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).
Overview
The Radiocommunications (Charges) Amendment Determination 2007 (No. 2) was enacted by the Australian Communications and Media Authority (ACMA) to amend the Radiocommunications (Charges) Determination 2007. This amendment was made to address confusion and clarify certain definitions and applications of charges related to radiocommunications services provided by ACMA. The Act was established under the Australian Communications and Media Authority Act 2005, which mandates ACMA to ensure accurate cost recovery and charging, thus necessitating a periodic review of its fees and charges. The policy objective behind this amendment is to ensure that the charges do not amount to taxation and that they are accurately calculated according to the Activity Based Costing methodology, supported by external financial consultancy to ensure equitable attribution of costs.
A consultation process was undertaken by ACMA, releasing a consultation paper on 22 December 2006, inviting public comment on the proposed changes. ACMA received five submissions on the proposed arrangements, reflecting a commitment to transparency and stakeholder engagement. The determination aims to correct and clarify definitions and applications where confusion may arise, ensuring that the charges are appropriately aligned with cost recovery principles and do not have a significant impact on business or the economy.
Scope and Application
The Radiocommunications (Charges) Amendment Determination 2007 (No. 2), made by the Australian Communications and Media Authority (ACMA) under the Australian Communications and Media Authority Act 2005, amends the Radiocommunications (Charges) Determination 2007 to correct definitions and clarify the application of certain items where confusion may arise. This Amendment Determination applies to entities and individuals involved in radiocommunications activities in Australia, particularly those who are subject to fees and charges levied by ACMA under the Radiocommunications Act 1992. These charges pertain to services and facilities provided by ACMA, ensuring that they are not excessive so as to amount to taxation. The Amendment Determination is effective from 1 July 2007 and includes specific amendments detailed in Schedule 1 and Schedule 2, which address the application of charges for different radiocommunication services, such as point-to-multipoint stations and amateur beacon stations. The Amendment Determination does not require a Regulation Impact Statement, as it is deemed not to significantly impact business or the economy, and it does not introduce new exclusions or exemptions beyond those already specified in the existing Determination.
Key Provisions
The Radiocommunications (Charges) Amendment Determination 2007 (No. 2) (sections 1 to 3) amends the Radiocommunications (Charges) Determination 2007, correcting definitions and clarifying the application of certain items to address any confusion that may arise. This Amendment Determination was made by the Australian Communications and Media Authority (ACMA) under subsection 60(1) of the Australian Communications and Media Authority Act 2005, which allows ACMA to set charges for services and facilities provided by ACMA and for matters where expenses are incurred by ACMA under the Act and the Radiocommunications Act 1992, provided these charges do not amount to taxation. The Amendment Determination corrects specific definitions and clarifies the application of charges to ensure accurate cost recovery and charging.
ACMA is obligated to ensure accurate cost recovery and charging, and in fulfilling this obligation, it employs a rigorous Activity Based Costing methodology. This methodology ensures that the costs underpinning pricing decisions are accurately and equitably attributed to the range of outputs which ACMA provides to clients. ACMA also engages an external financial consultancy firm to act in a quality assurance role, thereby enhancing the robustness of its cost recovery regime. This Amendment Determination reflects ACMA’s commitment to maintaining a transparent and equitable cost recovery process.
The Amendment Determination introduces specific amendments detailed in Schedules 1 and 2. For example, Item 1 of Schedule 2 refers to item 6.6, clarifying that it does not apply where a charge is levied under items 6.7 or 6.8. Item 2 of Schedule 2, relating to item 6.7, clarifies that it does not apply to items 6.6, 6.8, or where a charge is set as part of a price-based allocation process. Additionally, Item 3 of Schedule 2 incorporates charges for the issue or renewal of amateur beacon stations (7.13) and amateur repeater stations (7.14) into Part 7.
The Amendment Determination does not specify any offences, penalties, or civil/criminal consequences for breach. However, the underlying legislation, the Australian Communications and Media Authority Act 2005, may provide for enforcement actions and penalties for non-compliance with the charges and cost recovery principles established under the Act. In particular, subsection 60(1) ensures that the charges set by ACMA must not be such as to amount to taxation, which underscores the importance of adhering to the established cost recovery framework. Failure to comply with the determination could result in enforcement actions, although specific penalties are not detailed in this Amendment Determination.