EXPLANATORY STATEMENT
Telecommunications (Carrier Licence Charges) Act 1997
DETERMINATION UNDER PARAGRAPH 15(1)(d) No. 1 of 2008
Issued by authority of the Minister for Broadband,
Communications, and the Digital Economy
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).
The accompanying instrument only addresses the amount outlined in paragraph (d). Determinations outlined in paragraphs (a) to (ca) will be made by ACMA and the ACCC, and separate explanatory statements will accompany those determinations.
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 $742,679 is the amount estimated to be the amount of grants likely to be made during the 2007-2008 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 systematic approach for calculating the annual charges applicable to carrier licences held by telecommunications carriers. The Act was designed to address the need for a transparent and equitable method of distributing the costs associated with the regulation and oversight of the telecommunications industry among the carriers themselves. This was a response to the evolving landscape of telecommunications and the associated regulatory costs borne by the Commonwealth. The Act was enacted by the Australian Parliament, with the policy objective of ensuring that the financial burden of regulatory functions is shared fairly among telecommunications carriers, thereby maintaining a stable and predictable regulatory environment.
The 2008 determination under paragraph 15(1)(d) of the Act, issued by the Minister for Broadband, Communications, and the Digital Economy, specifies the estimated amount of grants likely to be made during the financial year under section 593 of the Telecommunications Act 1997. This determination is part of the broader framework established by the 1997 Act, which mandates that the total annual charges on carrier licences must not exceed a sum that includes various components such as the costs attributable to the Australian Communications and Media Authority and the Australian Competition and Consumer Commission, among others. This legislative instrument is subject to parliamentary scrutiny and disallowance, reflecting the importance of parliamentary oversight in the regulatory process. The determination process ensures that the financial contributions from carriers align with the actual costs incurred by regulatory bodies and the Commonwealth in overseeing the telecommunications sector.
Scope and Application
The Telecommunications (Carrier Licence Charges) Act 1997 applies to telecommunications carriers holding a carrier licence and mandates the calculation of annual charges imposed on these licences. The Act ensures that the total annual charges do not exceed specific sums determined by various authorities, including the Australian Communications and Media Authority (ACMA) and the Australian Competition and Consumer Commission (ACCC), among others. The Act's jurisdiction spans the Commonwealth level, applying nationally to all telecommunications carriers operating within Australia. While the Act primarily governs the financial obligations of telecommunications carriers, it excludes other entities or individuals not holding a carrier licence under the Telecommunications Act 1997. The Act may extend its application through subordinate instruments, which are subject to parliamentary disallowance and must be tabled in Parliament. This particular determination focuses on the estimated grants under section 593 of the Telecommunications Act 1997, with other related determinations to be made by the ACMA and the ACCC, accompanied by separate explanatory statements.
Key Provisions
The Telecommunications (Carrier Licence Charges) Act 1997 (the Act) outlines the process for calculating annual charges applicable to carrier licences held by telecommunications carriers. Section 15(1) of the Act stipulates that the total annual charges imposed on carrier licences in force at the start of the year should not exceed the sum of several determined amounts. These include the proportion of the Australian Communications and Media Authority’s (ACMA) and the Australian Competition and Consumer Commission’s (ACCC) costs for the preceding financial year attributable to their telecommunications functions and powers (subsection 15(1)(a) and (b)), the proportion of the Commonwealth’s contribution to the budget of the International Telecommunication Union that is to be recovered from carriers (subsection 15(1)(c)), and the sum of the amounts paid under section 136C of the Telecommunications Act 1997 during the preceding financial year (subsection 15(1)(ca)). Additionally, the amount determined by the Minister to be the estimated total of grants likely to be made during the financial year under section 593 of the Telecommunications Act 1997 must be included (subsection 15(1)(d)). The accompanying determination specifies that $742,679 is the estimated amount of grants likely to be made during the 2007-2008 financial year.
The Act imposes specific obligations on the ACMA, ACCC, and the Minister. The ACMA and ACCC are required to determine the proportion of their respective costs attributable to telecommunications functions and powers, and the ACMA must also determine the proportion of the Commonwealth’s contribution to the International Telecommunication Union’s budget that is to be recovered from carriers. The Minister, on behalf of the Commonwealth, must determine the estimated total amount of grants likely to be made under section 593 of the Telecommunications Act 1997. Each of these determinations must be made in writing and documented as a legislative instrument under the Legislative Instruments Act 2003 (LIA). The determination made by the Minister is subject to tablement in Parliament and potential disallowance. While the Act allows for consultation, it was deemed unnecessary for this particular determination due to its minor nature and the fact that it does not substantially alter existing arrangements.
Failure to comply with the requirements set out in the Act may result in legal consequences. As a legislative instrument, the determination is subject to the provisions of the LIA, which include the potential for disallowance by Parliament. The Act does not explicitly outline specific offences, penalties, or civil/criminal consequences for breaches of its provisions; however, the determinations made under the Act are integral to the lawful imposition of carrier licence charges. Any breach of the legislative requirements could potentially lead to legal challenges, penalties under other related legislation, or administrative actions. The precise consequences would depend on the nature and extent of the breach, as well as any relevant case law or regulations that might apply.