Telecommunications (Eligible Revenue) Determination 2025

Part 1 — Preliminary

1 Name

This determination is the Telecommunications (Eligible Revenue) Determination 2025.

2 Commencement

This determination commences at the start of the day after the day it is registered on the Federal Register of Legislation. Note: The Federal Register of Legislation may be accessed free of charge at www.legislation.gov.au.

3 Authority

This determination is made under subsections 43(5) and 45(1) of the Telecommunications (Consumer Protection and Service Standards) Act 1999.

4 Application of determination

This determination applies to: (a) the 2025‑26 eligible revenue period; and (b) each later eligible revenue period.

5 Repeal of the Telecommunications (Eligible Revenue) Determination 2015 and transitional in relation to the 2024-25 eligible revenue period

(1) The Telecommunications (Eligible Revenue) Determination 2015 (F2015L00842) is repealed. (2) However, the Telecommunications (Eligible Revenue) Determination 2015, as in force immediately before the commencement of this determination, continues to apply in relation to the 2024-25 eligible revenue period, as if that determination had not been repealed.

6 Definitions

In this determination:

accounting on a group basis, for a participating person: see section 13.

Act means the Telecommunications (Consumer Protection and Service Standards) Act 1999.

Australia has the meaning affected by section 7 of the Telecommunications Act.

body means:

(a) a legal arrangement; or
(b) an administrative arrangement; or
(c) a fiduciary arrangement; or
(d) an organisational structure; or
(e) another party (including a person);

that has the capacity to allocate scarce resources in order to achieve objectives, whether within or outside Australia.

boundary of a telecommunications network has the meaning affected by section 22 of the Telecommunications Act.

bundled revenue: see section 15.

carriage service provider has the meaning given by section 87 of the Telecommunications Act.

carrier has the meaning given by section 7 of the Telecommunications Act.

carry has the meaning affected by section 7 of the Telecommunications Act.

company interests has the meaning given by subsection 6(1) of the Broadcasting Services Act 1992.

consolidated related party:

(a) of a participating person, means an entity (other than the participating person) whose revenue is included in the annual consolidated financial statements of the participating person’s ultimate Australian parent entity; and
(b) of a non‑participating person, means an entity (other than the non‑participating person) whose revenue is included in the annual consolidated financial statements of the non‑participating person’s ultimate Australian parent entity.

content service has the meaning given by section 15 of the Telecommunications Act.

customer equipment has the meaning given by section 21 of the Telecommunications Act.

declared related party:

(a) of a participating person: see section 8; and
(b) of a non‑participating person: see section 9.

declared related party factor for a declared related party: see section 10.

entity includes:

(a) a body; and
(b) any type of entity to which the accounting standards, made by the Australian Accounting Standards Board under section 334 of the Corporations Act 2001, apply.

Note: Accounting Standard AASB 1057 specifies the types of entities to which the accounting standards apply. The accounting standards are legislative instruments (see section 7).

exempt base station has the meaning given by subsection 34(2) of the Telecommunications Act.

gross telecommunications sales revenue: see Part 3.

initial sales revenue: see section 17.

inter‑person input payment: see section 12.

listed carriage service has the meaning given by section 16 of the Telecommunications Act.

net telecommunications sales revenue: see section 36.

non‑participating person, for an eligible revenue period, means a person who is exempt from section 44 of the Act, and is not required to give the ACMA an eligible revenue return, for that period because of a determination made under subsection 44(2) of the Act.

non‑telecommunications sales revenue: see section 11.

participating carriage service provider, for an eligible revenue period, means a person who is a participating person for that period because:

the person was a carriage service provider at any time during the period; and

a determination is made under paragraph 44(1)(b) of the Act in relation to carriage service providers for the period.

prescribed participating person, for an eligible revenue period, means a person who is a participating person for that period because, at any time during the period, the person was in a class of persons specified in regulations made for the purposes of paragraph 44(1)(c) of the Act.

subscription broadcasting service has the meaning given by section 16 of the Broadcasting Services Act 1992.

Telecommunications Act means the Telecommunications Act 1997.

telecommunications industry has the meaning affected by section 7 of the Telecommunications Act.

telecommunications sales revenue:

(a) means sales revenue earned from an activity in the telecommunications industry; but
(b) does not include:
(i) an amount payable under a contract entered into under section 14 of the Act; or
(ii) a grant under section 14 of the Act.

ultimate Australian parent entity, of a participating person or a non‑participating person, means an entity described in that way:

(a) under accounting methods commonly used in Australia; and
(b) in the financial statements in which the revenue of the participating person or non‑participating person is reported.

Note: A number of other expressions used in this determination are defined in the Act, including the following:

(a) eligible revenue;
(b) eligible revenue period;
(c) eligible revenue return;
(d) participating person.

7 References to other instruments

In this instrument, unless the contrary intention appears:

a reference to any other legislative instrument is a reference to that other legislative instrument as in force from time to time; and a reference to any other kind of instrument is a reference to that other instrument as existing from time to time.

Note 1: For references to Commonwealth Acts, see section 10 of the Acts Interpretation Act 1901; and see also subsection 13(1) of the Legislation Act 2003 for the application of the Acts Interpretation Act 1901 to legislative instruments.

Note 2: All Commonwealth Acts and legislative instruments are registered on the Federal Register of Legislation.

Note 3: For paragraph (b), see also section 589 of the Telecommunications Act.

8 Meaning of declared related party—participating person

(1) An entity is a declared related party, of a participating person, for the whole of an eligible revenue period if the entity: (a) is not: (i) a participating person for the period; or (ii) a consolidated related party of a participating person, or a non‑participating person, for the period; and (b) is owned, at any time during the period, by a body that owns the participating person at any time during the period; and (c) has telecommunications sales revenue in Australia at any time during the period. (2) An entity is a declared related party, of a participating person, for any part of an eligible revenue period during which the entity: (a) is not: (i) a carrier; or (ii) a consolidated related party of a participating person or a non‑participating person; or (iii) a participating carriage service provider; or (iv) a prescribed participating person; and (b) is owned by a body that owns the participating person at any time during the period; and (c) has telecommunications sales revenue in Australia. (3) For subsections (1) and (2): (a) a body owns a declared related party or a participating person if the body has company interests of more than 49% in the declared related party or participating person; and (b) company interests may be traced in the same way as company interests may be traced under Part 4 of Schedule 1 to the Broadcasting Services Act 1992.

9 Meaning of declared related party—non‑participating person

(1) An entity is a declared related party, of a non‑participating person, for the whole of an eligible revenue period if the entity: (a) is not: (i) a participating person for the period; or (ii) a consolidated related party of a participating person, or a non‑participating person, for the period; and (b) is owned, at any time during the period, by a body that owns the non‑participating person at any time during the period; and (c) has telecommunications sales revenue in Australia at any time during the period. (2) An entity is a declared related party, of a non‑participating person, for any part of an eligible revenue period during which the entity: (a) is not: (i) a carrier; or (ii) a consolidated related party of a participating person or a non‑participating person; or (iii) a participating carriage service provider; or (iv) a prescribed participating person; and (b) is owned by a body that owns the non‑participating person at any time during the period; and (c) has telecommunications sales revenue in Australia. (3) For subsections (1) and (2): (a) a body owns a declared related party or a non‑participating person if the body has company interests of more than 49% in the declared related party or non‑participating person; and (b) company interests may be traced in the same way as company interests may be traced under Part 4 of Schedule 1 to the Broadcasting Services Act 1992.

10 Meaning of declared related party factor

(1) The declared related party factor, for a declared related party of a participating person, is worked out using the formula: View image in the official source participating person interest  party interest where:

participating person interest is the proportion of the participating person that is owned by the body mentioned in paragraph 8(1)(b) or 8(2)(b) or, if there is more than one body, the body that has the greatest company interest in the participating person.

party interest is the proportion of the declared related party that is owned by the body mentioned in paragraph 8(1)(b) or 8(2)(b) or, if there is more than one body, the body that has the greatest company interest in the declared related party.

(2) The declared related party factor, for a declared related party of a non‑participating person, is worked out using the formula: non‑participating person interest  party interest where:

non‑participating person interest is the proportion of the non‑participating person that is owned by the body mentioned in paragraph 9(1)(b) or 9(2)(b) or, if there is more than one body, the body that has the greatest company interest in the non‑participating person.

party interest is the proportion of the declared related party that is owned by the body mentioned in paragraph 9(1)(b) or 9(2)(b) or, if there is more than one body, the body that has the greatest company interest in the declared related party.

Note: In working out which body has the greatest company interest under this section, the company interests may be traced in the same way as company interests may be traced under Part 4 of Schedule 1 to the Broadcasting Services Act 1992.

11 Meaning of non‑telecommunications sales revenue

(1) An amount of revenue is non‑telecommunications sales revenue if the revenue is earned from an activity outside the telecommunications industry.

Note: Examples of non‑telecommunications sales revenue include:

(a) revenue from providing electricity, gas or water connections; and
(b) revenue from selling electricity, gas or water.
(2) The ACMA may declare, in writing, that any of the following is non‑telecommunications sales revenue of a specified participating person, or a specified consolidated related party or declared related party of a participating person:
(a) a specified amount;
(b) the value of a specified benefit or service.

(3) The declaration must also state how the ACMA worked out the value of any benefit or service specified in the declaration. (4) The declaration may apply to more than one participating person, consolidated related party or declared related party (but not to all participating persons or parties).

Note: See sections 40 and 41.

12 Meaning of inter‑person input payment

(1) An amount is an inter‑person input payment if: (a) the amount is paid or payable by a participating person (the first participating person) for an act done by: (i) another participating person (the second participating person) or a non‑participating person; or (ii) a consolidated related party or a declared related party of the second participating person or non‑participating person; and (b) the act allows the first participating person, or a consolidated related party or a declared related party of the first participating person, to provide a listed carriage service; and (c) either: (i) the second participating person is required to include the amount in the person’s gross telecommunications sales revenue, and does so without deducting the amount under any of sections 25 to 30, 32 or 35; or (ii) the non‑participating person would have been required to include the amount in the person’s gross telecommunications sales revenue, without deducting the amount under any of sections 25 to 30, 32 or 35, had the person been a participating person. (2) An amount is also an inter‑person input payment if: (a) the amount is paid or payable by a consolidated related party or a declared related party of a participating person (the first participating person) for an act done by: (i) another participating person (the second participating person) or a non‑participating person; or (ii) a consolidated related party or a declared related party of the second participating person or non‑participating person; and (b) the act allows the consolidated related party or declared related party that incurred the amount, or the first participating person, to provide a listed carriage service; and (c) either: (i) the second participating person is required to include the amount in the person’s gross telecommunications sales revenue, and does so without deducting the amount under any of sections 25 to 30, 32 or 35; or (ii) the non‑participating person would have been required to include the amount in the person’s gross telecommunications sales revenue, without deducting the amount under any of sections 25 to 30, 32 or 35, had the person been a participating person.

Note: Examples of inter‑person input payments include:

(a) a payment for interconnection; and
(b) a payment for a carriage service or other service for which access has been declared under Part XIC of the Competition and Consumer Act 2010; and
(c) a payment for a carriage or other service bought on a wholesale basis; and
(d) a payment for a retail carriage or other service that a participating person buys from another participating person for the purpose of resale.

(3) The ACMA may declare, in writing, that a specified amount is an inter‑person input payment of a specified participating person, or a specified consolidated related party or declared related party of a participating person. (4) The declaration may apply to more than one participating person, consolidated related party or declared related party (but not to all participating persons or parties).

Note: See sections 40 and 41.

Part 2 — Accounting concepts

13 Accounting on a group basis

(1) This section applies if: (a) a participating person for an eligible revenue period has the same ultimate Australian parent entity as one or more other participating persons for the period; and (b) the ultimate Australian parent entity’s annual consolidated financial statements include the sales revenue of the participating person, whether or not the statements include any revenue of entities other than the other participating persons mentioned in paragraph (a). (2) The participating person may make all of the calculations required by this determination in the participating person’s own right, identifying and accounting for the participating person’s own revenue and deductions, and those of any consolidated related parties and declared related parties of the participating person, in accordance with this determination. (3) As an alternative to subsection (2), 2 or more participating persons with the same ultimate Australian parent entity may make all of the calculations required by Parts 3 and 4 on a group basis, identifying and accounting for revenue and deductions as a whole.

Note: See section 38 for the calculation of net telecommunications sales revenue for participating persons within a group.

(4) In this determination, the use of the accounting arrangements in subsection (3) is accounting on a group basis.

14 Sales revenue

(1) In this determination, the sales revenue of a participating person, or of a consolidated related party or declared related party of a participating person, for an eligible revenue period (the eligible revenue period) is to be worked out using the sources mentioned in subsections (2) and (4) to identify the amount of revenue for the period (the relevant period) occurring during the eligible revenue period, in which the participating person: (a) is a carrier; or (b) is a participating carriage service provider; or (c) is a prescribed participating person. (2) For subsection (1), the sources are: (a) for an entity (other than a declared related party), if the entity’s sales revenue is included in the annual consolidated financial statements of an ultimate Australian parent entity: (i) if the most recent financial statements of the ultimate Australian parent entity for a period ending no later than the end of the eligible revenue period are required to be audited under the Corporations Act 2001 or any other law of the Commonwealth, a State or a Territory—those audited financial statements; and (ii) in any other case—the most recent financial statements of the ultimate Australian parent entity for a period ending no later than the end of the eligible revenue period; or (b) for an entity (other than a declared related party), if the entity’s sales revenue is not included in the annual consolidated financial statements of an ultimate Australian parent entity: (i) if the most recent financial statements of the participating person that include the participating person’s sales revenue for a period ending no later than the end of the eligible revenue period are required to be audited under the Corporations Act 2001 or any other law of the Commonwealth, a State or a Territory—those audited financial statements; and (ii) in any other case—the most recent financial statements of the participating person that include the participating person’s sales revenue for a period ending no later than the end of the eligible revenue period; or (c) for a declared related party: (i) if the most recent financial statements of the declared related party that include the declared related party’s sales revenue for a period ending no later than the end of the eligible revenue period are required to be audited under the Corporations Act 2001 or any other law of the Commonwealth, a State or a Territory—those audited financial statements; and (ii) in any other case—the most recent financial statements of the declared related party that include the declared related party’s sales revenue for a period ending no later than the end of the eligible revenue period. (3) For subsection (1), revenue is revenue for the relevant period if the following conditions apply: (a) the revenue is reported in: (i) the last financial statements for a period ending no later than the end of the eligible revenue period; or (ii) if the financial statements mentioned in subparagraph (i) cover a period that is shorter than the relevant period—those financial statements and the financial statements for as many other previous periods that, when added together, total a period that is at least the same length as the relevant period; (b) if the financial statements mentioned in subparagraph (a)(i) or (ii) cover a period that is longer than the relevant period or does not include the whole or part of the relevant period—the revenue was earned in a particular period that: (i) is the same length as the relevant period; and (ii) the ACMA decides is the most appropriate period, included in the period covered by the financial statements, for matching with the relevant period.

Note: For example, an entity’s financial statements cover the period from 1 April in a year to 31 March in the following year. The relevant period runs from 1 July in the first-mentioned year to 30 June in the following year. Although the first 3 months of the period covered by the financial statements are outside the relevant period, the revenue earned in those months may be treated as part of the entity’s revenue for the relevant period, if the ACMA decides that those months form part of the most appropriate period for matching with the relevant period (since the financial statements for the subsequent period which covers the corresponding months, cannot be considered because of subparagraph 14(3)(a)(i)).

(4) If none of the sources mentioned in subsection (2) identifies the amount of an entity’s sales revenue for a relevant period, the sales revenue for that period is to be worked out using as many sources as are necessary to identify the entity’s sales revenue for the period.

Note: See section 17 for how to work out initial sales revenue based on sources identified in this section.

(5) If the ACMA makes a decision under subparagraph (3)(b)(ii), the ACMA must give to the participating person mentioned in subsection (1) a written notice of the decision, which includes a statement to the effect that if the person is adversely affected by the decision, the person may, subject to the Administrative Review Tribunal Act 2024: (a) make an application to the Administrative Review Tribunal for review of the decision; and (b) request a statement of reasons for the decision under that Act.

Note: See section 41 in relation to review of decisions.

15 Bundled revenue

(1) To work out an amount of revenue to be deducted under Part 3 or 4 (deductible revenue), a participating person for an eligible revenue period must: (a) separate the deductible revenue, or a kind of deductible revenue, from other amounts with which the deductible revenue is bundled; and (b) deal only with the deductible revenue. (2) An amount of revenue is bundled revenue if the revenue: (a) comes from different sources or acts; and (b) is received in a way that does not show how much of the amount came from the individual sources or acts. (3) Bundled revenue may also include the value of a benefit or service. (4) The ACMA may declare, in writing, that a specified amount of revenue of a specified participating person, or a specified consolidated related party or declared related party of a participating person, is bundled revenue. (5) The declaration may apply to more than one participating person, consolidated related party or declared related party (but not to all participating persons or parties). (6) The declaration must also: (a) specify the amount of bundled revenue; and (b) either: (i) identify the amount that is deductible revenue; or (ii) specify how the amount that is deductible revenue is to be worked out. (7) The declaration must also state how the ACMA worked out the value of any benefit or service included in the bundled revenue.

Note: See sections 40 and 41.

(8) If a participating person separates an amount or kind of deductible revenue from bundled revenue under Part 3 or 4, the participating person must identify: (a) the total amount of the bundled revenue; and (b) the amount of bundled revenue that the person is deducting as deductible revenue; and (c) how the person worked out the amount of deductible revenue.

Part 3 — Gross telecommunications sales revenue

16 Purpose of Part

(1) The first step in working out a participating person’s eligible revenue for an eligible revenue period is to work out the participating person’s gross telecommunications sales revenue for that period. (2) This Part sets out how the participating person’s gross telecommunications sales revenue for the eligible revenue period is worked out.

17 Initial sales revenue

(1) For each of the following entities, work out the entity’s sales revenue for the eligible revenue period using the sources mentioned in section 14: (a) the participating person; (b) each consolidated related party of the participating person (if any). (2) For each declared related party of the participating person (if any): (a) work out the declared related party’s sales revenue for the following period using the sources mentioned in section 14: (i) if subsection 8(1) applies–the whole of the eligible revenue period; and (ii) if subsection 8(2) applies–any part of the eligible revenue period during which it was a declared related party of the participating person; and (b) multiply that amount by the declared related party factor for that party. (3) Add the amounts worked out under subsection (2) (if any) to the amounts worked out under subsection (1). (4) Subject to subsection (5), the result is the participating person’s initial sales revenue for the eligible revenue period. (5) The ACMA may declare, in writing, that any of the following, in relation to a specified declared related party of a participating person, is not part of the participating person’s initial sales revenue: (a) the whole of the declared related party’s sales revenue; (b) a specified proportion of the declared related party’s sales revenue; (c) a proportion of the declared related party’s sales revenue that is worked out in a specified way. (6) The declaration may apply to more than one declared related party.

Note: See sections 40 and 41.

18 Non‑telecommunications sales revenue

(1) Deduct from the initial sales revenue any amount that: (a) is non‑telecommunications sales revenue of the participating person or a consolidated related party of the participating person; and (b) the participating person wants to deduct.

Note: For the meaning of non‑telecommunications sales revenue, see section 11.

(2) Also deduct any amount that: (a) is non‑telecommunications sales revenue of a declared related party of the participating person; and (b) is equal to the result of multiplying the whole amount of that revenue by the declared related party factor for that party; and (c) the participating person wants to deduct. (3) If the participating person wants to deduct an amount (a deductible amount) from the participating person’s initial sales revenue under this section, the deductible amount must not be more than the total amount (if any) received by the participating person, or a consolidated related party or declared related party of the participating person, in connection with the activity that created the deductible amount.

Note: For example, if the participating person supplies gas services at a price that includes a subsidy provided by the participating person, the net amount received by the participating person for the supply can be a deductible amount.

19 Other telecommunications sales revenue

(1) Add any amount of revenue that: (a) is mentioned in the financial statements referred to in subsection 14(2) or, if applicable, sources mentioned in subsection 14(4); and (b) could reasonably be described as telecommunications sales revenue of the participating person or a consolidated related party of the participating person; and (c) has not been identified as initial sales revenue under section 17. (2) Also add any amount of revenue that: (a) is mentioned in the financial statements referred to in subsection 14(2) or, if applicable, sources mentioned in subsection 14(4); and (b) could reasonably be described as telecommunications sales revenue of a declared related party of the participating person; and (c) has not been identified as initial sales revenue under section 17; and (d) is equal to the result of multiplying the whole amount of that telecommunications sales revenue by the declared related party factor for that party. (3) The ACMA may declare, in writing, that any of the following is telecommunications sales revenue: (a) the value of a specified benefit or service received by a specified entity; (b) a specified proportion of the value of a benefit or service received by a specified entity; (c) a proportion of the value of a benefit or service received by a specified entity that is worked out in a specified way. (4) The declaration may apply to one or more participating persons, or consolidated related parties or declared related parties of a participating person (but not to all participating persons or parties). (5) The declaration must state how the ACMA worked out: (a) the value of any benefit or service specified in the declaration; or (b) any proportion of the value of a benefit or service specified in the declaration.

Note: See sections 40 and 41.

(6) Also add any amount that the ACMA declares to be telecommunications sales revenue under subsection (3).

20 Revenue before person becomes carrier, participating carriage service provider or prescribed participating person

(1) Deduct any amount of revenue that: (a) is telecommunications sales revenue that was earned by the participating person or a consolidated related party of the participating person at any time in the period, occurring during the eligible revenue period, before the day on which the participating person became: (i) a carrier; or (ii) a participating carriage service provider; or (iii) a prescribed participating person; and (b) the participating person wants to deduct. (2) Also deduct any amount of revenue that: (a) is telecommunications sales revenue that was earned by a declared related party of the participating person at any time in the period, occurring during the eligible revenue period, before the day on which the participating person became: (i) a carrier; or (ii) a participating carriage service provider; or (iii) a prescribed participating person; and (b) is equal to the result of multiplying the whole amount of that revenue by the declared related party factor for that party; and (c) the participating person wants to deduct. (3) However, the participating person may not use subsection (1) or (2) to deduct: (a) an amount that was earned before the day on which the person became a carrier, a participating carriage service provider or a prescribed participating person if the amount relates to an activity in the telecommunications industry that, by law, was required to be performed on or after that day; or (b) an amount that was earned by a consolidated related party of the participating person during the first-mentioned period in paragraph (1)(a) in which the consolidated related party was a carrier, a participating carriage service provider or a prescribed participating person.

21 Revenue after person ceases to be carrier, participating carriage service provider or prescribed participating person

(1) Deduct any amount of revenue that: (a) is telecommunications sales revenue that was earned by the participating person or a consolidated related party of the participating person at any time in the period, occurring during the eligible revenue period, after the day on which the participating person ceased being: (i) a carrier; or (ii) a participating carriage service provider; or (iii) a prescribed participating person; and (b) the participating person wants to deduct. (2) Also deduct any amount of revenue that: (a) is telecommunications sales revenue that was earned by a declared related party of the participating person at any time in the period, occurring during the eligible revenue period, after the day on which the participating person ceased being: (i) a carrier; or (ii) a participating carriage service provider; or (iii) a prescribed participating person; and (b) is equal to the result of multiplying the whole amount of that revenue by the declared related party factor for that party; and (c) the participating person wants to deduct. (3) However, the participating person may not use subsection (1) or (2) to deduct: (a) an amount that was earned after the day on which the person ceased being a carrier, a participating carriage service provider or a prescribed participating person if the amount relates to an activity in the telecommunications industry that, by law, was required to be performed on or before that day; or (b) an amount that was earned by a consolidated related party of a participating person during the first-mentioned period in paragraph (1)(a) in which the consolidated related party was a carrier, participating carriage service provider or a prescribed participating person.

22 Declarations about revenue

(1) The ACMA may declare, in writing, that any of the following is part of a specified participating person’s gross telecommunications sales revenue for an eligible revenue period: (a) a specified amount; (b) the value of a specified benefit or service. (2) The declaration must also state how the ACMA worked out the value of any benefit or service specified in the declaration. (3) The declaration may apply to more than one participating person (but not to all participating persons).

Note: See sections 40 and 41.

23 Gross telecommunications sales revenue

The result of adding any amounts identified under sections 19 and 22 to the amount identified under section 17, and subtracting any amounts identified under sections 18, 20 and 21, is the participating person’s gross telecommunications sales revenue for the eligible revenue period.

Part 4 — Net telecommunications sales revenue

24 Purpose of Part

(1) After working out the participating person’s gross telecommunications sales revenue for the eligible revenue period, the next step is to work out the participating person’s net telecommunications sales revenue for that period by deducting amounts from the gross telecommunications sales revenue. (2) This Part sets out how the participating person’s net telecommunications sales revenue for the eligible revenue period is worked out.

25 Deductions—overseas activities

(1) Deduct each amount of revenue that: (a) is telecommunications sales revenue that was earned by the participating person, or a consolidated related party of the participating person, from overseas activities; and (b) is part of the participating person’s gross telecommunications sales revenue; and (c) the participating person wants to deduct. (2) Also deduct each amount of revenue that: (a) is telecommunications sales revenue that was earned by a declared related party of the participating person from overseas activities; and (b) is equal to the result of multiplying the whole amount of that revenue by the declared related party factor for that party; and (c) is part of the participating person’s gross telecommunications sales revenue; and (d) the participating person wants to deduct. (3) However, the participating person may not use subsection (1) or (2) to deduct an amount earned from supplying to or from Australia a carriage service mentioned in paragraph 16(1)(b) or (c) of the Telecommunications Act. (4) In this section:

overseas activities means any of the following acts that were carried out outside Australia:

(a) supplying a carriage service, in a place outside Australia, that originates and terminates outside Australia;
(b) supplying goods or services, in a place outside Australia, for use in connection with a carriage service that originates and terminates outside Australia;
(c) supplying a content service, in a place outside Australia, using a carriage service that originates and terminates outside Australia;
(d) manufacturing customer equipment or customer cabling in a place outside Australia;
(e) importing, into a place outside Australia, customer equipment or customer cabling that is manufactured in a place outside Australia;
(f) installing, maintaining, operating or providing access to a telecommunications network, or a facility, that:
(i) is located in a place outside Australia; and
(ii) is used to supply a carriage service that originates and terminates outside Australia.

Note: An example of revenue earned from overseas activities is revenue earned from calls made using a global roaming service that originate and terminate outside Australia.

26 Deductions—acts in Australia for overseas services

(1) Deduct each amount of revenue that: (a) is telecommunications sales revenue that was earned by the participating person, or a consolidated related party of the participating person, from an act carried out: (i) in Australia; and (ii) solely for the purposes of the supply of a carriage service, in a place outside Australia, that originates and terminates outside Australia; and (b) is part of the participating person’s gross telecommunications sales revenue; and (c) the participating person wants to deduct. (2) Also deduct each amount of revenue that: (a) is telecommunications sales revenue that was earned by a declared related party of the participating person from an act carried out: (i) in Australia; and (ii) solely for the purposes of the supply of a carriage service, in a place outside Australia, that originates and terminates outside Australia; and (b) is equal to the result of multiplying the whole amount of that revenue by the declared related party factor for that party; and (c) is part of the participating person’s gross telecommunications sales revenue; and (d) the participating person wants to deduct. (3) However, the participating person may not use subsection (1) or (2) to deduct an amount earned from supplying to or from Australia a carriage service mentioned in paragraph 16(1)(b) or (c) of the Telecommunications Act.

Note: An example of revenue under paragraphs (1)(a) and (2)(a) is revenue from providing in Australia management, switching or transit carriage services for a carriage service originating and terminating outside Australia.

27 Deductions—customer equipment

(1) Deduct each amount of revenue that: (a) is telecommunications sales revenue that was earned by the participating person, or a consolidated related party of the participating person, from: (i) selling, installing, insuring, repairing or maintaining customer equipment; or (ii) renting customer equipment to a customer; and (b) is part of the participating person’s gross telecommunications sales revenue; and (c) the participating person wants to deduct. (2) Also deduct each amount of revenue that: (a) is telecommunications sales revenue that was earned by a declared related party of the participating person from: (i) selling, installing, insuring, repairing or maintaining customer equipment; or (ii) renting customer equipment to a customer; and (b) is equal to the result of multiplying the whole amount of that revenue by the declared related party factor for that party; and (c) is part of the participating person’s gross telecommunications sales revenue; and (d) the participating person wants to deduct.

28 Deductions—content services

(1) Deduct each amount of revenue that: (a) is telecommunications sales revenue that was earned by the participating person, or a consolidated related party of the participating person, for the content of a content service; and (b) is part of the participating person’s gross telecommunications sales revenue; and (c) the participating person wants to deduct.

Note: Examples of revenue under paragraph (1)(a) include:

(a) revenue earned from a program, including a program broadcast on a subscription broadcasting service; and
(b) revenue earned from a message on a 190 telephone service.

(2) Also deduct each amount of revenue that: (a) is telecommunications sales revenue that was earned by a declared related party of the participating person for the content of a content service; and (b) is equal to the result of multiplying the whole amount of that revenue by the declared related party factor for that party; and (c) is part of the participating person’s gross telecommunications sales revenue; and (d) the participating person wants to deduct. (3) However, the participating person may not use subsection (1) or (2) to deduct an amount earned from carrying a content service.

29 Deductions—exempt base station

(1) Deduct each amount of revenue that: (a) is telecommunications sales revenue that was earned by the participating person, or a consolidated related party of the participating person, from the use of an exempt base station; and (b) is part of the participating person’s gross telecommunications sales revenue; and (c) the participating person wants to deduct.

Note: See subsection 34(2) of the Telecommunications Act for when a base station is an exempt base station.

(2) Also deduct each amount of revenue that: (a) is telecommunications sales revenue that was earned by a declared related party of the participating person from the use of an exempt base station; and (b) is equal to the result of multiplying the whole amount of that revenue by the declared related party factor for that party; and (c) is part of the participating person’s gross telecommunications sales revenue; and (d) the participating person wants to deduct.

30 Deductions—infrastructure revenue

(1) Deduct each amount of revenue that: (a) is telecommunications sales revenue that was earned by the participating person, or a consolidated related party of the participating person, from: (i) the construction or installation of the infrastructure of a telecommunications network on the network side of the boundary of a telecommunications network; or (ii) the management of the construction or installation of the infrastructure of a telecommunications network on the network side of the boundary of a telecommunications network; and (b) is part of the participating person’s gross telecommunications sales revenue; and (c) the participating person wants to deduct. (2) Also deduct each amount of revenue that: (a) is telecommunications sales revenue that was earned by a declared related party of the participating person from: (i) the construction or installation of the infrastructure of a telecommunications network on the network side of the boundary of a telecommunications network; or (ii) the management of the construction or installation of the infrastructure of a telecommunications network on the network side of the boundary of a telecommunications network; and (b) is equal to the result of multiplying the whole amount of that revenue by the declared related party factor for that party; and (c) is part of the participating person’s gross telecommunications sales revenue; and (d) the participating person wants to deduct. (3) Also deduct each amount of revenue that: (a) is telecommunications sales revenue that was earned by the participating person, or a consolidated related party of the participating person, from: (i) the maintenance of the infrastructure of a telecommunications network on the network side of the boundary of a telecommunications network; or (ii) the management of the maintenance of the infrastructure of a telecommunications network on the network side of the boundary of a telecommunications network; and (b) is part of the participating person’s gross telecommunications sales revenue; and (c) the participating person wants to deduct. (4) Also deduct each amount of revenue that: (a) is telecommunications sales revenue that was earned by a declared related party of the participating person from: (i) the maintenance of the infrastructure of a telecommunications network on the network side of the boundary of a telecommunications network; or (ii) the management of the maintenance of the infrastructure of a telecommunications network on the network side of the boundary of a telecommunications network; and (b) is equal to the result of multiplying the whole amount of that revenue by the declared related party factor for that party; and (c) is part of the participating person’s gross telecommunications sales revenue; and (d) the participating person wants to deduct.

31 Deductions—inter‑person input payments

(1) Deduct an amount equal to each inter‑person input payment that: (a) is made by the participating person (the first participating person), or a consolidated related party of the first participating person to: (i) another participating person (the second participating person), or a consolidated related party or declared related party of the second participating person; or (ii) a non‑participating person, or a consolidated related party or declared related party of the non-participating person; and (b) is made while: (i) in the case of subparagraph (a)(i)–the first participating person and the second participating person are each a carrier, a participating carriage service provider or a prescribed participating person; or (ii) in the case of subparagraph (a)(ii)–the first participating person and the non-participating person are each a carrier, a participating carriage service provider or a prescribed participating person; and (c) the first participating person wants to deduct. (2) Also deduct an amount in relation to each inter‑person input payment that: (a) is made by a declared related party of the participating person (the first participating person) to: (i) another participating person (the second participating person), or a consolidated related party or declared related party of the second participating person; or (ii) a non‑participating person, or a consolidated related party or declared related party of the non-participating person; and (b) is made while: (i) in the case of subparagraph (a)(i)–the first participating person and the second participating person are each a carrier, a participating carriage service provider or a prescribed participating person; or (ii) in the case of subparagraph (a)(ii)–the first participating person and the non-participating person are each a carrier, a participating carriage service provider or a prescribed participating person; and (c) is equal to the result of multiplying the inter-person input payment by the declared related party factor for that party; and (d) the first participating person wants to deduct.

32 Other input amounts

(1) The ACMA may declare, in writing, that a specified amount paid or payable by a specified participating person, or a specified consolidated related party or declared related party of a participating person, to allow the participating person to provide a telecommunications good or service (other than an inter‑person input payment) is an input amount. (2) The declaration may apply to more than one participating person, consolidated related party or declared related party (but not to all participating persons or parties).

Note: See sections 40 and 41.

(3) A participating person to which the declaration applies may deduct an amount that is an input amount, in relation to that participating person, under the declaration.

33 Limit on deductions

(1) If a participating person wants to deduct an amount (a deductible amount) from the participating person’s gross telecommunications sales revenue under any of sections 25 to 30, the deductible amount must not be more than the total amount (if any) received by the participating person, or a consolidated related party or declared related party of the participating person, in connection with the activity that created the deductible amount.

Note: For example, if the participating person sells customer equipment at a price that includes a subsidy provided by the participating person, the net amount received by the participating person for the sale can be a deductible amount.

(2) If a participating person wants to deduct an inter‑person input payment from the participating person’s gross telecommunications sales revenue, the amount to be deducted must not be more than the total amount (if any) paid by the participating person, or a consolidated related party or declared related party of the participating person, in connection with the activity that led to the inter‑person input payment.

Note: For example, if the participating person makes a payment for interconnection at a price that includes a subsidy provided by the other party, the net amount paid by the participating person for the interconnection can be a deductible amount.

34 Suspension of deduction entitlements

(1) The ACMA may declare, in writing, that one or more specified participating persons (but not all participating persons) are not entitled to deduct a specified amount or payment under this Part. (2) The declaration must state that the declaration is to have effect: (a) for a specified eligible revenue period; or (b) until the declaration is revoked.

Note: See sections 40 and 41.

35 Declarations about deductible revenue

The ACMA may declare, in writing, that a specified amount of gross telecommunications sales revenue of one or more specified participating persons (but not all participating persons) may be deducted.

Note: See sections 40 and 41.

36 Net telecommunications sales revenue

The result of deducting any amounts identified under sections 25 to 32, and 35, from the participating person’s gross telecommunications sales revenue is the participating person’s net telecommunications sales revenue for the eligible revenue period.

Part 5 — Eligible revenue

37 Purpose of Part

(1) After working out the participating person’s net telecommunications sales revenue for the eligible revenue period, the next step is to work out the participating person’s eligible revenue for that period. (2) This Part sets out how eligible revenue for the eligible revenue period is worked out.

Note: If the participating person has made all of the calculations required by this determination in the participating person’s own right (rather than accounting on a group basis), go to section 39.

38 Revenue accounted for on a group basis

(1) If there has been accounting on a group basis, for the participating person and one or more other participating persons for the eligible revenue period, identify from the accounts that were prepared on the group basis: (a) how much of the net telecommunications sales revenue to which those accounts relate is the participating person’s net telecommunications sales revenue; and (b) how much of the net telecommunications sales revenue to which those accounts relate is the net telecommunications sales revenue of each other participating person within the group. (2) The total of the amounts of net telecommunications sales revenue identified for each participating person under subsection (1) must equal the net telecommunications sales revenue of the group. (3) The ACMA may declare, in writing, that the net telecommunications sales revenue of a specified participating person is to be attributed in a specified way if there has been accounting on a group basis, for the participating person and one or more other participating persons within the group.

Note: See sections 40 and 41.

39 Eligible revenue

(1) The participating person’s eligible revenue for an eligible revenue period is equal to the participating person’s net telecommunications sales revenue if: (a) in a case when section 38 applies—the amount worked out by applying section 38 to the participating person’s net telecommunications sales revenue is zero or more; or (b) in any other case—the participating person’s net telecommunications sales revenue is zero or more. (2) The participating person’s eligible revenue for an eligible revenue period is taken to be zero if: (a) in a case when section 38 applies—the amount worked out by applying section 38 to the participating person’s net telecommunications sales revenue is less than zero; or (b) in any other case—the participating person’s net telecommunications sales revenue is less than zero.

Part 6 — Miscellaneous

40 Engaging with affected participating persons before deciding whether to make a declaration

(1) The ACMA must comply with this section before the ACMA decides whether to make a declaration under this determination. (2) Before deciding whether to make a declaration under this determination, the ACMA must: (a) give to each participating person to which the declaration would apply a notice that: (i) informs the person that the ACMA proposes to make the declaration; and (ii) invites the person to make written submissions to the ACMA about the proposal within a specified period that is at least 14 days after the date of the notice; and (b) consider any submissions received within the period specified in the notice. (3) If the ACMA decides to make the declaration, the ACMA must give to each participating person mentioned in paragraph (2)(a) the following: (a) a written notice of the decision, which includes a statement to the effect that if the person is adversely affected by the decision, the person may, subject to the Administrative Review Tribunal Act 2024: (i) make an application to the Administrative Review Tribunal for review of the decision; and (ii) request a statement of reasons for the decision under that Act; (b) a copy of the declaration. (4) If the ACMA decides not to make the declaration, the ACMA must give to each participating person mentioned in paragraph (2)(a) a written notice of the decision, which includes a statement to the effect that if the person is adversely affected by the decision, the person may, subject to the Administrative Review Tribunal Act 2024: (a) make an application to the Administrative Review Tribunal for review of the decision; and (b) request a statement of reasons for the decision under that Act. (5) Before deciding whether to make a declaration under this determination, the ACMA may: (a) consult any other persons, being persons to which the declaration would not apply, about the ACMA’s proposal to make the declaration; and (b) do so in such a manner as it sees fit.

Note: In consulting any other persons under subsection (5), the ACMA may but is not required to give those persons an opportunity to make written submissions about the proposal or a notice of the decision made.

(6) A declaration that is made without complying with this section has no effect.

41 Review of decisions

A person who is adversely affected by:

a decision under subparagraph 14(3)(b)(ii); or a decision to make or not to make a declaration under this determination;

may, subject to the Administrative Review Tribunal Act 2024, make an application to the Administrative Review Tribunal for review of the decision.

42 Period for lodging eligible revenue return

For paragraph 43(1)(b) of the Act, the period is 4 months after the eligible revenue period ends.

Note: For example, each participating person for the 2025-26 eligible revenue period (which ends on 30 June 2026) must give to the ACMA its eligible revenue return for the period before 1 November 2026.