: levy amount is worked out using the formula shown at s 6(3) (text set out in the instrument).
  • All other participating persons: levy amount is worked out under s 6(4) for the 2019-20 "current eligible levy period", and under s 6(5) for future eligible levy periods.

• One-off addition for 2019-20: The formula for the current eligible levy period specifically adds $8,000,000 as part of the numerator (s 6(4)). That is not present in the future-period formula (s 6(5)).

• Interaction with levy-imposition statute: The Determination repeatedly notes that "The Telecommunications (Industry Levy) Act 2012 imposes levy on the levy amount" (notes to ss 6(3)-(5)). The Determination does not itself impose the monetary obligation; it modifies the underlying "levy amount" that is then applied under the Industry Levy Act.

Those concepts form the mechanical architecture of the Determination: identify class via ACMA date of assessment; apply class-specific formula; use Act-defined inputs; incorporate any prior shortfall and, for the 2019-20 period, an additional $8,000,000; and recognise that separate legislation imposes the payment obligation on the calculated levy amount.

The Determination operates only on "participating persons" as that term is used in the Act (s 4 note and ss 6(2)-(5)). The instrument distinguishes three categories of participating person for the specific purpose of working out the levy amount for an eligible levy period immediately following a given eligible revenue period:

• Participating persons who "cease to exist" on or before the ACMA's date of assessment. If a person in that class was a participating person for the eligible revenue period, then the Determination sets the levy amount for that person for the subsequent eligible levy period to zero (s 6(2)). The effect is that entities that have ceased to exist by ACMA's date of assessment are not allocated a levy amount for the next levy period under this Determination.

• Participating persons that are a "Chapter 5 body corporate" on or before the date of assessment, meaning entities subject to external administration under Chapter 5 of the Corporations Act (s 6(3) and the note to s 6(3)). The Determination prescribes a specific formula for calculating their levy amount (s 6(3)). The instrument treats them separately from those that have ceased to exist and from the remainder of participants.

• All other participating persons , those that were participating persons for the eligible revenue period and to whom neither s 6(2) (ceased-to-exist) nor s 6(3) (Chapter 5 body corporate) apply. These persons are subject to the formulas in s 6(4) (for the current eligible levy period, specified as 2019-20) and s 6(5) (for future eligible levy periods, 2020-21 and later).

Who pays in practice: the Determination modifies the numeric "levy amount" used to allocate the industry levy. The instrument notes that the Telecommunications (Industry Levy) Act 2012 "imposes levy on the levy amount" (notes to ss 6(3)-(5)). Thus, participating persons, as defined by the Act and reduced to one of the three classes in the Determination, are the entities whose levy amounts are determined and on which the separate Industry Levy Act will impose the monetary obligation.

Who decides classification and timing: the ACMA determines the "date of assessment" (s 4). The date of assessment is bounded by two points: it cannot be earlier than the end of the relevant eligible revenue period and cannot be later than the date the ACMA issues its written assessment under s 51 of the Act (s 4). That choice by ACMA is consequential: whether an entity has "ceased to exist" or is in external administration on or before that date determines which formula in s 6 applies to it, and therefore affects its levy amount.

Who is excluded from the calculation entirely: the Determination makes clear that an entity that has ceased to exist by the date of assessment has a levy amount of zero for the subsequent eligible levy period (s 6(2)). The effect is a mechanical exclusion for those entities from the levy allocation for that period.

The Determination therefore affects all participating persons in the telecommunications sector subject to the Act, but it does so through class differentiation based on corporate existence and external-administration status as at the ACMA's date of assessment, and by altering the numeric pool and allocation inputs used to compute individual shares.

The Determination does not itself create new express procedural duties such as filing or reporting obligations. Instead it prescribes how to compute the statutory "levy amount" for different classes of participating person; those levy amounts are then the inputs to the levy-imposition regime under the Telecommunications (Industry Levy) Act 2012 (see notes to ss 6(3)-(5)).

Concrete duties and rights that follow from the instrument as written:

• Duty to accept the calculation regime: Participating persons have their liability for a subsequent eligible levy period determined by the formula that applies to their class as at the ACMA's date of assessment (ss 6(2)-(5)). The Determination mandates that calculation. Participating persons will be bound to the numeric result because the Levy Amount flows into the levy imposed under separate legislation (notes to ss 6(3)-(5)).

• Right to be treated according to class at date of assessment: The instrument fixes classification rules tied to the ACMA’s date of assessment (s 4; ss 6(2)-(5)). A participating person’s legal state on or before that date (ceased to exist; a Chapter 5 body corporate; or other) determines the formula used. That gives participating persons a right to certainty about which formula will apply once the ACMA sets its date of assessment.

• ACMA’s procedural discretion: The ACMA decides the date of assessment subject to the limits stated in the definition (s 4). That procedural discretion has direct consequences for which formula applies to each participating person. The Determination does not limit how the ACMA exercises that discretion, other than the temporal bounds (no earlier than the end of the relevant eligible revenue period; no later than the date ACMA issues its written assessment under s 51 of the Act) set out in s 4.

• Calculation inputs that are rights or obligations under other statutes: The Determination relies on the "levy contribution factor" and "overall levy target amount" as inputs. Those expressions are defined in the Act (s 4 note). The Determination also imports "previous levy deficit" into its numerator (s 4 definition; ss 6(4)-(5)), which gives effect to a right of the Commonwealth to recover previously unmet levy targets through subsequent levy allocations.

• Treatment of insolvency and administration: For participating persons that are Chapter 5 body corporates, the Determination provides a specific formula (s 6(3)) rather than treating them as ceased-to-exist or as part of the adjusted cohort for division. The instrument also notes that external administration is primarily dealt with in Chapter 5 of the Corporations Act 2001 (note to s 6(3)). This creates a specific numeric approach for entities in that insolvency-related class.

• Repeal of prior instrument: By repealing the Levy Amount Formula Modification Determination 2015 in full (Schedule 1), the Determination removes the earlier modification and replaces the prior numeric regime with the formulas in s 6. That means rights and expectations based on the 2015 instrument no longer apply from the Determination’s commencement date (s 2; Schedule 1).

What the Determination does not do (expressly): it does not create new collection powers, new reporting forms, or payment timetables. Those functions remain with the Act and with the Telecommunications (Industry Levy) Act 2012 as applicable. The Determination is purely formulaic: it prescribes how to compute the levy amount by class and period and thereby changes the numeric allocation upon which levy collection occurs.

The Determination itself does not set out penalties or direct enforcement mechanisms. It modifies the calculation of the "levy amount" under subsection 50(1) of the Act; the instrument contains notes that the Telecommunications (Industry Levy) Act 2012 "imposes levy on the levy amount" (notes to ss 6(3)-(5)). Therefore, enforcement and penalty provisions associated with non-payment of the industry levy remain matters for the Industry Levy Act and for the Act’s existing provisions, rather than for this Determination.

Relevant enforcement and procedural points within the Determination:

• ACMA role in timing: The ACMA is given the role of deciding the "date of assessment" (s 4). The date of assessment is central to which class a participating person falls into under ss 6(2)-(5). Any enforcement action arising from a levy amount calculation,such as demand notices or recovery,will rely on the levy amount produced once the ACMA has made its assessment and issued any written assessment under s 51 of the Act (s 4 referencing s 51). The Determination does not alter the ACMA’s assessment powers, but it makes ACMA’s timing decisive for classification.

• Consequences of non-existence or external administration: The Determination establishes a nil levy for participating persons that cease to exist on or before the date of assessment (s 6(2)). For entities in external administration (Chapter 5 body corporate) the Determination prescribes a specific formula (s 6(3)) for their levy amount. How enforcement or recovery operates in respect of persons in external administration is not set out in the Determination; the Determination only sets the numeric levy amount. The note to s 6(3) that "External administration is primarily dealt with by Chapter 5 of the Corporations Act 2001" signals that enforcement against administered entities will interact with the insolvency framework in that Act.

• No civil or criminal penalties in the Determination text: The instrument contains no clauses that create offences, fines, or criminal sanctions, nor does it amend or repeal any specific enforcement provision in the Act itself. The instrument modifies the calculation used by the imposing legislation, but the process of levy imposition, penalties for non-payment, and recovery mechanisms remain matters for the Telecommunications (Industry Levy) Act 2012 and the existing Act.

• Potential for dispute: Because the Determination alters the arithmetic used to allocate levy shares, disputes about the correct levy amount for a party could lead to challenges under the Act’s procedural mechanisms (for example where the ACMA’s assessment date determines classification). The Determination itself does not set dispute-resolution procedures; any disputes will be resolved under the Act and the mechanisms available under the levy-imposition statute or wider administrative law (the Determination refers to the ACMA and s 51 of the Act in defining the date of assessment).

In short, enforcement and penalties for non-payment are outside the instrument’s text; the Determination supplies the numeric levy amounts on which the existing levy-imposition machinery and enforcement provisions operate. The instrument’s primary enforcement-relevant feature is that it makes the ACMA’s date of assessment a determinative moment for classification, which in turn affects who bears levy obligations under the other Acts that impose and collect the levy.

The Determination expressly situates itself within the larger statutory context; interaction with other laws is limited to references and notes in the instrument rather than substantive amendments to those laws.

Statutory authority and cross-references:

• Made under s 50(2) of the Telecommunications (Consumer Protection and Service Standards) Act 1999: The Determination states that it is made under subsection 50(2) of the Act (s 3). It purports to modify the formula in subsection 50(1) of that Act (s 6(1)). The instrument therefore operates as a delegated instrument modifying the operation of the Act’s levy formula.

• ACMA and s 51 of the Act: The "date of assessment" used throughout the Determination is the date decided by the ACMA and is bounded by the endpoint established in the Act: it "must be no earlier than the end of the relevant eligible revenue period and no later than the date the ACMA issues its written assessment under section 51 of the Act" (s 4). That ties the Determination to the Act’s assessment and notice procedures and to the ACMA’s exercise of functions under the Act.

• Telecommunications (Industry Levy) Act 2012: Multiple notes in ss 6(3)-(5) state that "The Telecommunications (Industry Levy) Act 2012 imposes levy on the levy amount." The Determination does not itself impose payment obligations; it modifies the underlying levy amount that is then the subject of imposition, payment, and recovery under the Industry Levy Act. Consequently, the practical effect of this Determination depends on how the Industry Levy Act implements collection, timing, enforcement and any exemptions or offsets. The Determination leaves those implementation details to the Industry Levy Act.

• Corporations Act 2001, Chapter 5: The Determination treats entities subject to external administration differently. It defines "Chapter 5 body corporate" with the same meaning as in section 9 of the Corporations Act 2001 (s 4), and adds the note: "External administration is primarily dealt with by Chapter 5 of the Corporations Act 2001" (note to s 6(3)). That cross-reference signals that the insolvency status of a participating person (and consequences under insolvency law) will determine which formula applies.

Practical interaction effects:

• Timing and corporate events: Because the ACMA determines date of assessment and because the Determination makes corporate existence at that date the trigger for exclusion (s 6(2)) or distinct treatment (s 6(3)), corporate events governed by the Corporations Act (for example winding up, administration or dissolution) will interact directly with levy allocation outcomes. The Determination therefore creates a link between corporate law events and sector-levy allocation.

• Carry-forward of deficits: The "previous levy deficit" concept in the Determination expressly imports the outcome of earlier levy rounds into current and future numerators (s 4; ss 6(4)-(5)). In operational terms, under the Determination the overall levy target shortfalls are rolled into the subsequent levy calculation and thus transmitted across financial years by the Industry Levy Act’s collection mechanism.

• Repeal of the 2015 Determination: The Determination repeals the Levy Amount Formula Modification Determination 2015 in full (Schedule 1). That means any legislative or administrative interactions that were based on the 2015 instrument must now be reinterpreted in light of the 2019 Determination. The instrument does not amend the Act itself; it replaces a prior delegated instrument that modified the Act’s formula.

Limitations on interaction claims: The Determination does not, in its text, modify the Industry Levy Act, the Corporations Act, or the Act’s broader administrative powers. It only changes the arithmetic for the levy amount and cross-references other statutes to indicate where collection and external-administration matters are handled. Any substantive change to collection, enforcement, or insolvency treatment beyond the numeric allocation will depend on provisions in those other statutes and on the ACMA’s exercise of assessment functions under the Act.

The Determination is self-contained and short. The instrument contains the essential amendment history relevant to its scope:

• Repeal of the Levy Amount Formula Modification Determination 2015: The Determination expressly repeals the whole of the 2015 instrument (Schedule 1). Schedule 1 states: "The whole of the instrument , Repeal the instrument." That is the only express consequential amendment recorded in the text.

• Date of making and commencement: The front matter records the instrument as made by the Minister (Paul Fletcher) and dated 29 October 2019. Section 2 states that "This instrument commences the day after registration." That establishes the single change-over date from the 2015 Determination to the 2019 Determination: on commencement, the 2015 instrument is repealed and the new formulas take effect.

• Basis in parent Act: Section 3 states the authority: the instrument "is made under subsection 50(2) of the Telecommunications (Consumer Protection and Service Standards) Act 1999." Section 6(1) restates that the formula in subsection 50(1) of the Act is modified "for the classes of participating persons, and for the periods, as set out in subsections (2), (3), (4) and (5)." The Determination therefore functions as a delegated modification under subsection 50(2) of the Act, replacing the prior instrument.

No further amendments are recorded in the text. The Determination does not provide a schedule of transitional provisions beyond the class-based formulas in s 6 and the definition of "current" and "future" eligible levy periods in s 4 that fixes 2019-20 as the current period. The absence of transitional clauses in the instrument means that the classification and computation rules as set out in s 6 apply from commencement without additional phasing or grandfathering described in the instrument.

Because the instrument repeals the 2015 Determination, any administrative procedures, calculations or expectations that relied on the 2015 instrument will need to be updated to reflect the new formulas and definitions. The Determination itself is the only explicit amendment recorded here; it does not appear to amend any other regulations or primary Acts in text.

The Determination does not contain any statement of litigation history. The instrument provides no references to court decisions, judicial interpretations, or administrative appeals arising under prior instruments. There are no named cases or precedent citations in the text.

However, the Determination’s content identifies a number of factual or interpretative issues that could give rise to legal dispute, because it modifies allocation arithmetic that feeds into the levy-imposition and recovery regime. Those potential dispute points, as revealed by the instrument, include:

• ACMA's date of assessment: The Determination makes the ACMA's determination of the date of assessment (s 4) the determinative fact for classifying participants into the three formulaic buckets (ss 6(2)-(5)). Disputes could arise about whether the ACMA has correctly chosen the date of assessment within the permissible window (no earlier than the end of the relevant eligible revenue period and no later than the date ACMA issues its written assessment under s 51 of the Act), and whether that choice in any particular case affects an entity’s levy obligations. Because the instrument itself ties class membership to that date, litigated disputes about ACMA’s timing or process would be disputes about the administrative exercise under the Act.

• Classification outcomes for entities near the date: The Determination creates binary outcomes (zero levy if ceased to exist; separate formula if a Chapter 5 body corporate) based on corporate status on or before ACMA's date. Questions about whether an entity "ceased to exist" for the purpose of s 6(2) or whether it is properly regarded as a "Chapter 5 body corporate" for s 6(3) could be subject to challenge. The instrument references the Corporations Act for the meaning of Chapter 5 body corporate (s 4), so contested interpretations would likely turn on corporate law definitions and administrative facts.

• Interpretation of the formulas: The formula in s 6(3) is presented in the instrument as "the amount worked out using the formula: Levy contribution factor x Overall levy target amount." Subsections 6(4) and 6(5) express formulas that display a numerator and then an "Adjustment factor" line (for example, s 6(4) shows "Levy contribution factor x (Overall levy target amount + Previous levy deficit + $8,000,000)" followed by "Adjustment factor"). While the instrument’s layout suggests division by the "Adjustment factor" for ss 6(4) and 6(5), the text in s 6(3) does not include an "Adjustment factor" line in the same way. This difference could generate interpretative arguments about whether the s 6(3) formula is intended to be divided by the adjustment factor or whether its absence is deliberate. The text itself provides the starting point for such an argument.

• Calculation of previous levy deficit: The Determination defines "previous levy deficit" (s 4), but disputes could arise about the correct historical calculation or treatment of amounts paid by participating persons in earlier periods, especially where payments were partial, disputed, or subject to adjustments under other statutory regimes. The instrument itself brings the previous deficit into current and future numerators, so accuracy in the deficit calculation is legally consequential.

Because the Determination is limited in itself to formulaic modifications, any litigation would most likely engage the Act, the Industry Levy Act, the Corporations Act, and administrative law doctrines about the exercise of ACMA’s functions and the correctness of its assessments. The instrument does not list any past litigation; it therefore provides no primary-law litigation history to cite. Any question about legal disputes will need to be addressed by examining the Act, the Industry Levy Act, and administrative records or court decisions outside the Determination text.

The Determination is succinct, but it contains several practical traps and interpretation risks that practitioners should note. These "gotchas" follow from the precise text and the way it links corporate status on ACMA’s assessment date to levy outcomes.

• ACMA’s date of assessment is pivotal: The definition of "date of assessment" (s 4) is the single factor that determines whether a participating person is treated as ceased-to-exist (s 6(2)), as a Chapter 5 body corporate (s 6(3)), or as part of the cohort subject to division by the adjustment factor (ss 6(4)-(5)). Because the date is chosen by ACMA and can be any date from the end of the relevant eligible revenue period up to the date the ACMA issues its written assessment under s 51 of the Act, small differences in ACMA’s choice can flip an entity from one class to another. Practitioners should watch for ACMA’s notified date of assessment and plan corporate actions or challenges accordingly.

• Ceasing to exist produces nil levy but shifts burden: If a participating person "ceases to exist" on or before the date of assessment, its levy amount for the subsequent eligible levy period is zero (s 6(2)). That is a mechanical exclusion. However, the overall levy target amount remains a constant input in the formulas for others; the Determination defines an "adjustment factor" as the sum of levy contribution factors for participating persons covered by ss 6(4) and 6(5) (s 4). In practice, excluding ceased entities reduces the adjustment factor denominator, increasing the per-unit share for remaining participants. The Determination does not amend the overall levy target amount; it reallocates shares among remaining participants through the adjustment factor arithmetic. Entities thinking that cessation absolves the industry of the target amount are mistaken: the total levy target remains recoverable via the other participants’ shares.

• Differential treatment of entities in external administration: Participating persons that are "Chapter 5 body corporate" on or before the date of assessment are subject to the formula in s 6(3), which is presented simply as "Levy contribution factor x Overall levy target amount." In contrast, ss 6(4)-(5) show a numerator divided by an "Adjustment factor." The absence of an obvious "Adjustment factor" line in s 6(3) could produce unexpectedly large calculated levy amounts for entities in external administration unless interpreted otherwise. The instrument’s text does not insert the adjustment factor for s 6(3) in the same way it does for the other classes, so practitioners should be alert to potential interpretative disputes and to how the ACMA and collecting authorities implement s 6(3).

• One-off $8,000,000 for 2019-20: The current eligible levy period (2019-20) formula for "all other participating persons" includes a specific addition of $8,000,000 in the numerator (s 6(4)). That is excluded from the future formula at s 6(5). The $8,000,000 is a one‑off additive that will increase the levy obligation in that year’s allocation. Practitioners should plan for that explicitly when forecasting cash-flow for 2019-20 levy obligations.

• Carry-forward of previous levy deficits: The "previous levy deficit" is defined in the instrument and is added to the numerator for both the current eligible levy period (s 6(4)) and future eligible levy periods (s 6(5)). Practically, this means prior shortfalls flow through and increase later levy rounds until matched by payments. Parties should check historical levy reconciliation records to confirm the deficit that will be carried forward and to ensure that the numbers used by the ACMA correctly reflect prior years’ positions.

• Repeal of 2015 instrument: The Determination repeals the 2015 Determination (Schedule 1). Parties that were relying on the 2015 formula must not assume the prior arithmetic still applies after this Determination’s commencement. The transition is immediate on commencement as provided in s 2 and Schedule 1.

• Limited express transitional or remedial provisions: The instrument does not include transitional or remedial clauses beyond the class formulas. It provides no grace periods or repayments. The lack of administrative detail means that operational questions,such as exact timing for payment under the Industry Levy Act once the levy amount is specified, or consequences of partial payment,are left to other statutes and to the ACMA’s administrative processes.

• Reliance on definitions in the Act and other statutes: Several inputs (levy contribution factor; overall levy target amount; participating person) are defined in the Act (s 4 note) or in other statutes. Practitioners must therefore consult those primary definitions when applying the Determination. The Determination’s utility depends on accurate cross-referencing to the parent Act and to the Corporations Act for "Chapter 5 body corporate" meaning.

Each of these issues flows directly from the Determination’s text. The main practical risks are timing around the ACMA assessment date; the arithmetic consequences of excluding ceased entities; the distinct treatment of entities in external administration; and the one-off $8,000,000 add-back for the 2019-20 period.

Compliance under this Determination is primarily about correctly identifying which formula applies and computing the levy amount accordingly so that the downstream levy-imposition statute can be met. The Determination does not create new filing mechanics, but it does impose a new arithmetic regime to which participating persons must adhere.

Practical steps for compliance, grounded in the instrument text:

1. Determine participation status for the eligible revenue period:

   • Confirm whether the entity is a "participating person" for the relevant eligible revenue period using the Act’s definition. The Determination’s formulas apply only where "a person is a participating person for the eligible revenue period" (ss 6(2)-(5) and s 4 note).

2. Monitor and confirm the ACMA’s date of assessment:

   • The ACMA decides the "date of assessment" and that date determines classification (s 4). Watch for ACMA notices and ensure any internal corporate changes (for example, winding up or entering external administration) are recorded with attention to whether those events occur on or before ACMA’s chosen date.

3. Classify the entity on the date of assessment:

   • If the entity "ceases to exist" on or before the date of assessment, s 6(2) applies and the levy amount for the subsequent eligible levy period is zero.
   • If the entity is a "Chapter 5 body corporate" on or before the date of assessment, s 6(3) applies; refer to the Corporations Act (the Determination notes that external administration is primarily dealt with by Chapter 5 of the Corporations Act 2001).
   • If neither s 6(2) nor s 6(3) applies, the entity is subject to the formulas in s 6(4) (2019-20) or s 6(5) (2020-21 and later).

4. Assemble inputs for the applicable formula:

   • For each participating person not affected by s 6(2) or s 6(3), compute or obtain:

     • Levy contribution factor (as worked out under s 49 of the Act; s 4 note).
     • Overall levy target amount (as defined in the Act; s 4 note).
     • Previous levy deficit, if any, as defined in s 4 of the Determination (s 4).
     • Adjustment factor, defined as the sum of the levy contribution factors for the relevant eligible levy period for all participating persons covered by ss 6(4) and 6(5) (s 4).
     • For 2019-20 only (current eligible levy period), include the $8,000,000 add-on in the numerator (s 6(4)).

   • For Chapter 5 body corporates, assemble the "levy contribution factor" and the "overall levy target amount" as required by s 6(3).

5. Perform the arithmetic strictly as the Determination sets out:

   • For ceased-to-exist entities: levy amount = zero (s 6(2)).

   • For Chapter 5 body corporate entities: work out the amount using the formula shown at s 6(3): "Levy contribution factor x Overall levy target amount."

   • For all other participating persons:

     • Current eligible levy period (2019-20): apply s 6(4): Levy contribution factor × (Overall levy target amount + Previous levy deficit + $8,000,000) divided by Adjustment factor (as the instrument's layout shows).
     • Future eligible levy periods (2020-21 or later): apply s 6(5): Levy contribution factor × (Overall levy target amount + Previous levy deficit) divided by Adjustment factor.

   • Note: the Determination itself presents the formats above; practitioners should use the exact inputs and the exact arithmetic as written in ss 6(3)-(5). Where the presentation differs between subsection (3) and subsections (4)-(5), document the interpretation and, if necessary, seek clarification from ACMA or legal advice (see the "gotchas" section).

6. Confirm collection mechanics under the Industry Levy Act:

   • The Determination notes that "The Telecommunications (Industry Levy) Act 2012 imposes levy on the levy amount" (notes to ss 6(3)-(5)). Ensure that once the levy amount is computed, it is reported or paid according to the Industry Levy Act’s procedures. This Determination does not specify payment deadlines or collection procedures.

7. Maintain records and audit trail:

   • Keep documentation showing the date of assessment used, the corporation’s status on that date, the calculations performed (inputs and arithmetic), and any communications with ACMA about the assessment. Because the Determination ties liability to the ACMA’s date of assessment and to corporate status as at that date, a clear audit trail will be essential in case of inquiries or disputes.

8. Engage insolvency advisers where relevant:

   • If your entity is in external administration or facing winding up, coordinate with insolvency practitioners to clarify how s 6(3) will apply. The Determination expressly references Chapter 5 of the Corporations Act as the relevant framework for external administration (note to s 6(3)), so align levy calculations with insolvency steps and administrators’ actions.

9. Recompute for previous deficit reconciliations:

   • If there has been a "previous levy deficit," verify the arithmetic used to calculate that deficit and ensure it is correctly carried forward into the current or future numerator as defined (s 4; ss 6(4)-(5)). Reconcile prior payments to confirm the carried-forward figure matches ACMA’s or the Commonwealth’s records.

10. Seek clarification where the instrument is unclear:

    • If there is any ambiguity in the way a formula is to be implemented,particularly in the presentation of s 6(3) relative to s 6(4)-(5),seek ACMA guidance or legal advice promptly. Implementing authorities’ administrative practice will determine how the Determination is applied in practice.

Adhering to these steps aligns with the Determination’s text: identify participating status, monitor ACMA’s date, classify corporate status at that date, gather Act-defined inputs and the instrument-defined inputs, compute the levy amount by the specific formulas in ss 6(2)-(5), and then follow the Industry Levy Act’s payment and enforcement procedures.