EXPLANATORY STATEMENT
Telecommunications (Carrier Licence Charges) Act 1997
Determination under Paragraph 15(1)(b) No. 1 of 2018
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 $13,109,173 is the amount determined to be the proportion of ACCC’s cost for the 2016-17 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 16 April 2018 for a six week period ending 25 May 2018. 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 to provide a framework for the calculation and imposition of annual charges on carrier licences held by telecommunications carriers. The Act aims to ensure that the total charges imposed on carrier licences do not exceed specific proportions of costs attributable to telecommunications functions and powers, as well as other relevant costs such as contributions to international bodies and grants. This legislation was introduced to address the need for a transparent and structured method of recovering costs associated with telecommunications regulation from the carriers themselves, thereby ensuring the sustainability of regulatory activities. The Australian Competition & Consumer Commission (ACCC) is responsible for determining certain cost components under the Act, reflecting the policy objective of maintaining an efficient and effective regulatory regime.
Scope and Application
The Telecommunications (Carrier Licence Charges) Act 1997 applies to telecommunications carriers who hold a carrier licence, ensuring that annual charges imposed on these licences adhere to a specific calculation method. This Act mandates that the total charges on carrier licences in force at the beginning of a financial year must not exceed a sum determined by various entities, including the Australian Communications and Media Authority (ACMA) and the Australian Competition and Consumer Commission (ACCC). This legislation has a national reach across Australia, as it is a Commonwealth Act. The Act specifically excludes any costs not attributable to telecommunications functions and powers, with determinations made through written instruments. Additionally, the Act can extend or restrict its application via subordinate instruments, which are made under the authority of the Legislative Instruments Act 2003. The recent determination by the ACCC, amounting to $13,109,173 for the 2016-17 financial year, is an example of such an instrument, following consultation with industry participants.
Key Provisions
The Telecommunications (Carrier Licence Charges) Act 1997 (the Act) outlines the process for calculating the annual charges for carrier licences held by telecommunications carriers. According to subsection 15(1) of the Act, the total charges imposed on carrier licences at the beginning of a financial year must not exceed the sum of various determined amounts, including 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 (subsection 15(1)(a) and (b)), the proportion of the Commonwealth's contribution to the budget of the International Telecommunication Union (subsection 15(1)(c)), the amounts paid under section 136C of the Telecommunications Act 1997 (subsection 15(1)(ca)), and the estimated total amount of grants under section 593 of the Telecommunications Act 1997 (subsection 15(1)(d)). Specifically, the Determination under paragraph 15(1)(b) No. 1 of 2018 made by the ACCC states that $13,109,173 is the proportion of the ACCC's costs for the 2016-17 financial year attributable to its telecommunications functions and powers.
The Act imposes obligations on telecommunications carriers to pay the annual charges as determined under the Act. The ACMA is responsible for ensuring that these charges are calculated correctly and in accordance with the provisions of the Act. The ACMA, on behalf of the ACCC, conducted a public consultation process, which involved carriers, to ensure that the Determination was made transparently and with adequate input from stakeholders. The consultation period was open for six weeks, from 16 April 2018 to 25 May 2018, and one submission was received without any substantive issues raised regarding the drafting of this instrument.
Breach of the provisions of the Act may result in civil or criminal consequences, depending on the nature and severity of the breach. However, the Explanatory Statement does not provide specific details regarding the offences, penalties, or consequences for breach of the Act. It is important to note that any legal advice regarding matters related to this Act should be sought from a qualified legal professional, as the information provided in the Explanatory Statement is intended as general guidance only and not as legal advice.