Australian Communications and Media Authority (Annual Carrier Licence Charge) Direction 2013

Administered by Department of Communications and the Arts

Legislation au F2013L01300 Not in force Legislative Instrument

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EXPLANATORY STATEMENT

 

Australian Communications and Media Authority Act 2005

 

Australian Communications and Media Authority (Annual Carrier Licence Charge) Direction 2013

 

Issued by the Authority of the Minister for Broadband, Communications and the Digital Economy

 

Authority

 

The Australian Communications and Media Authority (Annual Carrier Licence Charge) Direction 2013 (the Direction) is made by the Minister for Broadband, Communications and the Digital Economy (the Minister) under section 14 of the Australian Communications and Media Authority Act 2005 (the ACMA Act).  Section 14 of the ACMA Act provides that the Minister may give written directions to the Australian Communications and Media Authority (ACMA) in relation to the performance of its functions and the exercise of its powers.

 

Purpose

 

The purpose of this Direction is to direct the ACMA to make determinations under subsection 14(1) of the Telecommunications (Carrier Licence Charges) Act 1997 (Carrier Licence Charges Act) which have the effect of removing the annual carrier licence charge for a licence held by a carrier that was a ‘non-participating person’ for the eligible revenue period immediately preceding the relevant financial year.

Background

Annual Carrier Licencing

 

Under section 13 of the Carrier Licence Charges Act, a holder of a telecommunications carrier licence is required to pay annual carrier licence charges.  The annual carrier licence charge recovers the costs of regulating the telecommunications industry.  The amount of the annual carrier licence charge is annually set by the ACMA in a written determination, under section 14 of the Carrier Licence Charges Act.

 

Previous legislative framework

 

Prior to the enactment of the Telecommunications Universal Service Management Agency Act 2012 (the TUSMA Act), Parts 2 and 3 of the Telecommunications (Consumer Protection and Service Standards) Act 1999 (the TCPSS Act) set out the levy arrangements for the Universal Service Obligation (USO) and the National Relay Service (NRS) levies.  Participating persons were required to:

  • contribute to the USO and NRS levies under the TCPSS Act; and
  • pay annual carrier licence charges under the Carrier Licence Charges Act.  

 

The Telecommunications (Participating Persons) Determination 2011 (No. 1) (the 2011 PP Determination) exempted certain carriers from being ‘participating persons’ under section 20A of the TCPSS Act.  These exempted carriers were classified as ‘USO non-participating persons. 

 

Under the Australian Communications and Media Authority (Annual Carrier Licence Charge) Direction 2011 (the 2011 ACMA Direction) the Minister directed the ACMA to remove the annual carrier licence charge for a licence held by a carrier that were classified as a ‘USO non-participating person’ under the 2011 PP Determination.  This Direction applied to the 2010-2011 eligible revenue period onwards.      

 

2010-2011 eligible revenue period

 

As a consequence, the ACMA made, under section 14 of the Carrier Licence Charges Act, the Telecommunications (Annual Carrier Licence Charge) Determination 2012. This Determination provided that carriers that were USO non-participating persons in the 2010-2011 eligible revenue period were exempt from paying annual carrier licence charges for the 2011-2012 financial year.  

 

2011-2012 eligible revenue period

 

Neither the 2011 ACMA Direction nor the 2011 PP Determination have been repealed.  The 2011 PP Determination applies in relation to the eligible revenue period for the 20102011 financial year and subsequent eligible revenue periods.  However, as this Determination relies on the definition of eligible revenue period in the TCPSS Act, the last eligible revenue period the Determination applies to is the 2011-2012 eligible revenue period.  

 

Given the above operation of the 2011 ACMA Direction and the 2011 PP Determination, the Telecommunications (Annual Carrier Licence Charge) Determination 2013 (made by the ACMA under section 14 of the Carrier Licence Charges Act) provides that carriers that were USO non-participating persons in the 2011-2012 eligible revenue period are exempt from paying annual carrier licence charges in the 2012-2013 financial year. 

 

2012-2013 eligible revenue period and future eligible revenue periods

 

The TUSMA Act consolidated the previous USO and NRS levies into a single levy.  Many of the levy provisions in Part 2 of the TCPSS Act have been mirrored in the TUSMA Act.  In particular, a ‘participating person’ (defined in section 92 of the TUSMA Act) for an eligible revenue period (defined in section 4 of the TUSMA Act) is liable to pay the levy for the subsequent financial year (i.e. the eligible levy period’, also defined in section 4 of the TUSMA Act). 

 

The Telecommunications (Participating Persons) Determination 2013 (No. 2) (the Participating Persons Determination) provides that carriers that satisfy the following criteria are non-participating persons under the TUSMA Act for the relevant eligible revenue period:

  • have an initial sales revenue, gross telecommunications sales revenue or eligible revenue of less than $25 million; and
  • lodge an eligible statutory declaration with the ACMA within the specified timeframe. 

 

The purpose of this Direction is to direct the ACMA to provide that a ‘non-participating person’ under the Participating Persons Determination, for the eligible revenue period immediately preceding a financial year, will not be liable to pay an annual carrier licence charge for that financial year.  For example, Carrier A is a non-participating person for the 2012-2013 eligible revenue period.  Applying this Direction, the determination made by the ACMA under section 14 of the Carrier Licence Charge Act would provide that Carrier A is not liable to pay an annual carrier licence charge for the 2013-2014 financial year.

 

This Direction applies to the 2012-13 eligible revenue period and future eligible revenue periods.

 

The Direction is a legislative instrument for the purposes of the Legislative Instruments Act 2003 (LI Act).  However, as a result of item 41 of the table to subsection 44(2) of the LI Act, the Determination is not subject to disallowance.

 

Consultation

 

The ACMA has been consulted in relation to the making of this Direction.

 

An exposure draft of the Direction was released to carriers on 14 May 2013 for a two week consultation period ending Tuesday 28 May 2013. Two submissions were received, neither of which raised any substantive issues regarding the drafting of the instrument.

 

Regulatory impact

The Office of Best Practice Regulation (the OBPR) has agreed that the regulatory changes arising from the Determination are machinery in nature and that a Regulation Impact Statement is not required.

 

Notes on sections

Section 1 - Name of Direction

Section 1 provides that the name of the Direction is the Australian Communications and Media Authority (Annual Carrier Licence Charge) Direction 2013.   

Section 2 – Commencement

Section 2 provides that the Direction commences on the later of the commencement of the Participating Persons Determination or the day after the Direction is registered on the Federal Register of Legislative Instruments.  The Direction can only commence after the Participating Persons Determination, as the Direction relies on the concept of a ‘non-participating person’, as defined in the Participating Persons Determination.

Section 3 Definitions

Section 3 sets out the key definitions used in the Direction. 

Section 4 Direction

Section 4 directs the ACMA to make such determinations as necessary under subsection 14(1) of the Carrier Licence Charges Act that have the effect of imposing a nil annual carrier licence charge for a relevant financial year on ‘nonparticipating persons’ (as defined in the Participating Persons Determination). 

 

The ACMA must have regard to the Direction when making a determination under subsection 14(1) of the Carrier Licence Charges Act in relation to the 2013-2014 financial year and beyond.

Overview

The Australian Communications and Media Authority (Annual Carrier Licence Charge) Direction 2013 was enacted to address the issue of annual carrier licence charges for certain telecommunications carriers. This legislative instrument was issued by the Minister for Broadband, Communications and the Digital Economy under section 14 of the Australian Communications and Media Authority Act 2005. The purpose of this Direction is to exempt certain carriers from paying annual carrier licence charges if they are classified as ‘non-participating persons’ for the eligible revenue period immediately preceding the relevant financial year. This exemption is contingent on the carriers meeting specific criteria, such as having an initial sales revenue, gross telecommunications sales revenue, or eligible revenue of less than $25 million and lodging an eligible statutory declaration with the ACMA within the specified timeframe. The Direction applies to the 2012-2013 eligible revenue period and future eligible revenue periods, aiming to provide relief to smaller carriers by removing the burden of annual carrier licence charges. The Direction was made in consultation with the ACMA, and an exposure draft was released for public comment in May 2013. The Office of Best Practice Regulation determined that the regulatory changes arising from the Direction are of a machinery nature and do not require a Regulation Impact Statement. The Direction, which is a legislative instrument under the Legislative Instruments Act 2003, is not subject to disallowance due to specific provisions in that Act.

Scope and Application

The Australian Communications and Media Authority (Annual Carrier Licence Charge) Direction 2013 applies to carriers of telecommunications services that are classified as 'non-participating persons' for an eligible revenue period under the Telecommunications (Participating Persons) Determination 2013 (No. 2). The Direction mandates the Australian Communications and Media Authority (ACMA) to exempt these 'non-participating persons' from paying annual carrier licence charges for the financial year following their designated eligible revenue period. This Direction is issued under the authority of the Minister for Broadband, Communications and the Digital Economy, pursuant to section 14 of the Australian Communications and Media Authority Act 2005. It operates on a national level, impacting all telecommunications carriers across Australia who meet the specified criteria in the Participating Persons Determination. Notably, this Direction does not apply retroactively but instead governs future eligible revenue periods, starting from the 2012-2013 financial year onwards. Additionally, the Direction extends its applicability through the creation of subordinate instruments, such as the Telecommunications (Annual Carrier Licence Charge) Determination 2013, which is made by the ACMA under section 14 of the Telecommunications (Carrier Licence Charges) Act 1997. This instrument ensures that the exemption from annual carrier licence charges is implemented as per the Direction's stipulations.

Key Provisions

The Australian Communications and Media Authority (Annual Carrier Licence Charge) Direction 2013 (section 4) primarily directs the ACMA to make determinations under subsection 14(1) of the Telecommunications (Carrier Licence Charges) Act 1997, which effectively impose a nil annual carrier licence charge for a relevant financial year on carriers that were classified as 'non-participating persons' for the eligible revenue period immediately preceding that financial year. This applies to the 2012-2013 eligible revenue period and future periods. This requirement is predicated on the definition of a 'non-participating person' as outlined in the Telecommunications (Participating Persons) Determination 2013 (No. 2). The Act imposes several obligations on the ACMA. It mandates that the ACMA consider this Direction when making any determination under subsection 14(1) of the Carrier Licence Charges Act concerning the 2013-2014 financial year and subsequent years. The ACMA must ensure that any determination it makes aligns with the provisions of this Direction, specifically in terms of exempting 'non-participating persons' from annual carrier licence charges. Furthermore, the ACMA must adhere to the criteria set out in the Participating Persons Determination 2013 (No. 2) to correctly identify which carriers qualify as 'non-participating persons'. This includes verifying that these carriers have an initial sales revenue, gross telecommunications sales revenue, or eligible revenue of less than $25 million and that they have lodged an eligible statutory declaration within the specified timeframe. The Direction does not explicitly detail specific offences, penalties, or consequences for breaches. However, any failure by the ACMA to adhere to the provisions of this Direction when making determinations under the Carrier Licence Charges Act could result in legal challenges or non-compliance with statutory obligations. Such non-compliance could potentially lead to financial penalties or other legal repercussions for the ACMA, as it would be seen as not properly executing its functions under the Carrier Licence Charges Act. The exact nature and severity of these consequences would depend on subsequent legislative provisions and judicial interpretations.

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Telecommunications Law
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Direction
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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.