EXPLANATORY STATEMENT
Telecommunications (Carrier Licence Charges) Act 1997
Determination under Paragraph 15(1)(b) No. 1 of 2009
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 $10,803,740 is the amount determined to be the proportion of ACCC’s cost for the 2007-08 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 by the Australian Parliament to establish a framework for determining the annual charges imposed on carrier licences held by telecommunications carriers. The Act addresses the need for a clear and transparent method for calculating these charges, ensuring that they reflect the actual costs incurred by relevant regulatory bodies in performing their telecommunications-related functions. In line with this purpose, the Australian Competition & Consumer Commission (ACCC) was tasked with determining the proportion of its costs attributable to telecommunications functions and powers, as outlined in the Act. The policy objective of the Act is to ensure that the charges on carrier licences are fair and reflective of the actual costs incurred by the Australian Communications and Media Authority (ACMA) and the ACCC in performing their regulatory roles.
The Explanatory Statement for the 2009 Determination under Paragraph 15(1)(b) No. 1 of the Telecommunications (Carrier Licence Charges) Act 1997, issued by the ACCC, provides that $10,803,740 is the amount determined to be the proportion of the ACCC's costs for the 2007-08 financial year attributable to its telecommunications functions and powers. The ACCC did not consult in the calculation of these costs, as the methodology used is based on actual costs incurred directly by the ACCC in undertaking its regulatory role. This approach is consistent with prior years.
Scope and Application
The Telecommunications (Carrier Licence Charges) Act 1997 applies to telecommunications carriers holding carrier licences in Australia, with its primary focus on the annual charges imposed on these licences. The Act establishes the method for calculating these charges, ensuring they do not exceed a specified sum determined by various regulatory bodies. Specifically, the charges are calculated based on the proportion of costs attributable to telecommunications functions and powers of the Australian Communications and Media Authority (ACMA) and the Australian Competition and Consumer Commission (ACCC) for the preceding financial year, as well as other specified amounts. The Act's scope is national, applying across the Commonwealth of Australia, and it extends its reach through subordinate instruments to ensure precise and consistent application of the charge calculations. There are no stated exclusions or exemptions in the Act, and it applies uniformly to all telecommunications carriers within its jurisdiction.
Key Provisions
The Telecommunications (Carrier Licence Charges) Act 1997 outlines the method for calculating annual charges applicable to carrier licences held by telecommunications carriers (subsection 15(1)). These charges are limited to specific components: the proportion of the Australian Communications and Media Authority's (ACMA) costs for telecommunications functions (subsection 15(1)(a)), the proportion of the Australian Competition and Consumer Commission's (ACCC) costs for telecommunications functions (subsection 15(1)(b)), a portion of the Commonwealth's contribution to the International Telecommunication Union's budget (subsection 15(1)(c)), the sums paid under section 136C of the Telecommunications Act 1997 (subsection 15(1)(ca)), and estimated grants under section 593 of the same act (subsection 15(1)(d)). The Act also defines "costs" in relation to the ACCC as amounts treated as costs according to accrual-based accounting principles (paragraph 15(4)(b)).
Under this Act, telecommunications carriers must comply with the prescribed annual charges. These charges are calculated based on the proportion of costs incurred by regulatory bodies, such as the ACMA and the ACCC, for their telecommunications functions. The Act mandates that the total charges imposed on carrier licences must not exceed the sum of the costs outlined in subsection 15(1). The ACMA and the ACCC are responsible for determining the proportion of their respective costs attributable to telecommunications functions and powers, which is then used to calculate the annual charges.
Failure to comply with the provisions of the Telecommunications (Carrier Licence Charges) Act 1997 could result in civil or criminal consequences, although the specific offences, penalties, or consequences are not detailed in the explanatory statement. The determination made under subsection 15(1) of the Act, such as the amount determined for the ACCC's costs for the 2007-08 financial year, is a legislative instrument for the purposes of the Legislative Instruments Act 2003. This means that the determination holds legal authority and must be adhered to by the entities it governs. Non-compliance with the statutory requirements could potentially lead to legal actions or financial penalties, although the exact penalties are not specified in the provided text.