2025 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. The Act was designed to address the need for a transparent and structured method of recovering costs associated with the regulatory functions and powers of the Australian Communications and Media Authority (ACMA) and the Australian Competition and Consumer Commission (ACCC) in the telecommunications sector. The Act ensures that the total charges imposed on carrier licences do not exceed the sum of specific proportions of the costs attributable to the regulatory functions of these authorities, among other factors. The policy objective of the Act is to ensure that the costs associated with the regulation of the telecommunications sector are fairly and transparently allocated to the telecommunications carriers. The Telecommunications (Carrier Licence Charges) Act 1997 was enacted by the Parliament of Australia, reflecting a commitment to a balanced and equitable approach to regulatory cost recovery within the telecommunications industry. The 2025 Determination under paragraph 15(1)(b) of the Act, issued by the ACCC, specifies the proportion of the ACCC's costs for the 2023-24 financial year attributable to its telecommunications functions and powers, ensuring compliance with the legislative framework established by the Act. This Determination follows a public consultation process conducted by the ACMA on behalf of the ACCC, aimed at providing transparency and an opportunity for industry feedback, although no feedback was received for this particular Determination.

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 establishes the framework for imposing annual charges on these carriers, ensuring that the total charges do not exceed the calculated costs attributable to telecommunications functions and powers of the Australian Communications and Media Authority (ACMA) and the Australian Competition and Consumer Commission (ACCC), as well as other specified costs. The Act's provisions are applicable on a national level, covering all telecommunications carriers operating within Australia. This Determination, issued under paragraph 15(1)(b) of the Act, specifies the amount of the ACCC's costs for the 2023-24 financial year attributable to its telecommunications functions and powers, which is $13,319,393. This amount includes costs related to the Measuring Broadband Australia program, which totals $1,837,036. The ACMA, on behalf of the ACCC, conducted a public consultation to gather feedback from industry on the proposed charges, but no feedback was received.

Key Provisions

The Telecommunications (Carrier Licence Charges) Act 1997 (the Act) lays out the framework for imposing annual charges on carrier licences held by telecommunications carriers under the Telecommunications Act 1997 (subsection 15(1)). Specifically, this legislation mandates that the total charges levied on carrier licences in force at the beginning of a financial year must not exceed the sum of several determined amounts, including the proportion of the Australian Communications and Media Authority's (ACMA) costs for the preceding financial year attributable to telecommunications functions and powers (subsection 15(1)(a)), the proportion of the Australian Competition and Consumer Commission's (ACCC) costs for the same period (subsection 15(1)(b)), the proportion of the Commonwealth's contribution to the International Telecommunication Union's budget for the relevant calendar year (subsection 15(1)(c)), amounts paid under section 136C of the Telecommunications Act 1997 during the preceding financial year (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 (subsection 15(1)(d)). The Act imposes specific obligations on the ACMA and the ACCC to determine these proportions through written instruments. For the ACCC, 'cost' is defined as an amount treated as a cost according to accrual-based accounting principles (paragraph 15(4)(b)). For the 2023-24 financial year, the ACCC's costs were calculated under these principles, and the Determination specifies that $13,319,393 is the amount attributable to the ACCC's telecommunications functions and powers. This amount includes $1,837,036 related to the costs of the ACCC's Measuring Broadband Australia program. Additionally, the ACMA, on behalf of the ACCC, conducted a public consultation to gather feedback on the proposed charges from carriers over a four-week period from 15 August 2025 to 12 September 2025. No feedback was received from the industry during this consultation period. There are no explicit offences, penalties, or civil/criminal consequences for breach mentioned in the Act regarding the determination of these charges. However, the legislative instrument made under subsection 15(1) is subject to the requirements of the Legislation Act 2003, which may include processes for review, objection, and amendment if necessary. The Act's focus is on ensuring a transparent and accountable process for determining the charges levied on telecommunications carriers, rather than on punitive measures for non-compliance.