Australian content requirement for subscription video on demand services: meeting the expenditure requirement

its Australian content expenditure requirement for that year (if any amount of the expenditure requirement is not acquitted in the year it has been incurred, it can be acquitted in the 2 following reporting years)
any shortfall Australian content expenditure requirements carried over from previous reporting years.

SVODs acquit their expenditure requirement by reducing it (but not below zero) by:

the service’s qualifying expenditure amount (if any) for the reporting year
any carried forward expenditure amount the service has from the previous one or 2 reporting years.

How the acquittal cycle works

The Act allows SVODs to carry forward excess qualified expenditure (referred to as carry-forward) and outstanding expenditure requirements (referred to as shortfall) across a 3-year acquittal cycle.

Put another way, following a reporting year, an SVOD has 2 additional years to make up any shortfall for that year (before being non-compliant with the Act). Alternatively, it can use up any carry-forward for that year (before it expires).

This is intended to account for the nature of production cycles, where expenditure across multiple years may vary.

The 3-year acquittal cycle is explained in section 121FZI of the Act. Key concepts in the acquittal cycle are that SVODs:

must acquit shortfalls in chronological order
- must use carry-forwards in chronological order
- must carry forward any shortfall, even if the shortfall is overdue (that is, it is more than 2 years old) and the Act has been contravened
- cannot hold on to carry-forward (in whole or part) more than 2 years after the year it was incurred
- must continue to acquit any shortfalls even if the service no longer meets the definition of a regulated SVOD.
SVODs contravene the Act if at the end of a reporting year they have a shortfall that has not been acquitted for 2 or more reporting years prior to the current year.

An SVOD can elect to use the revenue method to meet its requirements for a period of 3 years. It cannot elect to use this method if it has overdue shortfall.

Examples of the acquittal cycle

Different scenario examples are provided in the figures below to demonstrate the key concepts of the acquittal cycle. In these examples:

an SVOD’s total program expenditure, expenditure requirement and revenue are kept mostly consistent in each example for the purposes of simplicity.
- Qualifying expenditure (QE) means the amount of expenditure incurred by an SVOD in the reporting year on eligible Australian programs before they were made available to the public in Australia (on any service or location other than cinema).
- Total program expenditure (TPE) means expenditure incurred in the reporting year on eligible programs (drama, children’s, documentary, arts and education programs) that are, or are intended to be, provided on the service in Australia.
- Regulated SVOD has the meaning set out on this page.
- Requirement means the SVOD’s Australian content expenditure requirement – that is, the amount they must spend on eligible Australian programs in the reporting year – calculated based on its nominated acquittal method.
- Revenue means revenue derived by the Australian service each SVOD reporting year. Find out more.
- Carry-forward means a carried forward qualifying expenditure amount.
- Shortfall means outstanding expenditure requirement for each SVOD reporting year.
- Year means the relevant SVOD reporting year beginning 1 January and ending 31 December.
Find out more about TPE and QE.

Figure 1: Qualifying expenditure fluctuates from year-to-year

SVOD A acquits its requirement using the expenditure method. While its total program expenditure remains stable for its Australian service, it concentrates significant investment in a small number of eligible Australian programs, resulting in fluctuations in its qualifying expenditure. Each year’s requirement is acquitted within the required 3-year cycle.

Figure 1 describes how an SVOD, labelled SVOD A, can acquit its Australian content requirement across a six year period. This figure is an example of when an SVOD is compliant with their obligations under the Act. 1. In year 1, the first column, SVOD A’s results are $100 million in total program expenditure, resulting in a $10 million expenditure requirement. SVOD A has $13 million in qualifying expenditure that can be used. Because this is the first year displayed in the figure, SVOD A’s opening status is nil. The adjustments show SVOD A fully acquits its year 1 expenditure requirement. In its closing status, it has a $3 million carry forward into year 2. 2. In year 2, SVOD A’s results are $100 million in total program expenditure, resulting in a $10 million expenditure requirement. SVOD A has $2 million in qualifying expenditure that can be used. Its opening status is the same as its closing status from year 1. The adjustments show that SVOD A partially acquits its year 2 requirement using its $3 million carry forward from year 1 as well as $2 million in qualifying expenditure from year 2. Its closing status shows a shortfall of $5 million that is carried into year 3. 3. In year 3 SVOD A’s results are $100 million in total program expenditure, resulting in a $10 million expenditure requirement. SVOD A has $16 million in qualifying expenditure that can be used. Its opening status is the same as its closing status from year 2. The adjustments show that SVOD A fully acquits its outstanding year 2 expenditure requirement and its year 3 requirement. In its closing status, it has a $1 million carry forward into year 4. 4. In year 4 SVOD A’s results are $100 million in total program expenditure, resulting in a $10 million expenditure requirement. SVOD A has $5 million in qualifying expenditure that can be used. Its opening status is the same as its closing status from year 3. The adjustments show that SVOD A partially acquits its year 4 requirement using its $1 million carry forward from year 3 as well as $5 million in qualifying expenditure from year 4. Its closing status shows a shortfall of $4 million that is carried into year 5. 5. In year 5 SVOD A’s results are $100 million in total program expenditure, resulting in a $10 million expenditure requirement. SVOD A has $11 million in qualifying expenditure that can be used. Its opening status is the same as its closing status from year 4. The adjustments show that SVOD A fully acquits its outstanding year 4 requirement, and then partially acquits its year 5 requirement using remaining qualifying expenditure from year 5. Its closing status shows a shortfall of $3 million that is carried into year 5. 6. In year 6 SVOD A’s results are $100 million in total program expenditure, resulting in a $10 million expenditure requirement. SVOD A has $15 million in qualifying expenditure that can be used. Its opening status is the same as its closing status from year 5. The adjustments show that SVOD A fully acquits it outstanding year 5 requirements and fully acquits its year 6 requirement using its year 6 qualifying expenditure. In its closing status, it has a $2 million carry forward into year 7. Year 7 is not shown in this figure.

Figure 2: Ongoing failure of the SVOD service to meet its requirement

SVOD B acquits its requirement using the expenditure method. Because it consistently spends less on eligible Australian programs than required, it fails to fully acquit its year one and year 2 requirements within their 3‑year periods and contravenes the Act.

Figure 2 describes how an SVOD, labelled SVOD B, is not meeting its expenditure requirement, and has breached the Act across a six-year period. Despite breaching the Act, it must still acquit its requirement 1. In year 1, the first column, SVOD B’s results are $100 million in total program expenditure, resulting in a $10 million expenditure requirement. SVOD B has $2 million in qualifying expenditure that can be used. Because this is the first year displayed in the figure, SVOD B’s opening status is nil. The adjustments show SVOD B partially acquits its year 1 expenditure requirement. Its closing status shows a shortfall of $8 million that is carried into year 3. 2. In year 2, SVOD B’s results are $100 million in total program expenditure, resulting in a $10 million expenditure requirement. SVOD B has $3 million in qualifying expenditure that can be used. Its opening status is the same as its closing status from year 1. The adjustments show that SVOD B partially acquits its year 1 requirement using its $3 million in qualifying expenditure from year 2. It still has a shortfall from year 1, and is not able to acquit any of its year 2 requirement. Its closing status shows a shortfall of $5 million (from year 1) and $10 million (from year 2) that is carried into year 3. 3. In year 3 SVOD B’s results are $100 million in total program expenditure, resulting in a $10 million expenditure requirement. SVOD B has $4 million in qualifying expenditure that can be used. Its opening status is the same as its closing status from year 2. The adjustments show that SVOD B partially acquits its year 1 requirement using its $4 million in qualifying expenditure from year 3. It still has a shortfall from year 1 which is now overdue, and is not able to acquit any of its outstanding year 2 requirement or its year 3 requirement. Its closing status shows an overdue shortfall of $1 million (from year 1) and a shortfall of $10 million (from year 2) and $10 million (from year 3) that is carried into year 4. 4. In year 4 SVOD B’s results are $100 million in total program expenditure, resulting in a $10 million expenditure requirement. SVOD B has $5 million in qualifying expenditure that can be used. Its opening status is the same as its closing status from year 3, and shows that SVOD B is in breach of the Act. The adjustments show that SVOD B uses its year 4 qualifying expenditure to fully acquit its overdue year 1 requirement, and partially acquit its year 2 requirement (which still has $6 million that is now overdue). SVOD B is not able to acquit any of its outstanding year 3 requirement or its year 4 requirement. Its closing status shows an overdue shortfall of $6 million (from year 2) and a shortfall of $10 million (from year 3) and $10 million (from year 4) that is carried into year 5. 5. In year 5 SVOD B’s results are $100 million in total program expenditure, resulting in a $10 million expenditure requirement. SVOD B has $25 million in qualifying expenditure that can be used. Its opening status is the same as its closing status from year 4, and shows that SVOD B is in breach of the Act. The adjustments show that SVOD B fully acquits its overdue year 2 requirement, and then fully acquits its outstanding year 3 requirement using its qualifying expenditure from year 5. It then partially acquits its outstanding year 4 requirement, but is not able to acquit any of its year 5 requirement. Its closing status shows a shortfall of $1 million (from year 4) and $10 million (from year 5) that is carried into year 6. SVOD B is no longer in breach of the Act. 6. In year 6 SVOD B’s results are $100 million in total program expenditure, resulting in a $10 million expenditure requirement. SVOD B has $15 million in qualifying expenditure that can be used. Its opening status is the same as its closing status from year 5. The adjustments show that SVOD B fully acquits it outstanding year 4 requirement and fully acquits its outstanding year 5 requirement using its year 6 qualifying expenditure. SVOD B is then able to partially acquit its year 6 requirement. Its closing status shows a $6 million shortfall from year 6 that is carried into year 7. Year 7 is not shown in the figure.

Figure 3: Qualifying expenditure consistently exceeds requirement

SVOD C acquits its requirement using the expenditure method. It consistently spends more on eligible Australian programs than required. In year one, SVOD C spends enough money to carry the excess expenditure forward and use it to meet its requirements in years 2 and 3. Carry forward can only be used for 2 years after its expenditure year, so in this example, it cannot be used from year 4 onwards. The same rules apply to the carry forward generated in years 2 and 3.

Figure 3 describes how an SVOD, labelled as SVOD C, meets and exceeds its expenditure requirement across a six year period. 1. In year 1, the first column, SVOD C’s results are $100 million in total program expenditure, resulting in a $10 million expenditure requirement. SVOD C has $32 million in qualifying expenditure that can be used. Because this is the first year displayed in the figure, SVOD C’s opening status is nil. The adjustments show SVOD C fully acquits its year 1 expenditure requirement. In its closing status, it has a $22 million carry forward into year 2. 2. In year 2 SVOD C’s results are $100 million in total program expenditure, resulting in a $10 million expenditure requirement. SVOD C has $34 million in qualifying expenditure that can be used. Its opening status is the same as its closing status from year 1. The adjustments show SVOD C fully acquits its year 2 expenditure requirement using its carry-forward from year 1. In its closing status, it has a $12 million carry forward (from year 1) and a $34 million carry forward from year 2 that is available in year 3. 3. In year 3 SVOD C’s results are $100 million in total program expenditure, resulting in a $10 million expenditure requirement. SVOD C has $11 million in qualifying expenditure that can be used. Its opening status is the same as its closing status from year 2. The adjustments show SVOD C fully acquits its year 3 expenditure requirement using its carry-forward from year 1. In its closing status, it has a $34 million carry forward (from year 2) and a $11 million carry forward (from year 3) that is available in year 4. Its remaining $2 million carry-forward from year 1 is now expired. 4. In year 4 SVOD C’s results are $100 million in total program expenditure, resulting in a $10 million expenditure requirement. SVOD C has $9 million in qualifying expenditure that can be used. Its opening status is the same as its closing status from year 3. The adjustments show SVOD C fully acquits its year 4 expenditure requirement using its carry-forward from year 2. In its closing status, it has a $11 million carry forward (from year 3) and a $9 million carry forward (from year 4) that is available in year 5. Its remaining $24 million carry-forward from year 2 is now expired. 5. In year 5 SVOD C’s results are $100 million in total program expenditure, resulting in a $10 million expenditure requirement. SVOD C has $10 million in qualifying expenditure that can be used. Its opening status is the same as its closing status from year 4. The adjustments show SVOD C fully acquits its year 5 expenditure requirement using its carry-forward from year 3. In its closing status, it has a $9 million carry forward (from year 4) and a $10 million carry forward (from year 5) that is available in year 6. Its remaining $1 million carry-forward from year 3 is now expired. 6. In year 6 SVOD C’s results are $100 million in total program expenditure, resulting in a $10 million expenditure requirement. SVOD C has $2 million in qualifying expenditure that can be used. Its opening status is the same as its closing status from year 5. The adjustments show SVOD C fully acquits its year 6 expenditure requirement using its carry-forward from year 4 and year 5. In its closing status, it has a $9 million carry forward (remaining from year 5) and a $2 million carry forward (from year 6) that is available in year 7. Year 7 is not shown in the figure.

Figure 4: The subscribers to the provider’s SVOD service drop below one million

SVOD D is a regulated SVOD in years one, 2 and 3. Part of the way through year 3, it drops below one million paying subscribers and is no longer a major SVOD from year 4 onwards. Even so, SVOD D must continue to report to the ACMA until it acquits its outstanding requirement.

Figure 4 describes how an SVOD, labelled SVOD D, can acquit its Australian content requirement across a five year period, up until the point it no longer has an expenditure requirement. 1. In year 1, the first column, SVOD D’s results are $100 million in total program expenditure, resulting in a $10 million expenditure requirement. SVOD D has $9 million in qualifying expenditure that can be used. Because this is the first year displayed in the figure, SVOD D’s opening status is nil. The adjustments show that SVOD D partially acquits its year 1 requirement using its $9 million qualifying expenditure. Its closing status shows a shortfall of $1 million that is carried into year 2. 2. In year 2 SVOD D’s results are $80 million in total program expenditure, resulting in a $8 million expenditure requirement. SVOD D has $5 million in qualifying expenditure that can be used. Its opening status is the same as its closing status from year 1. It uses its qualifying expenditure to fully acquit its outstanding year 1 requirement, and partially acquit its year 2 requirement. Its closing status shows a shortfall of $4 million that is carried into year 3. 3. In year 3 SVOD D’s results are $80 million in total program expenditure, resulting in a $8 million expenditure requirement. SVOD D has $6 million in qualifying expenditure that can be used. Its opening status is the same as its closing status from year 2. It uses its qualifying expenditure to fully acquit its outstanding year 2 requirement, and partially acquit its year 3 requirement. Its closing status shows a shortfall of $6 million that is carried into year 4. 4. In year 4 SVOD D’s results are $70 million in total program expenditure. Because SVOD D no longer has 1 million paying subscribers, it has no expenditure requirement but must acquit its outstanding requirement from previous years. SVOD D has $4 million in qualifying expenditure that can be used. Its opening status is the same as its closing status from year 3. It uses its qualifying expenditure to partially acquit $4 million of its outstanding year 3 requirement. Its closing status shows a shortfall of $2 million (from year 3) that is carried into year 5. 5. In year 5 SVOD D’s results are $70 million in total program expenditure, Because SVOD D no longer has 1 million paying subscribers, it has no expenditure requirement but must acquit its outstanding requirement from previous years. SVOD D has $3 million in qualifying expenditure that can be used. Its opening status is the same as its closing status from year 4. SVOD D uses its qualifying expenditure to fully acquit its outstanding year 3 requirement. Its closing status notes that the SVOD is not required to report again unless SVOD D exceeds 1 million paying subscribers in Australia.

Figure 5: The SVOD service wholly acquits its expenditure requirement each year

SVOD E consistently acquits its Australian content expenditure requirement each year, with no expenditure shortfall and no qualifying expenditure carried over between reporting years.

Figure 5 describes how an SVOD, labelled SVOD E, can acquit its Australian content requirement across a five year period. 1. In year 1, the first column, SVOD E’s results are $100 million in total program expenditure, resulting in a $10 million expenditure requirement. SVOD E has $10 million in qualifying expenditure that can be used. Because this is the first year displayed in the figure, SVOD E’s opening status is nil. The adjustments show that SVOD E’s expenditure requirement has been fully acquitted using its qualifying expenditure. Its closing status shows that it has no shortfall or carry forward. 2. In year 2 SVOD E’s results are $100 million in total program expenditure, resulting in a $10 million expenditure requirement. SVOD E has $10 million in qualifying expenditure that can be used. Its opening status is the same as its closing status from year 1. The adjustments show that SVOD E’s expenditure requirement has been fully acquitted using its qualifying expenditure. Its closing status shows that it has no shortfall or carry forward. 3. In year 3 SVOD E’s results are $100 million in total program expenditure, resulting in a $10 million expenditure requirement. SVOD E has $10 million in qualifying expenditure that can be used. Its opening status is the same as its closing status from year 2. The adjustments show that SVOD E’s expenditure requirement has been fully acquitted using its qualifying expenditure. Its closing status shows that it has no shortfall or carry forward. 4. In year 4 SVOD E’s results are $100 million in total program expenditure, resulting in a $10 million expenditure requirement. SVOD E has $10 million in qualifying expenditure that can be used. Its opening status is the same as its closing status from year 3. The adjustments show that SVOD E’s expenditure requirement has been fully acquitted using its qualifying expenditure. Its closing status shows that it has no shortfall or carry forward. 5. In year 5 SVOD E’s results are $100 million in total program expenditure, resulting in a $10 million expenditure requirement. SVOD E has $10 million in qualifying expenditure that can be used. Its opening status is the same as its closing status from year 4. The adjustments show that SVOD E’s expenditure requirement has been fully acquitted using its qualifying expenditure. Its closing status shows that it has no shortfall or carry forward.

Figure 6: Expenditure shortfalls are acquitted within the 3-year period

SVOD F’s qualifying expenditure is well below its requirement in years one and 2. From year 3, it increases its investment in eligible Australian programs. This allows it to meet its outstanding requirements and to carry‑forward expenditure.

Figure 6 describes how an SVOD, labelled SVOD F, is meeting its expenditure requirement across a six year period, using a mix of carrying shortfall into additional years and accessing carry forward across additional years. 1. In year 1, the first column, SVOD F’s results are $100 million in total program expenditure, resulting in a $10 million expenditure requirement. SVOD F has $0.5 million in qualifying expenditure that can be used. Because this is the first year displayed in the figure, SVOD F’s opening status is nil. SVOD F partially acquits its year 1 requirement using its qualifying expenditure. Its closing status shows a shortfall of $9.5 million that is carried into year 2. 2. In year 2 SVOD F’s results are $100 million in total program expenditure, resulting in a $10 million expenditure requirement. SVOD F has $0.5 million in qualifying expenditure that can be used. Its opening status is the same as its closing status from year 1. SVOD F partially acquits its outstanding year 1 requirement using its qualifying expenditure. It does not acquit any of its year 2 requirement. SVOD F’s closing status shows a shortfall of $9 million (from year 1) and $10 million (from year 2) that is carried into year 3. 3. In year 3 SVOD F’s results are $100 million in total program expenditure, resulting in a $10 million expenditure requirement. SVOD F has $25 million in qualifying expenditure that can be used. Its opening status is the same as its closing status from year 2. SVOD F fully acquits its outstanding year 1 requirement using its qualifying expenditure. It then fully acquits its year 2 requirement using its qualifying expenditure. SVOD F is then able to partially acquit its year 3 qualifying expenditure. SVOD F’s closing status shows a shortfall of $4 million from year 3 that is carried into year 4. 4. In year 4 SVOD F’s results are $100 million in total program expenditure, resulting in a $10 million expenditure requirement. SVOD F has $28 million in qualifying expenditure that can be used. Its opening status is the same as its closing status from year 3. SVOD F fully acquits its outstanding year 3 requirement and then fully acquits its year 4 requirement using its qualifying expenditure. SVOD F’s closing status shows that it has a $14 million carry-forward available in year 5. 5. In year 5 SVOD F’s results are $100 million in total program expenditure, resulting in a $10 million expenditure requirement. SVOD F has $30 million in qualifying expenditure that can be used. Its opening status is the same as its closing status from year 4. SVOD F fully acquits its year 5 requirement using its year 4 carry-forward. SVOD F’s closing status shows that it has a $4 million carry-forward (from year 4) and a $30 million carry-forward (from year 5) that is available in year 6. 6. In year 6 SVOD F’s results are $100 million in total program expenditure, resulting in a $10 million expenditure requirement. SVOD F has $15 million in qualifying expenditure that can be used. Its opening status is the same as its closing status from year 5. SVOD F fully acquits its year 6 requirement using its remaining year 4 carry-forward and some of its year 5 carry-forward. SVOD F’s closing status shows that it has a $24 million carry-forward (from year 5) and a $15 million carry-forward (from year 6) that is available in year 7. Year 7 is not shown in the figure.

Figure 7: Service provider selected the revenue acquittal method, however, cannot re-elect this method after the 3-year period

SVOD G elects the revenue method in year one. At the end of the 3-year period, it has an overdue shortfall requirement for year one and must default to the expenditure method for the next 3-year period. The overdue shortfall is made up, and it may elect the revenue method again in year 7.

Figure 7 describes how an SVOD, labelled SVOD G, elects the revenue method for a three-year period, but is then in breach of the Act at the conclusion of a pre-election year and cannot re-elect the method. SVOD G’s compliance with the Act is shown over a six year period. 1. In year 1, the first column, SVOD G’s results are $100 million in Australian revenue, resulting in a $7.5 million expenditure requirement. SVOD G has $2 million in qualifying expenditure that can be used. Because this is the first year displayed in the figure, SVOD G’s opening status is nil. SVOD G partially acquits its year 1 requirement using its qualifying expenditure. Its closing status shows a shortfall of $5.5 million that is carried into year 2. 2. In year 2 SVOD G’s results are $100 million in Australian revenue, resulting in a $7.5 million expenditure requirement. SVOD G has $1.5 million in qualifying expenditure that can be used. Its opening status is the same as its closing status from year 1. SVOD G partially acquits its outstanding year 1 requirement using its qualifying expenditure. It does not acquit any of its year 2 requirement. SVOD G’s closing status shows a shortfall of $4 million (from year 1) and $7.5 million (from year 2) that is carried into year 3. 3. In year 3 SVOD G’s results are $100 million in Australian revenue, resulting in a $7.5 million expenditure requirement. SVOD G has $2 million in qualifying expenditure that can be used. Its opening status is the same as its closing status from year 2. SVOD G partially acquits its outstanding year 1 requirement using its qualifying expenditure. The remaining requirement from year 1 is now overdue. SVOD G is not able to acquit any of its year 2 or year 3 expenditure requirement. Its closing status shows an overdue shortfall of $2 million (from year 1) and a shortfall of $7.5 million (from year 2) and $7.5 million (from year 3) that is carried into year 4. Because the SVOD has an overdue requirement at the conclusion of a pre-election year, it is not able to re-elect to use the revenue method in year 4 and must use the expenditure method to acquit its requirement for years 4 – 6. 4. In year 4 SVOD G’s results are $100 million in total program expenditure, resulting in a $10 million expenditure requirement. SVOD G has $15 million in qualifying expenditure that can be used. Its opening status is the same as its closing status from year 3. and shows that SVOD G is in breach of the Act. SVOD G uses its qualifying expenditure to fully acquit its year 1 requirement as well as its year 2 requirement. It can then partially acquit its year 3 requirement. SVOD F is not able to acquit any of its year 4 requirement. SVOD G’s closing status shows that it has a $2 million shortfall (from year 3) and $10 million shortfall (from year 4) that is carried into year 5. 5. In year 5 SVOD G’s results are $100 million in total program expenditure, resulting in a $10 million expenditure requirement. SVOD G has $16 million in qualifying expenditure that can be used. Its opening status is the same as its closing status from year 4. SVOD G fully acquits its outstanding year 3 requirement and its year 4 requirement using its qualifying expenditure. It is then able to partially acquit its year 5 requirement. SVOD G’s closing status shows that it has a $6 million shortfall (from year 5) that is carried into year 6. 6. In year 6 SVOD G’s results are $100 million in total program expenditure, resulting in a $10 million expenditure requirement. SVOD G has $20 million in qualifying expenditure that can be used. Its opening status is the same as its closing status from year 5. SVOD G fully acquits its remaining year 5 requirement as well as all of its year 6 requirement using its qualifying expenditure. SVOD G’s closing status shows that it has a $4 million carry-forward (from year 6) that is available in year 7. Year 7 is not shown in the figure. 7. Because SVOD G has no overdue shortfall at the conclusion of this year, it is able to make an election to use the revenue method in year 7 if it wishes to do so.

Figure 8: Service provider selected the revenue method then reverts to the default expenditure method after the 3-year period

SVOD H elects the revenue method in year one. At the end of a 3-year period, it has acquitted the requirement for all 3 years, however, chooses not to re-elect the revenue method. Instead, SVOD H reverts to the default expenditure method.

Figure 8 describes how the election of the revenue method is available to an SVOD, labelled SVOD H, because it is not in breach of the Act at the conclusion of the year prior to an election year. SVOD H’s compliance with the Act is shown over a six year period. 1. In year 1, the first column, SVOD H is acquitting its requirement using the revenue method. SVOD H’s results are $100 million in Australian revenue, resulting in a $7.5 million expenditure requirement. SVOD H has $13 million in qualifying expenditure that can be used. Because this is the first year displayed in the figure, SVOD H’s opening status is nil. SVOD H fully acquits its year 1 requirement using its qualifying expenditure. Its closing status shows a carry-forward of $5.5 million that is available to use in year 2. 2. In year 2 SVOD H’s results are $100 million in Australian revenue, resulting in a $7.5 million expenditure requirement. SVOD H has $5 million in qualifying expenditure that can be used. Its opening status is the same as its closing status from year 1. SVOD H fully acquits its year 2 requirement using its carry-forward from year 1, then its qualifying expenditure from year 2. SVOD H’s closing status shows a carry-forward of $3 million (from year 2) that is available to use in year 3. 3. In year 3 SVOD H’s results are $100 million in Australian revenue, resulting in a $7.5 million expenditure requirement. SVOD H has $6 million in qualifying expenditure that can be used. Its opening status is the same as its closing status from year 2. SVOD H fully acquits its year 3 requirement using its carry-forward from year 2, then its qualifying expenditure from year 3. SVOD H’s closing status shows a carry-forward of $1.5 million (from year 3) that is available to use in year 4. 4. Year 4 is an election year. This year, because SVOD H does not have an overdue expenditure requirement, it is able to re-elect the revenue method to acquit its requirement in years 4 – 6. It does not make an election. This means that it must use to expenditure method between years 4 – 6. 5. In year 4 SVOD H’s results are $70 million in total program expenditure, resulting in a $7 million expenditure requirement. SVOD H has $8 million in qualifying expenditure that can be used. Its opening status is the same as its closing status from year 3. SVOD H fully acquits its year 4 requirement using its carry-forward from year 3, then its qualifying expenditure from year 4. SVOD H’s closing status shows a carry-forward of $2.5 million (from year 4) that is available to use in year 5. 6. In year 5 SVOD H’s results are $70 million in total program expenditure, resulting in a $7 million expenditure requirement. SVOD H has $3 million in qualifying expenditure that can be used. Its opening status is the same as its closing status from year 4. SVOD H partially acquits its year 5 requirement using its carry-forward from year 4, then its qualifying expenditure from year 5. SVOD H’s closing status shows a shortfall of $1.5 million (from year 5) that is carried into year 6. 7. In year 6, the first column, SVOD H’s results are $70 million in total program expenditure, resulting in a $7 million expenditure requirement. SVOD H has $10 million in qualifying expenditure that can be used. Its opening status is the same as its closing status from year 5. SVOD H fully acquits its remaining year 5 requirement as well as all of its year 6 requirement using its qualifying expenditure. SVOD H’s closing status shows that it has a $1.5 million carry-forward (from year 6) that is available to use in year 7. Year 7 is not shown in the figure. 8. Because SVOD H has no overdue shortfall at the conclusion of this year, it is able to make an election to use the revenue method in year 7 if it wishes to do so.

More information

If you have any questions, please email svodauscontent@acma.gov.au.

This information is accurate as of May 2026.
It may be updated as content requirements are implemented.
This is not legal advice.
SVODs should seek their own advice about their obligations under the Broadcasting Services Act.
The term ‘SVOD’ refers to providers of subscription video on demand services.