Participating persons (including telecommunications carriers who earn AUD $25 million or more in an eligible revenue period) are required to pay the following annual levies and charges, which are calculated based on their eligible revenue:
- the telecommunications industry levy (TIL), which replaces the universal service obligation (USO) levy and national relay service (NRS) levy; and
- the annual carrier licence charge (ACLC).
This page gives an overview of the TIL and ACLC.
Each year, the ACMA collects financial information from industry in the form of an eligible revenue return from participating persons to calculate each carrier's eligible revenue.
Eligible revenue is based on the gross sales revenue of the carrier and any related entities, less a series of revenue and expense deductions.
Telecommunications industry levy
The TIL funds the payment of contractors and grant recipients, and eligible administrative costs to ensure continuity of key telecommunications safeguards, in particular, this levy provides for:
- reasonably accessible standard telephone services and payphone services to all Australians on an equitable basis, regardless of where they live or carry on business (the USO);
- 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.
Further information on the funding arrangements for the levy can be found here.
Annual carrier licence charge
The ACMA charges participating persons to recover the cost of regulating the telecommunications industry. The annual carrier licence charge (ACLC) paid by each participating carrier is based on the carrier’s pro-rata share of ‘eligible revenue’.
These charges are invoiced in the latter part of the financial year.
- if the total amount to be recovered through annual carrier licence charges was $26,000,000; and
- the total eligible revenue of carriers was $22,000,000,000.
For the financial year, each participating carrier will pay approximately $1.18 per $1,000 in eligible revenue as their ACLC.