Who Is Responsible for NBN New Development Charge?

I have received a statement for my investment property which shows $300 NBN new development charge. This is a brand new property and it was not advertised in the listing that it comes with NBN. Is it my responsibility to bear this charge or the tenant responsible for it?

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  • +4
    • In particular

      Are you renting?
      If you’re renting and this NBN Co Non-Standard Installation fee applies, we recommend you request your landlord to reimburse you the $300 charge as it is a once off charge that only applies when you first connect your rented property to the nbn™ (the next tenant won’t have to pay for it which makes it a once off property cost).

      If your landlord (or real estate agent) is unwilling to reimburse you for this one-off charge, we recommend you contact and seek advise from your State or Territory consumer protection agency as depending on the law in your State or Territory, your landlord may be required to reimburse you.

      Visit the ACCC website on how to get help

      • as depending on the law in your State or Territory, your landlord may be required to reimburse you.

        Seems pretty equivocal.

  • +1

    You are as the owner.

    • *Tenant/person that is requesting the none essential service in Victoria at least.

  • +1

    The owner is always 100% responsible for the new development charge.

  • +1

    You are responsible for the $300 - and time to mention, make sure you check that the tenants leave behind the Network Termination Device (NTD) when they leave, they may take it accidentally thinking it's their modem!

  • Thanks everyone, will pay the charges

  • The charge is billed by NBNco as a government legislated charge to the service provider upon 1st connection,
    the service provider then onsets it to the end user, i.e the person who requested the internet connection.
    The service provider could absorb the cost, but they don't have to.

    It is a ONE OFF charge for the INITIAL connection, it will not be billed to any other end user in the future.
    This shows its a part of supplying services to the property and where its a rental, should be the landlords cost..

    • Can this cost be passed on to the developer?

      • No, it cant.
        The charge does not get placed until an end user requests a connection from a service provider, who then requests the connection from NBNco

  • you do but it's an expense so you can write it off in one way or another.

  • Many refuse but it’s the right thing to do as it’s obviously going to help with future tenants etc

  • Merged from nbn New Development Fee - Who Is Responsible on Rental Property in NSW?

    I am renting and when I tried to acquire NBN connection I got slapped with a $300 New Development Fee which the Landlord is refusing to reimburse it.

    Does anyone aware of any material that can be helpful in convincing my Landlord to pay for it in NSW?

    • -2

      Landlord is responsible as future tenants wont need to pay it.
      Put request in writing to your agent for reimbursement, if its denied take it to your local CAT
      As a landlord i can tell you it is 100% the landlords responsibility.

      NBN Co is looking into changing how this is charged so that property owners are billed direct but these changes have not yet been implemented.

      • Not a landlord, so just asking, does this still apply if the property already has a non-NBN internet connection (i.e. not a new development)?

        On one hand, property already has internet so landlord fulfilled duty and hence if tenant wants specific connection or higher speed then it's on them.

        On the other hand, it's a one-off fee that benefits the property itself and landlord would continue to have the functionality upgrade after tenant has left.


        • Has this exact situation at my Property in Perth.
          we did a subdivision and as such the property was removed from NBN until the division was completed.
          We built a unit at the rear of the home
          when this development was completed both the existing structure (A) and the new build (B) were considered "new developments" under NBN rules even though the front home had Cable and ADSL access.

          NBN required a NDF to be paid to connect both properties (as technically front house had a "new address" as it was now 36A as opposed to 36
          When the tenants of A contacted my agent to ask me to pay the fee i checked and was adamant it was not my issue and i said i would not pay.
          Tenant paid it, but took me to the tribunal. It was made very clear that its a Landlords responsibility and i paid it.
          After this incident i contacted relevant authorities of each state where i had rentals and it was made clear that it would be my responsibility to pay

          I also spoke with a member who works for VCAT and he said that in every single instance where a landlord is brought before the tribunal regarding NDF the landlord is made to pay, In some states it is still a grey area but in others (VIC, NSW and WA) its clear cut. NDF is a owners expense and refusal to pay ends up costing landlord time and money and in the end they have to pay anyways.

          No different from the old Telecom/Telstra situation, Telstra can not refuse anyone a phone but if a phone line is not present on property owner is liable for the costs

          Once NBN changes the way they charge the NDF it will be a lot more clear cut. Registered owners will get the bill directly

    • As a landlord I can tell you it is NOT the landlords' responsibility UNLESS your lease says the internet/phone is available.

      You can certainly ask the landlord to pay, and some will pay it. Some will share the cost with you. But they are not required to pay.

      • -2

        Actually Internet has been classified as an essential service in many states, including NSW and its on way to be classified as such nationally , so IT IS the Landlords responsibility.
        If OP takes landlord to NCAT the landlord will be ordered to pay and will have wasted their time.
        100% of the cases brought before the relevant authority end up with Landlord paying NDF, this is why NBN is going to implement changes so that property owner will be billed directly.

        Sounds like you are one of those landlords who does not think their tenants have any rights
        You as a property owner are required to connect all essential services, while the tenant is responsible for connection fees (for initiating an account) the landlord is required to pay costs related to connecting the physical service to the residence. So the NDF is your responsibility.

        I have multiple properties in 3 Australian states, every single state has the same guidelines, Landlord / property owner is liable for NDF

        • -1

          Please link when it was made an essential service , and where NBN was the require method to provide this service. as from my understanding internet is not a essential service.

        • -1


          I'm going to hazard a guess that the tenants union would be considered an authority on the matter and here's a quote from their fact sheet

          "Who pays for telephone, television and internet connections?
          A landlord is not currently required to provide telephone, television or internet connections with the premises."

          "New connections
          If you want a new connection installed you must have the landlord’s consent. Installation of a carriage service for connecting a phone line or internet is an alteration that is of a ‘minor nature’, as prescribed by the Regulations. This means the landlord/agent cannot unreasonably refuse consent (see the NSW Fair Trading factsheet ‘Asking to make an alteration’ at fairtrading.nsw.gov.au).

          You will have to pay for installation (although the landlord may agree to pay or contribute to the cost) and any repairs to connections you have installed"

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