EXPLANATORY STATEMENT
Telecommunications (Carrier Licence Charges) Act 1997
DETERMINATION UNDER PARAGRAPH 15(1)(d) No. 1 of 2010
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 the ACMA and the ACCC, and separate explanatory statements submitted by those agencies 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 $2,000,000 is the amount estimated to be the amount of grants likely to be made during the 2009-2010 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 Commonwealth Parliament, addresses the need for a structured method to calculate annual charges for carrier licences held by telecommunications carriers. The Act ensures that these charges are kept within a defined limit that includes costs attributable to the Australian Communications and Media Authority (ACMA) and the Australian Competition and Consumer Commission (ACCC) related to their telecommunications functions, as well as the Commonwealth’s contribution to the International Telecommunication Union. The Act also includes provisions for grants to consumer bodies and research entities related to telecommunications, with specific mechanisms to estimate and incorporate the cost of such grants into the overall charge calculation. The 2010 determination under the Act specifies the estimated amount for grants likely to be made during the 2009-2010 financial year, ensuring that the total carrier licence charges remain within the prescribed limits.
Scope and Application
The Telecommunications (Carrier Licence Charges) Act 1997 applies to telecommunications carriers that hold a carrier licence, imposing annual charges based on the costs associated with the 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 International Telecommunication Union budget, and the estimated grants for consumer representation and telecommunications research under section 593 of the Telecommunications Act 1997. The Act operates at the Commonwealth level, regulating the charges that telecommunications carriers must pay to cover certain costs and grants. The Act does not specify exclusions or thresholds but instead leaves these to be determined by the ACMA and ACCC, or the Minister, through written instruments. The application of the Act may be extended or modified by subordinate instruments, which are subject to parliamentary disallowance.
Key Provisions
The Telecommunications (Carrier Licence Charges) Act 1997 (the Act) provides a framework for the calculation of annual charges on carrier licences held by telecommunications carriers (section 15(1)). The Act mandates that the total annual charges imposed on carrier licences in force at the beginning of the year should not exceed the sum of specific costs and contributions determined by various authorities. Specifically, the total charges must not exceed 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 (subsection 15(1)(a) and (b)). Additionally, it includes the proportion of the Commonwealth's contribution to the budget of the International Telecommunication Union for the calendar year, which is to be recovered from carriers (subsection 15(1)(c)). The Act also incorporates the amount paid under section 136C of the Telecommunications Act 1997 during the preceding financial year (subsection 15(1)(ca)), and the estimated total amount of grants likely to be made under section 593 of the Telecommunications Act 1997 during the financial year (subsection 15(1)(d)).
The Act imposes obligations on the ACMA and the ACCC to determine their respective proportions of costs attributable to telecommunications functions and powers (subsection 15(1)(a) and (b)). The ACMA is also responsible for determining the proportion of the Commonwealth's contribution to the budget of the International Telecommunication Union (subsection 15(1)(c)), and the amount paid under section 136C of the Telecommunications Act 1997 (subsection 15(1)(ca)). The Minister is required to determine the estimated total amount of grants likely to be made under section 593 of the Telecommunications Act 1997 (subsection 15(1)(d)). These determinations must be made by written instruments, with the ACMA and ACCC providing accompanying explanatory statements for their respective determinations. The Minister's determination is accompanied by the Explanatory Statement detailing the rationale and amount estimated for grants under section 593.
The Act does not explicitly outline offences or penalties for breaches within the determination itself. However, as an instrument made under subsection 15(1), it is a legislative instrument for the purposes of the Legislative Instruments Act 2003 (LIA) (subsection 15(2)). Consequently, it must be tabled in Parliament and is subject to Parliamentary disallowance. The Explanatory Statement notes that consultation on this instrument was deemed unnecessary, as it is of a minor or machinery nature and does not substantially alter existing arrangements (see paragraph 18(2)(a) of the LIA). Therefore, while the Act does not specify penalties for breaches, the legislative instrument nature implies that any non-compliance with the determination could result in parliamentary scrutiny and potential disallowance.