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Commonwealth legislation
This Act has been repealed and is no longer in force. It is retained for historical reference.
These Regulations set the mechanical rules for calculating a "participating carrier"'s eligible revenue for the purpose of the universal service levy under the Telecommunications Act 1997 (the levy that funds the universal service regime and support for the National Relay Service) (reg 5(1)–(3), reg 34). The calculation is a three‑stage arithmetic process: start with gross telecommunications sales revenue (Schedule 1; reg 9), subtract permitted deductions to reach net telecommunications sales revenue (Schedule 2; reg 22), then subtract further permitted amounts and, where relevant, allocate group totals to individual carriers to arrive at eligible revenue (Schedule 3; reg 34). These Regulations apply only to the financial years from 1 July 1997 to 30 June 2002 (reg 44).
Gross telecommunications sales revenue: identify sales revenue reported in audited financial statements (Schedule 1, STEP 1), deduct revenue from non‑telecommunications activities (STEP 2), then add any telecommunications sales revenue not captured in the financial statements or included under Part 4 (STEPs 3–5) (Schedule 1; regs 8–9, 15).
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Direct links to the current provisions in Telecommunications Universal Service Obligation (Eligible Revenue) Regulations 1998.
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Net telecommunications sales revenue: add up the deductible items listed in Part 5 (acts performed outside Australia except some international services (reg 23), sales of customer equipment (reg 25), content fees vs carriage revenue distinctions (reg 27), use of exempt base stations (reg 28), levy credit balance receipts (reg 26)), then subtract them from gross revenue (Schedule 2; reg 22).
Eligible revenue: after net revenue is worked out, carriers may deduct inter‑carrier input payments (payments to other carriers for acts that enable supply of listed carriage services) and other input amounts declared by the ACA; if the calculation was done on a group basis, the group total must be attributed to individual carriers (Part 6; regs 33–40; reg 35–38; Schedule 3).
The ACA has broad written‑declaration powers to: name declared related parties and specify what of their revenue counts (regs 11–12); specify bundled revenue and the portion that is telecommunications revenue (regs 13–14); declare non‑telecommunications revenue or deductible amounts (regs 15–18); treat particular amounts or kinds of revenue or benefits as part of gross telecommunications sales revenue (regs 19–20); identify inter‑carrier input payments and other input amounts (regs 36–38); and declare how group attribution is to be made (reg 40).
Many of the ACA's declarations must explain how the value or proportion was worked out (see regs 12(9), 14(3), 16(3), 18(3), 20(3), 32(3)).
Process requirements: where the ACA proposes a declaration of general application the ACA must consult every participating carrier and give at least 14 days for comments (reg 41); for other declarations the ACA must consult the carriers to which the declaration would apply and give at least 14 days (reg 42). Declarations that are not of general application may be reviewed by the Administrative Appeals Tribunal (reg 43).
Who pays: participating carriers are the payers of the universal service levy; their levy share is calculated using eligible revenue (reg 5(1)–(4)).
Who decides: the ACA decides — by written declaration — whether particular third‑party revenues count, what proportions to include or exclude, and whether particular costs count as deductible input payments (see regs 11–12, 14, 16, 19–20, 29–32, 36–38).
Behavioural effects created by the rules (mechanisms not judgements): carriers must assemble audited financial statements or approved audited statements, identify and unbundle bundled revenues where necessary, document how they allocated proportions, and decide whether to calculate individually or on a group basis (Schedule 1; regs 7, 13(4), 31(4), 40). Carriers can deduct inter‑carrier input payments where those payments meet the stated conditions (reg 35). The ACA can suspend entitlement to particular deductions for specified carriers (reg 29).
Compliance burden: carriers must prepare audited sales figures (or approved audited statements) and give a return of eligible revenue within the statutory time (Schedule 1 note referencing Act, s 191). Where amounts are bundled, carriers must identify total bundled revenue, the amount treated as telecommunications or deductible revenue, and how the amount was worked out (regs 13(4), 17(4), 31(4)). Declarations by the ACA must state valuation methods (see regs 12(9), 14(3), 16(3), 18(3), 20(3), 32(3)).
Regulator discretion: the ACA has repeated powers to declare revenue items and input amounts and to set valuation methods (see Parts 4–6 generally). The Regulations make acceptance of amounts conditional on having been worked out on the basis of an ACA declaration (see the repeated notes after regs 12, 14, 16, 18, 20, 32, 36, 38) — that creates a formal link between ACA declarations and the predictability of acceptance.
Practical implementation friction: audited accounts may not be final within the 90‑day reporting window (Schedule 1 note). Group accounting is permitted but requires a final per‑carrier attribution and documentation of how numbers were split (reg 7 note, reg 40).
The Regulations give carriers specified deduction opportunities (inter‑carrier input payments; certain overseas activities; sales of customer equipment; content vs carriage distinctions; exempt base stations) that reduce eligible revenue and therefore levy exposure (Part 5, regs 23–28; Part 6, regs 35–38). The ACA can disallow or limit those deductions for specified carriers (reg 29) and can declare what counts as input payments or deductible amounts (regs 36–38).
Because the ACA must publish and consult on general declarations and must provide 14 days for comments (regs 41–42), carriers have a structured route to influence how particular categories will be treated; declarations not of general application are reviewable by the AAT (reg 43).
These Regulations operate only for financial years starting 1 July 1997 through 30 June 2002 (reg 44).