Broadcasting licence fee requirements handbookFor commercial radio and television broadcasting licenseesSEPTEMBER 2015

CanberraRed Building Benjamin OfficesChan Street Belconnen ACT

PO Box 78Belconnen ACT 2616

T +61 2 6219 5555F +61 2 6219 5353

MelbourneLevel 32 Melbourne Central Tower360 Elizabeth Street Melbourne VIC

PO Box 13112Law Courts Melbourne VIC 8010

T +61 3 9963 6800F +61 3 9963 6899

SydneyLevel 5 The Bay Centre65 Pirrama Road Pyrmont NSW

PO Box Q500Queen Victoria Building NSW 1230

T +61 2 9334 7700 or 1800 226 667F +61 2 9334 7799

Copyright notice

http://creativecommons.org/licenses/by/3.0/au/

With the exception of coats of arms, logos, emblems, images, other third-party material or devices protected by a trademark, this content is licensed under the Creative Commons Australia Attribution 3.0 Licence.

We request attribution as: © Commonwealth of Australia (Australian Communications and Media Authority) 2015.

All other rights are reserved.

The Australian Communications and Media Authority has undertaken reasonable enquiries to identify material owned by third parties and secure permission for its reproduction. Permission may need to be obtained from third parties to re-use their material.

Written enquiries may be sent to:

Manager, Editorial and DesignPO Box 13112Law CourtsMelbourne VIC 8010Tel: 03 9963 6968Email: candinfo@acma.gov.au

Important noticeContact us 1

Terms and abbreviations

1 Introduction1.1 Role of the ACMA 41.2 Enquiries 4

2 Licensee obligations2.1 Who needs to lodge a return? 52.2 What is required? 52.3 Has a broadcasting licence been transferred or surrendered? 62.4 Failure to submit a return or pay the correct licence fee 7

3 Submitting a return online3.1 Accessing the online return system 83.2 Logging into the BLF system 8AUSkey 8Logging in for the first time 9Logging in 9Terms and conditions of use 9

3.3 System information 9Emails 9System time-out 9More than one user working on the same return at the same time 9Supported software 10

3.4 Overview of online submission process 10BLF return online submission process—Option 1 reporting 11BLF return online submission process—Option 2 reporting 123.5 Completing a return 13Homepage 13Returns page 13Return details page 13Licence information schedule 14Profit & loss schedule 15Balance sheet schedule 15Import data function for Profit & Loss and Balance Sheet schedules (optional)

15Report function (optional) 15

acma |

Contents (Continued)

Program Inventory Movements (PIM) schedule 15Notes to PIM schedule 16Documents tab 16Generated audit package 17Licence Fee Calculation (B10) schedule 17Option 2 reporting method 20Independent audit report 20Statutory declaration 21Uploading documents 21Unlock history tab 22Versions tab 22Transition year schedules 22

3.6 Recording payments 22

4 Submitting a return via email or mail4.1 Naming convention for forms, documents and emails 23Email 23

4.2 Email submission of BLF return—Option 1 reporting 254.3 Email submission of BLF return—Option 2 reporting 264.4 Activity statement 274.5 Independent audit report 29Option 2 reporting 29Audit exemption 29

4.6 Licence fee calculation (B10) form 30Definition of gross earnings 32

4.7 Statutory declaration 344.8 Remittance schedule (B79) 344.9 Consolidated statement (B19) (Option 2 reporting only) 344.10 Audited financial statements (Option 2 reporting only) 354.11 Return checklist form 35

5 Rebates5.1 Regional Equalisation Plan (REP) rebate 36BLF system 36

acma |

Contents (Continued)

Email return option 36

6 Paying licence fees6.1 Making the payment 376.2 Overview of online broadcasting licence fee banking procedure 386.3 Recording a payment online 39Homepage 39Creating a new payment record 39Accessing an in-progress payment record 40

6.4 Paying more than one licence fee 416.5 Uploading bank remittances 416.6 What if I make an incorrect BLF payment? 41

Appendix A—Definitions of program typesAustralian adult drama 42Australian children’s drama 42Australian children’s other 42Australian news and current affairs 42Australian documentaries 42Australian sport 42Australian light entertainment—variety 42Australian light entertainment—other 43Australian other programming 43Overseas drama 43Overseas other 43

Appendix B—Formula for calculation of radio licence fee

Appendix C—Formula for calculation of television licence fee

acma |

Important noticeThese instructions are not intended as legal advice nor do they indicate how the Australian Communications and Media Authority (the ACMA) may treat any individual claim made by a licensee.

They are only provided to assist commercial radio and television broadcasting licensees in meeting their broadcasting licence fee obligations.1

Licensees should refer to the relevant sections of the following legislation, available at www.comlaw.gov.au:> Broadcasting Services Act 1992> Radio Licence Fees Act 1964> Television Licence Fees Act 1964> Television Licence Fees Regulations 1990.

If you have any enquires relating to issues not covered in this handbook, please contact the ACMA Revenue Assurance Team on phone (02) 6219 5355 or email financialreturns@acma.gov.au as soon as the issue is identified.

Release of licensee information by the ACMA.

The ACMA may be required to release information provided to it by licensees in relation to their broadcasting licence fee obligations (the information) under the Freedom of Information Act 1982 or for the purpose of parliamentary processes or where otherwise required by law (e.g. court subpoena).

Under the Australian Communications and Media Authority Act 2005, the ACMA may disclose the information to the Minister, the Department of Communications, authorised officials, Royal Commissions and certain Commonwealth authorities.

The ACMA will seek to consult licensees before information is provided to another party, but the ACMA cannot guarantee that confidential information will not be released through these or other legal means.

Contact usRevenue Assurance TeamPhone: (02) 6219 5355Email: financialreturns@acma.gov.au

1 While reasonable efforts have been made to ensure the accuracy, correctness and reliability of the material contained in this document, the ACMA does not accept responsibility for the accuracy or completeness of the contents or any inferences, and expressly disclaims liability for any loss, however caused and whether due to negligence or otherwise, arising directly or indirectly from the use of, inferences drawn, deductions made, or acts done in reliance on, this document or the information contained in it, by any person.

acma | 1

Terms and abbreviationsUnless otherwise specified, terms used in this handbook that are defined in the Broadcasting Services Act 1992, Radio Licence Fees Act 1964 or the Television Licence Fees Act 1964 have the same meaning as in the relevant Act.

For ease of reference:> terms relating to the BLF system (such as names of tabs, buttons and system

messages) are in red text> form names relating to the submission of a return via email or mail are in green

text.

Accounting period

This is the period for which transactions are captured for the purposes of calculating the broadcasting licence fee. This may end on a day other than 30 June with ACMA permission.

B17 activity statement

ACMA B17 form—Commercial Radio Activity Statement.This form is used by commercial radio broadcasting licensees to provide information on their balance sheet and profit & loss account, in relation to the services provided under each licence.

B18 activity statement

ACMA B18 form—Commercial Television Activity Statement.This form is used by commercial television broadcasting licensees to provide information on their balance sheet and profit & loss account, including program inventory movements (PIM), in relation to the services provided under each licence.

B10 Licence Fee Calculation

ACMA B10 Radio/Television Licence Fee Calculation form.Forms used to calculate the licence fee payable, for a commercial radio and commercial television broadcasting licence. The B10 form is the Licence Fee Calculation (B10) schedule in the BLF system.

B19 Consolidated Statement

ACMA B19 Radio form—Radio Consolidated Statement and the ACMA B19 TV form—Television Consolidated Statement. Prepared by those licensees that submit a consolidated statement of their audited balance sheets and profit & loss accounts as part of their return (that is, those licensees reporting under option 2).

B79 Broadcasting Licence Fees Remittance Schedule

ACMA B79 Radio form—Radio Broadcasting Licence Fees Remittance Schedule and the ACMA B79 TV form—TV Broadcasting Licence Fees Remittance Schedule.Remittance schedule used by licensees to record details of licence fee payments made. Replaced by the Payment record in the BLF system.

BBO Broadcaster banking officer, who is a person authorised by a licensee to access payment management functions within the BLF system. For more information please refer to section 3.1 of this handbook.

BLF Broadcasting licence fee, being a fee imposed under section 5 of

2 | acma

the Radio Licence Fees Act 1964 or section 5 of the Television Licence Fees Act 1964.

BLF return Has the same meaning as broadcasting licence fee return.

BLF system The ACMA’s secure online system that commercial broadcasting licensees can use to submit broadcasting licence fee returns and record payments electronically for the current return period.

Broadcasting licence fee return

The forms and documents required to be submitted to the ACMA by licensees under sections 205B and 205C of the Broadcasting Services Act 1992, including the B17/B18 activity statement and B10 licence fee calculation form.

ePort The online web interface through which account-holders access and undertake e-business with the ACMA, including using the BLF system.

LCO Licence contact officer, who is a person authorised by a licensee to access that licensee’s licence details, and to submit returns and upload documents for those licences they are authorised to access. For more information please refer to section 3.1 of this handbook.

Licence Commercial radio or commercial television broadcasting licence as defined in section 6 of the Broadcasting Services Act 1992.

Licensee Holder of a commercial radio or commercial television broadcasting licence.

Payment record The information, including payment number, generated by the BLF system when payment details are recorded.

Return Has the same meaning as broadcasting licence fee return.

Return period Refers to the period of 12 months ending on 30 June each year. Where the ACMA has given written permission to a licensee to adopt an accounting period, which is a period of 12 months ending on a day other than 30 June, transactions for that period are deemed to be transactions for the return period.

TAB Totalisator Agency Board.

205B documents

> profit & loss account and balance sheet in the form approved by the ACMA (known as the B17/B18 activity statement)

> an independent audit report on the profit & loss account and balance sheet (unless the licensee is included in a class of licensees specified by the ACMA in the Broadcasting Services (Licensee Audit Exemption) Instrument 2014 under subsection 205B(4A) of the Broadcasting Services Act 1992)

> a statutory declaration stating the gross earnings generated from the service(s) provided under the licence during that year.

acma | 3

1 IntroductionThe purpose of this handbook is to provide guidance to commercial radio and commercial television broadcasting licensees about meeting their legislative obligations in respect to the broadcasting licence fee (BLF). It explains the process for submitting a BLF return using the ACMA’s online BLF system or via email, and the steps to make and record a BLF payment. A licensee may also choose to provide a BLF return to the ACMA by other means, such as post.

1.1 Role of the ACMAThe ACMA is responsible for the regulation of broadcasting, radiocommunications, telecommunications and the internet.

As part of its administrative responsibilities, the ACMA collects the BLF from commercial radio and commercial television broadcasting licensees.

1.2 EnquiriesFor any enquiries regarding BLF requirements, please contact the Revenue Assurance Team on (02) 6219 5355 or email financialreturns@acma.gov.au.

More information is available on the Broadcasting licence fees page on the ACMA website.

4 | acma

2 Licensee obligations2.1 Who needs to lodge a return?Under the Broadcasting Services Act 1992, a person or entity providing a commercial broadcasting service as defined by section 14 of that Act on radio or television must hold a commercial radio or television broadcasting licence.

Under the Radio Licence Fees Act 1964 and the Television Licence Fees Act 1964, a licence fee is payable annually by the holder of a commercial radio broadcasting licence or a commercial television broadcasting licence respectively.

A person who holds a current commercial radio or commercial television broadcasting licence on the date that the licence fee in respect of that licence is due and payable (namely, in the case of a current licence, each 31 December that occurs during the period of the licence) is liable to pay that fee. The licence fee must be accompanied by a completed BLF return.

A person who held a commercial radio or television broadcasting licence that expired, was surrendered or was cancelled during the return period or (in certain cases) the preceding return period, is liable to pay a licence fee in respect of that licence (see paragraph 6(2)(b) of the Radio Licence Fees Act 1964 and paragraph 6(2)(b) of the Television Licence Fees Act 1964).

2.2 What is required?The Broadcasting Services Act 1992 requires that within six months after 30 June each year (by 31 December), licensees must give to the ACMA a broadcasting licence fee return. This includes:> a balance-sheet and a profit and loss account, in a form approved by the ACMA

(B17/B18 activity statement)> an independent audit report on the balance sheet and a profit & loss account

(unless the licensee is included in a class of licensees specified by the ACMA in the Broadcasting Services (Licensee Audit Exemption) Instrument 2014 under subsection 205B(4A) of the Broadcasting Services Act 1992)

> a statutory declaration stating the gross earnings in relation to the licence during the year

> a B10 form> a payment report in the BLF system or a B79 form> a B19 form, if consolidated financial statements are provided.

The ACMA will accept financial statements prepared on a consolidated basis in compliance with the Corporations Act 2001 (where audited) as the audited balance sheet and audited profit and loss account required under section 205B of the Broadcasting Services Act 1992, subject to the provision of an independent audit report in the form prescribed by the ACMA on either the B10 form or the B19 form.

The return can be lodged using the online BLF system or be submitted by email.

acma | 5

Under subsection 205B(2) of the Broadcasting Services Act 1992 a licensee may, with the ACMA’s permission, adopt a 12-month accounting period ending on a day other than 30 June. In this case, the licensee must submit a return to the ACMA:> by the 31 December following the end of the alternative accounting period, if the

period ends on a day from 1 July to 30 December; or> within six months of the end of the alternative accounting period, if the period ends

on a day from 31 December to 30 June.

In addition to the return, licensees must by 31 December each year also pay the BLF based on the calculation in the B10 form. The BLF is calculated based on a licensee’s gross earnings from broadcasting or televising, as the case may be, advertisements or other material or matter2 during the return period. The Radio Licence Fees Act 1964, Television Licence Fees Act 1964 and the Television Licence Fees Regulations 1990 provide details on how the fee is calculated.

Section 205B of the Broadcasting Services Act 1992 requires licensees to keep and maintain financial accounts in relation to the service(s) provided under the licence. Licensees must make these accounts available for inspection by the ACMA when requested to do so.

The ACMA may request copies of records for the services provided under the licence to audit or review the accuracy and completeness of information provided in the return.

Information provided in the return must be in English, and amounts must be presented in Australian dollars (AUD) and exclusive of GST.

2.3 Has a broadcasting licence been transferred or surrendered?If a person holds a licence on the date on which a licence fee in respect of that licence is due and payable (namely 31 December), the licensee must submit a BLF return for the entire preceding return period regardless of whether the licensee held the licence for the entire return period.

The return must contain gross earnings for all services provided under the licence for the accounting period (usually the return period). The incumbent licensee must also pay the BLF for the entire return period. If no services were provided using the licence during the period, you will still be required to submit a return to the ACMA.

A person who held a commercial radio or television broadcasting licence that expired, was surrendered or was cancelled during the return period or (in certain cases) the preceding return period, is liable to pay a licence fee in respect of that licence (see paragraph 6(2)(b) of the Radio Licence Fees Act 1964 and paragraph 6(2)(b) of the Television Licence Fees Act 1964).

When transferring a licence, due diligence should be exercised and any future liabilities should be considered prior to the sale. Consult the ACMA regarding any issues which may arise. All matters will be dealt with on a case by case basis.

Once the ACMA has been advised that a licence has been transferred, the BLF system will be updated to reflect the change. This will enable the new owner to access information for that licence within the system. The new owner must provide the ACMA with their details in an Authorised Contact Registration Form which is available on the

2 See definition of ‘gross earnings’ in section 4 of the Radio Licence Fees Act 1964 and section 4 of the Television Licence Fees Act 1964.

6 | acma

ACMA Broadcasting licence fees web page . When a licence has been transferred, officers for the new licensee will only be able to view the information for that licence which they have entered into the system. They will not be able to view information entered by another licensee (and in this circumstance historical data will not be shown).

2.4 Failure to submit a return or pay the correct licence feeLicensees who fail to submit a complete BLF return or pay the correct BLF by the due date, and/or fail to provide all information requested by the ACMA, may face enforcement action.

A licensee who fails to pay the correct BLF by the due date may incur penalties under section 205D of the Broadcasting Services Act 1992 .

Failure to provide the 205B documents in full to the ACMA is a breach of the standard licence conditions set out at clause 7(1)(ia) (for commercial television broadcasting licences) of part 3 and clause 8(1)(ha) (for commercial radio broadcasting licences) of Part 4 in schedule 2 to the Broadcasting Services Act 1992 .

Failure to provide the B10 form along with paying the BLF as per subsection 205C(1) of the Broadcasting Services Act 1992 is a failure to comply with section 205C of the Act.

Licensees should refer to Parts 14B–14E of the Broadcasting Services Act 1992 and Enforcement Guidelines of the ACMA for further information on enforcement powers in the Broadcasting Services Act 1992 including (but not limited to):> suspension or cancellation of a licence> seeking enforceable undertakings from a licensee> issuing formal directions> issuing infringement notices for certain contraventions.

acma | 7

3 Submitting a return onlineThe ACMA online BLF system can be used to complete and submit BLF returns to the ACMA, and to record related payments.

The BLF system can be accessed using the ACMA's BLF ePort system from the ACMA Broadcasting licence fees web page .

This chapter outlines how to access the system and explains the steps to complete and submit a BLF return using the BLF system.

3.1 Accessing the online return systemTo submit a return online, licensees must first register for an ACMA ePort account by completing an Authorised Contact Registration Form (available on the Broadcasting licence fees (BLF) ePort account web page). This will allow licensees to register licences and system users, and specify user roles and access licence information.

There are two user roles in the BLF system which have different access permissions as detailed below:> Licence contact officer (LCO)—the LCO can view licence details, submit returns

and upload documents for licences they are authorised to access. They are also able to view previous returns, and copies of ACMA-issued notices and penalties.

> Broadcaster banking officer (BBO)—the BBO can access payment management functions however cannot view or access returns. They can view fee calculations and ACMA-calculated penalties and notice amounts, and are able to record payments made in relation to the licences they are authorised to access information for.

Before completing and submitting the Authorised Contact Registration Form to the ACMA, please ensure that you agree to the ePort account terms and conditions of use (available on the Broadcasting licence fees (BLF) ePort account web page).

To access the system, licensees also need to have an AUSkey. AUSkey is a digital credential used to access government online services. For more information and to register for an AUSkey go to the Australian Business Register (ABR) website (www.auskey.abr.gov.au ) . If you already have an AUSkey you can use it to access the system. Each system user (that is, LCO or BBO) must have their own AUSkey.

Contact the ACMA Revenue Assurance Team if you have any questions about accessing the system.

3.2 Logging into the BLF systemAUSkeyTo access the system, licensees need to download the AUSkey software onto their computer and store the issued AUSkey. If you are experiencing any problems with AUSkey, please contact the ABR on 1300 AUSKEY (1300 287 539) for assistance.

8 | acma

Logging in for the first timeBefore logging into the BLF system for the first time, licensees need to phone the ACMA Revenue Assurance Team on (02) 6219 5355 to obtain a ‘one-time token’. This will link your ePort account to your AUSkey so that any future log in only requires you to enter your AUSkey details. One-time tokens can only be issued to the individual user, so each system user will need to contact the ACMA to obtain their unique one-time token.

After a one-time token has been granted to a person, they can access the BLF system. The user will be directed to an authentication web page where the user’s AUSkey details will need to be entered. After entering AUSkey details, the user will be directed to another webpage where they will be asked to enter their one-time token. Once the one-time token details are entered, the user will be logged into the BLF system.

Logging inTo access the BLF system, the user will be directed to an authentication screen where they will need to enter their AUSkey details. Once logging on is successful, the user will be directed to the homepage of the BLF system.

Terms and conditions of useEach time a person logs into their ePort account they are accepting the terms and conditions of its use. These apply in addition to the Terms and Conditions of the Australian Business Register regarding the use of AUSkey.

3.3 System informationEmailsThe BLF system has the ability to send emails to users to remind them of important dates in the BLF return process or to prompt them about items within their return that may need attention. Please do not reply to system-generated emails.

If you do not wish to receive system-generated emails, please contact the Revenue Assurance Team on phone (02) 6219 5355 or email financialreturns@acma.gov.au.

System time-outThe BLF system will log users out after 30 minutes of inactivity. Inactivity is the time between saving or submitting returns. Navigating between tabs is not recognised as activity. This is to provide safeguards over your information. You will not receive a warning to advise that you have or will be logged out. It is recommended that you save your work regularly to avoid losing any data you have entered.

More than one user working on the same return at the same timeThe BLF system will allow more than one user to access a return at any one time. However, if two people access the same return for the same licence, the first person to save their work will have their data captured. The second person will be unable to save their changes. It is not recommended that more than one person work on a return at the same time. It is recommended that you note the status of a return before working on it as this will indicate if someone is already working on it. Remember to save any updates regularly so any data that you enter will not be lost if another user accesses the same licence.

If you happen to be working on a return that another user is also working on and they have saved first, you will be unable to save any changes you have made. However,

acma | 9

you can print a copy of the screen using your browser’s print option and enter the data later.

Supported softwareThe following web browser software is required to use the BLF system:> Internet Explorer version 8 or later> Mozilla Firefox.

Unfortunately the BLF system is not compatible with Google Chrome at this time.

3.4 Overview of online submission processAn overview of the process for submitting a return online is depicted in the following flowcharts for Option 1 and Option 2 licensees respectively.

10 | acma

BLF return online submission process—Option 1 reporting

* Refer Section 4.5 of this handbook for more details about the Audit Exemption** Section 2.2 of this handbook sets out the deadline for submission of a Return where a licensee has adopted an accounting period ending on a day other than 30 June

acma | 11

BLF return online submission process—Option 2 reporting

* Refer Section 4.5 of this handbook for more details about the Audit Exemption** Section 2.2 of this handbook sets out the deadline for submission of a Return where a licensee has adopted an accounting period ending on a day other than 30 June

12 | acma

3.5 Completing a returnThe following information explains the steps to complete and submit a return online.

Homepage The homepage displays messages from the ACMA.

To access returns select Returns from the options on the left-hand side menu.

Returns pageThe Returns page lists all licences the user is authorised to access for each return period (it will display licences for the most recent return period by default). The licence number, call sign, return status and unlock request status for each licence are displayed.

Select the Access Return button to access the forms to be completed for the licence’s return.

Return details pageThis page provides access to the B17/B18 activity statement that must be completed for each licence. The statements include the following schedules:> Licence Information> Profit & Loss> Balance Sheet.

In addition, the following schedules need to be completed for television licences:> Program Inventory Movements (PIM)> Notes to PIM.

The system will automatically generate the relevant radio or television activity statement schedules for all allocated licences.

When you access a return you will be directed to the Overview page. This page lists the tasks that need to be completed in order to progress the return to the next stage. Tasks that have not yet been completed will appear with a red cross next to them, while tasks that have been completed will have a green tick next to them.

The system has been designed to give users flexibility regarding the order in which certain tasks must be completed. For ease of use, it is recommended that you complete the schedules from left to right. To access a schedule, simply click on the tab.

Some information in the schedules is pre-populated. Check that this information is correct and contact the ACMA Revenue Assurance Team if amendments are required.

Certain fields or information is mandatory and will be highlighted in red. You must complete all mandatory fields to progress the return.

Notes can be entered for every line item or for the individual schedule. It is mandatory to include a note when figures are entered in the ‘Other’ line items in the schedules. A validation error will appear if a line item note is not included for such a figure.

acma | 13

Other things to note whilst completing your return:> The licence name, number, call sign, return period, status, audit reference number

and submitted date are displayed at the top of the screen (the audit reference number and submitted date will not appear until particular steps have been completed in the return).

> If you select ‘Click for Schedule Information’ in the grey bar at the top of each schedule, this will display information about the schedule you are viewing.

> In the top left-hand corner of the page, there is a link (Click here to see the handbook and the Acts) to this handbook and the relevant Acts to assist you to complete your return.

> The ACMA-assessed figures for the licence from the previous return period are displayed on each tab in the ‘Last Period’ column.

> If you click a ‘subtotal line item description’, it will highlight the lines that are used to calculate that value.

> You need to save your work regularly as the system does not automatically save your return.

> If you are in a transition year (that is, you are changing to a 12-month accounting period ending on a day other than 30 June, approved by the ACMA), additional tabs will appear in your return. You will be required to complete both the normal and the transition year tabs. However, the information you provide in the transition year tabs will be used to calculate your licence fee.

> You can select ‘print’ on your browser to print the schedule.> If you receive a validation error while completing your return, click on it to show

what needs to be done to correct it. You will not be able to progress your return until validation errors have been addressed.

> A red asterisk in the title of a schedule tab means that mandatory information has not been completed in that schedule.

Licence information scheduleThis schedule contains pre-populated general information about the licensee, including (as applicable):> Australian Business Number (ABN)> Australian Company Number (ACN)> address for receiving notices> last year’s period end—the date on which the previous return period ended> current return period> current accounting period.

All the licence information in this schedule is pre-populated. Review this information to ensure it is correct and contact the ACMA Revenue Assurance Team if amendments are required.

Please select Yes or No to indicate whether:> reported transactions—the return contains financial transactions with other

members of your broadcasting group> reporting basis—you are reporting using a different schedule (cash or accruals)

from your previous year return.

14 | acma

Profit & loss scheduleThis schedule reports the revenue and expenditure of the licence for the return period. The profit and loss information provided here must relate to the individual licence, and must not be aggregate figures for multiple licences owned by the same licensee or by the licensee’s parent company.

Affiliation fees are the fees received from an affiliated network or network services for the right to broadcast the network’s programs.

At the top of the schedule there is a Download Schedule Formulae link. This will display the formulae used to calculate each line item in the Profit & Loss schedule. Contact the ACMA Revenue Assurance Team if this information is correct or amendments are required.

This schedule is to be completed on an accruals basis and for the same accounting period used to prepare the Licence Fee Calculation (B10) schedule.

Balance sheet scheduleThis schedule reports the assets and liabilities information for the licence as at the end of the return period. The information provided here must relate to the individual licence, and must not be aggregate figures for multiple licences owned by the same licensee or by the licensee’s parent company.

At the top of the schedule there is a Download Schedule Formulae link. This will display the formulae used to calculate each line item in the Balance Sheet schedule. Contact the ACMA Revenue Assurance Team if this information is incorrect or amendments are required.

This schedule is to be completed on an accruals basis and for the same accounting period used to prepare the Licence Fee Calculation (B10) schedule.

Import data function for Profit & Loss and Balance Sheet schedules (optional)The data function is a new feature which has been designed to assist with inputting large quantities of data into the BLF system. The function will enable you to import the profit & loss and balance sheet data from an excel file (csv) to the BLF system for your authorised licences. All other schedules will still need to be completed by accessing the returns individually and manually entering the data. The excel file (csv) and template can be downloaded from the system.

Report function (optional)This report function is available for licensees who have submitted their returns by using the BLF system. The report function is accessible from the returns menu on the licensees BLF system homepage and allows you to generate an Activity Statement (B17/B18) report and a Submitted Licence Fee Calculation (B10) report for the current and previous years, displaying the data you have previously submitted.

Program Inventory Movements (PIM) scheduleThis schedule which is only displayed for the television licences, reports your expenditure on Australian and overseas programs, and provides an analysis of the amounts recorded in the profit & loss and balance sheet. This schedule is not required to be audited.

acma | 15

The formula used for the calculation of this schedule is:

Program rights as at beginning of period

Add:

Program rights acquired

Less:

Program usageProgram amortisation

Equals the sum of:

Closing balance at end of period (current) Closing balance at end of period (non-current)

You will need to ensure the columns balance before you can progress your return.

Program costs refer only to expenditure on programs that you have:> internally produced or created> acquired or purchased from an independent producer.

When there are affiliate arrangements between broadcasters, the broadcaster who owns the program rights is required to record the rights when they are acquired (created or purchased) and must account for any usage. Usage includes both use of the program rights by the broadcaster and use by affiliated broadcaster(s). The affiliated broadcaster should not record any inventory movements for those program rights in this schedule of their return; instead, these should be shown on the affiliated broadcaster’s profit and loss account as affiliation fees.

Definitions of program types are contained in the Broadcasting Services (Australian Content) Standard 2005 and the Children’s Television Standards 2009. For further information refer to Appendix A.

This schedule is to be completed on an accruals basis and for the same accounting period used to prepare the Licence Fee Calculation (B10) schedule.

If you would like further information about completing this schedule, please contact the ACMA Revenue Assurance Team.

Notes to PIM scheduleLicensees may have adopted policies for program costs and valuation of program inventories appropriate to their own circumstances. To assist the ACMA with its analysis and interpretation of the information in the PIM schedule, licensees should use the Notes to PIM schedule to provide an explanation of any such policies applied, and provide any additional information that is required for the ACMA to clearly identify how information has been reported. This schedule will only appear for television licences.

Documents tabOnce all mandatory information is completed for each schedule and you have saved your return, a green tick should appear next to the task Complete All Necessary Information from the Overview tab.

16 | acma

You can now select Ready for Auditor from the Overview tab. Once you do this you will be supplied with an audit reference number (displayed under the Return Details title), and you will not be able to make further changes to your return. The system will generate an audit package.

The package can be downloaded from the Documents tab. If the audit package does not appear, wait a few seconds then click the Refresh Return button at the bottom of the screen.

After the page refreshes, click the folder icon to Download the Generated Audit package. This will allow you to open or save the generated documents.

Generated audit packageUnder paragraph 205B(1)(c) of the Broadcasting Services Act 1992, licensees must provide the ACMA with a balance sheet and profit and loss account, in a form approved by the ACMA, for the services provided under the licence. These documents must be audited unless the licensee is included in a class of licensees specified by the ACMA in the Broadcasting Services (Licensee Audit Exemption) Instrument 2014 under subsection 205B(4A) of the Broadcasting Services Act 1992).

If the BLF system identifies that a licensee is eligible to be exempted from providing an independent audit report, the return process will be slightly different. Please refer to the BLF return online submission process flowcharts in Section 4.5 of this handbook for further details about the audit exemption.

The system automatically generates a package of documents for you to send to your auditor for review that consists of:> an independent audit report> Licence Information (Schedule A)> Profit & Loss (Schedule B)> Balance Sheet (Schedule C)> Program Inventory Movements (PIM) (Schedule D) and Notes to PIM—for

television licences only.

The Licence Information (Schedule A), PIM (Schedule D) and Notes to PIM are created for information purposes only and do not have to be audited.

The generated approved form for the independent audit report requires the audit report to conform to the requirements of Auditing Standard ASA 800 - Special Considerations - Audits of Financial Reports Prepared in Accordance with Special Purpose Frameworks.

The information reported in the B17/B18 activity statement is to be prepared in accordance with relevant Australian accounting standards, including AASB 1031 Materiality.

If you need to alter any figures in the schedules, return to the Overview tab and select the Change Figures button at the bottom of the tab. This will open the return for adjustments. After adjustments have been made, a new audit reference number will be provided and a new audit package will need to be downloaded. The independent audit report needs to quote the current audit reference number displayed in the system.

Licence Fee Calculation (B10) scheduleThe Licence Fee Calculation (B10) schedule will appear after Ready for Auditor has been selected once your activity statements are complete. The Licence Fee

acma | 17

Calculation (B10) schedule is pre-populated with information that you have entered in the Profit & Loss and Balance Sheet schedules. To change these figures you will need to change the figures in the original schedules (by requesting the ACMA to unlock the return).

This schedule must be prepared for the same return (and accounting) period as the schedules that comprise the B17/B18 activity statement (Profit & Loss, Balance Sheet and PIM schedules).

Notes should be included to clarify the reported figures, if possible, to reduce the need for ACMA staff to query licensees. Notes should have sufficient detail to allow the ACMA to determine if the figures are reasonable.

The licence fee payable is calculated automatically to the nearest cent and is based on gross earnings. Section 4 of both the Radio Licence Fees Act 1964 and the Television Licence Fees Act 1964 provide definitions of ‘gross earnings’.

For the purposes of the Licence Fee Calculation (B10) schedule, gross earnings are the revenues received by licensees from their broadcasting or televising, as the case may be, of advertisements or other material or matter. When an amount which would be considered gross earnings is paid or given otherwise than in cash, the fair value of the consideration is to be included in gross earnings.

To report on a cash translation basis, use the Adjustment Field in the Licence Fee Calculation (B10) schedule to adjust for trade debtors. This figure is determined by the following:

The total adjusted trade debtors at the end of the current return period(That is, trade debtors that relate to gross earnings, less commission by agencies and advertisers, unpaid at the end of the current return period)

Less

Total trade debtors at the beginning of the return period (That is, trade debtors that relate to gross earnings, less commission by agencies and advertisers, unpaid at the end of the last return period)

The adjusted trade debtor figure will be deducted in the licence fee calculation. Negative figures are permitted, and will result in the adjusted trade debtor figure being added to your licence fee calculation. The system will prompt you to enter an explanation for any figure other than zero in the adjustment field. The ACMA can enter a suggested adjusted trade debtor figure if you provide the necessary information to calculate this.

18 | acma

Licensees can claim any rebates they are entitled to on the Licence Fee Calculation (B10) schedule. The following table provides information on the rebate fields in the schedule. Please see section 5 of this handbook for further detail on rebates.

Rebate field Details

Claim for Regional Equalisation Plan (REP) rebate

Those regional and remote area licensees listed in the Television Licence Fees Regulations 1990 are entitled to claim the REP rebate. To enquire about eligibility contact the ACMA Revenue Assurance Team on (02) 6219 5355 or refer to the Television Licence Fees Regulations 1990.

Licensees entitled to claim the rebate can do so by entering the rebate amount in the applicable section. The schedule will automatically calculate the licence fee, and deduct the REP rebate accordingly.

In accordance with regulation 15(3) of the Television Licence Fees Regulations 1990, a regional licensee is not entitled to a digital conversion rebate under subregulation (1) or paragraph (2) (b) after 31 December 2012.

In accordance with subregulation 15(4) of the Television Licence Fees Regulations 1990, a remote licensee is not entitled to a digital conversion rebate under subregulation (1A) or paragraph (2) (b) after 31 December 2017.

See section 5.1 of this handbook for more information on the REP rebate.

Cumulative rebate entitlement

This is the maximum annual rebate entitlement, multiplied by the number of years prior to 2012-13 the licensee has been entitled to the rebate.

The maximum annual rebate entitlement is the maximum amount of rebate a licensee can claim per financial year.

This entitlement is shown under column 4 of either Schedule 1 or Schedule 2 (whichever is applicable) of the Television Licence Fees Regulations 1990.

Annual rebate entitlement

This is the annual rebate entitlement for the current return period. If the licensee has already reached their total rebate entitlement, this amount is zero.

Cumulative rebates claimed

This is the total amount of rebate that has been used to offset the licence fee payable from the commencement of the REP rebate to the beginning of the current financial period.

Total unused rebate to carry forward

This field is automatically calculated, and shows the amount of REP rebate the licensee is entitled to in relation to this and prior years which has not been claimed.

It is calculated as the maximum annual rebate entitlement for all years to the current year, less the cumulative rebate claimed to the end of the current year.

acma | 19

If you alter your Licence Fee Calculation (B10) schedule in a way that affects your gross earnings you will need to download a new statutory declaration from the Documents tab. The new statutory declaration will contain your corrected gross earnings figure. Once signed, upload the updated statutory declaration.

Once the Licence Fee Calculation (B10) schedule is complete and the return has been saved, return to the Overview tab. You will now be able to submit the return to the ACMA. By selecting this option you are officially submitting your return to the ACMA, and you will therefore not be able to further edit your return or upload any more supporting documents.

You may request the ACMA to unlock your return if changes need to be made. The ACMA will review the return and contact you if needed.

Option 2 reporting method The following information provides additional guidance for licensees who report under option 2. For more information about option 2 reporting please refer to section 4.9 of this handbook.

Enter all required data in the schedules of the activity statement for the licence, then select Ready for Auditor from the Overview tab.

You are then able to access the Licence Fee Calculation (B10) schedule and complete the required fields. To report on an option 2 basis, a figure in the Option 2 Net service revenue plus contra advertising revenue for reporting service licence line item is to be entered. This is the gross operating revenue as per the financial statements, less revenue for other licences, plus contra advertising revenue for the licence.

The pre-populated advertising revenue figure will remain in the schedule but will have no impact on the licence fee calculation. Once a figure is entered for the Option 2 Net service revenue plus contra advertising revenue for reporting service licence line item, this figure will be used to determine the licence fee payable.

Enter non-licence fee revenue in the Other field under Other Allowable Deductions. This includes:

> program sales> affiliation fees> production recoveries> sale of promotional materials.

You then need to upload audited financial statements in the Documents tab. The ACMA will accept financial statements prepared on a consolidated basis in compliance with the Corporations Act 2001 (where audited) as the audited balance sheet and audited profit and loss account required under section 205B of the Broadcasting Services Act 1992. These consolidated financial statements must have been prepared in compliance with Australian Accounting Standards or International Financial Reporting Standards.

Independent audit reportThe independent audit report needs to be uploaded in the audit report section of the Documents tab (though this may be an unsigned document that can function as a placeholder until the final audit report is completed). The audit report can be based on either the Licence Fee Calculation (B10) schedule (this is the ACMA’s preferred option) or the B19 form.

20 | acma

Please refer the BLF return online submission process flowcharts in section 4.5 of this handbook for further details of the audit exemption.

Once you have completed the Licence Fee Calculation (B10) schedule, return to the Documents tab to upload your signed independent audit report in the audit report section of the tab. The B19 form (for consolidated financial statements with multiple licences) can be downloaded from the ACMA website.

The B19 form and consolidated financial statements can be uploaded in the return for one of the licences rather than in the returns for all licences. However, you will need to upload a document in the audit report section for each of the licences in order to progress those returns—this document should indicate in which licence return the B19 form and consolidated documents have been uploaded to.

Statutory declarationAfter finalising the Licence Fee Calculation (B10) schedule, the statutory declaration containing the updated gross earnings should be downloaded and signed before uploading to the statutory declaration section of the Documents tab. A separate statutory declaration must be uploaded for each licence.

In accordance with paragraph 205B(1)(c) of the Broadcasting Services Act 1992, licensees must provide a statutory declaration that states the gross earnings in relation to each licence during the return period. The gross earnings shown on the statutory declaration must match the gross earnings listed in the Licence Fee Calculation (B10) schedule for each licence.

Once you edit and save the Licence Fee Calculation (B10) schedule, a statutory declaration template will be available for you to download from the Documents tab. The template will be pre-populated with the licensee name, ABN, licence number, gross earnings and year ending date. The gross earnings figure is taken from the Licence Fee Calculation (B10) schedule.

Only the Chief Executive Officer or the Company Secretary of the licensee company can sign the statutory declaration as to the gross earnings for each licence.

If you alter your Licence Fee Calculation (B10) schedule in a manner that affects your gross earnings, you will need to create a new statutory declaration for signature then upload it into the system.

Uploading documentsOnce the audit package and statutory declaration have been downloaded and signed by the appropriate people, you will need to upload them into the system.

To upload a document:

1. Go to the Documents tab.2. Type a brief description of the document in the Description field.3. Click the ‘Select’ button underneath the Description field. This will open up a

window to allow you to navigate to the folder or drive where the signed audit report/statutory declaration is stored on your computer or device. Select the relevant file and click ‘Open’.

4. Once the title of the file appears in the Documents tab, select the ‘Upload files’ button. The document should then appear in the ‘All uploaded documents’ list at the bottom of the tab. You can upload multiple documents at once by repeating step 3 above to select multiple files before clicking the ‘Upload files’ button.

acma | 21

Take note of the Virus Scan status of each document in the All uploaded documents list. Only documents that have passed the virus scan will be received by the ACMA as part of the return. If a document fails the virus scan it will display as Fail in the Virus Scan column and you will be required to re-upload the document.

You can also view or save uploaded documents by clicking on the Download button for that document in the All uploaded documents list. Once documents have been uploaded they cannot be removed from the system. However, you may upload a new document to supersede an older version. The ACMA will refer to the most recent version of a document when assessing a return.

You may upload any document you feel necessary to support the claims in your return. If the document is not an audit report or statutory declaration, upload them in the Upload other documents section.

Once you have uploaded documents into the system, you will be unable to edit the Licence Information, Profit & Loss, Balance Sheet, PIM and Notes to PIM schedules. To further edit the schedules you will need to request the ACMA to unlock the return by clicking on the Request Unlock button on the Overview tab. When you click on this button, a window will appear asking you to provide a reason for your request.

Unlock history tabThis tab displays any requests that a user has made to the ACMA to unlock a return, and the ACMA’s response to those requests. This tab will not be displayed if no unlock requests have been made.

The tab also states which user has requested the unlock and for what reason. This tab is for viewing requests only—no unlock requests or changes can be made in this tab. To request a return to be unlocked you need to click on the Request Unlock button on the Overview tab.

Versions tabIf a new audit reference number is generated during the return process (for example, a new audit package is created), new versions of generated documents are then created. All previous versions of uploaded documents will be displayed on this tab. You can view them by selecting the version from the drop-down list then selecting Get documents. Previous versions of documents cannot be edited nor will they be reviewed by the ACMA. The most recent documents should be uploaded in the Documents tab.

Transition year schedulesTransition year schedules will only appear when a licensee’s accounting period is altered to end on a day other than 30 June (you must receive ACMA approval before altering your accounting period). The transition year schedules, which will appear in addition to the normal schedules, will have the period that they relate to displayed on the screen; for example, 01/07/14 to 31/12/14. Any information entered in the transition year schedules should relate to this period, as these figures will be used to calculate your licence fee.

3.6 Recording paymentsRefer to section 6.2 of this handbook for information on how to advise the ACMA of BLF payments by recording payment details in the BLF system.

22 | acma

4 Submitting a return via email or mailThe forms required to complete a BLF return via email or mail (instead of using the BLF system) are available on the ACMA website.

Completed returns can be submitted to the ACMA via:Email to: financialreturns@acma.gov.au By post to: Revenue Assurance TeamPO Box 78Belconnen ACT 2616

A return is not considered to be complete until all required forms and documents are submitted.

If you would like to use a different schedule from that used to complete the return in the previous period (for example, to change from cash translation accounting to accruals) for a licence, you must contact the ACMA to obtain a transitional B10 form. Licence fees will be calculated incorrectly if a different schedule is used.

If you would like to nominate specific persons as contacts authorised to liaise with the ACMA in relation to specific licences, complete and submit an Authorised Contact Registration Form (available on the ACMA website) to the ACMA.

4.1 Naming convention for forms, documents and emailsTo ensure that your return is easily identifiable, use the following naming convention for forms and documents.

[Licensee company/group name] [Service licence number] [Call sign] [(Short name of form/document—refer below)]

For example, the file name would be: ‘Fictional Radio SL9876 2FRS B10’ for the following details:

Licensee company name: Fictional RadioService licence number: 9876Call sign: 2FRSName of form: Radio Licence Fee Calculation B10 Form

EmailTo help identify your return, please use the following information in the subject heading of your email:

[Licensee company/group name] [Service licence number/s] [Call sign] [2XXX-2XXX BLF return]

acma | 23

For the example company above, the email subject would be:

‘Fictional Radio SL9876 2FRS 2014-15 BLF return’

If you are submitting returns for multiple licences in a single email, include the first and last service licence numbers in your subject heading and a full listing of the licence numbers in the body of the email, for example, ‘Fictional Radio Group SL1234 to 7890 2014-15 BLF return’.

24 | acma

4.2 Email submission of BLF return—Option 1 reporting

* Refer Section 4.5 of this handbook for more details about the Audit Exemption** Section 2.2 of this handbook sets out the deadline for submission of a Return where a licensee has adopted an accounting period ending on a day other than 30 June

acma | 25

4.3 Email submission of BLF return—Option 2 reporting

* Refer Section 4.5 of this handbook for more details about the Audit Exemption** Section 2.2 of this handbook sets out the deadline for submission of a Return where a licensee has adopted an accounting period ending on a day other than 30 June

26 | acma

4.4 Activity statementA B17 or B18 activity statement must be completed for each commercial radio or television licence held.

The information reported in schedules B and C of the activity statement is to be prepared in accordance with relevant Australian accounting standards, including AASB 1031 Materiality .

The activity statement is to be completed on an accruals basis and for the same accounting period used to prepare the B10 form.

All commercial radio and television licensees must complete Schedules A to C. Commercial television licensees must also complete Schedule D.

Section of form Completion requirements and information

Schedule A—Licensee Information

Complete this schedule with all required information on the licence and licensee including related business information. The information in this form for the return period must be complete and accurate and correspond to the general information provided in the B10 form for the same licence.

Name of Licence Holder

Insert the registered business name of the broadcasting licence holder (not necessarily the same as the trading name). Advise the ACMA if there was more than one licensee for the licence in the return period.

Service Licence Number and Call Sign

It is important that your service licence number and call sign are recorded correctly.The service licence number is the official number given to the service licence when issued by the ACMA, once the relevant licence area plan (LAP) has been determined.The call sign is the informal identification which may be marketed by the licensee from time to time (that is, the on-air ID).

Australian Business Number and Australian Company Number

Each licensee must include their ABN and/or ACN.

Last year’s period end Each licensee must insert the dates relevant to the last year’s return period end.

Current Accounting Period

Each licensee must insert the dates of beginning and end of current accounting period.

Reported Transactions

The ACMA may publish aggregated broadcasting financial results based upon the information submitted in your activity statement. In order to ensure the accuracy of these reports, the ACMA needs to eliminate any transactions that occur within the broadcasting group. Identify if you have included inter-broadcaster transactions. The ACMA will contact you to obtain further information about these

acma | 27

Section of form Completion requirements and information

transactions if required.

Reporting Basis Please inform the ACMA if the licence is reporting using a different reporting basis (cash or accruals) from previous year return.

Schedule B—Profit & Loss

In this schedule report the revenue and expenditure of the broadcasting service licence for the return period. The information provided here must relate to the individual broadcasting service licence, and must not be aggregate figures for multiple licences owned by the same licensee or by the licensee’s parent company.Affiliation fees are the fees received from an affiliated network or network services for the right to broadcast the network’s programs.

Schedule C—Balance Sheet

In this schedule report the assets and liabilities information for the broadcasting service licence as at the end of the return period. The information provided here must relate to the individual broadcasting service licence, and must not be aggregate figures for multiple licences owned by the licensee or by the licensee’s parent company.

Schedule D—Program Inventory Movements (PIM)(television licences only)

This schedule reports your expenditure on Australian and overseas programs, and provides an analysis of the amounts recorded in the profit and loss account and balance sheet.Program costs refer only to expenditure on programs that you have internally produced or created, or acquired or purchased from an independent producer. When there are affiliate arrangements between broadcasters, the broadcaster who owns the program rights is required to record the rights when they are acquired (created or purchased) and must account for any usage. Usage includes both use of the program rights by the broadcaster and use by affiliated broadcaster(s). The affiliated broadcaster should not record any inventory movements for those program rights in this schedule of their return; instead, these should be shown on the affiliated broadcaster’s profit & loss account (Schedule B) as affiliation fees.Definitions of program types are contained in the Broadcasting Services (Australian Content) Standard 2005 and the Children’s Television Standards 2009. For further information refer to Appendix A.This schedule is not required to be audited.

Notes to Schedule D (television licences only)

Licensees may have adopted policies for program costs and valuation of program inventories appropriate to their own circumstances. To assist the ACMA with its analysis and interpretation of the information in Schedule D, licensees should provide an explanation of any such policies applied, and provide any additional information that is required for the ACMA to clearly identify how information

28 | acma

Section of form Completion requirements and information

has been reported.

4.5 Independent audit reportUnder paragraph 205B(1)(c) of the Broadcasting Services Act 1992, licensees must provide the ACMA with a balance sheet and profit and loss account, in a form approved by the ACMA (schedules B and C of the B17/B18 activity statement), for the services provided under the licence. These documents must be audited unless the licensee is exempted under subsection 205B(4A) of the Broadcasting Services Act 1992).

The approved independent audit report form is available on the ACMA website. It conforms to the requirements of Auditing Standard ASA 800 Special Considerations—Audits of Financial Reports Prepared in Accordance with Special Purpose Frameworks. Materiality and audit procedures must be appropriate to the information presented in the subject matter (that is, the B17/B18 activity statement) in relation to the service(s) provided under each licence.

The information reported in the B17/B18 activity statement (schedules B and C) is to be prepared in accordance with relevant Australian accounting standards, including AASB 1031 Materiality.

The independent audit report must be completed, scanned and included in the return submission. The B17/B18 activity statement is to be attached to the audit report.

Email the audited financial statements to financialreturns@acma.gov.au.

Option 2 reportingLicensees who wish to provide financial statements prepared on a consolidated basis in compliance with the Corporations Act 2001 (where audited) as the audited balance sheet and audited profit and loss account required under section 205B of the Broadcasting Services Act 1992 must provide an independent audit report on either:> the B10 form (this is the ACMA’s preferred option)> the B19 form.

Audit exemptionCommercial radio and television broadcasting licensees qualify for the audit exemption for a financial year if:> (a) the licensee’s gross earnings for that financial year are less than $5 million in

relation to the service or services provided under the licence for that financial year; and

> (b) the licensee has complied with the requirements of paragraph 205B(1)(c) of the BSA for a period of not less than 3 financial years preceding that financial year.

If the ACMA has allowed a licensee to adopt an accounting period which ends on a day other than 30 June, the ACMA will assess compliance with respect to that date.

New licensees (including licences that have been transferred) will need to be compliant for three years before they become eligible for the audit exemption.

acma | 29

Licensees who are eligible for the audit exemption still need to lodge a return that comprises of a completed Licence Activity Statement (Profit & Loss and Balance Sheet forming the B17/B18 form), Licence Fee Calculation (B10) and statutory declaration.  

The exemption applies on an individual licensee basis, regardless of whether the licensee forms part of a consolidated group. If an individual licensee, reporting as part of a group, has gross earnings below $5 million, and the other licensees in the group have individual gross earnings at $5 million or above then the licensee still qualifies for the exemption if they have complied with paragraph 205B(1)(c) of the BSA for the previous three financial years. The ACMA will continue to accept financial statements prepared on a consolidated basis in compliance with the Corporations Act 2001 (where audited) as the audited balance sheet and audited profit and loss account, subject to the provision of an independent audit report in the form prescribed by the ACMA on either the B10 form or the B19 form.

If in previous return years, an audited B19 Consolidated Statement was provided for all licensees in a group, then they may decide to continue to do so. Alternatively, the licensees that form part of the group may decide to have their B10 forms audited (ACMA preferred method) with the exception of the licensees who qualify for the audit exemption.

A notice issued under section 205C of the BSA by the ACMA is not considered to constitute non-compliance for any licensee. Therefore you may qualify for the audit exemption if the other exemption conditions are met.

If you are unsure if you qualify for the audit exemption, please contact the Revenue Assurance Team on phone (02) 6219 5355 or email financialreturns@acma.gov.au .

4.6 Licence fee calculation (B10) formThe B10 form (for radio or television) is to be submitted in PDF or Excel format for each service licence held.

It must be prepared for the same return (and accounting) period as the B17/B18 activity statement.

When a licensee wants to change their basis of reporting for completion of the B10 form from cash translation to accruals basis (or vice versa), they must contact the ACMA to obtain a Schedule 3 Transitional Form to complete their B10 form.

Complete the B10 form using only whole dollars, however the amount of the licence fee must be paid to the nearest cent.

The following table contains information about completing the B10 form.

30 | acma

Form section Completion requirements and information

Schedule 1 – Licence Information

This is to be completed for each licence and must match the related information in schedule A of the B17/B18 activity statement.The amount of licence fee will not be calculated in the B10 form until the service licence number is populated.Licensees are required to disclose if the accounting period (return period) end date has changed from the previous return period. The fee is calculated differently if this has changed and the return period does not cover a period of 12 months.Written permission is required from the ACMA before a licensee adopts an accounting period ending on a day other than 30 June.

Schedule 2 – Licence Fee Calculation

This schedule uses a top-down calculation approach, in which revenues reported in Schedule B of the B17/B18 form should match the revenues reported in the B10 form, with additions and deductions included to obtain the final gross earnings for licence fee calculation.Notes should be included in the schedules to clarify the reported figures, if possible, to reduce the need for ACMA staff to query licensees. Notes should refer to the line number in the schedule and have sufficient detail to allow the ACMA to determine if the figures are reasonable.The licence fee payable is calculated automatically to the nearest cent, and is based on gross earnings for the licence fee calculation in the B10 form.If your accounting period date is the same as the previous return period, the fee calculation formula is as provided in Appendix B (radio broadcasting licences) or Appendix C (television broadcasting licences). The licence fee calculation may differ if your accounting period end date has changed from the prior accounting period. If you intend to change your accounting period end to a day other than 30 June, you must obtain prior permission in writing from the ACMA. A different formula will then be used for calculation of your licence fees (please refer to section 6A of the Radio Licence Fees Act 1964 or the Television Licence Fees Act 1964).If you believe the calculation of your licence fee is incorrect contact the ACMA.

Additional information for television licences

acma | 31

Form section Completion requirements and information

Claim for Regional Equalisation Plan (REP) rebate

Those regional and remote area licensees listed in the Television Licence Fees Regulations 1990 are entitled to claim the REP rebate. To enquire about eligibility contact the Revenue Assurance Team on (02) 6219 5355 or refer to the Television Licence Fees Regulations 1990.Licensees entitled to claim the rebate can do so when submitting their B10 form by entering the rebate amount in the applicable section. The form will automatically calculate the licence fee, and deduct the REP rebate accordingly.Under subregulation 15(3) of the Television Licence Fees Regulations 1990, a regional licensee is not entitled to a digital conversion rebate under subregulation (1) or paragraph (2) (b) after 31 December 2012.In accordance with subregulation 15(4) of the Television Licence Fees Regulations 1990, a remote licensee is not entitled to a digital conversion rebate under subregulation (1A) or paragraph (2) (b) after 31 December 2017.See section 5.1 of this handbook for more information on the REP rebate.

Cumulative rebate entitlement

This is the maximum annual rebate entitlement, multiplied by the number of years prior to 2012–13 the licensee has been entitled to the rebate.The maximum annual rebate entitlement is the maximum amount of rebate a licensee can claim per financial year.This entitlement is shown under column 4 of either Schedule 1 or Schedule 2 (whichever is applicable) of the Television Licence Fees Regulations 1990.

Annual rebate entitlement

This is the annual rebate entitlement for the current return period. If the licensee has already reached their total rebate entitlement, this amount is zero.

Cumulative rebates claimed

This is the total amount of rebate that has been used to offset the licence fee payable from the commencement of the REP to the beginning of the current financial period.

Total unused rebate to carry forward

This field is automatically calculated, and shows the amount of REP rebate the licensee is entitled to in relation to this and prior years which has not been claimed.It is calculated as the maximum annual rebate entitlement for all years to the current year, less the cumulative rebate claimed to the end of the current year.

Definition of gross earningsSection 4 of both the Radio Licence Fees Act 1964 and the Television Licence Fees Act 1964 define ‘gross earnings’.

For the purposes of the B10 form, the ACMA considers gross earnings to be revenues received by licensees from their broadcasting activities for the sale of air time arising out of the transmission of programs, including advertisements. When an amount which

32 | acma

would be considered gross earnings is paid or given otherwise than in cash, the fair value of the consideration is to be included in gross earnings.

Revenues that are generated by joint ventures and/or report using the equity accounting method (that is, not consolidated in the financial statements) are required to report these amounts in their gross earnings. Explanatory notes should be provided.

The gross earnings from the B10 form should correspond to and be discernible from the figures reported in the activity statement (see table below).

Item to be matched Line item no. & schedule

B10Radio Form

B17Activity Statement

B10TV Form

B18Activity Statement

Advertising revenue (per audited B17 Activity Statement Schedule B)Total advertising revenue including agency and non-agency advertising and contra advertising disclosed in Schedule B of the B17 Activity Statement (audited profit & loss account)> excluding all bad and

doubtful debts expense> excluding GST.

1 4—Sch B 1 4—Sch B

TABTAB revenues related to service(s) provided under the licence not included in advertising revenue

3 5—Sch B NA NA

Bad debts on licence fee revenue recoveredAny revenues recorded in the current period from bad debts recovered, for bad debts relating to sale of airtime first raised in current or previous periods (this line item is only relevant if reporting on an accruals-basis)

4 6—Sch B 3 5—Sch B

acma | 33

Item to be matched Line item no. & schedule

B10Radio Form

B17Activity Statement

B10TV Form

B18Activity Statement

Other non-advertising revenue (licence fee revenue not included in advertising revenue or TAB, or bad debts on licence fee revenue recovered)Provide details and amounts of any other broadcasting revenues related to service(s) provided under the licence but not included in advertising revenue

5 7—Sch B 4 6—Sch B

Total other licence fee revenue not included in advertising revenueAll other revenues earned from broadcasting other than advertising revenues, under the licence

6 8—Sch B 5 7—Sch B

Commissions deducted by agencies and advertisers

7 15 6 18—Sch B

Bad debts on licence fee revenue written off in current yearAny bad debts related to sale of airtime written off in the current return period

8 25 7 27—Sch B

4.7 Statutory declarationUnder paragraph 205B(1)(c) of the Broadcasting Services Act 1992, a signed statutory declaration must be provided for each licence held which states the gross earnings for the licence for the return period. The gross earnings shown on the statutory declaration must match the gross earnings for the licence fee calculation shown in the B10 form for each licence.

Only the Chief Executive Officer or the Company Secretary of the licensee can make the statutory declaration as to the gross earnings for each licence.

The statutory declaration is to be scanned and emailed to financialreturns@acma.gov.au as part of the return.

4.8 Remittance schedule (B79) Complete a Remittance schedule (B79) for each licence fee payment made, and submit it with your return.

34 | acma

When completing the remittance schedule, copy the exact licence fee payable (including cents) from the B10 form.

The payment reference must also be included in the B79 form to enable identification of the licence fee payment.

4.9 Consolidated statement (B19) (Option 2 reporting only)If you are required to prepare consolidated financial statements under the Corporations Act 2001, you may submit the audited balance sheet and audited profit and loss account as part of your return.

A consolidated statement (B19 Radio/TV form) and audit report on the consolidated statement, in the form prescribed by the ACMA, are to be submitted. The B19 form must include all consolidated revenues in the operating revenues line item and where applicable, provide supporting document to support amounts.

When completing a consolidated return, you still need to provide a B10 form, B17/18 Activity Statement and a statutory declaration for each licence.

If a consolidated group reports on a consolidated basis (as opposed to an individual basis), all licensees within the group are required to use the same basis of accounting (that is, either cash translation or accruals basis) to prepare the B10 forms.

If reporting on a consolidated basis, the statement in the B19 form must correspond to the reporting basis used in the B10 form. That is, if a cash translation basis is adopted and the adjustment field is used in the B10 form, the adjusted trade debtors field in the B19 form must be completed.

4.10Audited financial statements (Option 2 reporting only)The ACMA will accept financial statements prepared on a consolidated basis in compliance with the Corporations Act 2001 (where audited) as the audited balance sheet and audited profit and loss account required under section 205B of the Broadcasting Services Act 1992. These financial statements must have been prepared in compliance with Australian Accounting Standards or International Financial Reporting Standards.

When audited consolidated financial statements are provided, the licensee must also provide the ACMA with a consolidated statement (B19 form) and an accompanying independent audit report in the form prescribed by the ACMA on either the B10 form (this is the ACMA’s preferred option) or the B19 form. The ACMA-approved independent audit report template is available on the ACMA website.

The audited financial statements are to be scanned and emailed to financialreturns@acma.gov.au.

4.11 Return checklist formThe return checklist form aims to assist you in ensuring you have prepared and collated all forms and documents required for a complete return. Submission of this checklist to the ACMA is optional.

acma | 35

5 RebatesThis section contains information on rebates that may be claimed by certain television licensees.

5.1 Regional Equalisation Plan (REP) rebateThe REP rebate provides assistance, in the form of a rebate on the BLF, to commercial television licensees in regional and remote licence areas for conversion to digital broadcasting.

Only certain commercial television licensees in regional and remote areas specified in the Television Licence Fees Regulations 1990 are entitled to claim the REP rebate.

In accordance with subregulation 15(3) of the Television Licence Fees Regulations 1990, a regional licensee is not entitled to a digital conversion rebate under subregulation (1) or paragraph (2) (b) after 31 December 2012.

In accordance with subregulation 15(4) of the Television Licence Fees Regulations 1990, a remote licensee is not entitled to a digital conversion rebate under subregulation (1A) or paragraph (2) (b) after 31 December 2017.

To enquire about eligibility for the REP rebate, call the ACMA on (02) 6219 5355 or refer to the Television Licence Fees Regulations 1990.

Regional and remote commercial television broadcasting licensees who are entitled to claim the REP rebate can do so when submitting their B10 TV form. Check that the rebates information and calculations are correct, amend if you would like to claim a different rebate amount, and contact the ACMA if further amendments are required.

BLF systemIf a licensee is eligible to claim the REP rebate, ACMA-suggested figures will be displayed in the Licence Fee Calculation (B10) schedule. The suggested figures are the amounts that the licensee may choose to claim. They are worked out based on the licensee’s eligibility to claim, the amount offered for the specific area according to the Television Licence Fees Regulations 1990 and amounts the licensee has previously claimed. If a licensee has used its entitlement or is not eligible to claim, no suggested figure will be displayed.

If you believe the amounts or your eligibility to be incorrect, contact the ACMA. A different licence fee may be assessed by the ACMA if a licensee claims a different rebate amount to the ACMA-suggested amount.

Your licence fee will be calculated after amounts are entered for rebates; select save to calculate your new licence fee.

Email return optionIf you are eligible to claim an amount of rebate you should enter this in the applicable section of the B10 TV form. The form will automatically calculate the licence fee and deduct the REP rebate accordingly.

36 | acma

6 Paying licence fees6.1 Making the paymentThe BLF is calculated as a percentage of the gross earnings in respect of a licence from broadcasting advertisements or other material. The licence fee must be paid to the nearest cent.

Fees must be paid and reach the ACMA bank account by 31 December each year. Include your payment reference when paying your BLF.

You must pay the BLF by depositing it in to the following account:

Bank: ANZBSB: 012-951Account number: 837924301Account name: ACMA Official Administered Broadcasting Receipts Account

The account details above are only for the payment of the BLF and datacasting charges, and should not be used for any other payments to the ACMA.

Payments must be made into the account specified above, or otherwise it cannot easily be matched to your return, making it incomplete. If the BLF has been deposited into an incorrect account notify the ACMA as soon as possible.

If this account is used for non-BLF items, such as apparatus licence renewals, there may be significant delays in the ACMA matching your payments, which may result in your apparatus licence lapsing.

acma | 37

6.2 Overview of online broadcasting licence fee banking procedure

38 | acma

6.3 Recording a payment onlineBroadcaster banking officers (BBOs) can advise the ACMA that they have made BLF payments by recording the payment details online using the BLF system. The BLF system is not connected to any financial institution and is used only to record payments, so you will need to transfer the funds using your own banking facility.

HomepageThe BBO must log into the BLF system to record payment details, using their AUSkey, where they will be directed to the homepage. The homepage will list any messages from the ACMA.

There are two options available on the left-hand side: Payments and Previous Payments:

> Payments displays a list of payment records that are in progress or pending approval by the ACMA, and a list of licences the BBO is authorised to view and the amount outstanding for each licence. From this screen you can create a new payment record.

> Previous payments displays payment records that have been approved or cancelled by the ACMA.

Creating a new payment recordSelect Payments to go to the Payments screen. Select the button Create new payment. This will take you into a new payment record. An individual payment number is assigned to each payment record, this can be found under the Payment Details title of the screen.

The Overview tab will list the tasks that need to be completed before you can progress to the next stage in the payment record. It also lists the ACMA bank account details for making payments via electronic funds transfer (EFT).

The Payment per Licence tab is where you will record the details of your payment. This tab will display the licence numbers you have authority to view, their return status, the total amount to be paid for each licence and the grand total you have selected to pay for the payment record.

The individual payable items for each listed licence can be viewed by clicking on the licence to expand the detail displayed. Each payable item is given a status. The status will indicate what stage the licence return is at and consequently whether a payment should be made for that item:> Unconfirmed means the return for that licence has not yet been submitted to the

ACMA and the payable amount may change> Confirmed means the return for that licence has been submitted to the ACMA> Assessment means the ACMA has determined the payable item (this status is

normally given to notices and penalties).

There are three options for creating a payment record:1. Create a payment record for all licences listed. You can create a payment

record for all licences listed by checking the Pay for all licences box at the top of the tab. This creates payments for all payable items for all licences listed.

2. Create a payment record for a single or multiple licences. You can create a payment record for one or multiple licences by checking the Pay total for this box for the relevant licences at the right-hand side of the tab. This will create a

acma | 39

payment record for all outstanding payable items relating to that licence. This creates payments for an individual licence selected and all of its payable items.

3. Create a payment record for selected payable items. You can make a partial payment for a payable item of a licence or select a specific payable item to record a payment for. This is done by entering the amount you wish to pay towards that item into the field next to that item. Selecting the Copy Across button next to a payable item will copy the total amount outstanding for that item into the field.

The Payment per Licence tab includes a payment limit feature in the top right-hand corner. This allows you to set a maximum amount to be paid in that payment record. It displays the amount remaining of your set limit once you have selected items to be paid.

Once you have selected the licence(s) and/or payable items you wish to include in the payment record, select the Payment Details tab and complete the Date Paid field. Once this is done, save the payment record and select the Submit to ACMA button on the Overview tab to finalise the payment record.

You should now use your banking facility to transfer the amount stated in the payment record to the ACMA. Quote the payment number of the record as a reference when transferring the money.

Once the payment record is submitted to the ACMA, it will be listed under its payment number on the Payments screen with the status To Be Confirmed. You can select the Access Payment button to view the record. The payment record will remain listed on this screen until the ACMA approves it. Once it is approved it will appear on the Previous Payments screen.

Note:> You can make payments for payable items when there is no payable amount

generated. This will allow you to record payments to reduce any potential late payments penalties.

> You need to complete all mandatory information within the tabs to be able to submit the payment record to the ACMA.

> You can enter explanatory notes for the payment record in the Payment Details tab.

> You have the ability to upload documents in the Documents tab.> You can save a payment record and access it at a later date, as well as print it

using your browser.> Once a payment record has been submitted to the ACMA, you can request it to be

unlocked if you need to alter it.

Accessing an in-progress payment recordAn in-progress payment record is a record that has been created but not yet submitted to the ACMA for approval. You can access an in-progress payment record only if you have access to all licences listed in the record.

To access an in-progress payment record select the Access Payment button for that record on the Payments screen. This will take you into the record where you can view it and make adjustments if necessary.

Contact the ACMA Revenue Assurance Team if you would like an in-progress payment record to be removed from the system but you do not have access to it.

40 | acma

6.4 Paying more than one licence feeYou can make a separate payment for each broadcasting licence held, or a single payment for several broadcasting licence fees.

A BLF payment must be traceable to the individual licence(s) to which it relates through submission of an online payment record or remittance advice (B79 form) along with a bank remittance detailing your payment.

A BLF payment must not include other types of licence fees, such as apparatus licence fees.

6.5 Uploading bank remittancesOnce you have transferred the funds to the ACMA you can upload a bank remittance as a supporting document for your payment record.

To upload a document:1. Go to the Documents tab.2. Type a brief description of the document in the description field.3. Click the Select button underneath the description field. This will open up a

window to allow you to navigate to the folder or drive where the bank remittance is stored on your computer or device. Select the relevant file and click Open.

4. Once the title of the file appears in the Documents tab, select the Upload files button. The document should then appear in the All uploaded documents list at the bottom of the tab.

6.6 What if I make an incorrect BLF payment?If you become aware that you have made an incorrect BLF payment, notify the Revenue Assurance Team immediately on (02) 6219 5355.

Under section 205C of the Broadcasting Services Act 1992, the ACMA will reconcile the amount of the BLF paid by the licensee with the information provided in the return.

If the ACMA calculates a BLF amount that is different to the amount paid by the licensee, the ACMA will provide a written notice to the licensee of the unpaid or overpaid amount. Overpaid amounts will be refunded. Penalties may apply in relation to unpaid licence fees. If you promptly notify the ACMA of an incorrect payment, this will be taken into consideration when determining whether to apply a penalty for underpaid licence fees.

acma | 41

Appendix A—Definitions of program typesThe following information is intended to provide guidance to commercial television broadcasting licensees on the completion of Schedule D—Program Inventory Movements (PIM) of the B18 activity statement. Please refer to the Broadcasting Services (Australian Content) Standard 2005 (the ACS), Children’s Television Standards 2009 (the CTS) and the Documentary Guidelines for further information on program types.

Australian adult dramaRefer to the definition of ‘Australian drama program’ contained in section 6 of the ACS.

Australian children’s dramaRefer to the definition of ‘Australian C Drama’ in CTS 17(1) and 17(2) of the CTS.

Australian children’s otherAn ‘Australian children’s other’ program is considered to be a program that:> satisfies the meaning of ‘Australian program’ in section 7 of the ACS> satisfies the meaning of ‘C program’ in CTS 5 of the CTS> does not satisfy the meaning of ‘Australian C drama’ in CTS 5 of the CTS.

Australian news and current affairs‘Current affairs’ programs are defined in clause 4.2 of the Commercial Television Industry Code of Practice 2010. ‘News’ programs are defined in the Documentary Guidelines available from the ACMA website.

For a ‘news’ or ‘current affairs’ program to be considered ‘Australian’, it must satisfy the meaning of ‘Australian program’ in section 7 of the ACS.

Australian documentariesRefer to the definition of ‘documentary program’ contained in section 6 of the ACS and the definition of ‘Australian program’ contained in section 7 of the ACS. Also refer to the Documentary Guidelines.

Australian sportA ‘sport’ program is ‘sports coverage’ as described in the Documentary Guidelines. For the program to be considered ‘Australian’ it must satisfy the definition of ‘Australian program’ contained in section 7 of the ACS.

Australian light entertainment—varietyLight entertainment variety shows are described in the Documentary Guidelines.

For a ‘light entertainment—variety’ program to be considered ‘Australian’ it must satisfy the definition of ‘Australian program’ in section 7 of the ACS.

42 | acma

Australian light entertainment—other‘Light entertainment—other’ programs are considered to be all ‘light entertainment’ programs that meet the description as set out in the Documentary Guidelines and which are not characterised as ‘light entertainment—variety’.

For ‘light entertainment—other’ programs to be considered ‘Australian’ they must satisfy the definition of ‘Australian program’ in section 7 of the ACS.

Australian other programming‘Australian other programming’ is considered to be all programs that satisfy the definition of ‘Australian program’ in section 7 of the ACS and which do not fit into any of the other ‘Australian’ program categories listed above.

Overseas dramaAn ‘overseas drama’ program is considered to be a program that:> does not satisfy the definition of ‘Australian program’ in section 7 of the ACS> satisfies the definition of ‘Australian drama program’ in section 6 of the ACS

(except for the requirement for it to be an ‘Australian program’).

Overseas otherAn ‘overseas other’ program is considered to be a program that does not satisfy:> the definition of ‘Australian program’ in section 7 of the ACS> the definition of ‘Australian drama program’ in section 6 of the ACS (except for the

requirement for it to be an ‘Australian program’).

acma | 43

Appendix B—Formula for calculation of radio licence feeThe following explains the basis of the calculation for the radio broadcasting licence fee when there is no change in return period end, as set out in section 6 of the Radio Licence Fees Act 1964.

Gross earnings for licence fee calculation(A)

Relevant percentage formula(B)

Licence fee payable(C)

(1) Less than $5,000,000

0.25 + (0.3 x A / 1,000,000) (A) x (B) = (C)

(2) At least $5,000,000 but less than $6,000,000

1.75 + [0.45 x (A - 5,000,000) / 1,000,000]

(A) x (B) = (C)

(3) At least $6,000,000 but less than $7,000,000

2.2 + [0.4 x (A - 6,000,000) / 1,000,000]

(A) x (B) = (C)

(4) At least $7,000,000 but less than $10,000,000

2.65 + [0.15 x (A - 7,000,000) / 1,000,000]

(A) x (B) = (C)

(5) At least $10,000,000

3.1 + [0.1 x (A - 10,000,000) / 1,000,000]Or3.25%, whichever is the lesser

(A) x (B) = (C)

Note: If your accounting period end has changed, refer to section 6A of the Radio Licence Fees Act 1964 for the formula to calculate your radio licence fee and advise the ACMA accordingly.

44 | acma

Appendix C—Formula for calculation of television licence feeThe following explains the basis of the calculation for the television broadcasting licence fee when there is no change in return period end, as set out in section 6 of the Television Licence Fees Act 1964.

Gross earnings for licence fee calculation(A)

Relevant percentage formula(B)

Licence fee payable(C)

(1) Less than $5,000,000 0.25 + (0.3 x A / 1,000,000) (A) x (B) = (C)

(2) At least $5,000,000 but less than $6,000,000

1.75 + [0.25 x (A - 5,000,000) / 1,000,000] (A) x (B) = (C)

(3) At least $6,000,000 but less than $7,000,000

2 + [0.2 x (A - 6,000,000) / 1,000,000] (A) x (B) = (C)

(4) At least $7,000,000 but less than $10,000,000

2.2 + [0.15 x (A - 7,000,000) / 1,000,000] (A) x (B) = (C)

(5) At least $10,000,000 but less than $20,000,000

2.65 + [0.055 x (A - 10,000,000) / 1,000,000] (A) x (B) = (C)

(6) At least $20,000,000 but less than $45,000,000

3.2 + [0.03 x (A - 20,000,000) / 1,000,000] (A) x (B) = (C)

(7) At least $45,000,000 but less than $75,000,000

3.95 + [0.015 x (A - 45,000,000) / 1,000,000] (A) x (B) = (C)

(8) At least 75,000,000 4.4 + [0.004 x (A - 75,000,000) / 1,000,000]OR4.5%, whichever is the lesser

(A) x (B) = (C)

Note: If your accounting period end has changed, refer to section 6A of the Television Licence Fees Act 1964 for the formula to calculate your television licence fee and advise the ACMA accordingly.

acma | 45