EXPLANATORY STATEMENT
Approved by the Australian Communications and Media Authority
Telecommunications (Carrier Licence Charges) Act 1997
Telecommunications (Carrier Licence Application Charge) Amendment
Determination 2017 (No. 1)
Authority
The Australian Communications and Media Authority (the ACMA) has made the Telecommunications (Carrier Licence Application Charge) Amendment Determination 2017 (No. 1) (the instrument) under subsection 9(1) of the Telecommunications (Carrier Licence Charges) Act 1997 (the Act).
Section 7 of the Act provides that a charge is imposed on an application for a carrier licence. Subsection 9(1) specifies that the amount of charge imposed is the amount ascertained in accordance with a written determination made by the ACMA. Subsection 9(2) provides that a determination made under subsection 9(1) is a legislative instrument for the purposes of the Legislation Act 2003 (the LA).
Section 33 of the Acts Interpretation Act 1901 relevantly provides that where an Act confers a powers to make a legislative instrument, the power shall be construed as including a power exercisable in the like manner, and subject to the like conditions (if any), to repeal, rescind, revoke, amend or vary any such instrument. The instrument amends the Telecommunications (Carrier Licence Application Charge) Determination 2012.
Purpose and operation of the instrument
The instrument amends the Telecommunications (Carrier Licence Application Charge) Determination 2012 to increase the amount of charge imposed on an application for a carrier licence to $2,122.
The proposed charge represents a 2.2% increase from the previous charge and was calculated based on the ACMA’s hourly rate multiplied by the estimated time taken to assess an application for a carrier licence. The proposed new standard hourly rate is $202 (excluding GST), which has increased by 2.5 per cent. The rate was established by taking the net cost of services of the ACMA’s business units for 2015–16, including an attribution of all corporate and support costs, and dividing this cost by the average staff hours spent by the business units during the financial year 2015–16.
A provision-by-provision description of the instrument is set out in the notes at Attachment A.
Attachment B sets out the charge item being amended by the instrument and the variance in comparison with the pre-existing amount of charge. Attachment B also describes the reason for the differentiation in the amount of charge payable.
Documents incorporated by reference
The instrument does not incorporate any documents by reference.
Consultation
The ACMA has consulted with industry stakeholders and the general public on the making of the instrument. Between 28 November 2016 and 6 January 2017, the ACMA conducted a public consultation process inviting submissions on a number of proposed changes to fees for services determined under cost recovery arrangements. The consultation was facilitated through the release of a consultation paper and a draft cost recovery implementation statement on the ACMA’s website.
The consultation paper outlined the change proposed to be made by the instrument as well as various proposed changes to the following determinations:
- the Broadcasting (Charges) Determination 2007;
- the Radiocommunications (Digital Radio Multiplex Transmitter Licences – Application Fee) Determination 2012;
- the Radiocommunications (Charges) Determination 2007; and
- the Telecommunications (Charges) Determination 2012.
The ACMA did not receive any submissions in response to the consultation paper. Before the instrument was made, the ACMA was satisfied that consultation was undertaken to the extent appropriate and reasonably practicable, in accordance with section 17 of the LA.
Regulatory impact assessment
A preliminary assessment of the proposal to make the instrument was conducted by the Office of Best Practice Regulation (OBPR), based on information provided by the ACMA, for the purposes of determining whether a Regulation Impact Statement (RIS) would be required. OBPR advised that a RIS would not be required because the instrument was not expected to have a regulatory impact on businesses, community organisations or individuals (OBPR reference number 21266).
Statement of compatibility with human rights
Subsection 9(1) of the Human Rights (Parliamentary Scrutiny) Act 2011 requires the rule-maker in relation to a legislative instrument to which section 42 (disallowance) of the LA applies to cause a statement of compatibility with human rights to be prepared in respect of that legislative instrument.
The statement of compatibility set out below has been prepared to meet that requirement.
Overview of the instrument
The instrument amends the Telecommunications (Carrier Licence Application Charge) Determination 2012 to increase the amount of charge imposed on an application for a carrier licence to $2,122.
Human rights implications
The ACMA has assessed whether the instrument is compatible with human rights, being the rights and freedoms recognised or declared by the international instruments listed in subsection 3(1) of the Human Rights (Parliamentary Scrutiny) Act 2011 as they apply to Australia.
Having considered the likely impact of the instrument and the nature of the applicable rights and freedoms, the ACMA has formed the view that the instrument does not engage any of those rights or freedoms.
Conclusion
The instrument is compatible with human rights as it does not raise any human rights issues.
Attachment A
Notes to the Telecommunications (Carrier Licence Application Charge) Amendment Determination 2017 (No. 1)
Section 1 Name
This section provides for the instrument to be cited as the Telecommunications (Carrier Licence Application Charge) Amendment Determination 2017 (No. 1).
Section 2 Commencement
This section provides for the instrument to commence at the start of the day after it is registered on the Federal Register of Legislation.
Section 3 Authority
This section identifies the provision that authorises the making of the instrument, namely subsection 9(1) of the Telecommunications (Carrier Licence Charges) Act 1997.
Section 4 Amendment
This section provides that the instrument specified in Schedule 1 is amended as set out in that Schedule.
Schedule 1 - Amendment
Item [1]
Item [1] amends the amount of charge imposed on an application for a carrier licence to $2,122.
Attachment B
Fees – Detailed explanation
Telecommunications (Carrier Licence Application Charge) Amendment Determination 2017 (No.1) | |||||
Item being charged | Relevant provision of instrument | Fees pre-commencement | Fees post commencement | Variance increase/ (decrease) | Reason for increase/decrease |
Application for a carrier licence under section 52 of the Telecommunications Act | Item 1, Schedule 1 | $2,076.00 | $2,122.00 | 2.2% | This is due to the increase in the ACMA’s standard hourly rate. The fee includes cost of gazettal. Refer to Note 1 for further details. |
Notes:
- Methodology – For the calculation of fees, the ACMA applied its standard hourly rate and survey information obtained in 2016 on the average time taken by a proficient officer to perform the activity. The ACMA’s standard hourly rate has increased from $197 to $202 (that is, a 2.5 percent increase). The figure is based on the cost of services incurred by the ACMA in executing its functions for the financial year 2015–16. This rate was established by taking the net cost of services of the ACMA’s business units for 2015–16, including an attribution of all corporate and support costs, and dividing this cost by the average staff hours spent by the business units during the financial year 2015–16. In addition to the processing costs, the costs of gazettal and company search were included in the licence fee. The costs of gazettal and company search have not changed. As a result, the fee has increased by 2.2 per cent. The calculation methodology has not changed from the one adopted when the ACMA conducted a review on the cost recovery arrangements for annual carrier licence charges in 2012.[1]
[1] The ACMA reviewed the cost recovery arrangements for annual carrier licence charges following the making of the Australian Communications and Media Authority (Annual Carrier Licence Charge) Direction 2011 by the then Minister for Broadband, Communications and the Digital Economy. That direction stipulated a change of methodology for the calculation of annual carrier licence charges for 2011-12 and subsequent years. A copy of the Cost Recovery Implementation Statement which provides further information on the calculation methodology can be found at: http://www.acma.gov.au/~/media/Finance%20Budgets%20and%20Revenue%20Assurance/Report/pdf/Cost%20recovery%20impact%20statement.PDF.