EXPLANATORY STATEMENT
Telecommunications (Carrier Licence Charges) Act 1997
DETERMINATION UNDER PARAGRAPH 15(1)(d) No. 1 of 2011
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 $2 032 000 is the amount estimated to be the amount of grants likely to be made during the 2010-2011 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 address the need for a clear and regulated method of calculating annual charges for carrier licences held by telecommunications carriers. This Act was introduced by the Australian Parliament to ensure that the total of the annual charges imposed on carrier licences does not exceed the sum of specific determined costs and contributions, including those attributable to the Australian Communications and Media Authority (ACMA), the Australian Competition and Consumer Commission (ACCC), and the International Telecommunication Union (ITU). Additionally, the Act allows for the provision of grants to consumer bodies and entities researching telecommunications developments. The explanatory statement indicates that the Minister for Broadband, Communications and the Digital Economy issued a determination under the Act, estimating the amount of grants likely to be made under section 593 of the Telecommunications Act 1997 for the 2010-2011 financial year, which was set at $2,032,000. This determination is subject to parliamentary disallowance and was considered of a minor nature, thus consultation was deemed unnecessary.
Scope and Application
The Telecommunications (Carrier Licence Charges) Act 1997 applies to telecommunications carriers who hold a carrier licence, ensuring they are subject to the annual charges that facilitate the regulatory functions of the Australian Communications and Media Authority and the Australian Competition and Consumer Commission. These charges are calculated based on the costs attributable to telecommunications functions and powers of these authorities, as well as the Commonwealth's contribution to the International Telecommunication Union and grants made under section 593 of the Telecommunications Act 1997. This Act operates on a national level, affecting all telecommunications carriers within Australia. It does not specify exclusions but rather focuses on the calculation of fees essential for the functioning of telecommunications regulation. The Act also allows for the use of subordinate instruments to adjust the application and implementation of these charges, ensuring they remain aligned with the regulatory costs and requirements of the authorities involved. The determination made under this Act for the 2010-2011 financial year specifies the estimated amount of grants to be made under section 593, subject to parliamentary oversight as a legislative instrument.
Key Provisions
The main operative sections of the Telecommunications (Carrier Licence Charges) Act 1997 (the Act) are sections 15(1) and 15(2). Section 15(1) outlines the formula for calculating the total annual charges that apply to carrier licences held by telecommunications carriers, ensuring that these charges do not exceed a specified sum. This sum includes the proportion of costs attributable to the Australian Communications and Media Authority (ACMA) and Australian Competition and Consumer Commission (ACCC) for their telecommunications functions, the Commonwealth’s contribution to the International Telecommunication Union, and the amounts paid under section 136C of the Telecommunications Act 1997. Furthermore, it includes the estimated total amount of grants likely to be made under section 593 of the Telecommunications Act 1997. Section 15(2) states that the instrument made under subsection 15(1) is a legislative instrument, subject to the Legislative Instruments Act 2003, requiring it to be tabled in Parliament and being subject to disallowance.
The Act imposes obligations on telecommunications carriers to ensure compliance with the annual charges calculated under section 15(1). Carriers must pay the charges as determined by the ACMA and ACCC for their respective functions and the Commonwealth's contribution to the International Telecommunication Union. Additionally, the Act requires the Minister to estimate the total amount of grants under section 593 of the Telecommunications Act 1997 and publish this estimate as part of the annual charges calculation. The ACMA and ACCC also have specific obligations in determining the proportion of their costs attributable to telecommunications functions, which must be made in writing and accompanied by explanatory statements when tabled in Parliament.
Breaching the provisions of the Act could lead to civil or criminal consequences, though specific offences and penalties are not detailed in the explanatory statement. However, given that the Act is a legislative instrument, failure to comply with the annual charges calculation or the obligations outlined could potentially result in legal action, fines, or other penalties as prescribed under the relevant Acts. The maximum penalties would depend on the specific breach and the provisions of the Telecommunications Act 1997 and the Legislative Instruments Act 2003. The Act’s legislative nature also means that any failure to table the instrument in Parliament or subject it to disallowance could lead to further legal ramifications.