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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

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 NotForProfit 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 NotForProfit 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:

  1. Office space: measured at an amount equal to the lease liability, adjusted by the amount of any prepaid or accrued lease payments.
  2. 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.
  3. 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:

  1. the entity has transferred to the buyer the significant risks and rewards of ownership of the goods;
  2. the entity retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
  3. the amount of revenue can be measured reliably;
  4. it is probable that the economic benefits associated with the transaction will flow to the entity; and
  5. 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:

  1. the amount of revenue can be measured reliably;
  2. it is probable that the economic benefits associated with the transaction will flow to the entity;
  3. the stage of completion of the transaction at the end of the reporting period can be measured reliably; and
  4. 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:

  1. Collection of taxes associated with broadcasting licences, radio communications, telecommunication charges and contributions from the industry;
  2. Revenue from contracts with customers; and
  3. 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:

  1. financial assets at fair value through profit or loss;
  2. financial assets at fair value through other comprehensive income; and
  3. 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:

  1. the financial asset is held in order to collect the contractual cash flows; and
  2. 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