Explanatory Statement
Issued by the authority of the Minister for Communications
Telecommunications Act 1997
Telecommunications (Regional Broadband Scheme) (Base and Administrative Cost Components) Determination 2025
Authority
This Determination is made under paragraphs 12(4)(b) and 16(8)(f) of the Telecommunications (Regional Broadband Scheme) Charge Act 2020 (the Act).
Purpose
The purpose of this Determination is to specify the amounts of the base component and the administrative cost component for each month in the sixth eligible financial year (financial year 2025-26) under the Regional Broadband Scheme (RBS). These components are used to calculate the total charges payable by carriers under the Act for the sixth eligible financial year. In future years, the amounts will be CPI-adjusted in line with 12(2)(c) and 16(6)(c).
Background
The RBS was established to ensure sustainable funding for the delivery of broadband services in regional Australia. Under the Act, carriers are required to pay on an annual basis, a monthly charge for each eligible year, which includes a base component and an administrative cost component. The charge applies for each chargeable premises connected to the carrier’s telecommunication network that has an active fixed line that provides a designated broadband service in relation to each month during an eligible financial year (some concessions and exemptions apply).
The amount of the RBS charge was initially set in the Act and is CPI-adjusted each year; however, the Minister is empowered to vary the base component and administrative cost component of the RBS. In doing so, the Minister must have regard to the most recent advice that the ACCC has given to the Minister regarding whether the base components are sufficient to meet the reasonable net costs associated with NBN Co’s fixed wireless and satellite networks and the administrative costs of the Scheme. The Minister may also have regard to any other relevant matters. The Minister must also ensure the total charge amount is consistent with the combined component legislative cap set out in section 17A of the Act.
Under sections 13 and 17 of the Act, the ACCC is required to provide the Minister with advice on the base component and administrative cost component of the RBS at least once during the five-year period from commencement of the legislation, and then each subsequent 5 years.
Details of the Determination
For the purposes of paragraph 12(2)(d) of the Act, the Determination specifies the base component amount for each month in the sixth eligible financial year to be $2.1706.
For the purposes of paragraph 16(6)(d) of the Act, the Determination specified that administration cost component for each month in the sixth eligible financial year is $0.00665.
Further details are set out in Attachment B.
Commencement
This Determination is a legislative instrument for the purpose of the Legislation Act 2003. However, it is subject to a special disallowance provision. This Determination commences in accordance with section 19 of the Act.
Consultation
The ACCC undertook public consultation as part of preparing independent advice to the Minister. This consultation sought public input on the ACCC’s proposed position on several threshold and other issues regarding the proposed approach to calculating proposed RBS charge amounts for the purposes of advising the Minister. The ACCC’s consultation period on the RBS charge amounts opened on 15 November 2024 and closed on 13 December 2024. As this was the appropriate point at which to seek public views, further public consultation was not required.
Under the Act, the ACCC is required to review the base and administrative cost components at least once every five years to ensure they are sufficient to meet the reasonable net costs associated with NBN Co’s fixed wireless and satellite networks and the administrative costs of the Scheme. The ACCC may also have regard to any other matters it considers relevant.
In providing its advice, the ACCC undertook modelling with financial information provided by NBN Co and shortened the modelling period in line with its proposed approach during consultation. The ACCC also took particular account of the in-force NBN Special Access Undertaking (SAU), which regulates NBN Co prices and sets service standards, among other things.
The ACCC recommended the following component amounts for the RBS for the 2025‑26 to 2029‑30 period, with the base component covering net losses during the period of $2.925 billion (2025 dollars):
Component | Amount recommended per chargeable premises |
Base component | $2.17 |
Administrative cost component | $0.00665 |
The ACCC made no further recommendations in its advice.
Financial Impact
The amounts determined are based on updated cost modelling and administrative expense forecasts. In line with the arrangements for the RBS, base component funds are passed on to NBN Co as currently the only eligible funding recipient. The reduction in the base component charge amount will reduce the small proportion of the total RBS base component amount received by NBN Co from other carriers (NBN Co provides over 95 per cent of the RBS base component funds itself).
During the first five eligible financial years, the Act set the administrative cost component, with this amount varying from $0.01 per chargeable premises to $0.00 per chargeable premises. Based on the ACCC’s consideration of projected costs to administer and collect the RBS levy, the ACCC’s recommended amount for the administrative cost component will have a minor impact on carriers which will be significantly outweighed by the reduction in the base component charge amount.
Regulatory Impact Statement
Detailed analysis is not required under the Australian Government's Policy Impact Analysis Framework for this Determination as it is of a minor or machinery nature and does not substantially alter existing arrangements.
Attachment A
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Telecommunications (Regional Broadband Scheme) (Base and Administrative Cost Components) Determination 2025
This legislative instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
Overview of the Legislative Instrument
The Determination sets the monthly amounts for the base component and administrative cost component (comprising the RBS Charge) payable by carriers under the Telecommunications (Regional Broadband Scheme) Charge Act 2020 for the sixth eligible financial year. In future years, the amounts will be CPI-adjusted in line with 12(2)(c) and 16(6)(c). These amounts contribute to the funding of broadband services in regional Australia.
Human Rights Implications
This instrument does not engage any of the applicable human rights or freedoms. It is a determination that facilitates the operation of an existing statutory scheme. The instrument does not affect individuals directly and does not impose any limitations on human rights.
Conclusion
This legislative instrument is compatible with human rights as it does not raise any human rights issues.
Attachment B Detailed notes
Detail of the Telecommunications (Regional Broadband Scheme) (Base and Administrative Cost Components) Determination 2025
Section 1 – Name
This section provides that the name of the Determination.
Section 2 – Commencement
This section provides for when the Determination commences. It will commence in accordance with section 19 of the Telecommunications (Regional Broadband Scheme) Charge Act 2020 (the Act).
Subsections 19(2) and (3A) set out a modified process for disallowance of determinations under the Act.
If neither House of Parliament passes such a resolution, the determination takes effect on the day immediately after the last day upon which such a resolution could have been passed if it were assumed that notice of a motion to disallow the determination was given in each House on the last day of the 15 sitting day period of that House.
If a disallowance motion in respect of the instrument has been given within time, and it is either withdrawn or disposed of within the 15 sitting days after the giving of the notice, the instrument will commence after that time.
However, if a notice if disallowance is given within time and the motion is not withdrawn or called on, or the motion is called on but not disposed of within 15 sitting days, the Determination is deemed to be disallowed under subsection 19(3A), and the determination will not take effect.
Section 3 – Authority
This section states that the Direction is made under paragraphs 12(4)(b) and 16(8)(f) of the Telecommunications (Regional Broadband Scheme) Charge Act 2020 (the Act).
Section 4 – Definitions
This section sets out definition for the terms ‘Act’ as used in the Determination.
The note to this section informs the reader that a number of expressions used in the Determination are defined in section 7 of the Act. The expressions are listed.
Section 5 – Determination of base component for each month in the sixth eligible financial year
This section determined the amount of $2.1706 for each of the months in the sixth eligible financial year.
Section 6 – Determination of administrative cost component for each month in the sixth eligible financial year
This section determines the amount of $0.00665 for each of the months in the sixth eligible financial year.