EXPLANATORY STATEMENT
Telecommunications (Carrier Licence Charges) Act 1997
Determination Under Paragraph 15(1)(d) No. 1 of 2013
Issued by authority of the Minister for Broadband, Communications and the Digital Economy
Authority
Section 15 of 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. Paragraphs 15(1)(a) to (d) set out the amounts to be used in this calculation.
Purpose
The Determination sets out the amount for the purposes outlined in paragraph 15(1)(d) of the Act (i.e. the amount determined to be ‘the estimated total amount of grants likely to be made during the financial year under section 593 of the Telecommunications Act 1997’) at $2 127 000 for 2012-13 financial year.
Background
The Determination only sets out the amount for the purposes of paragraph 15(1)(d). The determinations referenced in paragraphs 15(1)(a), (c) and (ca) will be made by the Australian Communications and Media Authority and the determination referenced in paragraph 15(1)(b) will be made by the Australian Competition and Consumer Commission.
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/or
- 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)).
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 is provided $2 million (CPI indexed) per annum as part of a multi-year Funding Agreement from 2012 to 2017. 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 an annual competitive Independent Grants Scheme for individuals and organisations to undertake research or representation projects in the interest of the telecommunication consumer.
Consultation
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 Legislative Instruments Act 2003).
Regulatory impact
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 Regulation Impact Statement is required. The OBPR regulation 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 2012-13 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 Determination does not engage any of the applicable rights or freedoms. Accordingly, the Determination 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.
The Determination is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
Overview
The Telecommunications (Carrier Licence Charges) Act 1997 was enacted to establish the method of calculating annual charges that apply to the carrier licences held by telecommunications carriers. This Act, and specifically the Explanatory Statement issued under it, addresses the financial arrangements for such charges, including those related to grants made under section 593 of the Telecommunications Act 1997. This section allows the Minister to provide grants for the representation of consumer interests and for research into the implications of telecommunications developments. The Determination under Paragraph 15(1)(d) No. 1 of 2013 sets the amount of these grants for the 2012-13 financial year at $2,127,000. The Explanatory Statement clarifies that this amount reflects the estimated total of grants likely to be made during that financial year, ensuring transparency and compliance with the legislative framework established by the Act. The determination was made by the Minister for Broadband, Communications and the Digital Economy, ensuring the financial support aligns with the policy objectives of fostering effective consumer advocacy and research in the telecommunications sector.
Scope and Application
The Telecommunications (Carrier Licence Charges) Act 1997 Determination Under Paragraph 15(1)(d) No. 1 of 2013, issued under the authority of the Minister for Broadband, Communications and the Digital Economy, sets the annual charge calculation method for carrier licences held by telecommunications carriers, specifically addressing the estimated total amount of grants likely to be made during the financial year under section 593 of the Telecommunications Act 1997. This determination is applicable to telecommunications carriers holding a carrier licence under the Act and pertains to the Commonwealth jurisdiction. The amount determined for 2012-13 financial year is $2,127,000. It is noteworthy that this determination only concerns the amount for paragraph 15(1)(d), with other amounts under paragraphs 15(1)(a), (c), and (ca) being determined by the Australian Communications and Media Authority and the amount under paragraph 15(1)(b) by the Australian Competition and Consumer Commission. There are no stated exclusions or exemptions in this determination, and it does not extend or restrict application through subordinate instruments. The instrument was considered to be of a minor nature, thus consultation was deemed unnecessary, and a Regulation Impact Statement was not required.
Key Provisions
The Telecommunications (Carrier Licence Charges) Act 1997 (the Act) provides for the calculation of annual charges applicable to carrier licences held by telecommunications carriers. Under section 15, the Act specifies the method for calculating these charges and paragraphs 15(1)(a) to (d) outline the amounts used in this calculation. The Explanatory Statement under consideration pertains specifically to the amount determined under paragraph 15(1)(d) of the Act, which is set at $2,127,000 for the 2012-13 financial year. This amount represents the estimated total amount of grants likely to be made during the financial year under section 593 of the Telecommunications Act 1997.
The Act imposes specific obligations on telecommunications carriers regarding the payment of annual charges. These charges are calculated based on the amounts specified in paragraphs 15(1)(a) to (d) of section 15, and carriers must ensure that they comply with these requirements by making the appropriate payments within the stipulated timeframes. The obligation extends to accurately calculating and reporting these charges to the relevant authorities, ensuring transparency and adherence to the legislative framework.
Failure to comply with the requirements of the Telecommunications (Carrier Licence Charges) Act 1997 may result in civil or criminal consequences, depending on the nature and severity of the breach. The Act does not explicitly outline specific penalties in the provided text, but breaches of legislative provisions can typically result in fines, legal action, or other sanctions as determined by the relevant courts or authorities. The seriousness of the penalty would depend on the extent of non-compliance and any associated harm or financial implications.
The Explanatory Statement clarifies that the determination under consideration is a minor regulatory instrument and does not substantially alter existing arrangements. As such, it falls under the category of machinery legislation, which generally means it is not subject to extensive regulatory impact analysis. The Office of Best Practice Regulation has reviewed the determination and confirmed that it does not require a Regulation Impact Statement. Additionally, the statement of compatibility with human rights confirms that the Determination is compatible with the human rights and freedoms recognised or declared in international instruments, as it does not raise any human rights issues.