EXPLANATORY STATEMENT
Telecommunications (Carrier Licence Charges) Act 1997
DETERMINATION UNDER PARAGRAPH 15(1)(d) No. 1 of 2012
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 (subsection 593(1)); and
- a person or body for purposes in connection with research into the social, economic, environmental or technological implications of developments relating to telecommunications (subsection 593(2)).
The accompanying Determination has been made for the purposes of paragraph 15(1)(d) of the Act. The Determination provides that $2 077 000 is the amount estimated to be the amount of grants likely to be made during the 2011-2012 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.
Since 2009-10, a grant of financial assistance under section 593 of the Telecommunications Act 1997 has been provided to the Australian Communications Consumer Action Network (ACCAN) as the peak body representing consumers of telecommunication services. ACCAN are provided $2 million (CPI indexed) per annum as part of a multi-year Funding Agreement until 2013. The grant will enable ACCAN to conduct activities necessary for an effective peak communications consumer advocate, including representation, research, consumer education and participation in self-regulatory activities. The grant also allows ACCAN to operate a competitive Independent Grants Scheme for individuals and organisations to undertake research or representation projects in the interest of the telecommunication consumer.
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).
Regulatory Impact Statement
The Office of Best Practice Regulation (OBPR) was consulted about the making of the Determination. The OBPR considered that the regulatory changes arising from the Determination are machinery in nature and that no regulatory impact statement is required. The OBPR regulatory impact statement exemption number for the Determination is ID 12379.
Statement of compatibility with human rights
This statement of compatibility is prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
The Determination sets out the estimated total amount of grants that are likely to be made during the 2011-12 financial year under section 593 of the Telecommunications Act 1997. Section 593 provides that the Minister may, on behalf of the Commonwealth, make a grant of financial assistance to persons or bodies (for the purpose of research into the social, economic, environmental and technological implications of developments relating to telecommunications), and to consumer bodies (for purposes in connection with the representation of consumer interests in relation to telecommunications issues).
The Direction does not engage any of the applicable rights or freedoms. Accordingly, the Direction is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011, as it does not raise any human rights issues.