Telecommunications (Carrier Licence Application Charge) Amendment Determination 2017 (No. 1)

Administered by Department of Communications and the Arts

Legislation au F2017L00337 Not in force Legislative Instrument

Legislation content

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:

  1. 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.

Overview

The Telecommunications (Carrier Licence Charges) Act 1997 was enacted to establish a framework for imposing charges on applications for carrier licences in the telecommunications industry. The Act aims to ensure that these charges are set in a manner that reflects the actual cost incurred by the Australian Communications and Media Authority (ACMA) in processing such applications, thereby maintaining a cost-recovery mechanism. The ACMA, as the enacting body under subsection 9(1) of the Act, has the authority to make legislative instruments to determine the specific charges imposed on carrier licence applications. The policy objective behind the Act is to facilitate the efficient and effective administration of carrier licence applications while ensuring transparency and fairness in the fee structure. The Telecommunications (Carrier Licence Application Charge) Amendment Determination 2017 (No. 1) was introduced to adjust the charge for carrier licence applications to better reflect the current operational costs of the ACMA. This amendment, increasing the charge to $2,122, was calculated based on the ACMA's updated hourly rate and the estimated time required to process an application. The increase, amounting to 2.2%, is intended to align the charge with the actual cost of providing the necessary services, ensuring that the ACMA can continue to operate effectively within the telecommunications sector. The ACMA consulted with industry stakeholders and the public during the development of this amendment, although no submissions were received, they deemed the consultation process appropriate and reasonably practicable.

Scope and Application

The Telecommunications (Carrier Licence Application Charge) Amendment Determination 2017 (No. 1) made by the Australian Communications and Media Authority (ACMA) under the Telecommunications (Carrier Licence Charges) Act 1997, modifies the charge imposed on an application for a carrier licence to $2,122. This charge represents a 2.2% increase from the previous amount and is based on the ACMA's hourly rate multiplied by the estimated time taken to assess an application for a carrier licence. The new standard hourly rate, which is $202 (excluding GST), has increased by 2.5%. 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. The instrument is compatible with human rights as it does not raise any human rights issues, according to the ACMA's assessment. The instrument applies to any person or entity seeking a carrier licence in Australia, and the ACMA has consulted with industry stakeholders and the general public before making the instrument. The instrument does not incorporate any documents by reference.

Key Provisions

The Telecommunications (Carrier Licence Application Charge) Amendment Determination 2017 (No. 1) amends the Telecommunications (Carrier Licence Charges) Act 1997 by increasing the fee for a carrier licence application from $2,076 to $2,122 (section 4, Schedule 1, Item 1). This represents a 2.2% increase, calculated based on the Australian Communications and Media Authority's (ACMA) standard hourly rate and the estimated time taken to process an application. The ACMA's standard hourly rate increased by 2.5%, from $197 to $202, and this adjustment was based on the net cost of services provided by the ACMA's business units for the financial year 2015–16. The increased fee includes the costs of gazettal and company search, which have remained unchanged. The Determination imposes specific obligations on entities applying for a carrier licence. They must now pay the amended application fee of $2,122, as stipulated in the Determination (section 7 of the Act). This increase reflects the updated cost recovery methodology used by the ACMA to cover the administrative costs associated with processing these applications. The entities are required to ensure compliance with this updated fee structure when submitting their applications. Failure to pay the correct fee as specified in the Determination may result in administrative penalties. While the Determination does not explicitly detail specific penalties, breaches of fee payment requirements can typically lead to enforcement actions by the ACMA. These actions may include denial of the licence application or other administrative sanctions. The ACMA has the authority to take such actions under the Telecommunications (Carrier Licence Charges) Act 1997, and the penalties can vary depending on the nature and severity of the breach. It is essential for entities to adhere to the updated fee requirements to avoid any potential consequences.

Legal classification tags

Area of Law
Telecommunications Law
Instrument
Regulation
Concepts
Commencement Provisions
Regulatory Standards
Reporting & Disclosure Obligations

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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.