2022 Determination under paragraph 15(1)(b)

Overview

The Telecommunications (Carrier Licence Charges) Act 1997 was enacted to establish a formal process for imposing annual charges on carrier licences held by telecommunications carriers under the Telecommunications Act 1997. This Act was introduced to address the need for a structured and transparent method of determining the charges that telecommunications carriers must pay, ensuring that these charges are based on the costs attributable to the regulatory functions of the Australian Communications and Media Authority and the Australian Competition and Consumer Commission. The Act is administered by the Parliament of Australia, with a policy objective of ensuring that the charges are fair and justifiable based on the specific functions and powers related to telecommunications. The 2022 determination under the Act, issued by the Australian Competition and Consumer Commission, specifies the proportion of the ACCC's costs for the 2019-20 financial year attributable to telecommunications functions and powers, amounting to $12,623,225, and includes a consultation process to gather feedback from relevant stakeholders.

Scope and Application

The Telecommunications (Carrier Licence Charges) Act 1997 applies to telecommunications carriers who hold carrier licences under the Telecommunications Act 1997. The Act sets out the method for imposing annual charges on these licences to cover the costs of the Australian Communications and Media Authority and the Australian Competition and Consumer Commission in relation to their telecommunications functions and powers. The Act also covers costs associated with the Commonwealth's contribution to the International Telecommunication Union budget, grants under the Telecommunications Act 1997, and specific programs like the Measuring Broadband Australia initiative. This legislation has a national reach within Australia, governing the financial obligations of telecommunications carriers across the Commonwealth. The Act allows for the imposition of charges through subordinate instruments, ensuring that the financial burden on carriers is directly tied to the costs incurred by relevant authorities. There are no exclusions or exemptions mentioned in the text, indicating that all telecommunications carriers with applicable licences are subject to these charges.

Key Provisions

The Telecommunications (Carrier Licence Charges) Act 1997 (the Act) outlines the framework for imposing annual charges on carrier licences held by telecommunications carriers under the Telecommunications Act 1997. Specifically, section 15(1) of the Act mandates that the total charges for carrier licences in force at the beginning of a financial year cannot surpass the sum of several components. These include the proportion of the Australian Communications and Media Authority's (ACMA) costs for the preceding financial year attributable to its telecommunications functions and powers, as determined by a written instrument (subsection 15(1)(a)); the proportion of the Australian Competition and Consumer Commission's (ACCC) costs for the preceding financial year attributable to its telecommunications functions and powers, as determined by a written instrument (subsection 15(1)(b)); the proportion of the Commonwealth's contribution to the budget of the International Telecommunication Union for the calendar year in which the financial year begins that is to be recovered from carriers, as determined by a written instrument from the ACMA (subsection 15(1)(c)); the sum of the amounts paid under section 136C of the Telecommunications Act 1997 during the preceding financial year, as determined by a written instrument from the ACMA (subsection 15(1)(ca)); and the estimated total amount of grants likely to be made during the financial year under section 593 of the Telecommunications Act 1997, as determined in a written instrument by the Minister (subsection 15(1)(d)). In line with subsection 15(4)(b), the term “cost” is defined in relation to the ACCC as an amount treated as a cost of the ACCC in accordance with accrual-based accounting principles. The ACCC’s costs for the 2019-20 financial year have been calculated using these principles. The determination made under subsection 15(1) of the Act is considered a legislative instrument under the Legislation Act 2003. In accordance with these provisions, the recent determination under paragraph 15(1)(b) specifies that $12,623,225 is the amount attributed to the ACCC’s telecommunications functions and powers for the 2019-20 financial year, with $1,599,297 of this amount relating to costs incurred on the ACCC’s Measuring Broadband Australia program. The Act imposes obligations on several entities, including the ACMA, ACCC, and the Minister, to ensure that the charges imposed on carrier licences are calculated accurately and fairly. The ACMA is responsible for determining the proportion of its costs attributable to telecommunications functions and powers, and for calculating the proportion of the Commonwealth's contribution to the budget of the International Telecommunication Union. The ACCC must determine the proportion of its costs attributable to telecommunications functions and powers, and the Minister must determine the estimated total amount of grants likely to be made under section 593 of the Telecommunications Act 1997. Each of these entities must issue a written instrument to determine these amounts. The Act also mandates that the ACMA, on behalf of the ACCC, conduct a public consultation period for carriers, allowing them to review and provide feedback on the determination. Failure to comply with the Act may result in civil or criminal consequences. The Act does not explicitly state penalties for non-compliance, but breaches of similar legislation typically result in fines or other legal actions. For instance, under the Telecommunications Act 1997, failure to comply with a direction from the ACMA can result in a fine of up to $22,200 for individuals and $111,000 for corporations. Additionally, serious breaches of the Act may lead to criminal charges, potentially resulting in imprisonment or further fines, depending on the severity of the breach and the discretion of the court.