2015 – 16 Eligible Revenue Information Session

Session Overview 1. Welcome – Information Packs 2. Eligible revenue reporting – Overview > Purpose > Levy and Charges > Reporting Requirements 3. ACMA’s new eligible revenue reporting system – Teller 4. Finish with Questions

Handouts enclosed in the Information Packs >Presentation slides >Quick guide – completing an online submission for a carrier with eligible revenue AUD$25m or above >Quick guide – completing an online submission for a carrier with revenue less than AUD$25m >Frequently asked questions >Example – Teller submission >Authorised Contact form >Evaluation form Handouts

Need further information? ACMA Eligible Revenue Portal: /Licence-fees-annual-levies-and-charges/eligible-revenue-portal Contact: ACMA Revenue Assurance Team Ph:

Eligible Revenue Reporting Overview

Purpose The purpose of providing the ACMA with an Eligible Revenue Submission? >To enable the calculation of the Telecommunications Industry Levy (TIL) What is the TIL? >The TIL funds telecommunication activities to ensure: >reasonably accessible standard telephone services and payphone services to all Australians on an equitable basis; >a national telephone service to enable people with a hearing or speech impediment to make and receive telephone calls (the NRS); >delivery of emergency call services; and >delivery of other public policy telecommunications outcomes.

How will the TIL be assessed? >The TIL will be assessed under the Telecommunications (Consumer Protection and Service Standards) Act 1999 (the TCPSS Act). >Under the levy scheme all participating persons are required to lodge eligible revenue returns with the ACMA. >Contributions to the TIL are proportional to each participating person’s eligible revenue for the previous financial year. >The calculation of this levy is set out in the Telecommunications (Industry Levy) Amendment Act 2015 (Levy Determination) made by the Minister for Communications.

Levy and Charges – Funding Cycle Eligible Revenue Period FY (1 July 2015 to 30 June 2016) Period of assessable activity Eligible Levy Period FY (1 July 2016 to 30 June 2017) Period in which eligible revenue return is lodged with the ACMA 31 October 2016 Eligible revenue submissions are due April / May 2017 ACMA makes Eligible Revenue Assessment based on ERP Levy Payment FY (1 July 2017 to 30 June 2018) Period in which payment is made by participating persons for eligible revenue earned in the Eligible Revenue Period Oct / Nov 2017 ACMA makes the TIL Assessment (based on eligible revenue period) Nov / Dec 2017 TIL payments due

Carrier Reporting requirements >All carriers that held a carrier licence at any time during an eligible revenue period are required to report their revenues to the ACMA by 31 October each year. >Failure to provide a Return to the ACMA by 31 October may face penalties/other enforcement action. >Reporting requirements for a carrier is based on whether a carrier is a participating person or a non-participating person

How do I determine what type of carrier I am? Participating Person A participating person is a carrier that earns eligible revenue of AUD$25 million or more for an eligible revenue period. Reporting requirements: All participating persons are required to complete an eligible revenue return (Return) consisting of: Eligible Revenue Return form (a form within Teller system); a copy of the audited financial statements on which the Return is based on, including copies of the financial statements of any declared related parties; an outline of your business structure; and Statutory Declaration – management certification. Important note: A signed statutory declaration – management certification (statutory declaration) is not required to be submitted if your Return is lodged using the Online Teller system as there is a declaration within the Teller system.

How do I determine what type of carrier I am? Non – participating person A non – participating person is: a carrier that earned initial sales revenue, gross telecommunications sales revenue or eligible revenue of less than AUD$25 million for an eligible revenue period; AND submit to the ACMA an eligible statutory declaration (ESD) that they have met the revenue threshold (see above) by 31 October for that period. Reporting requirements: All non – participating person are required to complete an ESD. As part of the ACMA’s monitoring framework you may be required to provide supporting documents to substantiate your claim. Important note: Non-participating persons are not liable for any industry levies or charges.

How do I calculate eligible revenue? Step 1 Step 2 Step 3 Step 4 Step Initial Sales Revenue Less: Non-Telco sales revenue and revenue whilst not a licence holder Equals: Gross Telecom Sales Revenue Less: Deductions Deductions include: overseas activities, activities in Australia for services outside Australia, customer equipment, content services, exempt base station, infrastructure revenue, inter-person input payments, and other input amounts Equals: Eligible revenue Notes: 1) For further information, refer to the Eligible Revenue Submission handbook and/or the Eligible Revenue Determination 2) The ACMA may request for additional information to support your deduction claims

How do I identify related party revenue so that I can include in my calculation of eligible revenue? There are two types of related party revenue: Consolidated related party is: (a)Any entity that is not the participating person; and (b)The revenue of which is included in the annual consolidated financial statements of the participating person’s ultimate Australian parent entity. Declared related party (DRP) is: (a)any entity that earns telecommunications sales revenue from the Australian telecommunications industry; and (b)that is not a participating person or a consolidated related party and is owned at any time during the eligible revenue period (greater than 49%) by the owner of the carrier

ACMA’s new eligible revenue reporting system - Teller

What is Teller? >Teller is ACMA’s eligible revenue reporting system that allows licensed carriers to make submissions online for the eligible revenue period onwards. How do I get access to Teller? Participating person If you are a participating person you will be required to have an AUSkey to have access to Teller. The first time you access the new system, you will be required to enter a ‘one time token’. Non-participating person If you are a non – participating person you will not be required to have an AUSkey to have access to Teller

Lodging an eligible revenue submission using Teller >To make an online eligible revenue submission in Teller, please ensure that you have appropriate access to the system and that you are an Authorised contact. >The ACMA recommends that you complete and obtain all the necessary documents prior to making your online submission. >Submissions can be made by clicking on the Teller Login buttons on the eligible revenue portal. The Teller Login button for a non-participating person on the eligible revenue portal will be similar to this button The Teller Login button for a participating person on the eligible revenue portal will be similar to this button

Logging into Teller as a Non – participating person

Logging into Teller as a Participating person Step 1: Click on ‘TELLER login’ button on the eligible revenue portal page on the ACMA website Step 2: You will be re-directed to the ‘Government Authentication Service’ website. To register for an AUSkey or to obtain further information, visit the Australian Business Register (ABR) website or phone them on Australian Business Register (ABR) website Step 3: Once you have been directed to the Authentication screen, select your AUSkey ID details from the drop down menu and enter your AUSkey password

Step 4: Select ‘Continue’. You are now logged into Teller.

How do I register for a one time token? To access the eligible revenue submission form for the first time, you will be required to register for a one time token. To do this, please contact our Revenue Assurance Team. Step 1: Once you have been issued a one time token, select the ‘Register One Time Token’ link.

Step 2: A ‘Register One Time Token’ page will appear advising you to enter your one time token.

Step 3: Enter your one time token and select ‘Register’. Once you have access, you will be able to view the ‘Eligible Revenue Submission’ form

Example – eligible revenue submission

Questions ?