Overview

The Telecommunications (Annual Carrier Licence Charge) Determination 2009, issued under the authority of the Australian Communications and Media Authority (ACMA) pursuant to the Telecommunications (Carrier Licence Charges) Act 1997, addresses the need for a structured and transparent method of calculating the annual carrier licence charge. This legislation was enacted to ensure that the annual charge imposed on carrier licences, which are in force at the beginning of a financial year, is determined in a manner that recovers costs associated with the administration and regulation of telecommunications carriers. The determination provides a formula that includes a fixed component to cover administrative costs and a variable component based on the carriers' reported eligible revenue, ensuring that the charge reflects the financial standing and operations of each carrier. The policy objective of this Determination is to maintain a fair and effective regulatory regime for telecommunications carriers while ensuring that the costs of regulation are appropriately recovered.

Scope and Application

The Telecommunications (Annual Carrier Licence Charge) Determination 2009 applies to entities holding a carrier licence under the Telecommunications (Carrier Licence Charges) Act 1997 as of 1 July 2008. This legislation establishes a charge for each financial year on carrier licences in force at the beginning of that year, and specifies the method for calculating this annual charge. The charge consists of a fixed component and a variable component, with the fixed component set at $290 per carrier for the 2008-2009 financial year. The variable component is determined by allocating a total amount, calculated by subtracting the fixed component from a maximum charge amount that excludes other telecommunications charges, to individual carriers in proportion to their reported eligible revenue. The Act applies on a Commonwealth level and the determination is registered on the Federal Register of Legislative Instruments. The Act's application is not limited to any specific industry, but rather encompasses any entity holding a carrier licence as defined under the Act. There are no exclusions or exemptions specified in the determination itself; however, the Act includes provisions that enforce a limit on the total of the charges imposed on carrier licences. The ACMA, as the authority issuing this instrument, can extend or restrict the application through subordinate instruments, although no such actions are mentioned in the explanatory statement. The geographic reach of the Act is national, applying across Australia in accordance with the Telecommunications (Carrier Licence Charges) Act 1997.

Key Provisions

The Telecommunications (Annual Carrier Licence Charge) Determination 2009 (F2009L02068) outlines the method for calculating the annual carrier licence charge imposed on telecommunications carriers under the Telecommunications (Carrier Licence Charges) Act 1997. Section 12 of the Act requires that a charge is imposed on a carrier licence that is in force at the beginning of a financial year (section 12). The amount of the charge is determined by a written determination made by the Australian Communications and Media Authority (ACMA) in accordance with subsection 14(1) of the Act (section 14(1)). Section 15(1) of the Act enforces a limit on the total of the charges that are imposed on carrier licences (section 15(1)). The obligations imposed by this Act on the parties or entities it governs primarily relate to the calculation and payment of the annual carrier licence charge. Carriers must ensure they are aware of the charge, as they are informed of it at the time of applying for a licence (Consultation). They are required to pay the charge calculated in accordance with the formula specified in the Determination, which includes both a fixed component and a variable component (section 4). The fixed component, known as the Minimum Fixed Charge (MFC), is a cost recovery-based administration charge and is set at $290 per carrier for the 2008-2009 financial year (section 4). The variable component is derived from the Maximum Charge Amount (MCA) excluding other telecommunications charges (OTC), and is allocated to individual carriers based on their reported eligible revenue for the previous financial year (section 4). Breach of the obligations under this Act may result in legal consequences. While specific offences are not outlined in the Determination, failure to pay the required annual carrier licence charge may lead to enforcement actions by the ACMA. The penalties for non-compliance are not detailed in the provided text, but generally, failure to comply with telecommunications regulations in Australia can result in financial penalties and other enforcement measures as prescribed by relevant laws. It is important for carriers to adhere to the requirements to avoid any potential civil or criminal liabilities.