The Australian Broadcasting Corporation (ABC) and the Special Broadcasting Service Corporation (SBS) will be subject to a one per cent reduction in base funding ($43.5 million over four years). Norton Rose Fulbright partner Martyn Taylor considers that "this one per cent reduction in funding is controversial, but is less severe than many commentators had expected". He also notes that the ABC and SBS will remain exempt from the so-called 'efficiency dividend' that imposes budgetary reductions on other government entities.

However, the budget confirms that the government's contract with the ABC for the Australia Network will be terminated. The Australia Network has been Australia's international television broadcasting service and has been supplied on a 24/7 basis across the Asia-Pacific. The Australia Network has to date been run by the ABC under a 10 year contract.

The budget also identifies that the Telecommunications Universal Service Management Agency (TUSMA) will be dissolved and its functions will be transferred to the Department of Communications. TUSMA was an independent entity established in 2012 to manage the allocation of universal service funding and the ongoing delivery of universal service obligations for voice-only and payphone services in the context of the rollout of the National Broadband Network. The intent of this measure is to realise administrative synergies.

The government will also provide $100 million over four years to improve the coverage and competition in the provision of terrestrial mobile voice and wireless broadband services in regional areas of Australia. Both allocations of funding meet election commitments.

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