EXPLANATORY STATEMENT
Telecommunications (Carrier Licence Charges) Act 1997
Determination under Paragraph 15(1)(b) No. 1 of 2008
Issued by the Australian Competition & Consumer Commission
Legislative Provisions
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 telecommunications carriers. Subsection 15(1) of the Act provides 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 ACMA's costs for the immediately preceding financial year that is attributable to the ACMA'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
(ca) the amount determined, by a written instrument made by the ACMA, to be the sum of the amounts paid under section 136C of the Telecommunications Act 1997 during the immediately preceding financial year; 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.
Paragraph 15(4)(b) of the Act defines “costs” and provides that in relation to the ACCC, costs means an amount that, in accordance with accrual-based accounting principles, is treated as a cost of the ACCC. This amount has been calculated in accordance with those principles.
A Determination made under subsection 15(1) of the Act is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
Purpose
The Determination has been made for the purposes of paragraph 15(1)(b) of the Act. The determination provides that $11,843,924 is the amount determined to be the proportion of ACCC’s cost for the 2006-07 financial year that is attributable to the ACCC’s telecommunications functions and powers.
Consultation
The ACCC did not consult in the calculation of the costs that are attributable to the ACCC’s telecommunications functions and powers under paragraph 15(1)(b) of the Act. Consultation was not undertaken as the calculation of costs is based on actual costs incurred directly by the ACCC in undertaking its regulatory role. This methodology is the same as in prior years.
Overview
The Telecommunications (Carrier Licence Charges) Act 1997 was enacted to establish the method of calculating annual charges that apply to the carrier licences held by telecommunications carriers. This legislation was introduced to ensure that the charges imposed on these carriers are directly related to the costs incurred by the relevant authorities in managing and regulating the telecommunications industry. The Australian Competition & Consumer Commission (ACCC) and the Australian Communications and Media Authority (ACMA) are key bodies involved in this regulatory process. The policy objective is to provide a transparent and accountable method for determining the charges, ensuring they reflect the actual costs attributable to telecommunications functions.
Under the Act, the total charges imposed on carrier licences must not exceed specific amounts calculated by the ACMA and the ACCC, among other factors. The 2008 Determination under subsection 15(1)(b) of the Act specified that $11,843,924 was the proportion of the ACCC's costs for the 2006-07 financial year attributable to its telecommunications functions. This Determination was made without consultation as it relied on the actual costs incurred by the ACCC in fulfilling its regulatory responsibilities.
Scope and Application
The Telecommunications (Carrier Licence Charges) Act 1997 applies to telecommunications carriers who hold carrier licences in Australia, setting out the method for calculating the annual charges imposed on these licences. This legislation ensures that the total charges for a financial year do not exceed a sum determined by specific instruments issued by the Australian Communications and Media Authority (ACMA) and the Australian Competition and Consumer Commission (ACCC). These charges are calculated based on the proportion of the ACMA's and ACCC's costs attributable to their telecommunications functions and powers, along with other specified amounts such as the Commonwealth's contribution to the International Telecommunication Union and grants under the Telecommunications Act 1997. The Act's application is national, affecting all telecommunications carriers operating within Australia, and is enforced through instruments made by the ACMA and ACCC, extending the Act's provisions as necessary. There are no stated exclusions or exemptions in the Act, although its application can be extended or restricted through subordinate instruments.
Key Provisions
The Telecommunications (Carrier Licence Charges) Act 1997 (the Act) outlines the methodology for calculating annual charges applicable to carrier licences held by telecommunications carriers. Under subsection 15(1) of the Act, the total charges for carrier licences in force at the start of a financial year cannot exceed a sum determined by various entities. Specifically, this sum comprises the proportion of the Australian Communications and Media Authority's (ACMA) costs attributable to telecommunications functions and powers (subsection 15(1)(a)), the proportion of the Australian Competition and Consumer Commission's (ACCC) costs attributable to telecommunications functions and powers (subsection 15(1)(b)), the proportion of the Commonwealth's contribution to the International Telecommunication Union (ITU) budget (subsection 15(1)(c)), the sum of amounts paid under section 136C of the Telecommunications Act 1997 (subsection 15(1)(ca)), and the estimated total amount of grants likely to be made under section 593 of the Telecommunications Act 1997 (subsection 15(1)(d)).
The Act imposes specific obligations on the ACMA, the ACCC, and the Minister to determine their respective proportions of costs related to telecommunications functions and powers. These entities must do so through written instruments, ensuring that the calculations are transparent and based on actual costs incurred. The Act also requires these entities to ensure that their costs are calculated in accordance with accrual-based accounting principles. The obligations extend to the Minister, who is required to estimate the total amount of grants likely to be made during the financial year under section 593 of the Telecommunications Act 1997.
Failure to adhere to the provisions of the Act may result in legal consequences. However, the Explanatory Statement does not detail specific offences, penalties, or civil/criminal consequences for breach. It is worth noting that the Act itself, the Telecommunications Act 1997, and the broader legislative framework may provide for penalties and consequences for non-compliance with telecommunications regulations. Typically, non-compliance with such legislative requirements might lead to fines, legal actions, or other corrective measures as prescribed by the relevant statutes.