Commonwealth of Australia
Telecommunications (Consumer Protection and Service Standards) Act 1999
Levy Debit Formula Modification
Determination (No. 1) 2002
I, RICHARD KENNETH ROBERT ALSTON, Minister for Communications, Information Technology and the Arts, make the following Determination under subsection 20R(3) of the Telecommunications (Consumer Protection and Service Standards) Act 1999.
Dated 12 February 2002.
RICHARD ALSTON
Minister for Communications, Information Technology and the Arts
_________________________________________________________________
1 Name of Determination
This Determination is the Levy Debit Formula Modification Determination
(No. 1) 2002.
2 Commencement
This Determination commences on gazettal.
3 Application
This Determination applies for the 2001-02 claim period and all subsequent claim periods.
4 Definitions
In this Determination:
Act means the Telecommunications (Consumer Protection and Service Standards) Act 1999.
claim period has the same meaning as in subsection 8D(1) of the Act.
5 Modification of the formula in subsection 20R(2) of the Act
The formula in subsection 20R(2) of the Act is modified by omitting subsection 20R(2) and substituting the following:
(2) The levy debit for a participating person who is in receivership or liquidation or for any reason ceases to exist before the decision date, is worked out using the formula:
Levy contribution factor x Total levy credits
where:
decision date means the end of the claim period, or a later date decided by the Australian Communications Authority, but not after the Australian Communications Authority has issued its levy assessment under section 20U of the Act.
levy contribution factor means the person’s levy contribution factor for that eligible revenue period worked out under section 20H.
total levy credits means the total of all the levy credits to which persons are entitled for that claim period.
(2A) The levy debit for any other participating person is worked out using the formula:
Levy contribution factor x (Total levy credits + Previous levy deficit)
Adjustment factor
where:
adjustment factor means the sum of the levy contribution factors for that eligible revenue period worked out under section 20H for all participating persons covered by this subsection.
levy contribution factor means the person’s levy contribution factor for that eligible revenue period worked out under section 20H.
previous levy deficit means the total of any shortfall between levy debits and levy credits for the 2001-02 claim period and all subsequent claim periods.
total levy credits means the total of all the levy credits to which persons are entitled for the claim period.
Note: Receivership and liquidation are primarily dealt with by Chapter 5 of the Corporations Act 2001 (Cth) but may in some cases be dealt with by a law of a State or Territory. Chapter 5 includes provisions dealing with schemes of arrangement, receivership and winding up. However, Chapter 5 does not apply to a scheme of arrangement, receivership, winding up or other external administration of a company to the extent to which the scheme, winding up or administration is carried out in accordance with a provision of a law of a State or Territory (see s. 5G(8) of the Corporations Act 2001).
Overview
The Levy Debit Formula Modification Determination (No. 1) 2002, made under the authority of the Telecommunications (Consumer Protection and Service Standards) Act 1999, was enacted to modify the formula used for calculating the levy debit for participating persons in telecommunications. This legislative instrument was introduced to address discrepancies and inefficiencies in the levy debit calculation process, ensuring that the financial contributions of telecommunications participants are accurately assessed and managed. The enacting body for this determination is the Minister for Communications, Information Technology and the Arts, who issued the determination with the objective of improving the fairness and accuracy of levy debit calculations within the telecommunications sector. The aim is to ensure that the levy debit reflects the true financial obligations of participants, particularly those who have ceased to exist or are in receivership or liquidation.
Scope and Application
The Levy Debit Formula Modification Determination (No. 1) 2002 applies to the 2001-02 claim period and all subsequent claim periods under the Telecommunications (Consumer Protection and Service Standards) Act 1999. It modifies the formula used to calculate the levy debit for participating persons, taking into account circumstances such as receivership, liquidation, or cessation of existence before the decision date. The formula adjustment accommodates levy contribution factors, total levy credits, and an adjustment factor, ensuring that the levy debit calculations are precise and equitable for all participating entities. The modified levy debit formula applies nationally, aligning with the broad geographic reach of the primary Act, and is subject to the provisions and definitions outlined within the Act itself. There are no specific exclusions or exemptions mentioned in the Determination, but it does refer to the Corporations Act 2001 for definitions of receivership and liquidation, indicating that these events are governed by broader corporate law frameworks.
Key Provisions
The Levy Debit Formula Modification Determination (No. 1) 2002 modifies the levy debit formula in subsection 20R(2) of the Telecommunications (Consumer Protection and Service Standards) Act 1999. This determination applies from the date of its gazettal and for the 2001-02 claim period and all subsequent claim periods (sections 1, 2, and 3). The modification to the formula includes two scenarios: the first scenario applies to a participating person who is in receivership or liquidation, or who ceases to exist before the decision date (section 5(2)); the second scenario applies to all other participating persons (section 5(2A)). For the former, the levy debit is calculated using the levy contribution factor multiplied by the total levy credits, whereas for the latter, the formula includes an adjustment factor based on the sum of the levy contribution factors for all participating persons (section 5).
The Act imposes several obligations on the parties it governs. Firstly, it requires the determination to be applied in the calculation of the levy debit for the specified claim periods (section 3). Secondly, participating persons must ensure their levy contribution factors and total levy credits are accurately calculated and reported as per the modified formula. Additionally, the Australian Communications Authority has the responsibility to issue levy assessments under section 20U of the Act and decide the decision date (section 5(2)).
Failure to comply with the provisions of the Act may result in civil or criminal consequences. The Act does not specify particular offences or penalties within the determination itself, but general provisions under the Telecommunications (Consumer Protection and Service Standards) Act 1999 may apply. For instance, non-compliance with service standards or consumer protection provisions can lead to penalties, including fines and other civil remedies. The exact penalties would depend on the nature and severity of the breach and would be determined according to the broader provisions of the Act and relevant legislation.