Overview

The Telecommunications (Annual Carrier Licence Charge) Determination 2005 was issued under the authority of the Australian Communications Authority (ACA) and provides the method for calculating the annual carrier licence charge as stipulated in the Telecommunications (Carrier Licence Charges) Act 1997. This Act was introduced to address the need for a structured method of calculating annual charges on carrier licences to ensure cost recovery for the ACA’s telecommunications functions. The policy objective, as indicated in the explanatory statement, is to impose a charge that reflects the actual costs associated with the calculation, review, and approval of the charges on carrier licences, while also ensuring that carriers are informed of the components of the total charge imposed on them each year. The determination is a disallowable instrument, meaning it must be published in the Gazette, tabled in Parliament, and is subject to Parliamentary disallowance.

Scope and Application

The Telecommunications (Annual Carrier Licence Charge) Determination 2005 applies to entities that hold a carrier licence under the Telecommunications (Carrier Licence Charges) Act 1997, specifically those that were licence holders as of 1 July 2004. The charge, which is imposed on a carrier licence in force at the beginning of a financial year, is calculated in accordance with this Determination and comprises both a fixed and a variable component. The fixed component serves as an administrative charge for the calculation, review, and approval of the charge, set at $455 for the 2004/2005 financial year. The variable component is derived by dividing a carrier’s eligible revenue for the 2003/2004 financial year by the total eligible revenue, and then multiplying that figure by the maximum allowable total amount, less certain deductions such as the total fixed components and the Australian Communications Authority's attributable costs for telecommunications functions and powers. This Act and its subordinate instruments apply nationally across Australia, and the Determination is subject to disallowance by Parliament. The scope of this legislation is narrowly tailored to the specified carriers and the financial years mentioned, with no broader exclusions or exemptions detailed in the provided text.

Key Provisions

The Telecommunications (Annual Carrier Licence Charge) Determination 2005 sets out the method for calculating the annual carrier licence charge (ACLC) imposed on carrier licences under Section 12 of the Telecommunications (Carrier Licence Charges) Act 1997 (the Act). According to subsection 14(1), the charge amount is determined by the Australian Communications Authority (ACA) in accordance with the written determination, which is a disallowable instrument subject to parliamentary disallowance (subsection 14(2)). Section 15 of the Act limits the total charges imposed on carrier licences. Carriers are informed about the ACLC on their licence applications, and each year the ACLC includes a fixed component and a variable component. For the 2004/2005 financial year, the fixed component is $455, a cost recovery-based administration charge. The variable component is calculated by dividing a carrier’s eligible revenue for the financial year 2003/2004 by the total eligible revenue and then multiplying that figure by the maximum allowable total amount under section 15, after deducting the total fixed components and the ACA's costs for the 2003/2004 financial year attributable to telecommunications functions and powers. The Act imposes specific obligations on carriers holding a licence at the beginning of a financial year. These carriers must be aware that an ACLC will be imposed to recover costs for that year, as stated in the licence application information. Furthermore, carriers must ensure their eligible revenue for the previous financial year is accurately assessed, as this figure is used in calculating the variable component of the ACLC. Each year, carriers receive the ACLC accompanied by detailed information on the components of the total charge imposed under Section 15 of the Act and the components of the individual charge imposed on each carrier. Failing to comply with the provisions of the Act or the Determination could lead to various consequences. Although the Determination itself does not explicitly mention penalties for non-compliance, under the broader Telecommunications Act 1997, non-compliance could result in civil or criminal penalties. For example, under section 248 of the Act, an individual or entity could be liable for a penalty of up to $504,000 for each offence if found guilty of contravening certain provisions. Additionally, the ACA has the authority to impose administrative penalties for non-compliance, which could include fines and other enforcement actions. Therefore, it is crucial for carriers to adhere to the obligations and requirements outlined in the Act and the Determination to avoid potential penalties and legal repercussions.