Telecommunications (Carrier Licence Charges) Act 1997 - Determination under paragraph 15(1)(d) No. 1 of 2009

Overview

The Telecommunications (Carrier Licence Charges) Act 1997 was enacted to provide a structured and transparent method for calculating the annual charges applied to carrier licences held by telecommunications carriers. This legislation addresses the need for a systematic approach to ensuring that the financial burden on telecommunications carriers is equitably distributed, reflecting the costs associated with regulatory and administrative functions related to telecommunications. The Act was enacted by the Australian Parliament and aims to ensure that carrier licence charges are based on a clear and predictable formula that includes the costs attributable to the Australian Communications and Media Authority (ACMA), the Australian Competition and Consumer Commission (ACCC), and the Commonwealth’s contribution to the International Telecommunication Union. Additionally, the Act allows for the estimation of grants under section 593 of the Telecommunications Act 1997, which support consumer representation and research into the implications of telecommunications developments. The accompanying determination for 2008-2009, issued by the Minister for Broadband, Communications and the Digital Economy, specifies an estimated amount of $640,521 for such grants, aligning with the policy objective of maintaining balanced and fair financial arrangements for telecommunications carriers.

Scope and Application

The Telecommunications (Carrier Licence Charges) Act 1997 applies to telecommunications carriers who hold carrier licences, imposing annual charges calculated according to the specified method. The Act ensures that the total annual charges on carrier licences do not exceed a calculated sum, which includes the proportion of costs attributable to telecommunications functions and powers of the Australian Communications and Media Authority (ACMA) and the Australian Competition and Consumer Commission (ACCC), the Commonwealth's contribution to the budget of the International Telecommunication Union, 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 Act extends across the Commonwealth of Australia and affects entities involved in telecommunications services. The application of the Act may be extended or restricted through subordinate instruments, which are subject to parliamentary disallowance. Notably, this determination specifically addresses the amount outlined in paragraph (d) of subsection 15(1) of the Act, with other aspects being managed by ACMA and the ACCC.

Key Provisions

The Telecommunications (Carrier Licence Charges) Act 1997 (the Act) contains provisions that regulate the calculation of annual charges for carrier licences held by telecommunications carriers. Section 15(1) of the Act specifies the maximum annual charges for carrier licences, which must not exceed the sum of several components, including costs attributable to the Australian Communications and Media Authority (ACMA) and the Australian Competition and Consumer Commission (ACCC), contributions to the International Telecommunication Union, amounts paid under section 136C of the Telecommunications Act 1997, and grants made under section 593 of the same Act. This determination (subsection 15(1)(d)) specifically addresses the amount estimated to be the grants likely to be made under section 593, which is set at $640,521 for the 2008-2009 financial year. Under the Act, the ACMA and the ACCC are tasked with determining their respective costs attributable to telecommunications functions and powers, while the ACMA is also responsible for determining the proportion of the Commonwealth’s contribution to the International Telecommunication Union budget that is to be recovered from carriers. These determinations must be made in writing and are subject to parliamentary disallowance as they constitute legislative instruments under the Legislative Instruments Act 2003. The Minister, on behalf of the Commonwealth, has the authority to make grants to consumer bodies and entities conducting research into the social, economic, environmental, or technological implications of telecommunications developments, as outlined in section 593 of the Telecommunications Act 1997. The Act imposes specific obligations on the ACMA and the ACCC to accurately determine their costs related to telecommunications functions and powers, and on the ACMA to determine the Commonwealth’s contribution to the International Telecommunication Union. The Minister is obligated to estimate the amount of grants likely to be made under section 593 and to issue a written determination accordingly. These determinations must be made transparently and in accordance with the legislative requirements, with the associated instruments being tabled in Parliament. The Act does not explicitly outline offences, penalties, or civil/criminal consequences for breaches of its provisions. However, as the determinations and charges are legislative instruments, failure to comply with the requirements could potentially result in legal challenges or other consequences under the Legislative Instruments Act 2003, including parliamentary disallowance. The Act’s framework ensures that the annual charges imposed on carrier licences are calculated in a manner that is transparent and reflective of the actual costs and contributions related to telecommunications functions and powers.