EXPLANATORY STATEMENT
Telecommunications (Annual Carrier Licence Charge) Amendment Determination 2007(No. 1)
Telecommunications (Carrier Licence Charges) Act 1997
This instrument is issued by the authority of the Australian Communications and Media Authority (‘ACMA’) to amend the Telecommunications (Annual Carrier Licence Charge) Determination 2007 (the Determination). The Amendment Determination corrects some errors in the content of the Determination which were not picked up until after that Determination was made.
Legislative Provisions
Section 12 of the Telecommunications (Carrier Licence Charges) Act 1997 (the Act) provides that a charge is imposed on a carrier licence that is in force at the beginning of a financial year.
Subsection 14(1) of the Act provides that the amount of charge to be imposed on a carrier licence is the amount ascertained in accordance with a written determination made by the ACMA.
Section 15 (1) of the Act enforces a limit on the total of the charges that are imposed on carrier licences.
For the purposes of the Legislative Instruments Act 2003, a Determination is considered as a legislative instrument. The accompanying Amendment Determination must therefore be registered on the Federal Register of Legislative Instruments (FRLI).
Consultation
On application for a licence, carriers are advised that this instrument imposes a carrier licence charge, to recover costs for a financial year if they hold a licence on the first day of the financial year.
On 1 May 2007 the Office of Best Practice Regulation advised that a Regulation Impact Statement was not required for the changes to the ACLC determinations (exemption number 9141), as the changes were minor and machinery in nature, and did not substantially alter existing arrangements.
On 27 April 2007 the Department of Communications, Information Technology and the Arts provided the figures for the Commonwealth’s 2006-07 contribution to the budget of the International Telecommunication Union and confirmed the registration of the following determinations:
- Determination under paragraph 15(1)(d) No. 1 of 2007 of the Telecommunications (Carrier Licence Charges) Act 2007 for the estimated total amount of grants likely to be made for the financial year 2006-07 under section 593 of the Telecommunications Act 1997.
- Telecommunication (Carrier Licence Charges) Determinination No 2 of 2006 for the proportion of the Commonwealth’s costs for the financial year 2005-06, attributable to the administration of Part 2 of Schedule 1 to the Telecommunications Act 1997.
On 11 April 2007 the Australian Competition and Consumer Commission (ACCC) confirmed the registration of the Determination under paragraph 15(1)(b) of the Act, No 1. 2007 in relation to the proportion of the ACCC’s costs for the financial year 2005-06 that is attributable to the ACCC’s telecommunications functions and powers.
Attachment 1
Notes on the Instrument
Section 1 - Name of Determination
This section specifies the title of the Amendment Determination.
Section 2 - Commencement
This section provides the commencement date of the Amendment Determination; which is the day after it is registered on the FRLI.
Section 3 - Amendment
This section amends the determination known as the Telecommunications (Annual Carrier Licence Charge) Determination 2007.
Schedule 1 - Amendments
Item 1 refers to section 4 MFC (minimum fixed charge), which has been amended from $270 to $287
Item 2 refers to section 4 TNC (total number of carriers), which has been amended from 167 to 157.
Item 3 refers to section 4 TER (total eligible revenue), which has been amended from $24 661 381 187 to $24 638 110 162.
Item 4 refers to schedule 1 – Eligible revenue for carrier, which has been replaced.
Overview
The Telecommunications (Annual Carrier Licence Charge) Amendment Determination 2007 (No. 1) was enacted to correct errors identified in the Telecommunications (Annual Carrier Licence Charge) Determination 2007, which were not detected prior to its implementation. This Amendment Determination was issued by the Australian Communications and Media Authority (ACMA) under the authority granted by the Telecommunications (Carrier Licence Charges) Act 1997. The primary objective of this amendment is to ensure the accuracy of the financial figures and parameters related to the annual carrier licence charges, which are essential for the proper administration of the licensing fees for telecommunications carriers. The minor adjustments made in the Amendment Determination aim to rectify discrepancies and maintain the integrity of the regulatory framework governing carrier licence charges.
Scope and Application
The Telecommunications (Annual Carrier Licence Charge) Amendment Determination 2007 (No. 1) applies to entities holding a carrier licence in force at the beginning of a financial year, as stipulated by Section 12 of the Telecommunications (Carrier Licence Charges) Act 1997. This Amendment Determination is issued by the Australian Communications and Media Authority (ACMA) to correct errors in the initial Telecommunications (Annual Carrier Licence Charge) Determination 2007. The determination specifically modifies figures related to the minimum fixed charge, the total number of carriers, and the total eligible revenue, ensuring that the charges imposed are accurate and reflective of the current financial year's conditions. This Amendment Determination is applicable nationally within Australia and is registered on the Federal Register of Legislative Instruments, indicating its formal legal status. The Act itself imposes a charge on carrier licences to recover costs for a financial year, with the exact amount ascertained by the ACMA in accordance with a written determination. There are no stated exclusions or exemptions within the text provided, although the charges are limited by the total amount stipulated under Section 15(1) of the Act.
Key Provisions
The Telecommunications (Annual Carrier Licence Charge) Amendment Determination 2007 (No. 1) amends the Telecommunications (Annual Carrier Licence Charge) Determination 2007, correcting errors that were identified after the original determination was made. This Amendment Determination is issued under the authority of the Australian Communications and Media Authority (ACMA) and must be registered on the Federal Register of Legislative Instruments (FRLI). The main sections of this Amendment Determination are Sections 1 to 3 and Schedule 1. Section 1 provides the title of the Amendment Determination, Section 2 specifies the commencement date, which is the day after its registration on the FRLI, and Section 3 details the amendments to the original determination.
The Amendment Determination imposes an annual carrier licence charge on telecommunications carriers who hold a licence on the first day of a financial year. This charge is intended to recover costs associated with the administration of telecommunications carrier licences. The amount of the charge is determined by a written determination made by the ACMA under Section 14(1) of the Telecommunications (Carrier Licence Charges) Act 1997 (the Act). The Amendment Determination corrects specific numerical errors in the original determination, such as the minimum fixed charge, the total number of carriers, and the total eligible revenue. Schedule 1 also replaces the schedule detailing the eligible revenue for individual carriers, ensuring the figures are accurate and reflect the true costs and revenue for the financial year.
Carriers who hold a licence on the first day of a financial year are obligated to pay the annual carrier licence charge as determined by the ACMA. This charge is a statutory requirement and must be paid in accordance with the provisions of the Act. Carriers must ensure they are aware of the charge amount and the due date for payment, as outlined in the Amendment Determination. Failure to pay the charge on time may result in additional administrative fees or legal action by the ACMA.
Breach of the obligations under the Amendment Determination may result in civil or criminal consequences. The Act does not specify maximum penalties for non-compliance, but carriers who fail to pay the carrier licence charge may face additional fees, interest on overdue amounts, and potential legal action by the ACMA. It is important for carriers to comply with the requirements of the Amendment Determination to avoid these consequences. The determination ensures that the ACMA can recover the necessary funds to cover the costs of administering carrier licences and maintaining the telecommunications infrastructure.