Everything You Need to Know About Business 1300 Number Right of Use Asset

What is a Right of Use Asset?

In Australia, a right-of-use asset refers to an asset that a lessee (the user) has the right to use under a lease agreement with a lessor (the owner). This concept primarily arises from accounting standards (specifically AASB 16), which require lessees to recognise asset and lease liability for leases with terms longer than 12 months on their balance sheets.

The main features of a right-of-use asset in Australia include:

Control over use: The lessee gains control over the use of the leased asset for a specified period, typically under a lease agreement.

Recognition: The asset is recognised on the lessee’s balance sheet as an asset.

Amortisation: The asset is amortised over the lease term, reflecting the gradual reduction in value or benefit obtained from using the asset and the lease liability held by the lessee.

Measurement: Initially measured at the present value of lease payments, adjusted for any lease incentives received and initial direct costs incurred.

A right-of-use asset under Australian accounting standards ensures transparency in reporting lease obligations and assets, for accuracy and consistency of financial statements across entities.

What is a Right of Use Asset For 1300 Business Phone Numbers?

1300 business phone numbers in Australia are right-of-use assets when leased by service providers, like Telcoworks. Service providers lease 1300 numbers from the ACMA and allocate them to businesses to use as professional phone numbers. This allows businesses to use numbers without the need to own them, while also remaining compliant with accounting standards and transparent financial reporting.

What Are the Rules For 1300 Numbers Right of Use?

The rules for 1300 numbers right of use and lease liability are dictated by multiple different telecommunications policies and industry codes. There are general rules that relate to how service providers can allocate, transfer or surrender 1300 phone numbers, as well as rules relating to:

Porting a number: These rules outline that telco providers must port numbers to other providers when requested, without delay or refusal across mobiles and local numbers.

Giving information to the IPND: Service providers must give correct information regarding public business numbers to the Integrated Public Number Database (IPND) manager, Telstra.

Paying the yearly numbering charge: Service providers must pay a fee each year to the ACMA for the numbers they use.

We have provided a brief outline of some key rules for 1300 numbers right of use. For a comprehensive view of the rules of business number right-of-use, visit the ACMA phone number rule guide, which provides a complete breakdown of the rules and links to the relevant policies and codes.

What Happens When 1300 Numbers Right of Use Rules Are Broken?

Breaking 1300 number right of use rules can have serious consequences for telecommunications providers and businesses. As outlined by the ACMA, their actions for rule breaches can include:

Issuing a formal warning
Giving a penalty
Taking legal action

The consequences of rule breaches should not be taken lightly. In 2021, Telstra paid a penalty of 1.5 million dollars to ACMA for violating phone number porting requirements when they refused to port local numbers of customers who decided to change providers.

If you do not want to face substantial fines for your business, maintaining compliance with right-of-use rules is a must.

FAQs

What is a 1300 Number?

1300 numbers act as a professional national contact point for businesses. When calling a 1300 number from an Australian landline, callers are charged the standard local call rate. Higher call rates apply when dialling from a mobile phone.

What is an Inbound Number?

Inbound numbers are business phone numbers that allow businesses to control incoming calls to suit their customer communication needs.

Who is ACMA?

The ACMA is a statutory authority under the Australian government that holds responsibility for regulating and overseeing communications and media activities throughout the country. This includes setting and enforcing rules that govern telecommunications sectors and ensuring fair practices.