EXPLANATORY STATEMENT
Telecommunications (Carrier Licence Charges) Act 1997
DETERMINATION UNDER PARAGRAPH 15(1)(d) No. 1 of 2006
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 and Media Authority (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 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 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 determination 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 (discussed below).
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 $793,662 is the amount estimated to be the amount of grants likely to be made during the 2005-2006 financial year under section 593 of the Telecommunications Act 1997.
Subsection 15(2) of the Act provides that an instrument under subsection (1) is a legislative instrument for the purposes of the Legislative Instruments Act 2003 (LIA). It must therefore be tabled in the Parliament and is subject to Parliamentary disallowance.
Consultation on the instrument was considered unnecessary because the instrument is of a minor or machinery nature and does not substantially alter existing arrangements (see paragraph 18(2)(a) of the LIA).
Overview
The Telecommunications (Carrier Licence Charges) Act 1997, enacted by the Australian Parliament, was introduced to establish a systematic method for calculating annual charges that apply to carrier licences held by telecommunications carriers. The Act aims to ensure that the total annual charges imposed on carrier licences do not exceed the sum of specific components, including the costs attributable to the Australian Communications and Media Authority (ACMA) and the Australian Competition and Consumer Commission (ACCC) related to their telecommunications functions and powers, as well as the Commonwealth's contribution to the budget of the International Telecommunication Union. Additionally, the Act considers any amounts paid under section 136C of the Telecommunications Act 1997 and the estimated total amount of grants likely to be made under section 593 of the Telecommunications Act 1997. The policy objective is to maintain a balanced and fair approach to funding telecommunications regulation and international cooperation while supporting consumer representation and research into telecommunications developments.
Scope and Application
The Telecommunications (Carrier Licence Charges) Act 1997 applies to telecommunications carriers who hold a carrier licence, governing the calculation of annual charges imposed on these licences. The Act specifies that the total annual charges on carrier licences cannot exceed certain predetermined amounts, which include the costs attributable to the Australian Communications and Media Authority’s and the Australian Competition and Consumer Commission’s telecommunications functions and powers, the Commonwealth’s contribution to the International Telecommunication Union budget, and the sums paid under the Telecommunications Act 1997, as well as any grants likely to be made by the Minister under section 593 of the Telecommunications Act 1997. This legislation operates on a national level, applying across the Commonwealth of Australia. The accompanying determination, which estimates the amount of grants likely to be made under section 593 of the Telecommunications Act 1997 for the financial year 2005-2006, is a legislative instrument subject to the Legislative Instruments Act 2003, requiring tabling in Parliament and potential disallowance, though consultation was deemed unnecessary due to the minor nature of the changes.
Key Provisions
The Telecommunications (Carrier Licence Charges) Act 1997 specifies the method for calculating annual charges applicable to carrier licences held by telecommunications carriers. Under section 15(1) of the Act, the total annual charges imposed on carrier licences in force at the beginning of each year must not exceed a sum determined by several components. These components include the proportion of the Australian Communications and Media Authority's (ACMA) costs for the preceding financial year attributable to its telecommunications functions and powers, as well as the proportion of the Australian Competition and Consumer Commission's (ACCC) costs for the preceding financial year attributable to its telecommunications functions and powers. Additionally, the sum 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 that is to be recovered from carriers, the sum of the amounts paid under section 136C of the Telecommunications Act 1997 during the preceding financial year, and the amount estimated to be the total grants likely to be made during the financial year under section 593 of the Telecommunications Act 1997.
The Act imposes obligations on telecommunications carriers to pay annual charges calculated in accordance with the provisions of the Act. It mandates that the total annual charges must not exceed the sum determined by the ACMA and the ACCC, and also includes the contribution to the International Telecommunication Union and the estimated grants under section 593 of the Telecommunications Act 1997. The Act further requires the Minister for Communications, Information Technology and the Arts to determine the amount of grants likely to be made during the financial year under section 593 of the Telecommunications Act 1997. These instruments, once made, are legislative instruments under the Legislative Instruments Act 2003 and must be tabled in Parliament, subject to disallowance.
The Act does not explicitly outline specific offences, penalties, or civil/criminal consequences for breaches of its provisions. However, the requirement to adhere to the calculated annual charges is crucial, and failure to comply could potentially lead to enforcement actions by the relevant authorities. The legislative instruments made under the Act, being subject to disallowance, also imply a level of oversight and accountability. Any significant deviation from the prescribed method of calculating charges could attract scrutiny and corrective measures.