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Australian Communications and Media Authority Annual Report 2019-20

Appendixes

Appendix 1: Committees, memberships and attendance at meetings

Authority meetings

During 2019–20, the Authority met 55 times.

Table 1.23 Attendance by members at Authority meetings, 2019–20
Authority Member	No. of meetings attended
Nerida O’Loughlin, Chair	51
Creina Chapman, Deputy Chair and CEO	53
Chris Jose	46
Fiona Cameron	53
James Cameron	52
Anita Jacoby (Associate Member)	20
Cristina Cifuentes (Associate Member)	9
Delia Rickard (Associate Member)	6

For more details about the Authority, refer to the ‘Overview—The Authority’ section of this report.

Executive Management Committee meetings

During 2019–20, the EMC met 23 times.

Table 1.24 Attendance at Executive Management Committee meetings, 2019–20
Member of Executive Management Committee	No. of meetings attended
Nerida O’Loughlin, Chair	20
Creina Chapman, Deputy Chair and CEO	21
Brendan Byrne, General Manager, Legal Services Division	22
Cathy Rainsford, General Manager, Content and Consumer Division*	7
Jonquil Ritter, Acting General Manager, Content and Consumer Division^†	14
Helen Owens, General Manager, Corporate and Research Division	22
Linda Caruso, General Manager, Communications Infrastructure Division	20

* Cathy Rainsford commenced in the role of General Manager, Content and Consumer Division in March 2020.

^† Jonquil Ritter acted as the General Manager, Content and Consumer Division from July 2019 until March 2020.

Audit and Risk Committee

In its capacity as an advisory committee to the ACMA Chair, the Audit and Risk Committee met five times in 2019–20.

Audit and Risk Committee members employed by the ACMA provide insight to the ACMA’s business operations. Internal members are appointed for a two-year term.

The Audit Committee charter is available on the ACMA website at:
acma.gov.au/compulsory-reporting#audit-risk-and-committee-charter.

Table 1.25 Audit and Risk Committee
Member name	Qualifications, knowledge, skills or experience (include formal and informal as relevant)	Number of meetings attended / total number of meetings	Total annual remuneration ($)
Ian McPhee AO PSM	Public sector and industry experience including as a company director, audit committee chair/member, chair of various governance reviews, and Auditor-General for Australia 2005–15. B. Bus (Accountancy), BA (Computing Studies), FCPA, FCA, FIPAA, GAICD	5 / 5	20,000.00
Fay Holthuyzen	Communications and media environment experience, government and public sector experience, sound understanding of ACMA business, services and operating context, Commonwealth performance management framework, risk management policy and relevant legislative and policy requirements. B. Commerce	3 / 3 (Term completed in December 2019)	8,616.40
Jeremy Chandler	Senior executive roles within Commonwealth Government, former Chief Operating Officer and Chief Financial Officer, Gateway Review team leader for major Commonwealth programs and projects, experience in change management, organisational capability, leadership and executive coaching. FCPA, FIML, qualified Executive Coach	5 / 5	12,104.14
Karen Toole	Public sector and industry experience including former Chief Financial Officer in the Commonwealth Government, audit committee member, treasurer of a not-for-profit board, experience in audit, systems of control, finance and risk management, program management, stakeholder management, strategic planning and ICT management. B. Commerce, BSc, FCA	2 / 2 (Term commenced in January 2020)	4,000.00
Michael Parkinson	Experience in internal auditing, internal control, risk management, information technology, management guidance and the Commonwealth performance framework. CIA, CISA, CRISC, CRMA	2 / 2 (Term completed in September 2019)	3,164.55
Allan Major	Public sector experience including former Executive Manager of Finance & Facilities Branch of the ACMA and audit committee member. M. Comm (Professional Accounting)	5 / 5	0
Patrick Belton	Communications and media law experience, government and administrative law, corporate and commercial law, Commonwealth performance and procurement frameworks and Commonwealth projects. LLB (Hons), BSc (Hons)	5 / 5	0

ACMA advisory and consultative bodies

Consumer Consultative Forum (CCF)

Chair

Fiona Cameron, Authority Member, Australian Communications and Media Authority

Consumer representatives

Standing member: Australian Communications Consumer Action Network

The following consumer representatives were appointed for a three-year term in September 2018:

Consumer Policy Research Centre
Country Women’s Association
Deaf Australia
Federation of Ethnic Communities’ Council of Australia
Legal Aid NSW
NSW Business Chamber
South Australian Council of Social Services
WEstjustice

Representatives from industry bodies

Australian Mobile Telecommunications Association
Communications Alliance

Regulatory and government representatives

Australian Competition and Consumer Commission
Telecommunications Industry Ombudsman
Department of Infrastructure, Transport, Regional Development and Communications

Numbering Advisory Committee (NAC)

Chair

Chris Jose, Authority Member, Australian Communications and Media Authority

Consumer representatives

Australian Communications Consumer Action Network

Representatives from industry bodies

AAPT Ltd
Australian Phone Word Association Ltd
Communications Alliance
Lawrence Glen Clarke (resigned 13 March 2020)
MyNetFone Ltd
SingTel Optus Pty Ltd
Telstra Corporation Ltd
Vodafone Hutchison Australia Pty Ltd

Regulatory and government representatives

Australian Competition and Consumer Commission
Department of Infrastructure, Transport, Regional Development and Communications

Appendix 2: Staffing information

This appendix contains staffing details for the ACMA and eSafety on a headcount basis. Other than the Commissioner, all employees working for eSafety remain employed by the ACMA under the Public Service Act.

Table 1.26 All ongoing employees—current report period (2019–20)
Location	Male			Female			Total
	Full-time	Part-time	Total	Full-time	Part-time	Total
NSW	42	2	44	64	17	81	125
Qld	5	-	5	2	1	3	8
SA	-	-	-	-	-	-	-
Tas.	1	-	1	-	-	-	1
Vic.	78	2	80	62	22	84	164
WA	-	-	-	-	-	-	-
ACT	66	2	68	56	13	69	137
NT	-	-	-	-	-	-	-
Overseas	-	-	-	-	-	-	-
Total	192	6	198	184	53	237	435

Note: The ACMA had no staff recorded in the human resource information system as indeterminate.

Table 1.27 All ongoing employees—previous report period (2018–19)
Location	Male			Female			Total
	Full-time	Part-time	Total	Full-time	Part-time	Total
NSW	39	3	42	67	17	84	126
Qld	7	-	7	1	2	3	10
SA	-	-	-	-	-	-	-
Tas.	1	-	1	-	-	-	1
Vic.	70	1	71	55	28	83	154
WA	-	-	-	-	-	-	-
ACT	58	3	61	56	12	68	129
NT	-	-	-	-	-	-	-
Overseas	-	-	-	-	-	-	-
Total	175	7	182	179	59	238	420

Note: The ACMA had no staff recorded in the human resource information system as indeterminate.

Table 1.28 All non-ongoing employees—current report period (2019–20)
Location	Male			Female			Total
	Full-time	Part-time	Total	Full-time	Part-time	Total
NSW	1	-	1	1	2	3	4
Qld	1	-	1	-	-	-	1
SA	-	-	-	-	-	-	-
Tas.	-	-	-	-	-	-	-
Vic.	5	-	5	4	1	5	10
WA	-	-	-	-	-	-	-
ACT	3	-	3	6	1	7	10
NT	-	-	-	-	-	-	-
Overseas	-	-	-	-	-	-	-
Total	10	-	10	11	4	15	25

Note: The ACMA had no staff recorded in the human resource information system as indeterminate.

Table 1.29 All non-ongoing employees—previous report period (2018–19)
Location	Male			Female			Total
	Full-time	Part-time	Total	Full-time	Part-time	Total
NSW	1	-	1	3	2	5	6
Qld	1	-	1	-	-	-	1
SA	-	-	-	-	-	-	-
Tas.	-	-	-	-	-	-	-
Vic.	5	1	6	3	1	4	10
WA	-	-	-	-	-	-	-
ACT	5	-	5	3	1	4	9
NT	-	-	-	-	-	-	-
Overseas	-	-	-	-	-	-	-
Total	12	1	13	9	4	13	26

Note: The ACMA had no staff recorded in the human resource information system as indeterminate.

Australian Public Service (APS) classification and gender

Table 1.30 Public Service Act ongoing employees—current report period (2019–20)
Classification	Male			Female			Total
	Full-time	Part-time	Total	Full-time	Part-time	Total
SES 3	-	-	-	-	-	-	-
SES 2	1	-	1	4	-	4	5
SES 1	8	-	8	4	-	4	12
EL 2	30	-	30	34	1	35	65
EL 1	76	4	80	61	28	89	169
APS 6	46	2	48	48	20	68	116
APS 5	21	-	21	17	2	19	40
APS 4	5	-	5	12	1	13	18
APS 3	1	-	1	1	1	2	3
APS 2	-	-	-	-	-	-	-
APS 1	-	-	-	-	-	-	-
Other*	4	-	4	3	-	3	7
Total	192	6	198	184	53	237	435

* The only staff included in the ‘Other’ category are ACMA graduates.

Note: The ACMA had no staff recorded in the human resource information system as indeterminate.

Table 1.31 Public Service Act ongoing employees—previous report period (2018–19)
Classification	Male			Female			Total
	Full-time	Part-time	Total	Full-time	Part-time	Total
SES 3	-	-	-	-	-	-	-
SES 2	1	-	1	3	-	3	4
SES 1	6	-	6	3		3	9
EL 2	28	-	28	30	4	34	62
EL 1	67	6	73	60	27	87	160
APS 6	47	1	48	50	21	71	119
APS 5	18	-	18	15	3	18	36
APS 4	6	-	6	13	3	16	22
APS 3	-	-	-	1	1	2	2
APS 2	-	-	-	-	-	-	-
APS 1	-	-	-	-	-	-	-
Other*	2	-	2	4	-	4	6
Total	175	7	182	179	59	238	420

* The only staff included in the ‘Other’ category are ACMA graduates.

Note: The ACMA had no staff recorded in the human resource information system as indeterminate.

Table 1.32 Public Service Act non-ongoing employees—current report period (2019–20)
Classification	Male			Female			Total
	Full-time	Part-time	Total	Full-time	Part-time	Total
SES 3	-	-	-	-	-	-	-
SES 2	-	-	-	-	-	-	-
SES 1	-	-	-	-	-	-	-
EL 2	-	-	-	1	-	1	1
EL 1	1	-	1	4	2	6	7
APS 6	7	-	7	3	2	5	12
APS 5	1	-	1	1	-	1	2
APS 4	1	-	1	2	-	2	3
APS 3	-	-	-	-	-	-	-
APS 2	-	-	-	-	-	-	-
APS 1	-	-	-	-	-	-	-
Other	-	-	-	-	-	-	-
Total	10	-	10	11	4	15	25

Note: The ACMA had no staff recorded in the human resource information system as indeterminate.

Table 1.33 Public Service Act non-ongoing employees—previous report period (2018–19)
Classification	Male			Female			Total
	Full-time	Part-time	Total	Full-time	Part-time	Total
SES 3	-	-	-	-	-	-	-
SES 2	-	-	-	-	-	-	-
SES 1	-	-	-
EL 2	-	-	-	1	-	1	1
EL 1	3	-	3	1	2	3	6
APS 6	7	1	8	5	1	6	14
APS 5	1	-	1		1	1	2
APS 4	1	-	1	2	-	2	3
APS 3	-	-	-	-	-	-	-
APS 2	-	-	-	-	-	-	-
APS 1	-	-	-	-	-	-	-
Other	-	-	-	-	-	-	-
Total	12	1	13	9	4	13	26

Note: The ACMA had no staff recorded in the human resource information system as indeterminate.

Employment type by full-time and part-time status

Table 1.34 Public Service Act employees by full-time and part-time status—current report period (2019–20)
Classification	Ongoing			Non-ongoing			Total
	Full- time	Part-time	Total	Full- time	Part-time	Total
SES 3	-	-	-	-	-	-	-
SES 2	5	-	5	-	-	-	5
SES 1	12	-	12	-	-	-	12
EL 2	64	1	65	1	-	1	66
EL 1	137	32	169	5	2	7	176
APS 6	94	22	116	10	2	12	128
APS 5	38	2	40	2	-	2	42
APS 4	17	1	18	3	-	3	21
APS 3	2	1	3	-	-		3
APS 2	-	-	-	-	-	-	-
APS 1	-	-	-	-	-	-	-
Other*	7	-	7	-	-	-	7
Total	376	59	435	21	4	25	460

* The only staff included in the ‘Other’ category are ACMA graduates.

Table 1.35 Public Service Act employees by full-time and part-time status—previous report period (2018–19)
Classification	Ongoing			Non-ongoing			Total
	Full- time	Part-time	Total	Full- time	Part-time	Total
SES 3	-	-	-	-	-	-	-
SES 2	4	-	4	-	-	-	4
SES 1	9	-	9	-	-	-	9
EL 2	58	4	62	1	-	1	63
EL 1	127	33	160	4	2	6	166
APS 6	97	22	119	12	2	14	133
APS 5	33	3	36	1	1	2	38
APS 4	19	3	22	3	-	3	25
APS 3	1	1	2	-	-	-	2
APS 2	-	-	-	-	-	-	-
APS 1	-	-	-	-	-	-	-
Other*	6	-	6	-	-	-	6
Total	354	66	420	21	5	26	446

* The only staff included in the ‘Other’ category are ACMA graduates.

Table 1.36 Public Service Act employment type by location—current reporting period (2019–20)
Location	Ongoing	Non-ongoing	Total
NSW	125	4	129
Qld	8	1	9
SA	-	-	-
Tas.	1	-	1
Vic.	164	10	174
WA	-	-	-
ACT	137	10	147
NT	-	-	-
Overseas	-	-	-
Total	435	25	460

Table 1.37 Public Service Act employment type by location—previous reporting period (2018–19)
Location	Ongoing	Non-ongoing	Total
NSW	129	6	135
Qld	10	1	11
SA	-	-	-
Tas.	1	-	1
Vic.	154	10	164
WA	-	-	-
ACT	126	9	135
NT	-	-	-
Overseas	-	-	-
Total	420	26	446

Table 1.38 Public Service Act Indigenous employment—current report period (2019–20)
	Total
Ongoing	4
Non-ongoing	-
Total	4

Table 1.39 Public Service Act Indigenous employment—previous report period (2018–19)
	Total
Ongoing	3
Non-ongoing	-
Total	3

Arrangements of SES and non-SES employees

Table 1.40 Public Service Act employment arrangements—current report period (2019–20)
	SES	Non-SES	Total
ACMA Enterprise Agreement 2017–2020	-	443	443
Section 24(1) Determination	17	-	17
Total	17	443	460

Note: A total of 27 non-SES employees had individual flexibility arrangements in place during 2019–20 and are included in the ACMA Enterprise Agreement 2017–2020 total.

Salary ranges by classification level

Table 1.41 Public Service Act employment salary ranges by classification level (minimum/maximum)—current report period (2019–20)
	Minimum salary	Maximum salary
SES 3	-	-
SES 2	277,153	284,653
SES 1	209,382	224,413
EL 2	120,283	145,631[1]
EL 1	99,425	123,438[2]
APS 6	81,826	92,407
APS 5	74,241	80,159
APS 4	66,629	72,425
APS 3	59,488	64,691
APS 2	52,347	57,743
APS 1	46,588	51,321
Other	-	-
Total	46,588	284,653

^{^[1]} This is the EL 2.5 classification, which is restricted to employees who were grandfathered from ABA/ACA.

^{^[2]} This is the top of the ACMA local designation Senior Lawyer, which is an EL1 equivalent.

Appendix 3: Executive remuneration

Table 1.42 Remuneration for key management personnel
Name	Position title	Short-term benefits ($)			Post-employment benefits ($)	Long-term benefits ($)		Termination benefits ($)	Total remuneration ($)
		Base salary	Bonuses	Other benefits and allowances	Superannuation contributions	Long service leave	Other long-term benefits
Nerida O’Loughlin	Chair	516,697	-	-	72,517	12,353	-	-	601,567
Creina Chapman	Deputy Chair	388,601	-	8,181	56,850	9,217	-	-	462,849
Julie Inman Grant	eSafety Commissioner	356,687	-	-	25,192	8,375	-	-	390,254
Linda Caruso	General Manager	279,441	-	-	46,391	6,924	-	-	332,756
Jonquil Ritter	Acting General Manager	172,769	-	34,468	28,795	4,723	-	-	240,755
Helen Owens	General Manager	275,190	-	-	47,630	6,924	-	-	329,744
Brendan Byrne	General Manager	286,879	-	-	40,966	6,924	-	-	334,769
Cathy Rainsford	General Manager	92,584	-	-	12,998	2,125	-	-	107,707
Rebecca Razavi	General Manager	58,989	-	-	8,865	1,334	-	-	69,188

Notes

Table 1.42 includes officers in a substantive key management personnel (KMP) role for any period during the financial year and officers acting in KMP roles for periods greater than three months. For these officers, the reported amounts reflect remuneration during these periods only.
Base salary includes:
- wages
- accrual of recreational leave entitlements.
Other benefits and allowances include:
- motor vehicle allowances
- allowances for higher duties
- other allowances under the relevant staff agreements.
Long service leave includes the accrual of entitlements.
For statutory office holders, the total remuneration reported in the above table includes elements outside the Remuneration Tribunal determination, such as the accrual of recreational and long service leave.

Table 1.43 Remuneration for senior executives
		Short-term benefits ($)			Post-employment benefits ($)	Long-term benefits ($)		Termination benefits ($)	Total remuneration ($)
Total remuneration bands	Number of senior executives	Average base salary	Average bonuses	Average other benefits and allowances	Average superannuation contributions	Average long service leave	Average other long-term benefits	Average termination benefits	Average total remuneration
$0 – $220,000	6	95,057	-	12,600	18,483	4,680	-	-	130,820
$220,001 – $245,000	2	191,876	-	1,213	26,911	4,791	-	-	224,791
$245,001 – $270,000	2	188,991	2,134	32,804	29,923	5,418	-	-	259,270
$270,001 – $295,000	6	232,841	-	580	40,738	5,626	-	-	279,785

Notes

Table 1.43 includes officers employed in a substantive SES role for any period during the financial year and officers acting in SES roles for periods greater than three months. For acting roles, the reported amounts reflect remuneration during these periods only.
Base salary includes:
- wages
- accrual of recreational leave entitlements.
ACMA SES officers are not paid bonuses. The average bonus in the table above reflects a bonus paid to an EL2 officer while acting in an SES role in 2019–20. This bonus related to 2018–19 performance when this officer was a substantive EL2.
Other benefits and allowances include:
- motor vehicle allowances
- allowances for higher duties
- other allowances under the relevant staff agreements.
Long service leave includes the accrual of entitlements.

Appendix 4: Telecommunications consumer protection compliance and enforcement outcomes

Appendix 4 includes information related to the ACMA’s requirement under paragraphs 57(d) and 57(e) of the ACMA Act.

Investigations by the ACMA

Table 1.44 reports on the number and types of complaints made to the ACMA under Part 26 of the Telecommunications Act 1997 and details of the subsequent investigations conducted during 1 July 2019 to 30 June 2020.

Entity/Entity type	Substance of complaint	Investigation outcome	Enforcement action
*Spam Act 2003*
Oneflare Pty Ltd	Sending marketing SMS without consent	Breach of subsection 16(1)—sending or causing to be sent, commercial electronic messages to electronic addresses with an Australian link without consent. Breach of subsection 18(1)—sending or causing to be sent, commercial electronic messages without a functional unsubscribe facility.	$75,600 infringement notice Enforceable undertaking
Singtel Optus Pty Limited	Sending marketing emails after consent was withdrawn and without an unsubscribe facility	Breach of subsection 16(1)—sending or causing to be sent, commercial electronic messages to electronic addresses with an Australian link, more than five business days after consent had been withdrawn by the relevant account holder. Breach of subsection 18(1)—sending or causing to be sent, commercial electronic messages without a functional unsubscribe facility.	$504,000 infringement notice Enforceable undertaking
Woolworths Group Limited	Sending marketing emails after consent was withdrawn and without an unsubscribe facility	Breach of subsection 16(1)—sending or causing to be sent, commercial electronic messages to electronic addresses with an Australian link, more than five business days after consent had been withdrawn by the relevant account holder.	$1,003,800 infringement notice Enforceable undertaking
A total of three investigations were conducted under the Telecommunications Act 1997 from the 6,858 complaints received about alleged breaches of the Spam Act 2003.
Do Not Call Register Act 2006 (DNCR Act) and Telecommunications (Telemarketing and Research Calls) Industry Standard 2017
TownandCountry Solar.com.au Pty Ltd	Making telemarketing calls to numbers on the Do Not Call Register (DNCR) without consent	Breach of subsection 11(1) of the DNCR Act—making telemarketing calls to Australian numbers registered on the DNCR without consent.	Formal warning Enforceable undertakings
1st Energy Pty Ltd	Not having adequate contractual arrangements in place with call centres	Breach of subsection 12(1) of the DNCR Act—entering into agreements for telemarketing services that did not contain an express provision requiring compliance with the DNCR Act. Breach of subsection 139(1) of the Telecommunications Act—entering into agreements for telemarketing services that did not contain an express provision requiring compliance with Part 6 of the Telecommunications Act.	$2,100 infringement notice
Wyndham Destinations Asia Pacific Pty Ltd	Making telemarketing calls to numbers on the DNCR without consent and not ending the call immediately when asked	Breach of subsection 11(1) of the DNCR Act—making telemarketing calls to Australian numbers registered on the DNCR without consent. Breach of section 128 of the Telecommunications Act for failing to comply with paragraph 13(1)(b) of the Telecommunications (Telemarketing and Research Calls) Industry Standard 2017—failing to immediately terminate calls when the call recipient asked for the call to be terminated or otherwise indicated that they did not want the call to continue.	$159,600 infringement notices
Wise Business Group (trading as Eco Wise Energy) Pty Ltd	Making telemarketing calls to numbers on the DNCR without consent	Breach of subsection 11(1) of the DNCR Act—making telemarketing calls to Australian numbers registered on the DNCR without consent.	Formal warning
Ausgreen International (trading as Ausgreen Solar) Pty Ltd	Making telemarketing calls to numbers on the DNCR without consent	Breach of subsection 11(1) of the DNCR Act—making telemarketing calls to Australian numbers registered on the DNCR without consent.	Formal warning
Suntech Solar (trading as Ausuntech Energy) Pty Ltd	Making telemarketing calls to numbers on the DNCR without consent	Breach of subsection 11(1) of the DNCR Act—making telemarketing calls to Australian numbers registered on the DNCR without consent.	$4,200 infringement notice
Grand Group Pty Ltd	Making telemarketing calls to numbers on the DNCR without consent	Breach of subsection 11(1) of the DNCR Act—making telemarketing calls to Australian numbers registered on the DNCR without consent.	$4,200 infringement notice
Data One Communications (trading as Pioneer Solar) Pty Ltd	Making telemarketing calls to numbers on the DNCR without consent	Breach of subsection 11(1) of the DNCR Act—making telemarketing calls to Australian numbers registered on the DNCR without consent.	Formal warning Enforceable undertaking
BVivid Pty Ltd	Making telemarketing calls to numbers on the DNCR without consent	Breach of subsection 11(1) of the DNCR Act—making telemarketing calls to Australian numbers registered on the DNCR without consent.	Formal warning Enforceable undertaking
Green Sales Pty Ltd	Making telemarketing calls to numbers on the DNCR without consent, not ending the call immediately when asked and not providing required information at the start of the call	Breach of subsection 11(1) of the DNCR Act—making telemarketing calls to Australian numbers registered on the DNCR without consent. Breach of section 128 of the Telecommunications Act for failing to comply with paragraph 9(2)(b) of the Telecommunications (Telemarketing and Research Calls) Industry Standard 2017—the caller failing to provide their employer’s company name as soon as the call start. Breach of section 128 of the Telecommunications Act for failing to comply with paragraph 9(2)(e) of the Telecommunications (Telemarketing and Research Calls) Industry Standard 2017—the caller failing to provide the purpose of the call as soon as the call starts. Breach of section 128 of the Telecommunications Act for failing to comply with paragraph 13(1)(b) of the Telecommunications (Telemarketing and Research Calls) Industry Standard 2017—failing to immediately terminate calls when the call recipient asked for the call to be terminated or otherwise indicated that they did not want the call to continue.	$50,400 infringement notice
Liberal Party of Australia (SA Division)	Making or attempting to make research calls during prohibited calling times	Breach of section 128 of the Telecommunications Act for failing to comply with section 8 of the Telecommunications (Telemarketing and Research Calls) Industry Standard 2017—making or attempting to make calls to Australian numbers during prohibited calling times.	Formal warning
Illawarra Regional Information Service (IRIS Research)	Making or attempting to make research calls without calling line identification enabled	Breach of section 128 of the Telecommunications Act for failing to comply with section 14 of the Telecommunications (Telemarketing and Research Calls) Industry Standard 2017—making or attempting to make calls to Australian numbers without enabling call line identification.	Formal warning
Enxo Energy Pty Ltd trading as Energy Deal	Making telemarketing calls and not ending the call immediately when asked	Breach of section 128 of the Telecommunications Act for failing to comply with paragraph 13(1)(b) of the Telecommunications (Telemarketing and Research Calls) Industry Standard 2017—failing to immediately terminate calls when the call recipient asked for the call to be terminated or otherwise indicated that they did not want the call to continue.	Enforceable undertaking
Solar products and services provider	Making telemarketing calls to numbers on the DNCR without consent	No breach of subsection 11(1) of the DNCR Act—making telemarketing calls to Australian numbers registered on the DNCR without consent.	n/a
Solar products and services provider	Making telemarketing calls to numbers on the DNCR without consent	No breach of subsection 11(1) of the DNCR Act—making telemarketing calls to Australian numbers registered on the DNCR without consent.	n/a
Solar products and services provider	Making telemarketing calls to numbers on the DNCR without consent	No breach of subsection 11(1) of the DNCR Act—making telemarketing calls to Australian numbers registered on the DNCR without consent.	n/a
Solar products and services provider	Making telemarketing calls to numbers on the DNCR without consent	No breach of subsection 11(1) of the DNCR Act—making telemarketing calls to Australian numbers registered on the DNCR without consent	n/a
Solar products and services provider	Making telemarketing calls to numbers on the DNCR without consent	No breach of subsection 11(1) of the DNCR Act—making telemarketing calls to Australian numbers registered on the DNCR without consent	n/a
A total of 18 investigations were conducted under the Telecommunications Act 1997 from the 30,603 complaints received about alleged non-compliance with the Do Not Call Register Act 2006 and the Telecommunications (Telemarketing and Research Calls) Industry Standard 2017.
Telecommunications Integrated Public Number Database Scheme 2017
Localsearch Operations Pty Ltd	Publishing a customer’s unlisted telephone number in a phone directory	Breach of subparagraph 3.12(9)(c)(i) (releasing a document containing unlisted number customer data). Breach of paragraph 3.12(9)(d) (did not securely destroy all the unlisted number customer data within 10 business days of being notified the number was unlisted). Breach of subparagraph 3.12(15)(a)(i) (did not advise complainant that if they were dissatisfied with the way in which the complaint was handled, the customer could make a complaint to the Information Commissioner). Breach of paragraph 3.12(15)(b) (did not provide the complainant contact details of the Information Commissioner). Breach of paragraph 3.12(21)(c) (failed to notify the ACMA in writing as soon as practicable after becoming aware that it had breached a relevant requirement). Breach of paragraph 3.12(21)(d) (failed to take all reasonable steps to minimise the effects of the issue as soon as practicable).	Formal warning
One investigation was conducted under the Telecommunications Act 1997 from the one complaint received about alleged non-compliance with the Telecommunications Integrated Public Number Database Scheme 2017.
Determination made under Part 8 of the Telecommunications (Consumer Protection and Service Standards) Act 1999
No investigations were conducted from the four complaints received about alleged breaches of the Telecommunications (Emergency Call Service) Determination 2009.
Codes registered under Part 6 of the Telecommunications Act 1997
No investigations were conducted from the four complaints received about alleged breaches of the Handling of Life Threatening and Unwelcome Communications (C525:2017).

Note: A single investigation can concern multiple complaints.

ACMA’s operations on industry codes and industry standards

The following section includes information related to the ACMA’s operation of Part 6 of the Telecommunications Act 1997. During 2019–20, two codes were revised by Communications Alliance (CA), and the varied codes were registered by the ACMA, and one industry standard was made and registered by the ACMA in response to combating mobile number porting fraud scams.

C555:2019 Integrated Public Number Database (IPND) Industry Code

C555:2019 Integrated Public Number Database (IPND) Industry Code – Revision was registered in March 2020. The revision sought to rectify three deficiencies in the Code identified by the ACMA. Broadly, the amendments seek to:

clarify that all numbers issued to a customer by a carriage service provider (CSP) are required to be listed in the IPND, and give greater clarity of the number types that are required to be in the IPND
set out what a CSP must do to reconcile Public Number Customer Data (PNCD) against their own customer data, including a mandatory obligation to review and action Changed Data Provider Reports issued by the IPND Manager
make reconciliation of PNCD compulsory between a CSP’s customer systems and the IPND at least once every six months.

The revised Code makes it important for data providers to promptly and consistently provide information to the IPND. Similarly, it is important for data users to ensure consistency and prompt provision of information from the IPND.

C625:2020 Information on Accessibility Features for Telephone Equipment Industry Code

C625:2020 Information on Accessibility Features for Telephone Equipment Industry Code – Revision was registered in April 2020. Under the Code, equipment suppliers can provide information about accessibility features of equipment in a prescribed matrix. The revision replaced the Operational Matrices for Reporting on Accessibility Features for Telephone Equipment Industry Guideline (G627:2009) with the Accessibility Features Matrix. The new matrix aligns with the accessibility features reported within the Mobile & Wireless Forum Global Accessibility Reporting Initiative (GARI).

The revised Code continues to facilitate the provision of useful information to CSPs to assist them to guide consumers in choosing the most appropriate telecommunications equipment to meet their specific needs. The revised Code also ensures that consumers can approach equipment suppliers directly for information on equipment features, by requiring them to have a publicly available contact point for consumers.

Industry standards

During 2019–20, one industry standard was made and registered by the ACMA in response to combating mobile number porting fraud scams:

Telecommunications (Mobile Number Pre-Porting Additional Identity Verification) Industry Standard 2020

The Telecommunications (Mobile Number Pre-Porting Additional Identity Verification) Industry Standard 2020 commenced in April 2020. The new standard was made under subsection 125AA(1) of the Telecommunications Act and in accordance with the Telecommunications (Industry Standard for Mobile Number Pre-Porting Additional Identity Verification) Direction 2019. This standard requires CSPs to use additional identity verification measures before porting a mobile service number.

The objectives of this industry standard are, without limitation, to:

prevent the unauthorised porting of mobile service numbers
reduce harm to customers from the unauthorised porting of mobile service numbers
require gaining carriage service providers to take reasonable steps to confirm that the person requesting a port:
- is the rights of use holder of the mobile service number to be ported
- has direct and immediate access to a mobile device associated with that mobile service number.

This standard will enhance safeguards against fraudulent number porting.
The ACMA maintains a register of the industry codes and standards on our website at
acma.gov.au/register-telco-industry-codes-and-standards.

Appendix 5: Disclosures of information

Customer information provided to telecommunications carriers and CSPs is protected under Part 13 of the Telecommunications Act. Carriers and CSPs are prohibited from disclosing that information to other parties—except in limited circumstances—and are required to report specific disclosures to the ACMA under section 308 of the Telecommunications Act.

The ACMA is required under paragraph 57(f) of the ACMA Act to include in its annual report information on disclosures of customer information made by carriers and CSPs during the reporting year. The disclosures made under Part 13 of the Telecommunications Act by carriers and CSPs, are included in reports to the ACMA under section 308 and are set out in Table 1.45 below for 2019–20.

Table 1.45 Disclosures made under Part 13 of the Telecommunications Act—by carriers and CSPs
Reason for disclosure	(Sub)section	Number of disclosures, 2019–20
Under the Telecommunications Act 1997
Authorised by or under law	280	4,095
Made as a witness under summons	281	50
To assist the ACMA	284(1)	55,507[1]
To assist the eSafety Commissioner	284(1A)	0
To assist the ACCC	284(2)	20
To assist the TIO	284(3)	44,049
Calls to emergency service number	286	7,655
To avert a threat to a person’s life or health	287	22,487
Communications for maritime purposes	288	0
With the knowledge or consent of the person concerned	289	1,008,841,738,842[2]
In circumstances prescribed in the Telecommunications Regulations 2001	292	0
Under the Telecommunications (Interception and Access Act) 1979
Voluntary disclosure	177	17
Authorisations for access to existing information or documents—enforcement of the criminal law	178	541,072
Authorisations for access to existing information or documents—locating missing persons	178A	2,263
Authorisations for access to existing information or documents—enforcement of a law imposing pecuniary penalty or protection of the public revenue	179	330
Authorisations for access to prospective information or documents	180	201,961
Enforcement of the criminal law of a foreign country (existing information)	180A	66
Enforcement of the criminal law of a foreign country (prospective information)	180B	2
Total		1,008,842,618,416

Source: Carriers and carriage service providers.

^{^[1]} This relates to information provided to the ACMA for investigations under section 510 of the Telecommunications Act.

^{^[2]} This is primarily due to a CSP disclosing anonymised customer data to one of its related companies, with the consent of those customers. The customer data is combined with other data sources to provide insights about population movements.

Part 13 of the Telecommunications Act allows information contained in the IPND to be disclosed for the testing and operation of telephone-based emergency warning systems by state and territory governments. The number and type of disclosures made under subsections 295V(1) or 295V(2) of the Telecommunications Act in 2019–20, as reported to the ACMA under section 295ZC of the Telecommunications Act, are set out in Table 1.46.

Table 1.46 Disclosures made under Part 13 of the Telecommunications Act— by emergency management persons (EMP) for telephone-based emergency warning systems
Reason for disclosure	(Sub)section	Number of disclosures, 2019–20
Likely emergency	295V(1)	0
Actual emergency	295V(2)	17,126
Total		17,126

Appendix 6: Lawful disruption of access to online services by government agencies

If an Australian Government agency relies on subsection 313(3) of the Telecommunications Act to request internet service providers disrupt access to certain online services, they are required to follow the Guidelines for the use of section 313(3) of the Telecommunications Act 1997 by government agencies for the lawful disruption of access to online services. State and territory agencies are also encouraged to follow the guidelines. Agencies are advised to limit the use of subsection 313(3) in disrupting services to cases involving serious criminal or civil offences, or threats to national security.

The guidelines require agencies to report to the ACMA on the use of subsection 313(3) to disrupt online services and for this statistical information to be included in the ACMA’s annual report.

Two agencies reported using subsection 313(3) of the Telecommunications Act to disrupt access to online services during the reporting period. This is reflected in tables 1.47 and 1.48 below.

Table 1.47 Requests to disrupt online services by agencies under section 313(3) of the Telecommunications Act
Reason for requests to disrupt services under section 313(3)	(Sub)section	Number of requests 2019–20
Enforcing the criminal law and laws imposing pecuniary penalties	313(3)(c)	8
Assisting the enforcement of the criminal laws in force in a foreign country	313(3)(ca)	0
Assisting the investigation and prosecution of: (i) crimes within the jurisdiction of the ICC (within the meaning of the International Criminal Court Act 2002) (ii) Tribunal offences (within the meaning of the International War Crimes Tribunals Act 1995)	313(3)(cb)	0
Protecting the public revenue	313(3)(d)	0
Safeguarding national security	313(3)(e)	0
Total number of disruption requests		8

Source: Government agencies.

Table 1.48 Online services blocked by agencies under section 313(3) of the Telecommunications Act
Reason for online services blocked under section 313(3)	(Sub)section	Number of services blocked 2019–20
Enforcing the criminal law and laws imposing pecuniary penalties	313(3)(c)	67
Assisting the enforcement of the criminal laws in force in a foreign country	313(3)(ca)	0
Assisting the investigation and prosecution of: (i) crimes within the jurisdiction of the ICC (within the meaning of the International Criminal Court Act 2002) (ii) Tribunal offences (within the meaning of the International War Crimes Tribunals Act 1995)	313(3)(cb)	0
Protecting the public revenue	313(3)(d)	0
Safeguarding national security	313(3)(e)	0
Total number of online services blocked		67

Source: Government agencies.

Appendix 7: Regional and Small Publishers Innovation Fund

The following information addresses the ACMA’s requirement under section 205ZL of the BSA to report on information about the recipients of grants in accordance with section 46 of the PGPA Act.

Regional Grant Opportunity

In October 2019, the ACMA awarded 62 grants of financial assistance to grantees under the Regional Grant Opportunity (RGO). The ACMA subsequently executed grant agreements with 59 grantees (three grantees withdrew). Advice about executed agreements was published on GrantConnect within 21 days of execution.

Table 1.49 Grants awarded by the ACMA during 2019–20 under the Regional Grant Opportunity
Recipient name	Amoun (excl. GST)	Purpose of grant
Alexandra Newspapers Pty Ltd	$19,547.00	Publish weekly, large print editions of its newspapers
Australian Cybermalls Pty Ltd	$71,740.00	Upgrade its current website and expand coverage to include real estate, business and tourism sections
Barham Media Pty Ltd ATF Shiloh Media Trust	$60,000.00	Implement a news website and content management system
Beaconwood Holdings Pty Ltd	$381,954.00	Develop multi-channel online news delivery capacity
Buloke Times	$60,000.00	Purchase a digital publishing and technology package for a new website
Business News Australia Pty Ltd	$286,000.00	Upgrade current website and implement a subscription management system
Cassowary Coast Independent News Pty. Ltd.	$39,036.36	Support the creation of a weekly film segment on social media
Central Coast Newspapers Pty Ltd	$158,500.00	Upgrade website and develop an integrated database and content management system
Condobolin Argus Pty Ltd*	$84,072.00	Build digital and print circulation, update critical equipment and increase staff capabilities to improve digital presence (webpage and social media)
Croakey Health Media Ltd	$142,000.00	Establish a customer relationship management database, develop social media analytics and website redevelopment
Diamond Valley Enterprises Pty Ltd as trustee for Lomas Family Trust	$94,500.00	Design and develop a news website
Elliott Gippsland Newspapers Pty Ltd trading as Latrobe Valley Express Partnership	$237,000.00	Acquire a content management system, develop a photo sales website and online classified advertising section
Elliott Midland Newspapers Pty Ltd	$215,000.00	Purchase a content management system, develop a photo sales website and online classified advertising section
Forty South Publishing Pty Ltd	$249,206.37	Upgrade the current website and purchase content management system and customer relationship management tool
Giles Newspapers Pty. Ltd.	$150,749.11	Implement a new digital platform to support the online paper
Gilgandra Newspapers Pty Ltd	$232,920.00	Upgrade printing equipment and develop its current digital presence and technology capabilities
Gippslandia Ltd	$265,000.00	Upgrade its website, produce podcasts and conduct market research
GJ Adams Trust	$104,002.00	Develop capacity, skills and content via training to assist transitioning to an online environment
Graziher Publishing Pty Ltd	$170,000.00	Employ journalists in rural and remote areas, develop an integrated content platform and appoint a dedicated designer
Greysen Enterprises Pty Ltd	$179,091.00	Redevelop website and social media platforms
Indigenous Remote Communications Association Aboriginal and Torres Strait Islanders Corporation	$382,500.00	Establish an online news sharing platform and network
James Yeates & Sons Pty Ltd	$78,718.18	Purchase production equipment for a video and podcast content studio
Junkies Magazine Australia Pty Ltd	$291,500.00	Purchase a digital publishing and technology package including content management system
King Media Regional Pty. Ltd.	$335,341.00	Develop a digital platform and increase multimedia content and editorial outputs
Kvitko Holdings Pty Ltd	$5,141.20	Upskill content writing and graphic design skills via training
Local Media Pty Ltd	$65,454.00	Develop an online newspaper and expand journalistic content
Locolee Pty Ltd trading as Coonamble Times	$52,000.00	Transition from its current print and limited online presence to a fully integrated multimedia content publisher
Longreach Printing Company Limited	$217,475.00	Purchase a content management system to improve digital infrastructure
Lynwood Press	$15,000.00	Design and develop a new website
Maryborough Regional Newspapers Pty. Ltd	$112,000.00	Design and build a new website
McPherson Newspapers Proprietary Limited (Trading as McPherson Media Group)	$160,000.00	Redesign existing website and content management system and develop classified and photo sales module
Mildura Weekly Pty Ltd	$54,920.00	Implement a software solution that will streamline production and editorial functions
Moscol Group Pty Ltd	$60,000.00	Create news website driven by a content management system
Myall Coast Communications Pty Ltd	$139,382.00	Engage a reporter and an advertising expert and provide training to existing staff
Narrandera Argus Pty Ltd	$172,680.25	Design and build a new website and content management system
Newcastle Newspapers Pty Ltd	$211,399.00	Develop an audio news/podcast department
Newstate Media Newcastle Pty Ltd	$82,806.00	Create a new website and upgrade existing IT infrastructure
Newstate Media Pty Ltd	$163,150.00	Upgrade existing website, publishing and editorial software, and recruit journalists to assist in delivering new content
North East Media Pty Ltd	$317,000.00	Use a content management system and digital asset manager to consolidate all publications and online media into an online newsroom
Papers & Publications Pty Ltd	$83,278.55	Upgrade desktop hardware, publishing software and purchase a new phone system
Phillip Island & San Remo Advertiser Pty Ltd	$104,043.54	Develop a news website and purchase a content management system
Portasea Pty Ltd	$217,320.00	Purchase a digital publishing and technology package, including content management system, for a new website
Propeller Media Pty Ltd	$156,200.00	Upgrade existing publication and website
Quirindi Printing & Publishing Pty Ltd	$40,335.04	Develop a new website, email portal and upgrade its computer systems
Research for Agriculture	$210,000.00	Hold an industry event, publish and distribute an annual publication, and engage with tertiary institutions
RFP Enterprises Pty Ltd T/AS Bendigo Magazine	$90,800.00	Develop a new website and upgrade its customer relationship management system, and fund an advertising consultant and a digital marketing consultant
SCMH Enterprises Pty Ltd atf the Law Family Trust	$53,999.70	Purchase a van for distribution, implement software and new system to boost its existing business
Shore Media	$13,930.00	Design and develop a new website
Southern Cross Austereo Pty Ltd	$250,000.00	Conduct a feasibility study and develop strategies for distribution of its new digital news content
Southern Star (NSW) Pty Ltd*	$95,874.72	Build a new website and print colour wraps for its newspapers
Spilled Ink Pty Ltd*	$17,300.00	Transition from an in-house server to a cloud-based server and acquire software upgrade and IT support
Star News Group Pty Ltd as Trustee for Ian Thomas Family Trust	$170,049.00	Employ editorial personnel to increase types of content distributed through the digital channels
Sunraysia Publishing Co Pty Ltd	$142,775.82	Purchase a customer relationship management system and a sales training program
Surf Coast News Australia Pty Ltd	$129,993.00	Purchase production equipment to establish a video and podcast content studio
Tarrangower Times Pty Ltd	$102,000.00	Purchase a digital publishing and technology package to develop a new website and content management system
The Local Publishing Group Pty Ltd	$210,000.00	Upgrade IT infrastructure and website and conduct initial marketing
Tropic Group Pty Ltd ATF Tropic Trust	$55,000.00	Implement a community engagement campaign and generate community created content
Warracknabeal Herald Proprietary Limited	$102,332.72	Upgrade existing digital services capabilities with new technology, hardware and software
Warragul Regional Newspapers P/L	$205,000.00	Acquire a content management system and develop a new website
Warrumbungle Publications Pty Ltd	$72,664.56	Upgrade existing website
Wilkie Watson Publications	$257,841.90	Redevelop existing websites and upgrade existing IT infrastructure
YP Publishers PTY LTD	$161,711.49	Develop a new website including a new newsroom content management system and provide training to staff
Total	$9,059,234.51

* Denotes a grantee that withdrew from the program before a grant agreement was executed.

Advice to the ACMA by the Advisory Committee

The Advisory Committee reviewed 100 applications of the 113 applications received for the RGO round. Thirteen applications were not reviewed as they did not progress past the eligibility assessment stage. The Advisory Committee recommended that, based on this assessment, 64 applications should be considered for full- or part-funding. The total amount recommended by the Advisory Committee was $9,461,265.42.

Membership of the Advisory Committee is listed in Table 1.50. The advice provided by the Advisory Committee was consistent with the RGO objectives and outcomes and represent the application of the Advisory Committee’s collective expertise and experience in publishing, journalism and business.

Table 1.50 Innovation Fund Advisory Committee members
Name	Organisation
Megan Brownlow (Chair)	Partner, PricewaterhouseCoopers (retired)
John Angilley	Expert nominee of Country Press Australia
Louisa Graham	CEO, Walkley Foundation
Michael Malone	Chairman, Superloop
Susan Skelly	Adjudication Panel Member, Australian Press Council

Recommendations to the ACMA

In general, the Advisory Committee looked favourably on applications that included one or more of the following features:

a well-articulated business case that:
- would increase the sustainability of the applicant’s public interest journalism through a clear and realistic outcome by increasing revenue or circulation, or decreasing operating costs
- clearly linked requests for items to the business case and explained how they would support the business case or solve a market problem
a manageable proposal of a size and scope within the capacity of the applicant to implement
proposals to employ journalists or to provide additional resources and training for journalists to produce public interest journalism
proposals for a pilot program that could be expanded over time if successful or for research and development that could be used to come up with viable proposals in the future.

By contrast the Advisory Committee generally looked unfavourably on applications that:

contained ineligible components, for example, requests to fund activities that do not support the RGO objectives and outcomes
proposed an outdated, unproven or disproven technology solution, such as the reliance on app development, a paywall or server technology
sought funding for untested ‘start-up’ proposals to enter new markets in which the applicant had little expertise.

The Advisory Committee considered the quality of applications could be improved by:

adjusting the guidelines and application form for the next grant round
limiting text explaining the funding proposal to 200 words—to include information only about the key activities of the proposal
advising applicants to state explicitly how they will demonstrate (or plan to demonstrate) that market demand for their proposal exists and how meeting that demand will ensure sustainability
advising applicants to show how requested hardware is linked to a sound business strategy and supports business sustainability
requiring applicants to be as precise as possible when listing activities to be funded, including:
- not using general terms such as ‘equipment’, ‘staffing’, ‘training’ or bundling activities into non-specific groups of items or activities
- when referring to staff, being clear about the number required and their roles (for example, journalist, advertising sales)
- where possible, providing brand names of the items requested and the likely supplier of each item, in addition to describing what the item is.

2020 Round

On 24 April 2020, the ACMA opened the 2020 Round of the Regional and Small Publishers Innovation Fund (the 2020 Round), offering $5 million in grants to regional and small metropolitan publishers. The application period closed on 22 May 2020 and an announcement of successful applicants was due to be made in July 2020. As at 30 June, the Advisory Committee had not provided any advice to the ACMA.

Appendix 8: Advertising expenditure and market research

This appendix contains information for both the ACMA and eSafety.

Advertising

During the reporting period, advertising was placed for a range of purposes, including public notices, legal notices, job vacancies and small-scale campaigns targeted to both consumer and industry audiences.

During 2019–20, the ACMA or eSafety did not undertake any advertising campaigns with expenditure in excess of $250,000.

Total expenditure on advertising in 2019–20 was $255,700.

Table 1.51 Expenditure on media advertising organisations, ACMA and eSafety, 2019–20
Organisation name	Purpose	Amount of payment (incl. GST)
ACMA expenditure:
Universal McCann	Public notices and general advertising	$203,856
eSafety expenditure:
Facebook	General advertising	$51,844
Total		$255,700

Market research

Table 1.52 Expenditure on market research organisations, ACMA and eSafety, 2019–20
Organisation name	Purpose	Amount of payment (including GST)
ACMA expenditure
Woolcott Research & Engagement	ACMA Customer Service Centre satisfaction survey 2020	$27,500
Social Research Centre	ACMA Annual consumer survey 2020	$123,657
Lonergan Research Pty Ltd	Credit assessment shadow shopping study	$60,000
Heartward Strategic	Australians and news qualitative research	$106,458
Social Research Centre	New omnibus quantitative survey	$38,940
Engine Asia pacific	Telecommunications consumer experience research	$341,727
ACMA total		$698,282
eSafety expenditure
Omnipoll Pty Ltd	COVID-19 omnibus survey	$15,950
University of NSW	Research: Child exploitation during COVID-19	$30,000
Queensland University of Technology	Qualitative research on technology-facilitated abuse of women with intellectual disability	$21,450
Whereto Research	National adult e-safety online survey	$165,000
Griffith University	Children and technology-facilitated abuse in domestic or family violence	$230,830
Whereto Research	Qualitative research: Online safety of young people	$28,600
Whereto Research	Understanding experiences and support needs of frontline workers	$43,780
Queensland University of Technology	Online safety education—best practice framework	$20,000
eSafety total		$555,610
Total		$1,253,892

Appendix 9: Data reported by regulated entities

Data about control of media assets

Notifications by foreign stakeholders

Foreign persons have an ongoing obligation to notify the ACMA if they become, or cease to be, a foreign stakeholder in an Australian media company. These notifications are recorded in the Register of Foreign Owners of Media Assets. Foreign stakeholders have further annual notification obligations, which are required by 31 July each year. Based on annual notifications provided during the reporting period, there were 94 foreign stakeholders in Australian media companies as at 30 June 2019.

Notifications of changes in control

Licensees, publishers and persons assuming control are obliged to notify the ACMA of changes in control of regulated media assets; namely, commercial radio broadcasting licences, commercial television broadcasting licences and associated newspapers.

The ACMA received notifications of 10 events that affected the control of media operations comprising:

five commercial television broadcasting licences
31 commercial radio broadcasting licences
15 associated newspapers.

The ACMA updated its public register with these new notifications, as well as our public database of regulated media assets and their controllers.

All notifications lodged with us in the reporting period for change-of-control events were processed within the statutory timeframes.

During the reporting period, we received two applications under section 67 of the Broadcasting Services Act 1992 (the BSA) for prior approval of temporary breaches of the media control rules, and four applications under section 61AJ of the BSA for unacceptable media diversity situations. The applications related to proposals by Seven West Media Limited (Seven) and by Southern Cross Media Group Limited (SCA) (respectively) to enter into transactions that would result in breaches of the media control rules and the media diversity rules under the BSA. One of the applications under section 67 and two of the applications under section 61AJ of the BSA were subsequently withdrawn. The applications were finalised within the allowed statutory period of 45 days.

The ACMA also accepted an enforceable undertaking given by Seven under section 61AS of the BSA to remedy breaches of the media diversity rules under the BSA in six commercial radio licence areas in Western Australia and an enforceable undertaking given by SCA under sections 61AS and 205W of the BSA to remedy breaches of the media control rules and the media diversity rules under the BSA in Bunbury RA1 Western Australia.

Breaches of media control and diversity rules

In 2019–20, the ACMA investigated whether Mr Bruce Gordon was in breach of media control and diversity rules in Part 5 of the BSA as a result of information reported by Mr Gordon about a transaction involving shares in Prime Media Limited (Prime) that may have caused him to be in position to exercise control of Prime from 29 April 2019 until 24 May 2019.

Mr Gordon was found to be in breach of the ‘one-to-a-market’ commercial television licence rule in eight separate licence areas during this time. Mr Gordon’s interests also caused an unacceptable media diversity situation to occur, or to be worsened, in more than 40 licence areas.

The ACMA considered evidence from Mr Gordon that the breaches occurred as a result of actions taken by a third party that were contrary to his instructions and that, as a result, he could not reasonably have known that he was in breach of media laws. The ACMA also noted that Mr Gordon acted immediately to sell down his shareholding in Prime as soon as he became aware of the mistake. The ACMA found no evidence to suggest that Mr Gordon took any steps to exercise control over Prime during the period of his control. Consequently, the ACMA took no formal action under the BSA in relation to the breaches.

Register of licensed interactive wagering services

In raising awareness of Australian gambling laws to help minimise the supply and use of illegal interactive gambling services, the ACMA is required under the Interactive Gambling Act 2001 (IGA) to maintain a register of interactive wagering service providers that are licensed by an Australian state or territory. At 30 June 2020, there were 124 entries on the register—35 were TABs, corporate bookmakers and betting exchanges and 89 were on-course bookmakers.

Australian content

All commercial television broadcasting licensees reported meeting primary channel (55 per cent) and non-primary channel (1,460 hours) transmission quotas for Australian content in 2019.

The transmission quotas are specified by the BSA and apply to programs televised by free-to-air commercial television broadcasters between 6 am and midnight each calendar year.

The amount of Australian content provided by metropolitan commercial television licensees on their primary channels was high, with the Seven Network providing an average of 77 per cent local programming, the Nine Network an average of 75 per cent and Network Ten an average of 70 per cent. All three networks met the 1,460 hours quota for non-primary channels:

Seven Network averaged 4,770 hours
Nine Network averaged 2,598 hours
Network Ten averaged 2,533 hours.

Broadcasting Services (Australian Content) Standard 2016 and the Children’s Television Standards 2009

All licensees reported compliance with the annual sub-quota requirements for first-release Australian drama, documentary and children’s programs in 2019.

Regional radio local content obligations

Local content and presence obligations due to a regional radio trigger event

The BSA sets out circumstances where a trigger event for a regional commercial radio broadcasting licence causes additional obligations to apply to a regional commercial radio licence.⁶

There were two trigger events affecting 10 regional commercial radio licences. All required draft local content plans and local presence reports were provided in the 90-day statutory timeframe.

Compliance with local content plans⁷

Annual reporting for the 2018–19 financial year showed a high level of compliance with their local content plans by trigger event-affected regional commercial radio broadcasting licensees.

Of the 146 annual compliance reports provided to us by 79 trigger event-affected licensees, 140 reported compliance with their approved local content plans. Of the six licences who reported non-compliance with their local content plan:

two provided less than the minimum number of eligible local weather bulletins (although all provided well in excess of the statutory minimum of five eligible local weather bulletins per week)
two provided less than the minimum number of eligible local news bulletins and did not meet the required daily duration for eligible local news bulletins
two did not meet the required daily duration for eligible local news bulletins.

⁶ Subject to certain exceptions, a ‘trigger event’ for a regional commercial radio broadcasting licence is defined as: (a) a change in control of a regional commercial radio licence, (b) the formation of a new registrable media group where a regional commercial radio broadcasting licence is in the group or (c) a change in controller of a registrable media group where a regional commercial radio broadcasting licence is in the group. A trigger event for a regional commercial radio broadcasting licence is different to a trigger event for a regional commercial television broadcasting licence, as introduced by the Broadcasting Reform Act.

⁷ Local content plans include obligations to meet minimum service standards for local news, weather, community service announcements and emergency warnings, and the requirement to prepare a local content plan and take all reasonable steps to comply with it.

Appendix 10: Outcome table

This appendix contains information for both the ACMA and the eSafety and shows how much was spent (on an accrual basis) on achieving the outcome by funding source.

Outcome 1: A communications and media environment that balances the needs of the industry and the Australian community through regulation, education and advice

	Budget¹ (1) $’000	Actual² (2) $’000	Variance (2) minus (1) $’000
Program 1.1: Communications regulation, planning and licensing
Administered expenses
Ordinary annual services (Appropriation Act Nos. 1 and 3)	50	-	50
Departmental expenses	-	-	-
Departmental appropriation	39,772	35,970	3,802
Expenses not requiring appropriation in the budget year³	5,332	8,418	(3,086)
Subtotal for Program 1.1	45,154	44,388	766
Program 1.2: Consumer safeguards, education and information
Administered expenses
Ordinary annual services (Appropriation Act Nos. 1 and 3)	16,000	5,132	10,868
Special appropriations	300	165	135
Departmental expenses	-	-	-
Departmental appropriation	40,316	36,631	3,685
Expenses not requiring appropriation in the budget year3	4,922	8,418	(3,496)
Subtotal for Program 1.2	61,538	50,346	11,192
Program 1.3: Office of the eSafety Commissioner
Administered expenses
Ordinary annual services (Appropriation Act Nos. 1 and 3)	7,749	5,359	2,390
Departmental expenses
Special account	-	-	-
Online Safety Special Account—s72 Enhancing Online Safety Act 2015	17,341	18,889	(1,548)
Subtotal for Program 1.3	25,090	24,248	842
Departmental	107,683	108,326	(643)
Administered	24,099	10,656	13,443
Total for Outcome 1	131,782	118,982	12,800
Average staffing level	456	427	-

¹ Budget represents the original budget per the 2019–20 Portfolio Budget Statements.

² Actual appropriations are the total available appropriation in 2019–20, including MYEFO budget adjustments.

³ This overspend is due to the application of the new accounting standard on leases and is offset by the underspend in departmental appropriation.

Appendix 11: Agency resource statement

This appendix contains information for both the ACMA and the eSafety.

	Actual available appropriations for 2019-20 $’000 (a)	Payments made 2019-20 $’000 (b)	Balance remaining $’000 (a-b)
Ordinary Annual Services
Departmental appropriation¹	130,305	95,980	34,325
Total	130,305	95,980	34,325
Administered expenses
Outcome 1	23,749	9,556
Total	23,749	9,556
Total ordinary services A	154,054	105,536
Other services
Departmental non-operating	-	-
Total other services B	-	-
Special appropriations
Special appropriations limited by entitlement
Public Governance, Performance and Accountability Act 2013 — s77		7,623
Telecommunication Act 1997— s. 136C(4)		165
Total special appropriations C		7,788
Special Accounts
Opening balance	2,161	2,161	-
Appropriation receipts	17,353	15,828	1,525
Non-appropriations receipts	995	995	-
Total Special Accounts D	20,509	18,984	1,525

Total Resourcing A + B + C + D	174,563	132,308

¹ Children’s Online Safety appropriation is included in the Australian Communication and Media Authority’s Appropriation Act 1; however, the appropriation is moved to the Online Safety Special Account s72 Enhancing Online Safety Act 2015.

Appendix 12: eSafety financial reporting

This appendix contains financial information on the operation of eSafety, presented in accordance with subsection 57(aa) of the ACMA Act.

	2020 $’000	2019 $’000
Departmental
Operating expenses
*Employee benefits*	7,545	7,450
*Supplier expenses*
Consultants	962	316
Contractors	4,781	2,547
Outsourced services	3,423	2,405
I.T. and communications services	590	475
Travel costs	433	471
Other	763	553
Total supplier expenses	10,952	6,767
Total operating expenses	18,497	14,217
Capital purchases
Internally developed software	151	1,140
Leasehold improvements	-	215
Total capital purchases	151	1,355
Total departmental expenditure	18,648	15,572
Administered
Supplier expenses
Consultants	39	396
Contractors	2,976	3,749
Outsourced services	1,422	1,479
I.T. and communications services	166	1,014
Travel costs	35	100
Other	721	95
*Total supplier expenses*	5,359	6,833
Total administered expenditure	5,359	6,833

Appendix 13: List of requirements

Cont

PGPA Rule Reference	Part of Report	Description	Requirement
17AD(g)	Letter of transmittal
17AI	Letter of transmittal	A copy of the letter of transmittal signed and dated by accountable authority on date final text approved, with statement that the report has been prepared in accordance with section 46 of the Act and any enabling legislation that specifies additional requirements in relation to the annual report.	Mandatory
17AD(h)	Aids to access
17AJ(a)	Introduction	Table of contents.	Mandatory
17AJ(b)	Index	Alphabetical index.	Mandatory
17AJ(c)	Glossary	Glossary of abbreviations and acronyms.	Mandatory
17AJ(d)	Appendix 13: List of requirements	List of requirements.	Mandatory
17AJ(e)	Contact details	Details of contact officer.	Mandatory
17AJ(f)	Contact details	Entiy's website address.	Mandatory
17AJ(g)	Contact details	Electronic address of report.	Mandatory
17AD(a)	Review by accountable authority
17AD(a)	Chair’s foreword	A review by the accountable authority of the entity.	Mandatory
17AD(b)	Overview of the entity
17AE(1)(a)(i)	Australian Communications and Media Authority	A description of the role and functions of the entity.	Mandatory
17AE(1)(a)(ii)	Agency structure	A description of the organisational structure of the entity.	Mandatory
17AE(1)(a)(iii)	Outcome and program structure	A description of the outcomes and programmes administered by the entity.	Mandatory
17AE(1)(a)(iv)	Our purpose	A description of the purposes of the entity as included in corporate plan.	Mandatory
17AE(1)(aa)(i)	The Authority	Name of the accountable authority or each member of the accountable authority.	Mandatory
17AE(1)(aa)(ii)	The Authority	Position of the accountable authority or each member of the accountable authority.	Mandatory
17AE(1)(aa)(iii)	The Authority	Period as the accountable authority or member of the accountable authority within the reporting period.	Mandatory
17AE(1)(b)	-	An outline of the structure of the portfolio of the entity.	Portfolio departments - mandatory
17AE(2)		Where the outcomes and programs administered by the entity differ from any Portfolio Budget Statement, Portfolio Additional Estimates Statement or other portfolio estimates statement that was prepared for the entity for the period, include details of variation and reasons for change.	If applicable, Mandatory
17AD(c)	Report on the Performance of the entity
	Annual performance Statements
17AD(c)(i); 16F	Annual Performance Statement 2019–20	Annual performance statement in accordance with paragraph 39(1)(b) of the Act and section 16F of the Rule.	Mandatory
17AD(c)(ii)	Report on Financial Performance
17AF(1)(a)	Financial performance	A discussion and analysis of the entity’s financial performance.	Mandatory
17AF(1)(b)	Appendix 11: Agency resource statement	A table summarising the total resources and total payments of the entity.	Mandatory
17AF(2)	-	If there may be significant changes in the financial results during or after the previous or current reporting period, information on those changes, including: the cause of any operating loss of the entity; how the entity has responded to the loss and the actions that have been taken in relation to the loss; and any matter or circumstances that it can reasonably be anticipated will have a significant impact on the entity’s future operation or financial results.	If applicable, Mandatory.
17AD(d)	Management and Accountability
	Corporate Governance
17AG(2)(a)	Risk management and fraud control	Information on compliance with section 10 (fraud systems).	Mandatory
17AG(2)(b)(i)	Letter of transmittal	A certification by accountable authority that fraud risk assessments and fraud control plans have been prepared.	Mandatory
17AG(2)(b)(ii)	Letter of transmittal	A certification by accountable authority that appropriate mechanisms for preventing, detecting incidents of, investigating or otherwise dealing with, and recording or reporting fraud that meet the specific needs of the entity are in place.	Mandatory
17AG(2)(b)(iii)	Letter of transmittal	A certification by accountable authority that all reasonable measures have been taken to deal appropriately with fraud relating to the entity.	Mandatory
17AG(2)(c)	Governance	An outline of structures and processes in place for the entity to implement principles and objectives of corporate governance.	Mandatory
17AG(2)(d) – (e)	Governance	A statement of significant issues reported to Minister under paragraph 19(1)(e) of the Act that relates to non-compliance with Finance law and action taken to remedy non-compliance.	If applicable, Mandatory
	Audit Committee
17AG(2A)(a)	Audit and Risk Committee	A direct electronic address of the charter determining the functions of the entity’s audit committee.	Mandatory
17AG(2A)(b)	Audit and Risk Committee	The name of each member of the entity’s audit committee.	Mandatory
17AG(2A)(c)	Audit and Risk Committee	The qualifications, knowledge, skills or experience of each member of the entity’s audit committee.	Mandatory
17AG(2A)(d)	Audit and Risk Committee	Information about the attendance of each member of the entity’s audit committee at committee meetings.	Mandatory
17AG(2A)(e)	Audit and Risk Committee	The remuneration of each member of the entity’s audit committee.	Mandatory
	External Scrutiny
17AG(3)	External scrutiny	Information on the most significant developments in external scrutiny and the entity's response to the scrutiny.	Mandatory
17AG(3)(a)	External scrutiny	Information on judicial decisions and decisions of administrative tribunals and by the Australian Information Commissioner that may have a significant effect on the operations of the entity.	If applicable, Mandatory
17AG(3)(b)	External scrutiny	Information on any reports on operations of the entity by the Auditor-General (other than report under section 43 of the Act), a Parliamentary Committee, or the Commonwealth Ombudsman.	If applicable, Mandatory
17AG(3)(c)	External scrutiny	Information on any capability reviews on the entity that were released during the period.	If applicable, Mandatory
	Management of Human Resources
17AG(4)(a)	Our people	An assessment of the entity’s effectiveness in managing and developing employees to achieve entity objectives.	Mandatory
17AG(4)(aa)	Appendix 2: Staffing information	Statistics on the entity’s employees on an ongoing and non-ongoing basis, including the following: (a) statistics on full-time employees; (b) statistics on part-time employees; (c) statistics on gender; (d) statistics on staff location.	Mandatory
17AG(4)(b)	Appendix 2: Staffing information	Statistics on the entity’s APS employees on an ongoing and non-ongoing basis; including the following: Statistics on staffing classification level; Statistics on full-time employees; Statistics on part-time employees; Statistics on gender; Statistics on staff location; Statistics on employees who identify as Indigenous.	Mandatory
17AG(4)(c)	Enterprise agreement	Information on any enterprise agreements, individual flexibility arrangements, Australian workplace agreements, common law contracts and determinations under subsection 24(1) of the Public Service Act 1999.	Mandatory
17AG(4)(c)(i)	Arrangements of SES and non-SES employees	Information on the number of SES and non-SES employees covered by agreements etc identified in paragraph 17AG(4)(c).	Mandatory
17AG(4)(c)(ii)	Salary ranges by classification level	The salary ranges available for APS employees by classification level.	Mandatory
17AG(4)(c)(iii)	Performance payments	A description of non-salary benefits provided to employees.	Mandatory
17AG(4)(d)(i)	Performance payments	Information on the number of employees at each classification level who received performance pay.	If applicable, Mandatory
17AG(4)(d)(ii)	Performance payments	Information on aggregate amounts of performance pay at each classification level.	If applicable, Mandatory
17AG(4)(d)(iii)	Performance payments	Information on the average amount of performance payment, and range of such payments, at each classification level.	If applicable, Mandatory
17AG(4)(d)(iv)	Performance payments	Information on aggregate amount of performance payments.	If applicable, Mandatory
	Assets Management
17AG(5)	Asset management	An assessment of effectiveness of assets management where asset management is a significant part of the entity’s activities.	If applicable, Mandatory
	Purchasing
17AG(6)	Procurement and contract management	An assessment of entity performance against the Commonwealth Procurement Rules .	Mandatory
	Consultants
17AG(7)(a)	Consultants	A summary statement detailing the number of new contracts engaging consultants entered into during the period; the total actual expenditure on all new consultancy contracts entered into during the period (inclusive of GST); the number of ongoing consultancy contracts that were entered into during a previous reporting period; and the total actual expenditure in the reporting year on the ongoing consultancy contracts (inclusive of GST).	Mandatory
17AG(7)(b)	Consultants	A statement that “During [reporting period], [specified number] new consultancy contracts were entered into involving total actual expenditure of $[specified million]. In addition, [specified number] ongoing consultancy contracts were active during the period, involving total actual expenditure of $[specified million]”.	Mandatory
17AG(7)(c)	Consultants	A summary of the policies and procedures for selecting and engaging consultants and the main categories of purposes for which consultants were selected and engaged.	Mandatory
17AG(7)(d)	Consultants	A statement that “Annual reports contain information about actual expenditure on contracts for consultancies. Information on the value of contracts and consultancies is available on the AusTender website.”	Mandatory
	Australian National Audit Office Access Clauses
17AG(8)	Access by Auditor-General	If an entity entered into a contract with a value of more than $100 000 (inclusive of GST) and the contract did not provide the Auditor-General with access to the contractor’s premises, the report must include the name of the contractor, purpose and value of the contract, and the reason why a clause allowing access was not included in the contract.	If applicable, Mandatory
	Exempt contracts
17AG(9)	Exemptions from reporting of Commonwealth contracts	If an entity entered into a contract or there is a standing offer with a value greater than $10 000 (inclusive of GST) which has been exempted from being published in AusTender because it would disclose exempt matters under the FOI Act, the annual report must include a statement that the contract or standing offer has been exempted, and the value of the contract or standing offer, to the extent that doing so does not disclose the exempt matters.	If applicable, Mandatory
	Small business
17AG(10)(a)	Procurement initiatives to support small business	A statement that “[Name of entity] supports small business participation in the Commonwealth Government procurement market. Small and Medium Enterprises (SME) and Small Enterprise participation statistics are available on the Department of Finance’s website.”	Mandatory
17AG(10)(b)	Procurement initiatives to support small business	An outline of the ways in which the procurement practices of the entity support small and medium enterprises.	Mandatory
17AG(10)(c)	Procurement initiatives to support small business	If the entity is considered by the Department administered by the Finance Minister as material in nature—a statement that “[Name of entity] recognises the importance of ensuring that small businesses are paid on time. The results of the Survey of Australian Government Payments to Small Business are available on the Treasury’s website.”	If applicable, Mandatory
	Financial Statements
17AD(e)	-	Inclusion of the annual financial statements in accordance with subsection 43(4) of the Act.	Mandatory
	Executive Remuneration
17AD(da)	Appendix 3: Executive remuneration	Information about executive remuneration in accordance with Subdivision C of Division 3A of Part 2-3 of the Rule.	Mandatory
17AD(f)	Other Mandatory Information
17AH(1)(a)(i)	-	If the entity conducted advertising campaigns, a statement that “During [reporting period], the [name of entity] conducted the following advertising campaigns: [name of advertising campaigns undertaken]. Further information on those advertising campaigns is available at [address of entity’s website] and in the reports on Australian Government advertising prepared by the Department of Finance. Those reports are available on the Department of Finance’s website.”	If applicable, Mandatory
17AH(1)(a)(ii)	Advertising	If the entity did not conduct advertising campaigns, a statement to that effect.	If applicable, Mandatory
17AH(1)(b)	Grant programs	A statement that “Information on grants awarded by [name of entity] during [reporting period] is available at [address of entity’s website].” .	If applicable, Mandatory
17AH(1)(c)	Disability reporting	Outline of mechanisms of disability reporting, including reference to website for further information.	Mandatory
17AH(1)(d)	Freedom of information	Website reference to where the entity’s Information Publication Scheme statement pursuant to Part II of FOI Act can be found.	Mandatory
17AH(1)(e)	Consultants	Correction of material errors in previous annual report.	If applicable, mandatory
17AH(2)	Appendix 13: List of requirements	Information required by other legislation.	Mandatory

Requirements in section 57 of Part 6 of the Australian Communications and Media Authority Act 2005

ACMA Act reference	Requirement	Page reference
57(a)	A copy of each direction given to the ACMA under section 14 during the period.	Directions and instruments
57(aa)	A report on the following matters: remuneration, and other employment-related costs and expenses, in respect of APS employees whose duties relate to the performance of the eSafety Commissioner’s functions or the exercise of the eSafety Commissioner’s powers; any other costs, expenses and other obligations incurred by the Commonwealth in connection with the performance of the eSafety Commissioner’s functions or the exercise of the eSafety Commissioner’s powers.	Our people
		Appendix 3: Executive remuneration
		Appendix 12: eSafety financial reporting
57(b), (c)	A copy, or extract, of each instrument given to a carrier or to a carriage service provider under section 581 of the Telecommunications Act 1997 during the financial year.	Directions and instruments
57(d)	A report on the number and types of complaints made under Part 26 of the Telecommunications Act 1997. A report on the investigations conducted as a result of complaints made under Part 26. The results of those investigations.	Appendix 4: Telecommunications consumer protection compliance and enforcement outcomes
57(e)	A report on the operation of Part 6 of the Telecommunications Act 1997.	ACMA’s operations on industry codes and industry standards
57(f)	A report setting out statistical information relating to information or documents disclosed under Division 3 of Part 13 of the Telecommunications Act 1997.	Appendix 5: Disclosures of information

Requirement under section 205ZL of the Broadcasting Services Act 1992

BSA Act reference	Requirement	Page reference
205ZL	Reporting on information about the recipients of grants in accordance with section 46 of the Public Governance, Performance and Accountability Act 2013.	Efficient and effective delivery of the Regional and Small Publishers Innovation Fund grants
Appendix 7: Regional and Small Publishers Innovation Fund

BSA Act reference

Requirement

Page reference

205ZL

Reporting on information about the recipients of grants in accordance with section 46 of the Public Governance, Performance and Accountability Act 2013.

Efficient and effective delivery of the Regional and Small Publishers

Innovation Fund grants

Appendix 7: Regional and Small Publishers Innovation Fund

Other information required to be included by an Act or instrument

Requirement	Page reference
Reporting on work health and safety under Schedule 2, Part 4 of the Work Health and Safety Act 2011.	Health and safety
Advertising and market research reporting requirements in section 311A of the Commonwealth Electoral Act 1918.	Appendix 8: Advertising expenditure and market research
Ecologically sustainable development and environmental performance (section 516A of the Environment Protection and Biodiversity Conservation Act 1999).	Ecologically sustainable development and environmental performance
Reporting requirements under the Guidelines for the use of section 313(3) of the Telecommunications Act 1997.	Appendix 6: Lawful disruption of access to online services by government agencies

Appendix 14: Financial statements

For the period ended 30 June 2020.

• Statement by the Chair and Chief Financial Officer; • Statement of Comprehensive Income; • Statement of Financial Position; • Statement of Changes in Equity; • Statement of Cashflows; • Administered Schedule of Comprehensive Income; • Schedule of Administered Assets and Liabilities; • Administered Reconciliation Schedule; • Administered Cash Flow Statement; and • Notes to and forming part of the financial statements. Basis for opinion I conducted my audit in accordance with the Australian National Audit Office Auditing Standards, which incorporate the Australian Auditing Standards. My responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of my report. I am independent of the Entity in accordance with the relevant ethical requirements for financial statement audits conducted by the Auditor-General and his delegates. These include the relevant independence requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (the Code) to the extent that they are not in conflict with the Auditor-General Act 1997. I have also fulfilled my other responsibilities in accordance with the Code. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion. Accountable Authority’s responsibility for the financial statements As the Accountable Authority of the Entity, the Chair is responsible under the Public Governance, Performance and Accountability Act 2013 (the Act) for the preparation and fair presentation of annual financial statements that comply with Australian Accounting Standards – Reduced Disclosure Requirements and the rules made under the Act. The Chair is also responsible for such internal control as the Chair determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

• identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for my opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control; • obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Entity’s internal control; • evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Accountable Authority; • conclude on the appropriateness of the Accountable Authority’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Entity’s ability to continue as a going concern. If I conclude that a material uncertainty exists, I am required to draw attention in my auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify my opinion. My conclusions are based on the audit evidence obtained up to the date of my auditor’s report. However, future events or conditions may cause the Entity to cease to continue as a going concern; and • evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. I communicate with the Accountable Authority regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit. Australian National Audit Office Josephine Bushell Senior Director Delegate of the Auditor-General Canberra 4 September 2020

Australian Communications and Media Authority STATEMENT BY THE CHAIR AND CHIEF FINANCIAL OFFICER In our opinion, the attached financial statements for the year ended 30 June 2020 comply with subsection 42(2) of the Public Governance, Performance and Accountability Act 2013 (PGPA Act), and are based on properly maintained financial records as per subsection 41(2) of the PGPA Act. In our opinion, at the date of this statement, there are reasonable grounds to believe that the Australian Communications and Media Authority will be able to pay its debts as and when they fall due. Signed…………………………….. Nerida O’Loughlin PSM Chair 3 September 2020 Signed…………………………….. Matthew Geysen Chief Financial Officer 3 September 2020

STATEMENT OF COMPREHENSIVE INCOME

for the period ended 30 June 2020

				Original Budget
NET COST OF SERVICES	Notes	2020 $'000	2019 $'000	2020 $'000
Expenses Employee benefits	1.1A	58,749	56,940	62,211
Suppliers	1.1B	31,814	32,907	35,218
Depreciation and amortisation	3.2A	16,835	11,539	10,254
Finance costs	1.1C	716	42	-
Impairment loss on financial instruments	1.1D	-	20	-
Write-down and impairment of assets	1.1E	213	1,560	-
Total expenses		108,327	103,008	107,683
Own-Source Income Own-source revenue Revenue from contracts with customers	1.2A	1,012	32	900
Other revenue		16	792	-
Total own-source revenue		1,028	824	900
Gains Reversals of write-downs and impairment	1.2B	3	-	-
Other gains	1.2C	81	81	-
Total gains		84	81	-
Total own-source income		1,112	905	900
Net cost of services		(107,215)	(102,103)	(106,783)
Revenue from Government	5.1A	96,039	90,157	96,529
Deficit attributable to the Australian Government		(11,176)	(11,946)	(10,254)
OTHER COMPREHENSIVE INCOME Items not subject to subsequent reclassification to net cost of services Changes in asset revaluation surplus		604	(385)	-
Total other comprehensive income/(loss)		604	(385)	-
Total comprehensive loss		(10,572)	(12,331)	(10,254)

The above statement should be read in conjunction with the accompanying notes.

Budget Variances Commentary

There has been a major change in the categorisation of expenses associated with lease costs, which were budgeted in supplier expenses, but as per the new accounting standard AASB 16 Leases, are now recognised as depreciation and amortisation, and finance costs. This has also driven actual expenses to be over the Original Budget set in April 2019 by 0.6% due to the accounting treatment of the leases held by the ACMA.

Additionally, employee benefits were lower than the Original Budget due to the ACMA budgeting for 456 staff, however, actual staffing did not reach this level.

Revenue from Government has decreased slightly from the Original Budget due to an increase in the efficiency dividend applied to the 2019-20 departmental appropriation.

STATEMENT OF FINANCIAL POSITION

for the period ended 30 June 2020

				Original Budget
ASSETS	Notes	2020 $'000	2019 $'000	2020 $'000
Financial Assets Cash and cash equivalents	3.1A	1,881	3,630	2,100
Trade and other receivables	3.1B	35,099	23,887	24,539
Total financial assets		36,980	27,517	26,639
Non-Financial Assets
Land and buildings¹	3.2A	62,997	13,649	20,177
Plant and equipment	3.2A	5,600	7,980	9,244
Intangibles	3.2A	10,142	11,174	5,816
Prepayments		2,902	1,867	2,331
Total non-financial assets		81,641	34,670	37,568
Assets held for sale	3.2A	-	4,100	-
Total assets		118,621	66,287	64,207
LIABILITIES
Payables
Suppliers	3.3A	2,174	4,856	4,377
Other payables	3.3B	1,973	1,074	441
Total payables		4,147	5,930	4,818
Interest Bearing Liabilities
Leases	3.4A	53,415	-	3,077
Total interest bearing liabilities		53,415	-	3,077
Provisions
Employee provisions	6.1A	21,803	20,030	17,391
Make good provisions	3.5	2,686	2,617	2,575
Total provisions		24,489	22,647	19,966
Total liabilities		82,051	28,577	27,861
Net assets		36,570	37,710	36,346
EQUITY
Contributed equity		128,624	121,274	128,004
Reserves		2,204	1,600	1,985
Accumulated deficit		(94,258)	(85,164)	(93,643)
Total equity		36,570	37,710	36,346

¹ Right-of-use assets recognised under AASB 16 Leases are included in Land and Buildings.

The above statement should be read in conjunction with the accompanying notes.

Budget Variances Commentary

While the Original Budget net assets position is broadly in line with actual results, there are some variances in the categorisation of the balances. There has been an increase in trade and other receivables due to an increase in unspent capital appropriations, with some capital projects delayed to the next financial year due to COVID-19 restrictions. Additionally, there is an offsetting significant increase in both land and buildings, and leases, as a result of the accounting treatment of AASB 16 Leases.

Plant and equipment was lower than the Original Budget due to the delays in the purchase of capital items as a result of COVID-19 restrictions. Additionally, although at a total level non-financial assets remained relatively stable (excluding the impact of AASB 16 Leases), Intangibles were higher than the Original Budget as a result of expenditure being redirected to computer software projects from leasehold improvement works, which were delayed.

The 2019-20 employee provisions balance was higher than the Original Budget due to the fall in the 10-year government bond rate used to discount the provision, and a decrease in leave utilisation during the COVID-19 pandemic.

Suppliers payable is lower than the Original Budget due to the derecognition of lease payables following the implementation of AASB 16 Leases.

STATEMENT OF CHANGES IN EQUITY

for the period ended 30 June 2020

			Original Budget
	2020 $'000	2019 $'000	2020 $'000
CONTRIBUTED EQUITY/CAPITAL
Opening balance
Balance carried forward from previous period	121,274	113,826	120,617
Adjusted opening balance	121,274	113,826	120,617
Contributions by owners
Equity injection - Appropriations	-	535	-
Departmental capital budget	7,350	6,913	7,387
Total transactions with owners	7,350	7,448	7,387
Closing balance as at 30 June	128,624	121,274	128,004
RETAINED EARNINGS
Opening balance
Balance carried forward from previous period	(85,164)	(73,136)	(83,389)
Other movements	-	(82)	-
Adjustment on initial application of AASB 16	2,082	-	-
Adjusted opening balance	(83,082)	(73,218)	(83,389)
Comprehensive income
Deficit for the period	(11,176)	(11,946)	(10,254)
Total comprehensive income	(11,176)	(11,946)	(10,254)
Closing balance as at 30 June	(94,258)	(85,164)	(93,643)
ASSET REVALUATION RESERVE
Opening balance
Balance carried forward from previous period	1,600	1,985	1,985
Adjusted opening balance	1,600	1,985	1,985
Comprehensive income
Revaluation increment/(decrement) on non-financial assets	604	(385)	-
Total comprehensive income	604	(385)	-
Closing balance as at 30 June	2,204	1,600	1,985

			Original Budget
	2020 $'000	2019 $'000	2020 $'000
TOTAL EQUITY
Opening balance
Balance carried forward from previous period	37,710	42,675	39,213
Other movements	-	(82)	-
Adjustment on initial application of AASB 16	2,082	-	-
Adjusted opening balance	39,792	42,593	39,213
Comprehensive income
Revaluation increment/(decrement) on non-financial assets	604	(385)	-
Deficit for the period	(11,176)	(11,946)	(10,254)
Total comprehensive income	(10,572)	(12,331)	(10,254)
Contributions by owners
Equity injection - Appropriations	-	535	-
Departmental capital budget	7,350	6,913	7,387
Total transactions with owners	7,350	7,448	7,387
Closing balance as at 30 June	36,570	37,710	36,346

Accounting Policy

Equity Injections

Amounts appropriated which are designated as ‘equity injections’ for a year (less any formal reductions) and Departmental Capital Budgets (DCBs) are recognised directly in contributed equity in that year.

Budget Variances Commentary

The departmental capital budget has decreased slightly from the Original Budget due to an increase in the efficiency dividend applied to the 2019-20 departmental appropriation.

STATEMENT OF CASHFLOWS

for the period ended 30 June 2020

				Original Budget
		2020	2019	2020
	Notes	$'000	$'000	$'000
OPERATING ACTIVITIES
Cash received
Sale of goods and rendering of services		1,843	29	900
Appropriations		93,352	90,885	96,529
GST received		3,578	3,962	191
Other		16	1,505	-
Total cash received		98,789	96,381	97,620
Cash used
Employees		56,637	54,538	62,211
Suppliers		36,514	39,021	35,409
Section 74 receipts transferred to the Official Public Account		4,434	1,535	-
Interest payments on lease liabilities		647	-	-
Total cash used		98,232	95,094	97,620
Net cash from operating activities		557	1,287	-
INVESTING ACTIVITIES Proceeds from the sale of land¹		4,100	-	-
Total cash received		4,100	-	-
Cash used
Purchase of property, plant and equipment		601	4,772	7,387
Purchase of intangibles		2,181	4,766	-
Total cash used		2,782	9,538	7,387
Net cash from/(used by) investing activities		1,318	(9,538)	(7,387)
FINANCING ACTIVITIES
Cash received
Equity injections		-	535	-
Departmental capital budget		2,630	8,246	7,387
Total cash received		2,630	8,781	7,387
Cash used
Principal payments of lease liabilities		6,254	-	-
Total cash used		6,254	-	-
Net cash from/(used by) financing activities		(3,624)	8,781	7,387
Net increase/(decrease) in cash held		(1,749)	530	-
Cash and cash equivalents at the beginning of the
reporting period		3,630	3,100	2,100
Cash and cash equivalents at the end of the reporting period	3.1A	1,881	3,630	2,100

¹ Proceeds from the sale of land relates to the funds received from the sale of the Capalaba land asset.

The above statement should be read in conjunction with the accompanying notes.

Budget Variances Commentary

Net cash from operating activities – The small increase to the Original Budget reflects a reduction in cash used for lease payments, which was budgeted as an operating activity, but under the new accounting standard AASB 16 Leases is recognised as a financing activity. This is offset by an increase in section 74 receipts transferred to the OPA due to the return of cash proceeds from the sale of the Capalaba site to the Redland City Council.

Net cash from investing activities – The increase from the Original Budget is due to delays in capital projects, predominantly caused by COVID-19 restrictions, and the unbudgeted cash proceeds of the sale of the Capalaba site.

Net cash from financing activities – The decrease from the Original Budget is due to delays in capital projects and the recognition of lease payments as a financing activity under the new leasing standard, rather than an operating activity.

ADMINISTERED SCHEDULE OF COMPREHENSIVE INCOME

for the period ended 30 June 2020

				Original Budget
		2020	2019	2020
	Notes	$'000	$'000	$'000
NET COST OF SERVICES
EXPENSES
Suppliers	2.1A	5,521	6,833	5,799
Grants	2.1B	5,132	2,266	18,250
Impairment loss on financial instruments	2.1C	-	4,689	50
Total expenses		10,653	13,788	24,099
INCOME
Revenue
Taxation revenue
Other taxes	2.2A	508,451	649,628	1,214,098
Total taxation revenue		508,451	649,628	1,214,098
Non-taxation revenue
Revenue from contracts with customers	2.2B	8,397	5,876	5,033
Fees and fines	2.2C	33,141	31,819	40,018
Other revenue	2.2D	2,497	17,607	4,130
Total non-taxation revenue		44,035	55,302	49,181
Total revenue		552,486	704,930	1,263,279
Gains
Sale of assets	2.2E	-	115	855,353
Resources received free of charge	2.2F	852,853	-	-
Reversal of write-downs and impairment		9,906	-	-
Total gains		862,759	115	855,353
Total income		1,415,245	705,045	2,118,632
Net contribution by services		1,404,592	691,257	2,094,533

The above schedule should be read in conjunction with the accompanying notes.

Budget Variances Commentary

Expenses – The Original Budget for Grants expected the full expenditure of the funding for the Regional and Small Publishers Innovation Fund. Actual expenditure was less than the Original Budget due to delays in grant agreements being finalised. Impairment loss on financial instruments were nil in 2020, as the expected credit loss model under AASB 9 Financial Instruments resulted in a Reversal of write-downs and impairment recorded under Gains. This was due to the reduction in the administered receivables balance and increased likelihood of collectability of these debts.

Revenues – The Original Budget for Other taxes is significantly higher than the actual result due to the delay of Regional Broadband Scheme (RBS) legislation, which included $682m in the Original Budget. The RBS legislation has now been passed with revenue expected to be recognised in 2020-21. Additionally, the Original Budget included the sale of licences for the 3.6GHz spectrum as sale of assets, however, under the new accounting standards, the proceeds are recognised as resources received free of charge.

ADMINISTERED SCHEDULE OF ASSETS AND LIABILITIES

as at 30 June 2020

				Original Budget
		2020	2019	2020
	Notes	$'000	$'000	$'000
ASSETS
Financial Assets
Cash and cash equivalents	4.1A	436	451	868
Taxation receivables	4.1B	25,931	103,044	711,201
Trade and other receivables	4.1C	31,137	30,199	31,399
Other financial assets	4.1D	-	429,845	-
Total financial assets		57,504	563,539	743,468
Total assets administered on behalf of Government		57,504	563,539	743,468
LIABILITIES
Payables
Other payables	4.2A	131,160	108,904	130,728
Total payables		131,160	108,904	130,728
Total liabilities administered on behalf of Government		131,160	108,904	130,728
Net assets/(liabilities)		(73,656)	454,635	612,740

The above schedule should be read in conjunction with the accompanying notes.

Budget Variances Commentary

The main driver for reduced Taxation receivables against Original Budget is due to the delayed commencement of the RBS. The balance for Other financial assets in 2018-19 represents the remaining instalment relating to the sale of 700MHz spectrum in 2017-18. This instalment was paid in 2019-20.

ADMINISTERED RECONCILIATION SCHEDULE

for the period ended 30 June 2019

	2020 $'000	2019 $'000
Opening assets less liabilities as at 1 July	454,635	809,204
Income	1,415,245	705,045
Expenses	(10,653)	(13,788)
Transfers (to)/from Australian Government
Other movements	-	117
Appropriation transfers from the OPA	18,711	16,764
Transfers to the OPA	(1,689,731)	(808,820)
Transfers to the OPA (collected on behalf on another entity)¹	(261,863)	(253,887)
Closing assets less liabilities as at 30 June	(73,656)	454,635

¹ Relates to the collection of the Telecommunications Industry Levy collected on behalf of the Department of Infrastructure, Transport, Regional Development and Communications Public Interest Telecommunications Services Special Account.

Accounting Policy

Administered Cash Transfers to and from the OPA

Revenue collected by the ACMA for use by the Australian Government rather than the ACMA is Administered revenue. Collections are transferred to the OPA maintained by the Department of Finance. Conversely, cash is drawn from the OPA to make payments under Parliamentary appropriation on behalf of the Australian Government. These transfers to and from the OPA are adjustments to the Administered cash held by the ACMA on behalf of the Australian Government and reported as such in the Administered Cash Flow Statement and in the Administered Reconciliation Schedule.

ADMINISTERED CASH FLOW STATEMENT

for the period ended 30 June 2020

		2020	2019
	Notes	$'000	$'000
OPERATING ACTIVITIES
Cash received
Sale of goods and rendering of services		7,575	5,082
Taxes		617,059	580,315
Rental income¹		852,853	-
Fees		31,262	31,751
Fines		1,999	560
Other		5	4,154
Total cash received		1,510,753	621,862
Cash used
Grants		5,002	2,266
Suppliers		6,111	6,510
Total cash used		11,113	8,776
Net cash from operating activities		1,499,640	613,086
INVESTING ACTIVITIES
Cash received
Revenue from sales of intangibles		432,329	432,440
Total cash received		432,329	432,440
Net cash from investing activities		432,329	432,440
Net increase in cash held		1,931,969	1,045,526
Cash and cash equivalents at the beginning of the reporting period		451	868
Cash from the Official Public Account
Appropriations		18,711	16,764
Total cash from the Official Public Account		18,711	16,764
Cash to the Official Public Account
Administered revenue		(1,688,832)	(808,820)
Transfer to other entities (collected on behalf of another entity)		(261,863)	(253,887)
Total cash to the Official Public Account		(1,950,695)	(1,062,707)
Cash and cash equivalents at the end of the reporting period	4.1A	436	451

¹ Rental income relates to the proceeds from the 3.6GHz spectrum licences.

The above schedule should be read in conjunction with the accompanying notes.

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Overview

1. Financial Performance

1.1 Expenses

1.2 Own-Source Revenue and Gains

2. Income and Expenses Administered on Behalf of Government

2.1 Administered – Expenses

2.2 Administered – Income

3. Financial Position

3.1 Financial Assets

3.2 Non-Financial Assets

3.3 Payables

3.4 Leases

3.5 Other Provisions

4. Assets and Liabilities Administered on Behalf of Government

4.1 Administered – Financial Assets

4.2 Administered – Payables

5. Funding

5.1 Appropriations

5.2 Special Accounts

5.3 Regulatory Charging Summary

5.4 Net Cash Appropriation Arrangement

6. People and Relationships

6.1 Employee Provisions

6.2 Key Management Personnel Remuneration

6.3 Related Party Disclosures

7. Managing Uncertainties

7.1 Contingent Assets and Liabilities

7.2 Financial Instruments

7.3 Administered Financial Instruments

7.4 Fair Value Measurement

8. Other Items

8.1 Aggregate Assets and Liabilities

Overview

Objectives of the Entity

The Australian Communications and Media Authority (ACMA) is an Australian Government controlled entity. It is a not-for-profit entity. The ACMA is Australia's regulator for telecommunications, broadcasting, radiocommunications, and certain online content. The ACMA’s purpose is to maximise the economic and social benefits of communications and media for Australia.

Basis of Preparation

The financial statements are general purpose financial statements and are required by section 42 of the Public Governance, Performance and Accountability Act 2013.

The financial statements have been prepared in accordance with the:

Public Governance, Performance and Accountability (Financial Reporting) Rule 2015 (FRR); and
Australian Accounting Standards and Interpretations – Reduced Disclosure Requirements issued by the Australian Accounting Standards Board (AASB) that apply for the reporting period.

The financial statements have been prepared on an accrual basis and in accordance with the historical cost convention, except where certain assets and liabilities are recorded at fair value. Except where stated, no allowance is made for the effect of changing prices on the results or the financial position. The financial statements are presented in Australian dollars and are rounded to the nearest thousand dollars unless otherwise specified.

New Australian Accounting Standards

All new standards that were issued prior to the sign-off date and are applicable to the current reporting period were implemented and details of the effect are outlined below.

Standard/ Interpretation

Nature of change in accounting policy, transitional provisions, and adjustment to financial statements

SB 15, AASB 2016-8 and AASB 1058 became effective 1 July 2019.

ASB 15 Revenue from Contracts with Customers / AASB 2016-8 Amendments to Australian Accounting Standards – Australian Implementation Guidance for Not-for- Profit Entities and AASB 1058 Income of Not-For-Profit Entities

AASB 15 establishes a comprehensive framework for determining whether, how much and when revenue is recognised. It replaces existing revenue recognition guidance, including AASB 118 Revenue, AASB 111 Construction Contracts and Interpretation 13 Customer Loyalty Programmes. The core principle of AASB 15 is that an entity recognises revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.

ASB 1058 is relevant in circumstances where AASB 15 does not apply. AASB 1058 replaces most of the not-for-profit (NFP) provisions of AASB 1004 Contributions and applies to transactions where the consideration to acquire an asset is significantly less than fair value principally to enable the entity to further its objectives, and where volunteer services are received.

The details of the changes in accounting policies, transitional provisions and adjustments are disclosed below and in the relevant notes to the financial statements.

Standard/ Interpretation

Nature of change in accounting policy, transitional provisions, and adjustment to financial statements

AASB 16 Leases

AASB 16 became effective on 1 July 2019. This new standard has replaced AASB 117 Leases, Interpretation 4 Determining whether an Arrangement contains a Lease, Interpretation 115 Operating Leases—Incentives and Interpretation 127 Evaluating the Substance of Transactions Involving the Legal Form of a Lease.

AASB 16 provides a single lessee accounting model, requiring the recognition of assets and liabilities for all leases, together with options to exclude leases where the lease term is 12 months or less, or where the underlying asset is of low value. AASB 16 substantially carries forward the lessor accounting in AASB 117, with the distinction between operating leases and finance leases being retained. The details of the changes in accounting policies, transitional provisions and adjustments are disclosed below and in the relevant notes to the financial statements.

No accounting standard has been adopted earlier than the application date as stated in the standard.

Other new standards, revised standards, interpretations and amending standards that were issued prior to the sign-off date, and are applicable to the current reporting period, did not have a material financial impact, and are not expected to have a future material financial impact on the ACMA.

Application of AASB 15 Revenue from Contracts with Customers / AASB 1058 Income of Not‐For‐Profit Entities The ACMA adopted AASB 15 and AASB 1058 using the modified retrospective approach, under which the cumulative effect of initial application is recognised in retained earnings at 1 July 2019. Accordingly, the comparative information presented for 2019 is not restated, that is, it is presented as previously reported under the various applicable AASBs and related interpretations.

Under the new income recognition model the ACMA shall first determine whether an enforceable agreement exists and whether the promises to transfer goods or services to the customer are ‘sufficiently specific’. If an enforceable agreement exists and the promises are ‘sufficiently specific’ (to a transaction or part of a transaction), the ACMA applies the general AASB 15 principles to determine the appropriate revenue recognition. If these criteria are not met, the ACMA considers whether AASB 1058 applies.

In relation to AASB 15, the ACMA elected to apply the new standard to all new and uncompleted contracts from the date of initial application. The ACMA is required to aggregate the effect of all of the contract modifications that occur before the date of initial application.

In terms of AASB 1058, the ACMA is required to recognise volunteer services at fair value if those services would have been purchased if not provided voluntarily, and the fair value of those services can be measured reliably

Upon transition, the application of AASB 15 Revenue from Contracts with Customers / AASB 1058 Income of Not‐For‐Profit Entities had no material impact on the Statement of Financial Position or the Administered Schedule of Assets and Liabilities.

Set out below are the amounts by which each financial statement line item is affected as at and for the year ended 30 June 2020 as a result of the adoption of AASB 15 and AASB 1058. The first column shows amounts prepared under AASB 15 and AASB 1058 and the second column shows what the amounts would have been had AASB 15 and AASB 1058 not been adopted:

Transitional disclosure	AASB 15 / AASB 1058 $’000	Previous AAS $’000	Increase / (decrease) $’000
Administered Revenue
Revenue from contracts with customers	1,189	2,084	(895)
Total Revenue	1,189	2,084	(895)

Net contribution by services	1,189	2,084	(895)
Administered Liabilities
Other payables	895	-	895
Total liabilities	895	-	895

The table above reflects the Do Not Call Register subscription revenue recognition changing from point in time to over time. The table does not include the treatment of transactions related to the 3.6GHz spectrum licences, which have been accounted for under AASB 16 Leases and AASB 138 Intangible Assets.

Application of AASB 16 Leases

The ACMA adopted AASB 16 using the modified retrospective approach, under which the cumulative effect of initial application is recognised in retained earnings at 1 July 2019. Accordingly, the comparative information presented for 2019 is not restated, that is, it is presented as previously reported under AASB 117 and related interpretations.

The ACMA elected to apply the practical expedient to not reassess whether a contract is or contains a lease at the date of initial application. Contracts entered into before the transition date that were not identified as leases under AASB 117 were not reassessed. The definition of a lease under AASB 16 was applied only to contracts entered into or changed on or after 1 July 2019.

AASB 16 provides for certain optional practical expedients, including those related to the initial adoption of the standard. The ACMA applied the following practical expedients when applying AASB 16 to leases previously classified as operating leases under AASB 117:

Apply a single discount rate to a portfolio of leases with reasonably similar characteristics;
Exclude initial direct costs from the measurement of right-of-use assets at the date of initial application for leases where the right-of-use asset was determined as if AASB 16 had been applied since the commencement date;
Reliance on previous assessments on whether leases are onerous as opposed to preparing an impairment review under AASB 136 Impairment of assets as at the date of initial application; and
Applied the exemption not to recognise right-of-use assets and liabilities for leases with less than 12 months of lease term remaining as of the date of initial application.

As a lessee, the ACMA previously classified leases as operating or finance leases based on its assessment of whether the lease transferred substantially all of the risks and rewards of ownership. Under AASB 16, the ACMA recognises right-of-use assets and lease liabilities for most leases.

On adoption of AASB 16, the ACMA recognised right-of-use assets and lease liabilities in relation to leases of office space, which had previously been classified as operating leases.

The lease liabilities were measured at the present value of the remaining lease payments, discounted using the ACMA’s incremental borrowing rate as at 1 July 2019. The ACMA’s incremental borrowing rate is the rate at which

a similar borrowing could be obtained from an independent creditor under comparable terms and conditions. The weighted-average rate applied was 1.22%.

The right-of-use assets were measured as follows:

Office space: measured at an amount equal to the lease liability, adjusted by the amount of any prepaid or accrued lease payments.
All other leases: the carrying value that would have resulted from AASB 16 being applied from the commencement date of the leases, subject to the practical expedients noted above.
Impact on transition

On transition to AASB 16, the ACMA recognised additional right-of-use assets and additional lease liabilities, recognising the difference in retained earnings. The impact on transition is summarised below:

Impact on Transition of AASB 16

Departmental	1 July 2019
	$’000
Right-of-use assets - land and buildings	59,600
Lease liabilities	(59,600)
Retained earnings	2,082

The following table reconciles the Departmental minimum lease commitments disclosed in the ACMA's 30 June 2019 annual financial statements to the amount of lease liabilities recognised on 1 July 2019:

	1 July 2019
	$'000
Minimum operating lease commitment at 30 June 2019	25,218
Plus: effect of extension options reasonable certain to be exercised	38,711
Undiscounted lease payments	63,929
Less: effect of discounting using the incremental borrowing rate as at the date of initial application	(4,329)
Lease liabilities recognised at 1 July 2019	59,600

Reporting of Administered activities
Administered revenues, expenses, assets, liabilities and cash flows are disclosed in the Administered schedules and related notes.

Except where stated below, Administered items are accounted for on the same basis and using the same policies as for departmental items, including the application of Australian Accounting Standards.

Taxation

The ACMA is exempt from all forms of taxation except Fringe Benefits Tax (FBT) and the Goods and Services Tax (GST).

Significant Accounting Judgements and Estimates

In the process of applying the accounting policies listed in this note, the ACMA has made a judgement for the provision for long service leave which has been estimated using present value techniques, which take into account attrition rates and pay increases through promotion and inflation.

No other accounting assumptions or estimates have been identified that have a significant risk of causing a material adjustment to carrying amounts of assets and liabilities within the next reporting period.

Events after the reporting period

Departmental

There are no known events occurring after the reporting period that could impact on the financial statements.

Administered

There are no known events occurring after the reporting period that could impact on the financial statements.

1. Financial Performance

This section analyses the financial performance of the ACMA for the year ended 30 June 2020.

1.1 Expenses

Note 1.1A: Employee Benefits	2020 $'000	2019 $'000
Wages and salaries	42,025	39,012
Superannuation
Defined contribution plans	4,333	4,147
Defined benefit plans	3,974	4,021
Leave and other entitlements	8,348	9,233
Separation and redundancies	69	527
Total employee benefits	58,749	56,940

Accounting Policy

For accounting policies on employee related expenses please refer to Section 6, People and Relationships

Note 1.1B: Suppliers
Goods and services supplied or rendered
Contractors	9,617	7,110
IT and communications services	7,494	6,936
Outsourced services	5,640	5,222
Consultants	3,041	2,416
Travel costs	1,166	2,101
Occupancy costs	1,432	1,613
Other	1,635	1,191
Stationery and publications	588	551
Legal costs	722	246
Total goods and services supplied or rendered	31,335	27,386
Goods supplied	889	571
Services rendered	30,446	26,815
Total goods and services supplied or rendered	31,335	27,386
Other suppliers
Operating lease rentals¹	-	5,126
Low value leases	283	-
Workers compensation expenses	196	395
Total other suppliers	479	5,521
Total suppliers	31,814	32,907

¹ The ACMA has applied AASB 16 using the modified retrospective approach and therefore the comparative information has not been restated and continues to be reported under AASB 117.

The ACMA has no short-term lease commitments as at 30 June 2020.

The above lease disclosures should be read in conjunction with the accompanying notes 1.1C, 3.2A and 3.4A.

Accounting Policy

Short-term leases and leases of low-value assets

The ACMA has elected not to recognise right-of-use assets and lease liabilities for short-term leases of assets that have a lease term of 12 months or less and leases of low-value assets (less than $10,000). The ACMA recognises the lease payments associated with these leases as an expense on a straight-line basis over the lease term.

	2020	2019
	$'000	$'000
Note 1.1C: Finance Costs
Unwinding of discount	69	42
Interest on lease liabilities¹	647	-
Total finance costs	716	42

¹ The ACMA has applied AASB 16 using the modified retrospective approach and therefore the comparative information has not been restated and continues to be reported under AASB 117.

The above lease disclosures should be read in conjunction with the accompanying notes 1.1B, 3.2A and 3.4A.

Note 1.1D: Impairment Loss on Financial Instruments
Impairment of financial instruments	-	20
Total impairment loss on financial instruments	-	20
Note 1.1E: Write-Down and Impairment of Other Assets
Write-down of property, plant and equipment	213	3
Write-down of land	-	1,385
Impairment of intangible assets	-	172
Total write-down and impairment of assets	213	1,560

1.2 Own-Source Revenue and Gains

Own-Source Revenue	2020 $'000	2019 $'000
Note 1.2A: Revenue from Contract with Customers
Sale of goods	101	32
Rendering of services	911	-
Total revenue from contract with customers	1,012	32
Disaggregation of revenue from contracts with customers¹
Major product / service line:
Service delivery	911	-
Sales of low value plant and equipment	101	-
	1,012	-
Type of customer:
Australian Government entities (related parties)	724	-
Non-government entities	288	-
	1,012	-
Timing of transfer of goods and services:
Over time	911	-
Point in time	101	-
	1,012	-

¹ The ACMA has applied AASB 15 using the modified retrospective approach and therefore the comparative information has not been restated and continues to be reported under AASB 118.

Accounting Policy

Revenue from the sale of goods is recognised by the ACMA when all of the following conditions have been satisfied:

the entity has transferred to the buyer the significant risks and rewards of ownership of the goods;
the entity retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the economic benefits associated with the transaction will flow to the entity; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Revenue from a transaction involving the rendering of services shall be recognised by reference to the stage of completion of the transaction at the end of the reporting period. The outcome of a transaction can be estimated reliably when all of the following conditions are satisfied:

the amount of revenue can be measured reliably;
it is probable that the economic benefits associated with the transaction will flow to the entity;
the stage of completion of the transaction at the end of the reporting period can be measured reliably; and
the costs incurred for the transaction and the costs to complete the transaction can be measured reliably.

When the outcome of a transaction involving the rendering of services cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable. Revenue is recognised only when it is probable that the economic benefits associated with the transaction will flow to the entity.

For the ACMA, in general, sale of goods is recognised at a point in time when control is transferred to the buyer, and rendering of services is recognised over time as performance obligations are met. Each contract is assessed at inception against AASB 15, or AASB 1058 where AASB 15 does not apply, and determines whether the ACMA will recognise the revenue over time or at a point in time.

The following is a description of principal activities from which the ACMA generates its departmental revenue: sale of minor assets (generally point in time), service arrangements with other Australian Government entities (generally over time), and cost recovery income received for work completed for satellite co-ordination charges collected by the ACMA, Emergency Position Indicating Radio Beacon triangulation (EPIRB) and police investigation assistance (generally over time).

Receivables for goods and services, which have 30 day terms, are recognised at the nominal amounts due less any impairment allowance account. Collectability of debts is reviewed at end of the reporting period. Allowances are made when collectability of the debt is no longer probable.

Note 1.2B: Reversals of Write-Downs and Impairment	2020 $'000	2019 $'000
Receivables	3	-
Total reversals of previous asset write-downs and impairments	3	-
Note 1.2C: Other Gains
Resources received free of charge	81	81
Total other gains	81	81

Accounting Policy

Resources Received Free of Charge

Resources received free of charge are recognised as revenue when, and only when, a fair value can be reliably determined and the services would have been purchased if they had not been donated. Use of those resources are recognised as an expense. Resources received free of charge are recorded as either revenue or gains depending on their nature. The value of income represents the services provided free of charge by the Australian National Audit Office.

2. Income and Expenses Administered on Behalf of Government

This section analyses the activities that the ACMA does not control but administers on behalf of the Government.

Unless otherwise noted, the accounting policies adopted are consistent with those applied for departmental reporting.

2.1 Administered – Expenses

	2020	2019
	$'000	$'000
Note 2.1A: Suppliers
Goods and services supplied or rendered
Contractors	5,202	5,228
IT and communications services	166	1,014
Consultants	39	396
Travel	35	100
Other	79	95
Total goods and services supplied or rendered	5,521	6,833
Goods supplied	-	14
Services rendered	5,521	6,819
Total goods and services supplied or rendered	5,521	6,833

Note 2.1B: Grants
Private sector
Commercial entities	5,132	2,266
Total grants	5,132	2,266
Accounting Policy Grants The ACMA administers a number of grants on behalf of the Australian Government. Grant liabilities are recognised to the extent that (i) the services required to be performed by the grantee have been performed; or (ii) the grant eligibility criteria have been satisfied, but payments due have not been made. Where grant monies are paid in advance of performance or eligibility, a prepayment is recognised.

Note 2.1C: Impairment Loss on Financial Instruments
Asset write-downs and impairments	-	4,689
Total impairment loss on financial instruments	-	4,689

2.2 Administered – Income

	2020	2019
	$'000	$'000
Taxation Revenue
Note 2.2A: Other Taxes1
Broadcasting licence charges	37,026	104,595
Radio communications taxes	149,562	231,146
Telecommunication numbering charges	60,000	60,000
Industry contributions	261,863	253,887
Total other taxes	508,451	649,628

1 The reduction in other taxes is primarily driven by the timing of payments for multi-year licences, changes to
demand, and COVID-19 industry relief measures.
Non-Taxation Revenue
Note 2.2B: Revenue from Contracts with Customers
Sale of goods	8,397	5,876
Total revenue from contract with customers	8,397	5,876
Note 2.2C: Fees and Fines
Licence fees	31,142	31,259
Fines and penalties	1,999	560
Total fees and fines	33,141	31,819
Note 2.2D: Other Revenue
Other	5	4,118
Unwinding of discount	2,492	13,489
Total other revenue	2,497	17,607

	2020	2019
	$'000	$'000
Gains
Note 2.2E: Gains from Sale of Assets
Proceeds from sale	-	115
Total gains from sale of assets	-	115

Note 2.2F: Resources Received Free of Charge1
Spectrum licences	852,853	-
Total resources received free of charge	852,853	-
¹ The sale of 3.6GHz spectrum access licences is initially recognised as a resource received free of charge, with subsequent treatment as a finance lease under AASB 16 Leases. The funds were received in full on the commencement of the licences in 2019-20.

Accounting Policy Revenue All Administered revenues relate to the ordinary activities performed by the ACMA on behalf of the Australian Government. Contributions from industries in the form of taxes, industry levies and fines are recognised as revenue when the economic activity giving rise to the Australian Government's right to the contribution has taken place and the liability to contribution can be reliably measured. The following is a description of principal activities from which the ACMA generates its Administered revenue: Collection of taxes associated with broadcasting licences, radio communications, telecommunication charges and contributions from the industry; Revenue from contracts with customers; and Collection of fees and fines levied within the communications and media industry. Revenue from broadcasting licence charges is recognised over time, however all other taxes, fees and fines are recognised as at a point in time. Other revenue from contracts with customers are recognised in accordance with the relevant accounting standard after assessing the characteristics of the contract. Gains At the commencement of a Spectrum Access Charge licence, a resource received free of charge is recognised under AASB 138 Intangible Assets, paragraph Aus24.1. This reflects the fair value of the spectrum to the ACMA where the consideration for the asset is significantly less than fair value. At the commencement of the licence, the ACMA recognises a finance lease under AASB 16 Leases, with derecognition of the related spectrum asset and a receivable raised for the ‘net investment in the lease’. The 3.6Ghz licences that commenced in 2019-20 were paid in full prior to the commencement of the licence, which, as per AASB 16 Leases, results in a nil ‘net investment in the lease’.

3. Financial Position

This section analyses the ACMA’s assets used to conduct is operations and the operating liabilities incurred as a result. Employee related information is disclosed in the People and Relationships section.

3.1 Financial Assets

Note 3.1A: Cash and Cash Equivalents	2020 $'000	2019 $'000
Cash on hand or on deposit	1,811	3,575
Cash held for external parties	70	55
Total cash and cash equivalents	1,881	3,630
Note 3.1B: Trade and Other Receivables
Appropriations receivables
For existing outputs	34,325	22,483
Total appropriations receivable	34,325	22,483
Other receivables
GST receivable from the Australian Taxation Office	477	708
Other	314	716
Total other receivables	791	1,424
Total trade and other receivables (gross)	35,116	23,907
Less impairment loss allowance	17	20
Total trade and other receivables (net)	35,099	23,887

Accounting Policy

Financial assets

Trade receivables, loans and other receivables that are held for the purpose of collecting the contractual cash flows where the cash flows are solely payments of principal and interest, that are not provided at below-market interest rates, are subsequently measured at amortised cost using the effective interest method adjusted for any loss allowance.

3.2 Non-Financial Assets

Note 3.2A: Reconciliation of the Opening and Closing Balances of Property, Plant and Equipment and Intangibles for 2020

	Land	Buildings	Leasehold improvements	Plant and equipment	Computer software internally developed	Computer software purchased	Total
	$'000	$'000	$'000	$'000	$'000	$'000	$'000
As at 1 July 2019
Gross book value	-	-	-	-	57,508	13,105	70,613
Fair value	5,480	194	15,528	10,500	-	-	31,702
Work in progress (WIP)	-	-	-	1,607	3,020	-	4,627
Accumulated depreciation and amortisation	-	(34)	(3,419)	(4,127)	(51,266)	(11,193)	(70,039)
Total as at 1 July 2019	5,480	160	12,109	7,980	9,262	1,912	36,903
Recognition of right of use asset on initial application of
AASB 16	-	-	59,600	-	-	-	59,600
Adjusted total as at 1 July 2019	5,480	160	71,709	7,980	9,262	1,912	96,503
Additions
By purchase	-	-	518	519	3,481	140	4,658
Movement in WIP	-	-	(415)	(21)	(1,613)	171	(1,878)
Right-of-use assets	- - -			-	-	-	-
Revaluations and impairments recognised in other
comprehensive income	-	-	-	604	-	-	604
Revaluations and impairments recognised in other
comprehensive income for right-of-use assets	-	-	-	-	-	-	-
Assets held for sale¹	(4,100)	-	-	-	-	-	(4,100)
Depreciation and amortisation	-	(16)	(3,411)	(1,769)	(3,137)	(1,056)	(9,389)
Depreciation on right-of-use assets	-	-	(7,446)	-	-	-	(7,446)
Reclassification	-	-	518	(1,500)	982	-	-
Impairments recognised in net cost of services	-	-	-	(213)	-	-	(213)
Other movements	-	-	-	-	-	-	-
Total as at 30 June 2020	1,380	144	61,473	5,600	8,975	1,167	78,739

	Land	Buildings	Leasehold improvements	Plant and equipment	Computer software internally developed	Computer software purchased	Total
	$'000	$'000	$'000	$'000	$'000	$'000	$'000
Total as at 30 June 2020 represented by:
Gross book value	-	-	-	-	37,800	7,103	44,903
Fair value	1,380	194	75,646	5,613	-	-	82,833
Work in progress	-	-	103	86	2,389	171	2,749
Accumulated depreciation and amortisation	-	(50)	(14,276)	(99)	(31,214)	(6,107)	(51,746)
Total as at 30 June 2020	1,380	144	61,473	5,600	8,975	1,167	78,739

Carrying amount of right-of-use assets	-	-	52,154	-	-	-	52,154

¹ Land at Capalaba was sold in 2019-20 for $4.100m.

Revaluation of non-financial assets

All revaluations were conducted in accordance with the revaluation policy stated at Note 7.4.

Contractual commitments for the acquisition of property, plant and equipment and intangible assets

The ACMA has no commitments for the acquisition of non-financial assets.

Accounting Policy

Acquisition of Assets

Assets are recorded at cost on acquisition except as stated below. The cost of acquisition includes the fair value of assets transferred in exchange and liabilities undertaken. Financial assets are initially measured at their fair value plus transaction costs where appropriate. Assets acquired at no cost, or for nominal consideration, are initially recognised as assets and income at their fair value at the date of acquisition, unless acquired as a consequence of restructuring of administrative arrangements. In the latter case, assets are initially recognised as contributions by owners at the amounts at which they were recognised in the transferor's accounts immediately prior to the restructuring.

Asset Recognition Threshold

Purchases of property, plant and equipment are recognised initially at cost in the Statement of Financial Position, except for purchases costing less than $5,000, which are expensed in the year of acquisition (other than where they form part of a group of similar items which are significant in total). The asset thresholds have not been changed during the current financial year. The initial cost of an asset includes an estimate of the cost of dismantling and removing the item and restoring the site on which it is located. This is particularly relevant to ‘make good’ provisions in property leases taken up by the ACMA where there exists an obligation to restore the property to its original condition. These costs are included in the value of the ACMA’s leasehold improvements with a corresponding provision for the ‘make good’ recognised.

Asset Class	Threshold
Buildings	$50,000
Leasehold improvements	$10,000
Plant and equipment	$5,000
Motor vehicles	$10,000
Software – purchased	$10,000
Software – internally developed	$10,000

Leased Right of Use (ROU) Assets

Leased ROU assets are capitalised at the commencement date of the lease and comprise of the initial lease liability amount, initial direct costs incurred when entering into the lease less any lease incentives received. These assets are accounted for by Commonwealth lessees as separate asset classes to corresponding assets owned outright, but included in the same column as where the corresponding underlying assets would be presented if they were owned.

On initial adoption of AASB 16 the ACMA has adjusted the ROU assets at the date of initial application by the amount of any provision for onerous leases recognised immediately before the date of initial application. Following initial application, an impairment review is undertaken for any right of use lease asset that shows indicators of impairment and an impairment loss is recognised against any right of use lease asset that is impaired. Leased ROU assets continue to be measured at cost after initial recognition in Commonwealth agency, GGS and Whole of Government financial statements.

Revaluations

Fair values for each class of asset are determined:

Asset class	Revaluation cycle	Fair Value Measured at
Land	Tri-annually	Market approach
Building	Tri-annually	Depreciated replacement cost
Leasehold improvements	Tri-annually	Depreciated replacement cost
Plant and equipment	Tri-annually	Market approach
Motor vehicles	Tri-annually	Market approach

Following initial recognition at cost, property plant and equipment is carried at fair value (or an amount not materially different from fair value) less subsequent accumulated depreciation and accumulated impairment losses. Valuations are conducted with sufficient frequency to ensure that the carrying amounts of assets do not differ materially from the assets’ fair values as at the reporting date.

Revaluation adjustments are made on a class basis. Any revaluation increment is credited to equity under the heading of asset revaluation reserve, except to the extent that it reverses a previous revaluation decrement of the same asset class that was previously recognised in the surplus/(deficit). Revaluation decrements for a class of assets are recognised directly in the surplus/(deficit) except to the extent that they reverse a previous revaluation increment for that class. Any accumulated depreciation as at the revaluation date is eliminated against the gross carrying amount of the asset and the asset restated to the revalued amount.

Depreciation

Depreciable property, plant and equipment assets are written-off to their estimated residual values over their estimated useful lives to the ACMA using, in all cases, the straight-line method of depreciation. Depreciation rates (useful lives), residual values and methods are reviewed at each reporting date and necessary adjustments are recognised in the current, or current and future reporting periods, as appropriate. Asset under construction are not subject to depreciation.

Asset Class	Useful Life
Buildings	5 to 40 years
Leasehold improvements	Lease term
Plant and equipment	3 to 15 years

The depreciation rates for ROU assets are based on the commencement date to the earlier of the end of the useful life of the ROU asset or the end of the lease term.

Impairment

All assets were assessed for impairment at 30 June 2020. Where indications of impairment exist, the asset’s recoverable amount is estimated and an impairment adjustment made if the asset’s recoverable amount is less than its carrying amount. The recoverable amount of an asset is the higher of its fair value less costs of disposal and its value in use. Value in use is the present value of the future cash flows expected to be derived from the asset. Where the future economic benefit of an asset is not primarily dependent on the asset’s ability to generate future cash flows, and the asset would be replaced if the ACMA were deprived of the asset, its value in use is taken to be its depreciated replacement cost.

Intangibles

The ACMA’s intangibles comprise of internally developed and purchased software for internal use. These assets are carried at cost less accumulated amortisation and accumulated impairment losses. Software is amortised on a straight-line basis over its anticipated useful life. The useful lives of the ACMA’s software are 3 to 10 years and have not changed from the prior year.

Derecognition

An item of property, plant and equipment is derecognised upon disposal or when no further future economic benefits are expected from its use or disposal.

3.3 Payables

Note 3.3A: Suppliers	2020 $'000	2019 $'000
Trade creditors and accruals	2,174	2,774
Operating lease rentals	-	2,082
Total supplier payables	2,174	4,856
The majority of suppliers engaged had 20 day payment terms.
Note 3.3B: Other Payables
Unearned revenue	1,074	634
Salaries and wages	756	365
Superannuation	132	64
Other	11	11
Total other payables	1,973	1,074

3.4 Leases

Note 3.4A: Leases	2020 $'000	2019 $'000
Lease Liabilities
Leasehold improvements	53,415	-
Total leases	53,415	-

¹ The ACMA has applied AASB 16 using the modified retrospective approach and therefore the comparative information has not been restated and continues to be reported under AASB 117.

Total cash outflow for leases for the year ended 30 June 2020 was $6.254m.

Accounting Policy

Refer Overview section for accounting policy on leases.

3.5 Other Provisions

Reconciliation of the Other Provisions Account:	Provision for restoration $’000	Total $’000
As at 1 July 2019	2,617	2,617
Amounts reversed	-	-
Amounts used	-	-
Other movements	69	69
Total as at 30 June 2020	2,686	2,686

The ACMA currently has four major agreements for the leasing of premises which have provisions requiring the ACMA to restore the premises to their original condition at the conclusion of the lease (2019: four).

4. Assets and Liabilities Administered on Behalf of Government

This section analyses assets used to conduct operations and the operating liabilities incurred as a result the ACMA does not control but administers on behalf of the Government. Unless otherwise noted, the accounting policies adopted are consistent with those applied for departmental reporting.

4.1 Administered – Financial Assets

	2020	2019
	$'000	$'000
Note 4.1A: Cash and Cash Equivalents
Cash in special accounts	75	86
Cash on hand or on deposit	361	365
Total cash and cash equivalents	436	451
Note 4.1B: Taxation Receivables
Other taxes¹	27,144	113,125
Total taxation receivables (gross)	27,144	113,125
Less: impairment loss allowance
Other taxes	1,213	10,081
Total receivables (net)	25,931	103,044
Note 4.1C: Trade and Other Receivables
Other receivables
Annual Carrier Licence Charge	31,064	31,184
Statutory receivables	111	92
Total other receivables	31,175	31,276
Total trade and other receivables (gross)	31,175	31,276
Less: impairment loss allowance
Other receivables	38	1,077
Total trade and other receivables (net)	31,137	30,199
Note 4.1D: Other Financial Assets
Prepayments	-	8
Accrued revenue²		429,837
Total other financial assets		429,845

¹ The reduction from the prior year is mainly attributable to the timing of the payment of Broadcasting Licence Fees and the Annual Numbering Charge.

² Accrued revenue in 2018-19 represents the remaining instalment relating to the sale of 700MHz spectrum in 2017-18. This instalment was paid in 2019-20.

4.2 Administered – Payables

	2020	2019
	$'000	$'000
Note 4.2A: Other Payables
Unearned revenue¹	129,816	108,008
Other	1,344	896
Total other payables	131,160	108,904

¹ Unearned revenue represents radiocommunication licences paid in advance where the benefit has not yet been realised by the holder.

5. Funding

This section identifies the ACMA’s funding structure.

5.1 Appropriations

Note 5.1A: Departmental annual and unspent appropriations ('Recoverable GST exclusive')
	2020	2019
	$'000	$'000
Ordinary annual services
Annual Appropriation
Operating	96,039	90,157
Capital budget	7,350	6,913
Section 74 receipts	4,434	1,535
Total available appropriation	107,823	98,605
Appropriation applied (current and prior years)	(97,729)	(98,601)
Variance	10,094	4
Opening unspent appropriation balance	26,112	26,392
Repeal of Appropriation Act (No. 1) 2015-16	-	(284)
Closing unspent appropriation balance	36,206	26,112
Balance comprises appropriations as follows¹:
Appropriation Act (No. 1) 2017-18 Capital Budget (DCB)	-	933
Appropriation Act (No. 1) 2018-19 Capital Budget (DCB)	5,116	6,813
Appropriation Act (No. 1) 2018-19	-	13,981
Appropriation Act (No. 3) 2018-19	-	755
Appropriation Act (No. 1) 2018-19 cash held by the department	-	3,630
Supply Act (No. 1) 2019-20 Capital Budget (DCB)	2,673	-
Appropriation Act (No. 1) 2019-20 Capital Budget (DCB)	4,577	-
Appropriation Act (No. 1) 2019-20	21,959	-
Appropriation Act (No. 1) 2019-20 cash held by the department	1,881	-
Total unspent appropriation - ordinary annual services	36,206	26,112
Other services
Annual Appropriation
Equity injections	-	535
Total available appropriation	-	535
Appropriation applied (current and prior years)	-	(535)
Variance Opening unspent appropriation balance	- -	- -
Closing unspent appropriation balance	-	-

Total unspent appropriation	36,206	26,112

¹ Departmental Capital Budgets are appropriated through Supply and Appropriation Acts (No.1, 3). They form part of ordinary annual services and are not separately identified in the Supply and Appropriation Acts.

Accounting Policy

Revenue from Government - Departmental

Amounts appropriated for departmental appropriations for the year (adjusted for any formal additions and reductions) are recognised as Revenue from Government when the ACMA gains control of the appropriation, except for certain amounts that relate to activities that are reciprocal in nature, in which case revenue is recognised only when it has been earned. Appropriations receivable are recognised at their nominal amounts.

Funding received or receivable from non-corporate Commonwealth entities (appropriated to the non-corporate Commonwealth entity as a corporate Commonwealth entity payment item for payment to this entity) is recognised as Revenue from Government by the non-corporate Commonwealth entity unless the funding is in the nature of an equity injection or a loan.

Note 5.1B: Administered annual and unspent appropriations ('Recoverable GST exclusive')
	2020	2019
	$'000	$'000
Ordinary annual services
Annual appropriation
Operating	23,749	22,921
Total available appropriation	23,749	22,921
Appropriation applied (current and prior years)	(10,024)	(8,983)
Variance	13,725	13,938
Opening unspent appropriation balance	16,338	2,400
Repeal of Appropriation Act (No. 3) 2016-17	(1,011)	-
Closing unspent appropriation balance	29,052	16,338
Balance comprises appropriations as follows¹:
Appropriation Act (No. 3) 2016-17	-	1,011
Appropriation Act (No. 3) 2017-18	921	921
Appropriation Act (No. 1) 2018-19	13,938	14,406
Supply Act (No. 1) 2019-20	2,009	-
Appropriation Act (No. 1) 2019-20	12,184	-
Total unspent appropriation - ordinary annual services	29,052	16,338
Total unspent appropriation	29,052	16,338

¹ The total unspent appropriation is shown inclusive of Section 51 permanent quarantines against Appropriation Act (No. 3) 2017-18 of $0.921m and Appropriation Act (No. 1) 2018-19 of $0.204m.

		Appropriation applied
		2020	2019
Authority	Type	$'000	$'000
Public Governance, Performance and Accountability Act 2013 s77 Repayments²	Refund	7,623	6,977
Special Appropriation - Telecommunications Act 1997 - ss136C(4)		165	-
Total special appropriations applied		7,788	6,977

² Relates to the refund of radiocommunications licences surrendered before the expiration date.

5.2 Special Accounts

Note 5.2A: Special Accounts ('Recoverable GST exclusive')

Note 5.2A: Special Accounts ('Recoverable GST exclusive')
	The Online Safety Special Account¹		Services for Other Entities and Trusts Moneys²
	2020 $'000	2019 $'000	2020 $'000	2019 $'000
Balance brought forward from previous period	2,126	2,009	86	40
Increases	18,348	15,841	255	77
Total increases	20,474	17,850	341	117
Available for payments	20,474	17,850	341	117
Decreases
Departmental	(18,678)	(15,724)	-	-
Total Departmental	(18,678)	(15,724)	-	-
Administered	-	-	(266)	(31)
Total Administered	-	-	(266)	(31)
Total decreases	(18,678)	(15,724)	(266)	(31)
Total balance carried to the next period	1,796	2,126	75	86
Balance represented by:
Cash held in entity bank accounts	346	51	-	-
Cash held in the Official Public Account	1,450	2,075	75	86
Total balance carried to the next period	1,796	2,126	75	86

¹ Appropriation: Public Governance, Performance and Accountability Act 2013; section 80. Establishing Instrument: Enhancing Online Safety Act 2015; section 72. Purpose: To enhance online safety for Australians.

² Appropriation: Financial Management and Accountability Act 1997; section 20. Establishing Instrument: FMA Act (Establishment of SOETM Special Account – ACMA) Determination 2012/03. Purpose: This account was created to disburse amounts held on trust or otherwise for the benefit of a person other than the Commonwealth.

5.3 Regulatory Charging Summary

	2020 $'000	2019 $'000
Amounts applied Departmental
Annual appropriations	21,011	19,467
Own source revenue	231	432
Administered
Special appropriations (including special accounts)	165	-
Total amounts applied	21,407	19,899
Expenses Departmental	21,323	19,986
Administered	-	-
Total expenses	21,323	19,986
External revenue
Departmental	231	432
Administered	38,309	38,351
Total external revenue	38,540	38,783

Cost Recovered Activities:

The Administered revenue includes the Annual Carrier Licence Charge (2020 - $31.064m; 2019 - $31.184m) which is based on the cost of services provided by the ACMA, ACCC and the Department of Infrastructure, Transport, Regional Development and Communications. The ACMA is responsible for invoicing and collecting the charges from the telecommunications carriers on behalf of other participating Government organisations.

The Administered revenue also included the money received on behalf of the Postal Industry Ombudsman (PIO) for investigation of complaints (2020 - $0.083m; 2019 - $1.080m). The ACMA is only responsible for invoicing and collecting the charges on behalf of the PIO.

5.4 Net Cash Appropriation Arrangement

	2020 $'000	2019 $'000
Total comprehensive income less depreciation/amortisation expenses previously funded through revenue appropriations	9	(792)
Plus: depreciation/amortisation expenses previously funded through revenue appropriation	(9,389)	(11,539)
Plus: depreciation on right-of-use assets	(7,446)	-
Less: principal repayments - leased assets	6,254	-
Total comprehensive income - as per the Statement of Comprehensive Income	(10,572)	(12,331)

From 2010-11, the Government introduced net cash appropriation arrangements where revenue appropriations for depreciation/amortisation expenses ceased. Entities now receive a separate capital budget provided through equity appropriations. Capital budgets are to be appropriated in the period when cash payment for capital expenditure is required.

The inclusion of depreciation/amortisation expenses related to ROU leased assets and the lease liability principle repayment amount reflects the cash impact on implementation of AASB 16 Leases, it does not directly reflect a change in appropriation arrangements.

6. People and Relationships

This section describes a range of employment and post-employment benefits provided to our people and our relationships with other key people.

6.1 Employee Provisions

Note 6.1A: Employee Provisions

2020

$'000

2019

$'000

Leave

21,803

20,030

Total employee provisions

21,803

20,030

Accounting Policy

Liabilities for ‘short-term employee benefits’ and termination benefits due within twelve months of the end of reporting period are measured at their nominal amounts.

The nominal amount is calculated with regard to the rates expected to be paid on settlement of the liability.

Other long-term employee benefits are measured as the net total of the present value of the defined benefit obligation at the end of the reporting period minus the fair value at the end of the reporting period of plan assets (if any) out of which the obligations are to be settled directly.

Leave

The liability for employee benefits includes a provision for annual leave and long service leave. No provision has been made for sick leave as all sick leave is non-vesting and the average sick leave taken in future years by employees of the ACMA is estimated to be less than the annual entitlement for sick leave.

The leave liabilities are calculated on the basis of employees’ remuneration at the estimated salary rates that will be applied at the time the leave is taken, including the ACMA’s employer superannuation contribution rates to the extent that the leave is likely to be taken during service rather than paid out on termination.

The liability for long service leave has been determined by reference to the short hand method prescribed under section 24 of the Financial Reporting Rule. The estimate of the present value of the liability takes into account attrition rates and pay increases through promotion and inflation.

Separation and Redundancy

Provision is made for separation and redundancy benefit payments. The ACMA recognises a provision for termination when it has developed a detailed formal plan for the terminations and has informed those employees affected that it will carry out the termination.

Superannuation

ACMA staff are members of the Commonwealth Superannuation Scheme (CSS), the Public Sector Superannuation Scheme (PSS) or the PSS accumulation plan (PSSap) or other superannuation funds held outside the Australian Government.

The CSS and PSS are defined benefit schemes for the Australian Government. The PSSap is a defined contribution scheme.

The liability for defined benefits is recognised in the financial statements of the Australian Government and is settled by the Australian Government in due course. This liability is reported in the Department of Finance’s Administered schedules and notes.

The ACMA makes employer contributions to the employees' superannuation scheme at rates determined by an actuary to be sufficient to meet the current cost to the Australian Government. The ACMA accounts for the contributions as if they were contributions to defined contribution plans. The liability for superannuation recognised as at 30 June represents outstanding contributions.

6.2 Key Management Personnel Remuneration

Key Management Personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly. The ACMA has determined the Key Management Personnel to be the Chair, Deputy Chair, General Managers and the eSafety Commissioner.

Key Management Personnel remuneration is reported in the table below:

	2020 $	2019 $
Short-term employee benefits	2,470,486	2,360,890
Post-employment benefits	340,202	331,312
Other long-term employee benefits	58,898	63,566
Termination benefits	-	-
Total key management personnel remuneration expenses¹	2,869,586	2,755,768

The total number of Key Management Personnel that are included in the above table is 9 (2019: 10).

Other than annual leave accrued and long-service leave, all expenses reflect cash payments made during the year.

¹ The above Key Management Personnel remuneration excludes the remuneration and other benefits of the Portfolio Minister. The Portfolio Minister's remuneration and other benefits are set by the Remuneration Tribunal and are not paid by the ACMA.

6.3 Related Party Disclosures

Related party relationships:

The ACMA is an Australian Government controlled entity. Related parties to the ACMA are Key Management Personnel including the Portfolio Minister, the Chair, the Deputy Chair, General Managers, the eSafety Commissioner and other Australian Government entities.

Transactions with related parties:

Given the breadth of Australian Government activities, related parties may transact with the Government sector in the same capacity as ordinary citizens. Such transactions include the payment or refund of taxes, receipt of a Medicare rebate or higher education loans. These transactions have not been separately disclosed in this note.

Significant transactions with related parties can include:

the payments of grants or loans;
purchases of goods and services;
asset purchases, sales transfers or leases;
debts forgiven; and
guarantees.

Giving consideration to relationships with related entities, and transactions entered into during the reporting period by the ACMA, it has been determined that there are no related party transactions to be separately disclosed (2018: nil).

7. Managing Uncertainties

This section analyses how the ACMA manages financial risks within its operating environment.

7.1 Contingent Assets and Liabilities

Departmental

The ACMA is not aware of any material Departmental quantifiable, unquantifiable or significant remote contingent assets or liabilities (2019: nil).

Administered

The ACMA is not aware of any material Administered quantifiable, unquantifiable or significant remote contingent assets or liabilities (2019: nil).

Accounting Policy

Contingent Liabilities and Contingent Assets

Contingent liabilities and contingent assets are not recognised in the Statement of Financial Position but are reported in the relevant notes. They may arise from uncertainty as to the existence of a liability or asset or represent an asset or liability in respect of which the amount cannot be reliably measured. Contingent assets are disclosed when settlement is probable but not virtually certain and contingent liabilities are disclosed when settlement is greater than remote.

7.2 Financial Instruments

Note 7.2A: Categories of Financial Instruments	2020 $'000	2019 $'000
Financial assets at amortised cost
Cash and cash equivalents	1,881	3,630
Trade and other receivables	314	716
Total financial assets at amortised cost	2,195	4,346
Total financial assets	2,195	4,346
Financial liabilities at amortised cost
Trade creditors and accruals	2,174	2,774
Total financial liabilities at amortised cost	2,174	2,774
Carrying amount of financial liabilities	2,174	2,774

The carrying value of financial assets and liabilities is a reasonable approximation of fair value.

7.3 Administered Financial Instruments

	2020	2019
	$'000	$'000
Note 7.3A: Categories of Financial Instruments
Financial assets at amortised cost
Cash and cash equivalents	436	451
Fees, charges and other revenue receivables	31,026	30,107
Accrued revenue	-	429,845
Total financial assets at amortised cost	31,462	460,403
Carrying amount of financial assets	31,462	460,403

Accounting Policy

Financial Assets

With the implementation of AASB 9 Financial Instruments for the first time in 2019, the ACMA classifies its financial assets in the following categories:

financial assets at fair value through profit or loss;
financial assets at fair value through other comprehensive income; and
financial assets measured at amortised cost.

The classification depends on both the ACMA's business model for managing the financial assets and contractual cash flow characteristics at the time of initial recognition. Financial assets are recognised when the ACMA becomes a party to the contract and, as a consequence, has a legal right to receive or a legal obligation to pay cash and derecognised when the contractual rights to the cash flows from the financial asset expire or are transferred upon trade date. Comparatives have not been restated on initial application.

Financial Assets at Amortised Cost

Financial assets included in this category need to meet two criteria:

the financial asset is held in order to collect the contractual cash flows; and
the cash flows are solely payments of principal and interest (SPPI) on the principal outstanding amount.

Amortised cost is determined using the effective interest method.

Effective Interest Method

Income is recognised on an effective interest rate basis for Financial Assets that are recognised at amortised cost.

Impairment of Financial Assets

Financial Assets are assessed for impairment at the end of each reporting period based on Expected Credit Losses, using the general approach which measures the loss allowance based on an amount equal to lifetime expected credit losses where risk has significantly increased, or an amount equal to 12‐month expected credit losses if risk has not increased.

The simplified approach for trade, contract and lease receivables is used. This approach always measures the loss allowance as the amount equal to the lifetime expected credit losses.

A write-off constitutes a derecognition event where the write-off directly reduces the gross carrying amount of the financial asset.

Financial Liabilities

Financial liabilities are classified as either financial liabilities ‘at fair value through profit or loss’ or other financial liabilities. Financial liabilities are recognised and derecognised upon ‘trade date’.

Financial Liabilities at Fair Value Through Profit or Loss

Financial liabilities at fair value through profit or loss are initially measured at fair value. Subsequent fair value adjustments are recognised in profit or loss. The net gain or loss recognised in profit or loss incorporates any interest paid on the financial liability.

Financial Liabilities at Amortised Cost

Financial liabilities, including borrowings, are initially measured at fair value, net of transaction costs. These liabilities are subsequently measured at amortised cost using the Effective Interest Method, with interest expense recognised on an effective interest basis.

Supplier and Other Payables are recognised at amortised cost. Liabilities are recognised to the extent that the goods or services have been received (and irrespective of having been invoiced).

7.4 Fair Value Measurement

All Non-Financial Assets with the exception of Intangibles are measured at fair value. Other than Assets Held for Sale, these are all recurring fair value measurements.

Key judgements and estimates

Valuation of Land and Buildings

Independent valuations are obtained tri-annually as at 30 June for Land and Buildings. These valuations include calculations of estimated market cash flows which are adjusted to take into account physical, economic and external factors relevant to the asset under consideration. All valuations conducted are in compliance with AASB 13.

Valuation of Leasehold Improvements, Plant and Equipment

The estimated cost to replace the asset has been calculated and then adjusted to take into account obsolescence and physical deterioration (accumulated depreciation). The obsolescence has been determined based on professional judgement regarding physical, economic and external factors relevant to the asset under consideration.

8. Other Items

8.1 Aggregate Assets and Liabilities

8. Other Items
Note 8.1A: Aggregate Assets and Liabilities	2020 $'000	2019 $'000
Assets expected to be recovered in:
No more than 12 months	39,534	33,484
More than 12 months	348	-
Total assets	39,882	33,484
Liabilities expected to be settled in:
No more than 12 months	13,731	9,595
More than 12 months	68,320	18,982
Total liabilities	82,051	28,577
Note 8.1B: Administered - Aggregate Assets and Liabilities
Assets expected to be recovered in:
No more than 12 months	57,504	563,539
More than 12 months	-	-
Total assets	57,504	563,539
Liabilities expected to be settled in:
No more than 12 months	124,006	100,381
More than 12 months	7,154	8,523
Total liabilities	131,160	108,904

Visit

https://www.transparency.gov.au/annual-reports/australian-communications-and-media-authority/reporting-year/2019-20-19