EXPLANATORY STATEMENT
Telecommunications (Carrier Licence Charges) Act 1997
DETERMINATION UNDER PARAGRAPH 15(1)(d) No. 1 of 2007
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 $806,416.44 is the amount estimated to be the amount of grants likely to be made during the 2006-2007 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 was enacted to establish a clear and systematic method for calculating annual charges for carrier licences held by telecommunications carriers. This legislation was introduced to address the need for a transparent and equitable system for determining the costs associated with telecommunications functions and powers, ensuring that these costs are fairly distributed among carriers. The Act is overseen by the Parliament of Australia and aims to maintain a balanced approach to the financial obligations of telecommunications carriers while supporting the regulatory functions of the Australian Communications and Media Authority and the Australian Competition and Consumer Commission. The accompanying determination under the Act for the year 2006-2007 was made by the Minister for Communications, Information Technology and the Arts, setting the estimated total amount of grants likely to be made during that financial year under section 593 of the Telecommunications Act 1997 at $806,416.44.
Scope and Application
The Telecommunications (Carrier Licence Charges) Act 1997 applies to telecommunications carriers who hold a carrier licence, setting out the method for calculating annual charges on these licences. This Act ensures that the total annual charges imposed do not exceed specific determined costs related to the telecommunications functions of the Australian Communications and Media Authority (ACMA) and the Australian Competition and Consumer Commission (ACCC), as well as contributions to the International Telecommunication Union and estimated grants for telecommunications-related research and consumer representation. The Act's application is national, as it is a Commonwealth Act, and it does not explicitly state exclusions or thresholds. However, the charges are calculated based on a proportion of certain costs, which implies an implicit threshold related to the financial activities of the ACMA and ACCC. The Act also allows for the extension of its application through subordinate instruments, which are subject to parliamentary disallowance under the Legislative Instruments Act 2003.
Key Provisions
The Telecommunications (Carrier Licence Charges) Act 1997 sets forth the method for calculating annual charges applicable to carrier licences held by telecommunications carriers (section 15(1)). This calculation is based on the costs attributable to the Australian Communications and Media Authority (ACMA) and the Australian Competition and Consumer Commission (ACCC) for their telecommunications functions, the Commonwealth’s contribution to the International Telecommunication Union budget, payments made 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 determination issued under this Act specifies that $806,416.44 is the estimated amount of grants likely to be made during the 2006-2007 financial year under section 593 of the Telecommunications Act 1997 (section 15(1)(d)).
The Act imposes obligations on the ACMA and the ACCC to determine the proportions of their costs attributable to their telecommunications functions and powers for the immediately preceding financial year (section 15(1)(a) and (b)). It also requires the ACMA to determine the proportion of the Commonwealth’s contribution to the International Telecommunication Union budget that is to be recovered from carriers (section 15(1)(c)). Additionally, the Minister must estimate the total amount of grants likely to be made during the financial year under section 593 of the Telecommunications Act 1997 (section 15(1)(d)). Each of these determinations must be made in writing and are subject to the requirements of the Legislative Instruments Act 2003 (section 15(2)), including the need to be tabled in Parliament and the possibility of disallowance.
Failure to comply with the provisions of the Telecommunications (Carrier Licence Charges) Act 1997 could potentially result in civil or criminal consequences, though the specific nature of these consequences is not detailed within the Act. The Act, however, makes it clear that any instrument made under section 15(1) is a legislative instrument for the purposes of the Legislative Instruments Act 2003, and thus subject to the procedures outlined therein. The determination made under this Act specifies the amount of grants likely to be made under section 593 of the Telecommunications Act 1997, which, if incorrectly estimated, could lead to financial discrepancies or disputes regarding carrier licence charges.
Given that the determination is of a minor or machinery nature and does not substantially alter existing arrangements, consultation on the instrument was deemed unnecessary (see paragraph 18(2)(a) of the Legislative Instruments Act 2003). The Act and its accompanying determinations are designed to ensure that the annual charges imposed on carrier licences do not exceed the sum of the specified costs and contributions, thereby maintaining a fair and transparent system for telecommunications carriers.