Telecommunications (Annual Carrier Licence Charge) Determination 2010

Administered by Department of Communications and the Arts

Legislation au F2010L01467 Not in force Legislative Instrument

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EXPLANATORY STATEMENT

 

Telecommunications (Annual Carrier Licence Charge) Determination 2010

 

Telecommunications (Carrier Licence Charges) Act 1997

 

The Telecommunications (Annual Carrier Licence Charge) Determination 2010 (the Determination) is made by the Australian Communications and Media Authority (the ACMA) pursuant to subsection 14(1) of the Telecommunications (Carrier Licence Charges) Act 1997 (the Act).

 

The Determination sets out the method for calculating the annual carrier licence charge imposed on a carrier licence for the 2009-2010 financial year.

 

Legislative Provisions

 

Section 12 of 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. 

 

Subsection 15(1) of the Act provides that the total amount of charges imposed on carrier licences in force at the beginning of a financial year must not exceed the sum of the amounts determined in accordance with paragraphs 15(1)(a), (b), (c), (ca) and (d).

 

For the purposes of the Legislative Instruments Act 2003, the Determination is a legislative instrument. The accompanying Determination must therefore be registered on the Federal Register of Legislative Instruments (FRLI).

 

Consultation

 

On application for a licence, carriers are advised that an instrument made under subsection 14(1) of the Act specifies the amount of annual carrier licence charge imposed on persons who hold a carrier licence on the first day of the relevant financial year. The Determination is therefore minor or machinery in nature and consultation is not required in accordance with section 18 of the Legislative Instruments Act 2003.

 

On 26 March 2010 the Office of Best Practice Regulation advised that a Regulation Impact Statement was not required for the Determination (reference number ID 11270) on the basis that the changes would have a low impact on business, and would appear to impose no or low compliance costs.

 

On 24 February 2010 the Australian Competition and Consumer Commission (ACCC) confirmed the registration of the Telecommunications (Carrier Licence Charges) Act 1997 - Determination under paragraph 15(1)(b) No. 1 of 2010 which specifies the proportion of the ACCC’s costs for the financial year 2008-09 that is attributable to the ACCC’s telecommunications functions and powers.

 

On 9 March 2010 the Department of Broadband, Communications, and the Digital Economy provided the figures for the Commonwealth’s contribution to the budget of the International Telecommunication Union for the 2009 calendar year. 

 

On 16 April 2010, the Minister for Broadband, Communications and the Digital Economy made the following determination:

 

  • Telecommunications (Carrier Licence Charges) Act 1997 - Determination under paragraph 15(1)(d) No. 1 of 2010

 

The determination provides that $2,000,000 is the amount estimated to be the amount of grants likely to be made for the financial year 2009-10 under section 593 of the Telecommunications Act 1997.

 

The ACMA has made a determination pursuant to its powers under  paragraphs 15(1)(a), (c), and (ca) of the Act and which is entitled the Telecommunications (Specification of Costs by ACMA) Determination 2010. 

 

 


Attachment 1

Notes on the Instrument

 

Section 1 - Name of Determination

 

This section sets out the name of the Determination.

 

Section 2 - Commencement

 

This section provides that the Determination commences on the day after it is registered.

 

Section 3 - Application

 

This section provides the date from which this Determination has application which is on and after the later of:

  • the day after it is registered; and
  • the day after the commencement of the Telecommunications (Specification of Costs by ACMA) Determination 2010;

 

Section 4 - Definitions

 

This section sets out the definitions of key terms used in the Determination.

 

Section 5– Method of ascertaining carrier licence charge

 

This section specifies the methodology used for the calculation of the annual carrier licence charge for the 2009-2010 financial year.

 

It states the annual charge imposed on a carrier licence in force at the beginning of the financial year that began on 1 July 2009, in relation to a carrier mentioned in Schedule 1, is calculated using the formula described.

 

The amount of the charge imposed on each carrier licence is made up of a fixed component and a variable component.  The fixed component (MFC: Minimum Fixed Charge) is a cost recovery based administration charge for the calculation, review and approval of the charge. For the 2009-10 financial year, the fixed component is $285 per carrier.

 

The total variable component is calculated by first extracting the fixed component from the maximum charge amount (MCA) that excludes the other telecommunication charges (OTC). Then the total variable component is allocated to the individual carrier in the same proportion of their reported eligible revenue as set out in the Schedule 1.

 

Schedule 1

 

Column 2 sets out the persons who were holders of carrier licences as at 1 July 2009.

 

Column 4 sets out the assessment of each carrier's eligible revenue for the 2008-09 financial year as determined by the ACMA under section 20F of the Telecommunications (Consumer Protection and Service Standards) Act 1999.

Overview

The Telecommunications (Annual Carrier Licence Charge) Determination 2010 was introduced to address the need for a structured and transparent method of calculating the annual carrier licence charge for telecommunications carriers in Australia for the 2009-2010 financial year. This determination was enacted by the Australian Communications and Media Authority (ACMA) under the Telecommunications (Carrier Licence Charges) Act 1997. The primary objective of this legislation was to ensure that the charges imposed on carrier licences were both equitable and reflective of the actual costs incurred by the regulatory authorities in managing the telecommunications industry. This determination specified the methodology for calculating the annual carrier licence charge, ensuring that the charges were based on a combination of fixed and variable components, which took into account the eligible revenue of the carriers as reported by the ACMA.

Scope and Application

The Telecommunications (Annual Carrier Licence Charge) Determination 2010 applies to persons who hold a carrier licence in force at the beginning of the 2009-2010 financial year. The Determination, made by the Australian Communications and Media Authority (ACMA) under the Telecommunications (Carrier Licence Charges) Act 1997, outlines the methodology for calculating the annual carrier licence charge for the specified financial year. The application of this Determination is national, affecting all carriers within Australia, regardless of their specific location or the nature of their telecommunications activities. The charge comprises both a fixed component, intended as a cost recovery for administrative purposes, and a variable component, which is determined based on the carrier's reported eligible revenue for the previous financial year. The charge must not exceed the sum of the amounts specified in the Determination, as outlined in the Act, and is registered on the Federal Register of Legislative Instruments. No consultation was required as the changes were deemed to have a low impact on business and minimal compliance costs.

Key Provisions

The Telecommunications (Annual Carrier Licence Charge) Determination 2010, made under the authority of subsection 14(1) of the Telecommunications (Carrier Licence Charges) Act 1997 (the Act), outlines the methodology for calculating the annual carrier licence charge for the 2009-2010 financial year. Section 12 of the Act mandates that a charge is imposed on a carrier licence that is in force at the beginning of a financial year. The specific amount of this charge is determined according to a written determination by the Australian Communications and Media Authority (ACMA), as stated in subsection 14(1). The total amount of these charges, imposed on all carrier licences in force at the beginning of a financial year, must not exceed the sum of amounts determined by the ACMA in accordance with paragraphs 15(1)(a), (b), (c), (ca), and (d) of the Act, as outlined in subsection 15(1). The Determination imposes specific obligations on the ACMA and the carriers. The ACMA is required to ascertain the amount of the annual carrier licence charge through a specified calculation methodology, which includes a fixed component and a variable component. The fixed component, referred to as the Minimum Fixed Charge (MFC), serves as a cost recovery-based administrative charge for calculating, reviewing, and approving the charge. For the 2009-10 financial year, the MFC is set at $285 per carrier. The variable component is derived by first subtracting the fixed component from the maximum charge amount (MCA), which excludes other telecommunications charges (OTC). This total variable component is then allocated to each individual carrier based on their reported eligible revenue, as determined by the ACMA and detailed in Schedule 1. Carriers are obligated to comply with these calculations and to pay the determined annual carrier licence charge by the specified due date. Breaches of the provisions under the Determination could result in various consequences. Although the explanatory statement does not explicitly outline the specific offences or penalties for non-compliance, it is reasonable to infer that failure to pay the determined annual carrier licence charge could be considered a breach of the Act. Depending on the severity and intent behind the non-compliance, this could lead to civil or administrative penalties. However, the exact nature and extent of these penalties are not detailed in the provided text. Generally, under Australian law, non-compliance with regulatory requirements could result in fines, legal actions, or other administrative sanctions, depending on the specific provisions of the Act and any relevant regulations or guidelines.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.