EXPLANATORY STATEMENT
Telecommunications (Carrier Licence Charges) Act 1997
Determination under Paragraph 15(1)(b) No. 1 of 2017
Issued by the Australian Competition & Consumer Commission
Legislative Provisions
The Telecommunications (Carrier Licence Charges) Act 1997 (the Act) sets out the method of calculating annual charges that apply to the carrier licences held by telecommunications carriers. Subsection 15(1) of the Act provides that the total of charges that are imposed on carrier licences in force at the beginning of a financial year must not exceed the sum of:
a) the amount determined, by a written instrument made by the ACMA, to be the proportion of the ACMA's costs for the immediately preceding financial year that is attributable to the ACMA's telecommunications functions and powers; and
b) the amount determined, by a written instrument made by the ACCC, to be the proportion of the ACCC's costs for the immediately preceding financial year that is attributable to the ACCC's telecommunications functions and powers; and
c) the amount determined, by a written instrument made by the ACMA, to be the proportion of the Commonwealth's contribution to the budget of the International Telecommunication Union for the calendar year in which the beginning of the financial year occurs that is to be recovered from carriers; and
(ca) the amount determined, by a written instrument made by the ACMA, to be the sum of the amounts paid under section 136C of the Telecommunications Act 1997 during the immediately preceding financial year; and
d) the amount determined, in a written instrument made by the Minister, to be the estimated total amount of grants likely to be made during the financial year under section 593 of the Telecommunications Act 1997.
Paragraph 15(4)(b) of the Act defines “costs” and provides that in relation to the ACCC, costs means an amount that, in accordance with accrual-based accounting principles, is treated as a cost of the ACCC. The ACCC’s costs have been calculated in accordance with those principles.
A Determination made under subsection 15(1) of the Act is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
Purpose
The Determination has been made for the purposes of paragraph 15(1)(b) of the Act and provides that $13,641,023 is the amount determined to be the proportion of ACCC’s cost for the 2015-16 financial year that is attributable to the ACCC’s telecommunications functions and powers.
Consultation
The ACMA, on behalf of the ACCC, conducted a public consultation in relation to the making of this Determination. The consultation period was open to carriers on 18 April 2017 for a four week period ending 15 May 2017. One submission was received, and did not raise any substantive issues regarding the drafting of this instrument.
STATEMENT OF COMPATIBILITY FOR A BILL OR LEGISLATIVE INSTRUMENT THAT DOES NOT RAISE ANY HUMAN RIGHTS ISSUES
This material is provided to persons who have a role in Commonwealth legislation, policy and programs as general guidance only and is not to be relied upon as legal advice. Commonwealth agencies subject to the Legal Services Directions 2005 requiring legal advice in relation to matters raised in connection with this template must seek that advice in accordance with the Directions.
Overview
The Telecommunications (Carrier Licence Charges) Act 1997 was enacted by the Australian Parliament to address the need for a clear and transparent methodology for determining the annual charges imposed on carrier licences held by telecommunications carriers. This Act was designed to ensure that these charges accurately reflect the costs attributable to the telecommunications functions and powers of relevant regulatory authorities, including the Australian Communications and Media Authority (ACMA) and the Australian Competition and Consumer Commission (ACCC). The Act provides a structured approach to calculating these charges, taking into account various factors such as the costs incurred by these authorities, contributions to international bodies, and grants. The Explanatory Statement details the process of determining the proportion of the ACCC's costs for a specified financial year that is attributable to its telecommunications functions and powers, in this case amounting to $13,641,023 for the 2015-16 financial year. Public consultation was conducted to gather input from stakeholders, ensuring that the determination process was transparent and inclusive.
Scope and Application
The Telecommunications (Carrier Licence Charges) Act 1997 governs the calculation of annual charges imposed on carrier licences held by telecommunications carriers. This Act applies to all telecommunications carriers in Australia, ensuring that the charges imposed do not exceed specific costs attributable to the Australian Communications and Media Authority's (ACMA) and the Australian Competition and Consumer Commission's (ACCC) telecommunications functions, as well as the Commonwealth's contribution to the International Telecommunication Union. The Act's jurisdiction is Commonwealth-wide, thereby applying to all telecommunications carriers operating within Australia. The legislation also allows for the application of the Act to be extended or restricted through subordinate instruments. There are no stated exclusions or exemptions within the Act itself, but it is noted that this material serves as general guidance only and does not constitute legal advice.
Key Provisions
The Telecommunications (Carrier Licence Charges) Act 1997 sets out the method for calculating annual charges that apply to carrier licences held by telecommunications carriers (section 15(1)). According to the Act, the total charges imposed on carrier licences in force at the beginning of a financial year must not exceed the sum of several determined amounts. These amounts include the proportion of the Australian Communications and Media Authority’s (ACMA) and the Australian Competition and Consumer Commission’s (ACCC) costs attributable to their telecommunications functions and powers, the proportion of the Commonwealth's contribution to the budget of the International Telecommunication Union, the sum of the amounts paid under section 136C of the Telecommunications Act 1997, and the estimated total amount of grants likely to be made during the financial year under section 593 of the Telecommunications Act 1997. These determinations are made by written instruments issued by the ACMA and the ACCC.
Under this Act, telecommunications carriers must comply with the charge calculations and pay the determined annual charges. The ACMA is responsible for ensuring that the charges imposed on carrier licences do not exceed the total of the determined amounts. The ACCC’s costs are calculated in accordance with accrual-based accounting principles, ensuring that the costs are accurately attributed to the ACCC’s telecommunications functions and powers. The Minister also has a role in determining the estimated total amount of grants likely to be made during the financial year under section 593 of the Telecommunications Act 1997.
There are no specific offences, penalties, or civil/criminal consequences outlined in the provided text for breaching the provisions of the Telecommunications (Carrier Licence Charges) Act 1997. However, it is implied that failure to comply with the charge calculations or to pay the determined annual charges could result in legal action or other consequences as prescribed by the Act or relevant regulations. It is important to note that while this material provides general guidance, any specific legal advice should be sought in accordance with the Legal Services Directions 2005.