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Understanding the ACT Government Utilities Tax Charge
In 2007 the ACT Government imposed a Utilities (Network Facilities) Tax on the infrastructure of utility companies, including Telstra. The tax is applied to water, electricity and telecommunications infrastructure on a per kilometre basis and is over-and-above the ordinary costs Telstra incurs to provide telecommunications services. The rate is calculated each year by the ACT Government, and applies to infrastructure in the ACT Government area, including Jervis Bay.
We charge our customers an amount, called the ACT Government Utilities (Network Facilities) Tax Charge, to partially recover our cost resulting from this Tax. It is important to note that this charge is from Telstra and not the ACT Government.
From 1 April 2018 this Charge will increase from $3.49 (including GST) per month to $3.66 (including GST) per month for our Residential customers. Our business customers are charged a one-off annual charge which is based on the number of eligible fixed line services that they have with Telstra.
Number of eligible SIOs
Annual Charge to apply to Telstra Business customers from April 2018 GST Inc 1
1501 services & above
The charge will appear on your bill as 'ACT Government Utilities Tax Charge'.
Why has the ACT Tax Charge applied by Telstra increased this year?
This charge has increased because the per kilometre rate set by the ACT Government for utilities infrastructure has increased.
Which kinds of services are affected?
Our charge applies to our home and business fixed line services, excluding, HomeLine Part and a number of business fixed line services. You won't be charged if you only have NBN, Foxtel from Telstra, and/or Cable Broadband services.
Can I avoid paying the charge?
If you have an eligible Telstra fixed line phone service within the defined ACT boundaries or the Jervis Bay area listed below (by postcode), then you'll have to pay the charge.
0200 Australian National University
2609 Canberra Airport
2610 Canberra Business Centre
2610 Canberra MC
2600 Capital Hill
2601 City Centre
2608 Civic Square
2600 Deakin West
2903 Erindale Centre
2913 Ginninderra Village
2540 HMAS Creswell
2600 HMAS Harman
2905 Isabella Plains
2614 Jamison Centre
2540 Jervis Bay
2902 Kambah Village
2615 Kippax Centre
2620 Oaks Estate
2620 Paddys River
2603 Red Hill
2901 Tuggeranong Distribution Centre
2617 University of Canberra
2611 Uriarra Village
2611 Weston Creek
2540 Wreck Bay
Do other utility and telecommunication providers pay this tax?
Yes. The tax applies to the amount of physical infrastructure (in kilometres) installed by utility providers servicing ACT households and businesses. Each provider independently decides whether to recover the cost of the tax from customers.
To find out more about the ACT Government Utilities (Network Facilities) Tax imposed on utility suppliers such as Telstra, contact the ACT Government Revenue Office on 02 6207 0028 or check their website.
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