Determination under paragraph 15(1)(b) No.2 of 2023

Overview

The Telecommunications (Carrier Licence Charges) Act 1997 was enacted by the Parliament of Australia to address the need for a structured and transparent method of imposing annual charges on telecommunications carriers. This legislation ensures that the costs associated with the regulatory functions and powers of the Australian Communications and Media Authority (ACMA) and the Australian Competition and Consumer Commission (ACCC) are appropriately reflected in the carrier licence fees. The policy objective behind the Act is to maintain a balanced and fair system for imposing charges on telecommunications carriers, thereby supporting the regulatory functions of the ACMA and ACCC while ensuring that these costs are recovered from the industry. The Act was designed to fill a gap by providing a clear legislative framework for determining the proportion of costs attributable to telecommunications functions and powers, which in turn assists in maintaining effective oversight and regulation of the telecommunications industry.

Scope and Application

The Telecommunications (Carrier Licence Charges) Act 1997 governs the imposition of annual charges on telecommunications carriers that hold carrier licences under the Telecommunications Act 1997. This legislation applies specifically to telecommunications carriers, which are entities providing telecommunications services within Australia. The Act's application is determined by the Australian Communications and Media Authority (ACMA) and the Australian Competition and Consumer Commission (ACCC), who are responsible for calculating the proportion of their costs attributable to their respective telecommunications functions and powers. The Act applies nationally across Australia, and its provisions are applicable to all carriers operating within the country. The Act allows for certain exclusions and thresholds, particularly through the determination of costs by the ACMA and ACCC, ensuring that charges are proportionate and justifiable. The Act may also extend or restrict its application through subordinate instruments, such as legislative instruments created under the Legislation Act 2003. This Determination under paragraph 15(1)(b) of the Act specifies the proportion of the ACCC’s costs for the 2021-22 financial year attributable to its telecommunications functions and powers, amounting to $12,048,763, and includes a consultation process that was conducted by the ACMA on behalf of the ACCC, although no feedback was received during the specified consultation period.

Key Provisions

The Telecommunications (Carrier Licence Charges) Act 1997 (the Act) governs the imposition of annual charges on carrier licences held by telecommunications carriers under the Telecommunications Act 1997. Specifically, subsection 15(1) of the Act outlines the methodology for determining the total charges that can be imposed on carrier licences at the start of each financial year. This total must not exceed the sum of several specified amounts, including the proportion of the Australian Communications and Media Authority's (ACMA) costs for the previous financial year attributable to its telecommunications functions and powers, as well as the proportion of the Australian Competition and Consumer Commission's (ACCC) costs for the previous financial year attributable to its telecommunications functions and powers, both determined by written instruments. Additionally, it includes the proportion of the Commonwealth's contribution to the budget of the International Telecommunication Union, the sum of amounts paid under section 136C of the Telecommunications Act 1997, and the estimated total amount of grants likely to be made under section 593 of the Telecommunications Act 1997. Paragraph 15(4)(b) defines "cost" as an amount treated as a cost of the ACCC in accordance with accrual-based accounting principles. The Determination, made under paragraph 15(1)(b) of the Act, specifies that $12,048,763 is the proportion of costs for the 2021-22 financial year attributable to the ACCC's telecommunications functions and powers, with $1,837,902 relating to the costs incurred on the ACCC’s Measuring Broadband Australia program. The Act imposes several obligations on parties and entities it governs. Telecommunications carriers must pay the annual charges as determined under the Act, ensuring that the total does not exceed the specified sum. The ACMA is responsible for determining the proportion of the ACMA's and the Commonwealth's costs related to telecommunications functions and powers. The ACCC must calculate its costs in accordance with accrual-based accounting principles, and these costs form part of the basis for determining the charges. The Minister must also determine the estimated total amount of grants likely to be made under section 593 of the Telecommunications Act 1997, which is another component of the total allowable charges. The ACMA, on behalf of the ACCC, conducted a public consultation to gather feedback on the proposed charges, although no feedback was received from industry during the consultation period. The Act does not explicitly state any offences, penalties, or consequences for breach within the provided excerpt. However, failure to comply with the charge imposition requirements could potentially lead to legal challenges or disputes regarding the validity of the charges. Since the Determination is a legislative instrument for the purposes of the Legislation Act 2003, non-compliance with the specified charge amounts could result in legal ramifications, although specific penalties are not detailed in this excerpt. Any breach of the statutory requirements might also subject the involved parties to administrative or judicial review processes to ensure adherence to the legislative framework.