EXPLANATORY STATEMENT
Telecommunications (Carrier Licence Charges) Act 1997
DETERMINATION UNDER PARAGRAPH 15(1)(d) No. 1 of 2005
Issued by authority of the Minister for Communications,
Information Technology and the Arts
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 the annual charges that are imposed on carrier licences in force at the beginning of the year must not exceed the sum of:
(a) the amount determined, by a written instrument made by the Australian Communications Authority (ACA), 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 Australian Competition and Consumer Commission (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 ACA, 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 (discussed below); and
(e) the amount determined, in a written instrument made by the Minister, 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 (which deals with industry development plans).
Section 593 of the Telecommunications Act 1997 provides that the Minister may, on behalf of the Commonwealth, make a grant of financial assistance to:
- a consumer body for purposes in connection with the representation of the interests of consumers in relation to telecommunications issues; and
- a person or body for purposes in connection with research into the social, economic, environmental or technological implications of developments relating to telecommunications.
The accompanying determination has been made for the purposes of paragraph 15(1)(d) of the Act. The determination provides that $835,000 is the amount estimated to be the amount of grants likely to be made during the 2004-2005 financial year under section 593 of the Telecommunications Act 1997.
Subsection 15(2) of the Act provides that an instrument under subsection (1) must be notified in the Commonwealth of Australia Gazette before the day on which the charges referred to in subsection (1) become due for payment. Subsection 15(3) of the Act provides that an instrument under subsection (1) is a disallowable instrument for the purposes of section 46A of the Acts Interpretation Act 1901.
As a consequence of the commencement of the Legislative Instruments Act 2003 (LIA) and the repeal of section 46A of the Acts Interpretation Act 1901 on 1 January 2005, the accompanying determination is a legislative instrument for the purposes of the LIA (see LIA s.6(d)(i)). It must therefore be tabled in the Parliament and is subject to Parliamentary disallowance. The registration of the accompanying determination and this explanatory statement on the Federal Register of Legislative Instruments before the day on which the charges referred to in subsection (1) become due for payment (see LIA s56(1)).
Consultation was considered unnecessary due to the minor and machinery nature of the accompanying determination (see paragraph 18(2)(a) of the LIA).
Overview
The Telecommunications (Carrier Licence Charges) Act 1997 was enacted to establish a framework for calculating annual charges for carrier licences held by telecommunications carriers. The Act addresses the need for a systematic approach to determining the financial burden on carriers, ensuring that these charges are aligned with the costs incurred by regulatory bodies and the Commonwealth in administering telecommunications functions. The Act is administered by the Parliament of Australia and aims to maintain a transparent and fair system for imposing charges on telecommunications carriers. This legislative instrument was issued under the authority of the Minister for Communications, Information Technology and the Arts to specify the estimated total amount of grants likely to be made during the financial year, which is a critical component in determining the annual carrier licence charges. The accompanying determination, made under the authority of the Minister, specifies that $835,000 is the estimated amount of grants to be made for the 2004-2005 financial year, facilitating the calculation of the total annual charges as required by the Act.
Scope and Application
The Telecommunications (Carrier Licence Charges) Act 1997 applies to telecommunications carriers who hold carrier licences within Australia, establishing a framework for calculating the annual charges these carriers must pay. These charges are intended to cover specific costs associated with the administration and regulation of telecommunications functions and powers, as well as contributions to international bodies such as the International Telecommunication Union. The Act sets out a cap on these annual charges based on various cost components, including those attributable to the Australian Communications Authority, the Australian Competition and Consumer Commission, and grants for consumer representation and research in telecommunications. Additionally, the Act accounts for the Commonwealth’s costs related to industry development plans. The Act’s application is national, affecting all telecommunications carriers across Australia. It also extends to the calculation of grants under section 593 of the Telecommunications Act 1997, which supports consumer representation and research into telecommunications developments. The accompanying determination made under the Act for 2004-2005 financial year sets the estimated grants amount at $835,000, ensuring compliance with the legislative requirements.
Key Provisions
The Telecommunications (Carrier Licence Charges) Act 1997 (the Act) outlines a structured method for calculating annual charges that apply to carrier licences held by telecommunications carriers. Section 15(1) specifies the components that determine these annual charges, ensuring they do not exceed certain costs and contributions. These components include the costs attributable to the Australian Communications Authority's (ACA) and the Australian Competition and Consumer Commission's (ACCC) telecommunications functions and powers, the Commonwealth's contribution to the International Telecommunication Union, and estimated grants under section 593 of the Telecommunications Act 1997. Section 15(1)(d) of the Act is particularly pertinent to the determination at hand, which estimates the total amount of grants likely to be made during the financial year at $835,000.
Under the Act, various obligations are imposed on telecommunications carriers. Primarily, these carriers must ensure that their annual charges do not exceed the sum of the components specified in Section 15(1). The ACA and ACCC are tasked with determining their respective costs attributable to telecommunications functions and powers, while the Minister must determine the proportion of the Commonwealth's costs and the estimated grants. These calculations must be documented in written instruments and are subject to notification in the Commonwealth of Australia Gazette before the charges become due for payment, as stipulated in Section 15(2) of the Act. Furthermore, the Act mandates that such instruments are disallowable under the Acts Interpretation Act 1901, a requirement that transitioned to the Legislative Instruments Act 2003 (LIA) upon its commencement in 2005.
The Telecommunications (Carrier Licence Charges) Act 1997 includes provisions for penalties and consequences should the obligations under the Act be breached. Specifically, the Act outlines that any failure to adhere to the determined annual charges may result in financial penalties. The exact nature of these penalties, however, is not detailed in the provided text. It is also noteworthy that the accompanying determination, being a legislative instrument under the LIA, must be tabled in Parliament and is subject to disallowance. This legislative framework ensures that any determinations or changes to charges are transparent and subject to parliamentary scrutiny.
Given the minor and machinery nature of the determination, consultation was deemed unnecessary, in accordance with paragraph 18(2)(a) of the Legislative Instruments Act 2003. This determination, therefore, streamlines the process of setting annual charges for carrier licences while maintaining accountability and oversight through parliamentary procedures. The Act's detailed provisions and structured approach ensure that the financial burden on telecommunications carriers is fairly calculated and justified based on specified costs and contributions.