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H6 Related party transactions

Parent entity
The parent entity within the Group is NBN Co Limited. The ultimate parent entity and ultimate controlling entity is the Commonwealth of Australia.

Acquisitions
There were no acquisitions in the year.

Subsidiaries
The interest in the subsidiaries is set out in Note H2.

Key management personnel
Disclosures relating to key management personnel are presented in Note D2.

Transactions with related parties
The following transactions occurred with related parties:

NBN Co Group

30 June 2019

30 June 2018

For the year ended

Note

$

$

Equity injections

Equity injected by the Commonwealth of Australia into NBN Co Limited

E1

-

2,034,554,908

NBN Co Group

30 June 2019

30 June 2018

For the year ended

Note

$

$

Loans from the Commonwealth of Australia

Balance at 1 July

5,531,165,018

-

Loans advanced during the period

7,522,000,000

5,531,000,000

Interest charged on government borrowings

351,670,241

69,894,736

Interest paid on government borrowings

(351,500,666)

(69,729,718)

Balance at 30 June

E2

13,053,334,593

5,531,165,018

Other directors’ interests
Certain Directors of NBN Co are also Directors and/or shareholders of other companies that supply NBN Co with goods and services or acquire services from NBN Co. The contractual agreements governing these transactions are approved in line with NBN Co’s delegated limits of authority. The Directors of NBN Co do not participate in the decisions to enter into these transactions, unless Board approval is required. Where Board approval is required and where a Director of NBN Co has a material personal interest, then in accordance with NBN Co’s Conflict of Interest Director’s Policy, and as required by the Corporations Act 2001, the Director concerned will not vote upon the decision nor take part in the consideration of the relevant transaction. Further details of these transactions are provided below.

During the period, Mr Milne was Chairman and a Non-Executive Director of NetComm Wireless Ltd which is a supplier of telecommunications equipment to NBN Co. Mr Milne recused himself from NBN Co Board meetings when the supply of NetComm Wireless Ltd or competitive telecommunications equipment was discussed.

During the period, Mr Malone was a Non-Executive Director of Speedcast International Limited. NBN Co has contracts with Speedcast Australia Pty Ltd and Speedcast Managed Services Pty Ltd, both subsidiaries of Speedcast International Limited. Mr Malone recused himself from the Board meeting held on 11 December 2018 when a matter involving Speedcast was discussed.

The following aggregate payments for goods and services occurred with the above related parties:

NBN Co Group

30 June 2019

30 June 2018

For the year ended

$

$

Payments for goods and services (excluding GST)

Payments for various goods and services from entities with common key management personnel

148,171,875

107,810,253