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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.


There were no acquisitions in the year.


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 2020

30 June 2019

For the year ended




Loans from the Commonwealth of Australia

Balance at 1 July



Loans advance during the year



Interest charged on government borrowings



Interest paid on government borrowings



Balance at 30 June




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 (Directors) (including External Securities Declaration of Interests) Policy, and as required by the Corporations Act 2001 (Cth), 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.

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 retired as Chairman effective 1 July 2019. There were no matters considered by the Board during the period which required Mr Milne to recuse himself from a Board meeting. In the prior period, 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. During the year, Mr Malone was not present when matters involving Speedcast were discussed by the Board. In the prior period, 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 (excluding GST) occurred with the above related parties:

NBN Co Group

30 June 2020

30 June 2019

For the year ended



Payments for various goods and services (excluding GST) from entities with common key management personnel



During the period, Mr Milne’s and Mr Flannigan’s terms of office came to an end effective 10 November 2019. NBN Co engaged the services of Mr Milne and Mr Flannigan at a number of Board and Committee meetings held in December 2019 through their respective entities, CicoMilne Pty Ltd and WGK Investments Pty Ltd. This engagement came to an end in respect of both Mr Milne and Mr Flannigan effective 17 December 2019. Both Mr Milne and Mr Flannigan were paid $12,601 each (including GST) for these services.