EXPLANATORY STATEMENT
Issued by the authority of the Australian Communications and Media Authority
Radiocommunications (Charges) Amendment Determination 2007 (No. 2)
Australian Communications and Media Authority Act 2005
Purpose
The Radiocommunications (Charges) Amendment Determination 2007(No. 2) (the Amendment Determination) has been made by the Australian Communications and Media Authority (ACMA) to amend the Radiocommunications (Charges) Determination 2007 (the existing Determination). The Amendment Determination corrects definitions and clarifies the application of certain items where confusion may arise.
Legislative Provisions
Subsection 60(1) of the Australian Communications and Media Authority Act 2005 (the ACMA Act) provides that ACMA may, by written instrument, make determinations fixing charges for services and facilities provided by ACMA and for any matter in relation to which expenses are incurred by ACMA under this Act and the Radiocommunications Act 1992. The charges must not be such as to amount to taxation.
A determination made under subsection 60(1) of the ACMA Act is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
Background
ACMA reviewed its fees and charges as part of a scheduled periodic review of its cost recovery arrangements. ACMA reviewed its existing fees and charges against cost recovery principles outlined in the Australian Government’s Cost Recovery Guidelines. The review resulted in updates to a range of existing charges, including charges for services provided by ACMA under the Radiocommunications Act 1992.
Section 60 of the ACMA Act obliges ACMA to ensure accurate cost recovery and charging. Consequently, ACMA has adopted a rigorous Activity Based Costing methodology to ensure the costings which underpin pricing decisions accurately and equitably attribute costs to the range of outputs which ACMA provides to clients. In ensuring its cost recovery regime is robust, ACMA has employed an external financial consultancy firm in a quality assurance role.
Regulation Impact
ACMA has obtained the advice of the Office of Best Practice Review (formerly known as the Office of Regulation Review) that a Regulation Impact Statement is not required for the Amendment Determination as the proposal does not have a significant impact on business or the economy (OBPR Ref No. 8880) . A Cost Recovery Impact Statement was prepared in February 2007 for the existing Determination which outlines the basis for calculating the charges payable.
Consultation
A consultation paper about the review of ACMA’s existing cost recovery fees and charges was released for public comment on 22 December 2006. The consultation paper proposed changes to the charges in this Amendment Determination. The consultation paper was also published on ACMA’s website and was provided directly to the major radiocommunications licensees and to a range of industry bodies and associations.
ACMA received five submissions on the proposed arrangements.
NOTES ON SECTIONS
Section 1 - Name of determination
Section 1 provides for the citation of the Amendment Determination as the Radiocommunications (Charges) Amendment Determination 2007 (No. 2).
Section 2 - Commencement
Section 2 provides that the Determination commences on 1 July 2007.
Section 3 - Amendment
Section 3 amends the determination known as the Radiocommunications (Charges) Determination 2007.
Schedule 1- Amendments
Schedule 2 Amendments
Item 1 refers to Schedule 2, item 6.6 which does not apply where a charge is levied under item 6.7 or 6.8.
Item 2 refers to Schedule 2 item 6.7 and relates to the operation of a point to multi-point station. This item does not apply to items 6.6, 6.8 or where a charge is set as part of a price based allocation process.
Item 3 refers to Schedule 2, Part 7 which now incorporates the charges for the issue or renewal of amateur beacon station (7.13) and amateur repeater station (7.14).