EXPLANATORY STATEMENT
Telecommunications (Carrier Licence Charges) Act 1997
Determination under Paragraph 15(l)(b) No. 1 of 2007
Issued by the authority of the Australian Competition & Consumer Commission ('ACCC')
The Telecommunications (Carrier Licence Charges) Act 1997 (the Act) sets out the method of calculating annual charges that apply to the carrier licences held by the telecommunications carriers. Subsection 15(1) of the Act states that the total of charges that are imposed on carrier licences in force at the beginning of a financial year must not exceed the sum of:
a) the amount determined, by a written instrument made by the ACMA, to be the proportion of the ACA's costs for the immediately preceding financial year that is attributable to the ACA's telecommunications functions and powers; and
b) the amount determined, by a written instrument made by the ACCC, to be the proportion of the ACCC's costs for the immediately preceding financial year that is attributable to the ACCC's telecommunications functions and powers; and
c) the amount determined, by a written instrument made by the ACMA, to be the proportion of the Commonwealth's contribution to the budget of the International Telecommunication Union for the calendar year in which the beginning of the financial year occurs that is to be recovered from carriers; and
d) the amount determined, in a written instrument made by the Minister, to be the estimated total amount of grants likely to be made during the financial year under section 593 of the Telecommunications Act 1997; and
e) the amount determined by the Industry Minister, by written instrument, to be the proportion of the Commonwealth's costs for the immediately preceding financial year that is attributable to the administration of Part 2 of Schedule 1 to the Telecommunications Act 1997.
The accompanying determination has been made for the purposes of paragraph 15(l)(b) of the Act. The determination provides that $8,882,889 is the amount determined to be the proportion of ACCC's cost for the 2005-06 financial year that is attributable to the ACCC's telecommunications functions and powers.
Paragraph 15 (4)(b) of the Act requires that the ACCC's costs are to be calculated in accordance with accrual-based accounting principles. This amount has been calculated in accordance with those principles.
Subsection 15(2) of the Act provides that an instrument under subsection (1) must be notified in the Gazette before the day on which the charges referred to in subsection (1) becomes due for payment. Section 56 (1) of the Legislative Instruments Act 2003 states that a requirement to publish an instrument in the gazette is satisfied if the instrument is registered on the Federal Register of Legislative Instruments ('FRLI'). The accompanying determination will therefore be published on FRLI, and will be tabled in Parliament and is subject to Parliamentary disallowance.
Overview
The Telecommunications (Carrier Licence Charges) Act 1997 was enacted by the Parliament of Australia to establish a framework for calculating annual charges for carrier licences held by telecommunications carriers. This Act aimed to address the need for a transparent and systematic approach to the financial obligations of telecommunications carriers, ensuring that the costs related to regulatory functions are appropriately allocated. The Australian Competition and Consumer Commission (ACCC), under the authority conferred by the Act, is responsible for determining the proportion of its costs attributable to telecommunications functions. This determination, as illustrated in the 2007 explanatory statement, ensures that the charges imposed are in line with accrual-based accounting principles, providing a clear and accountable method for cost recovery. The determination process is subject to rigorous oversight, including publication on the Federal Register of Legislative Instruments and potential disallowance by Parliament, reinforcing the legislative intent to maintain transparency and accountability in the regulatory process.
Scope and Application
The Telecommunications (Carrier Licence Charges) Act 1997 applies to telecommunications carriers in Australia, specifically governing the calculation of annual charges imposed on their carrier licences. This Act ensures that the total charges levied on these licences do not exceed specific sums determined by various authorities, including the Australian Communications and Media Authority (ACMA), the Australian Competition and Consumer Commission (ACCC), and the Industry Minister. The charges are calculated based on the proportion of costs attributable to telecommunications functions and powers of these authorities, as well as other specified contributions and grants. The geographic reach of this Act is national, applying uniformly across Australia. The Act also mandates that any determinations regarding these charges must be notified in the Gazette and registered on the Federal Register of Legislative Instruments, and are subject to potential disallowance by Parliament. This determination process ensures transparency and accountability in the charge calculation process.
Key Provisions
The Telecommunications (Carrier Licence Charges) Act 1997 (the Act) establishes the framework for calculating annual charges for carrier licences held by telecommunications carriers, with specific provisions detailed in Section 15. This section outlines the method for determining the total charges, which must not exceed a sum calculated based on various components including the Australian Communications and Media Authority’s (ACMA) and the Australian Competition and Consumer Commission’s (ACCC) costs related to their telecommunications functions and powers (subsection 15(1)(a) and (b)). It also includes the Commonwealth’s contribution to the International Telecommunication Union and estimated grants under section 593 of the Telecommunications Act 1997 (subsection 15(1)(c) and (d)), as well as the Commonwealth’s costs for administering telecommunications laws (subsection 15(1)(e)).
The Act imposes specific obligations on the relevant authorities to determine the charges. For instance, Section 15(1) requires the ACMA and ACCC to calculate the proportions of their costs attributable to telecommunications functions. Additionally, the Minister must estimate the total amount of grants likely to be made during the financial year (subsection 15(1)(d)), and the Industry Minister must determine the Commonwealth’s costs related to the administration of telecommunications laws (subsection 15(1)(e)). Each of these determinations must be made in accordance with accrual-based accounting principles as stipulated in Section 15(4)(b). The Act also mandates that these determinations must be notified in the Gazette before the charges become due for payment, as per Section 15(2).
Failure to comply with the provisions of the Act may result in legal consequences. While the Act does not explicitly detail specific offences or penalties, breaches of the requirements to notify or calculate charges accurately could lead to enforcement actions by the relevant authorities. Additionally, the Act’s provisions are subject to Parliamentary disallowance, meaning that the determinations made under the Act can be reviewed and potentially disallowed by Parliament. Such disallowance could have significant implications for the entities governed by the Act, potentially affecting their financial obligations and regulatory compliance.