Telecommunications (Carrier Licence Charges) Act 1997 - Determination under paragraph 15(1)(b) No. 1 of 2014

Overview

The Telecommunications (Carrier Licence Charges) Act 1997 was enacted by the Australian Parliament to establish a clear and transparent method for calculating annual charges imposed on carrier licences held by telecommunications carriers. This legislation addresses the need for a systematic approach to determining the financial contributions of telecommunications carriers to the regulatory bodies involved in overseeing the sector, namely the Australian Communications and Media Authority (ACMA) and the Australian Competition and Consumer Commission (ACCC). The policy objective of the Act is to ensure that the total charges imposed on carrier licences do not exceed the sum of the costs attributable to the regulatory functions of these bodies, contributions to the International Telecommunication Union, and anticipated grants, thereby maintaining a fair and balanced regulatory framework. The Australian Competition and Consumer Commission, under the authority granted by the Act, issued the Determination under Paragraph 15(1)(b) No. 1 of 2014 to specify the proportion of the ACCC's costs for the 2012-13 financial year attributable to its telecommunications functions and powers. This determination was calculated in accordance with accrual-based accounting principles and amounts to $15,004,637. The methodology used for this calculation was consistent with previous years, and no consultation was deemed necessary as it relied on actual costs incurred by the ACCC. The Best Practice Regulation Preliminary Assessment confirmed that the compliance costs for businesses resulting from this determination are low or non-existent.

Scope and Application

The Telecommunications (Carrier Licence Charges) Act 1997 applies to telecommunications carriers holding carrier licences, mandating the calculation of annual charges based on a proportion of costs attributable to the Australian Communications and Media Authority (ACMA) and the Australian Competition and Consumer Commission (ACCC) for their telecommunications functions and powers. This legislation also encompasses the Commonwealth's contribution to the budget of the International Telecommunication Union and the sums paid or estimated to be granted under specific sections of the Telecommunications Act 1997. The Act's jurisdiction extends across Australia, affecting all telecommunications carriers operating within the country. There are no stated exclusions or exemptions in this particular Determination; however, the Act may be subject to further refinement or elaboration through subordinate instruments which could extend or restrict its application. The Determination specifies that the ACCC’s attributable costs for the 2012-13 financial year are to be calculated and applied as outlined, without requiring consultation as the calculation is based on actual costs incurred by the ACCC.

Key Provisions

The Telecommunications (Carrier Licence Charges) Act 1997 (the Act) delineates the method for calculating annual charges applied to carrier licences held by telecommunications carriers. Under section 15(1), the total charges imposed on carrier licences in force at the start of a financial year cannot exceed the sum of several components. Firstly, it includes the proportion of the Australian Communications and Media Authority's (ACMA) costs for the preceding financial year attributable to its telecommunications functions and powers (subsection 15(1)(a)). Secondly, it includes the proportion of the Australian Competition and Consumer Commission's (ACCC) costs for the preceding financial year attributable to its telecommunications functions and powers (subsection 15(1)(b)). Thirdly, it includes the proportion of the Commonwealth's contribution to the budget of the International Telecommunication Union for the calendar year in which the financial year begins, to be recovered from carriers (subsection 15(1)(c)). Additionally, it incorporates the sum of the amounts paid under section 136C of the Telecommunications Act 1997 during the preceding financial year (subsection 15(1)(ca)), and the estimated total amount of grants likely to be made during the financial year under section 593 of the Telecommunications Act 1997 (subsection 15(1)(d)). The obligations imposed by the Act on the parties it governs primarily involve ensuring that the total charges imposed on carrier licences do not exceed the sum calculated as per the above components. The ACMA and ACCC are required to determine their respective costs attributable to their telecommunications functions and powers, and the Minister is required to estimate the total amount of grants to be made under section 593. These determinations must be made in writing and in accordance with accrual-based accounting principles for the ACCC, as defined in paragraph 15(4)(b). Additionally, the ACMA must determine the proportion of the Commonwealth's contribution to the International Telecommunication Union's budget to be recovered from carriers. The Act does not explicitly outline specific offences, penalties, or civil/criminal consequences for breaches of the provisions. However, any failure to comply with the requirements of calculating and imposing charges within the limits set by the Act could potentially lead to disputes or legal challenges. The determination made under subsection 15(1) of the Act serves as a legislative instrument under the Legislative Instruments Act 2003, indicating that it carries legal weight in governing the imposition of carrier licence charges.