EXPLANATORY STATEMENT
Telecommunications (Carrier Licence Charges) Act 1997
Determination Under Paragraph 15(1)(d) No. 1 of 2014
Issued by authority of the Minister for Communications
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 $2,166,000 for 2013-14 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 currently provided $2 million (CPI indexed) per annum as part of a multi-year Funding Agreement to 2017. The grant enables 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).
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 2013-14 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 a framework for calculating the annual charges applicable to carrier licences held by telecommunications carriers. The Act aims to provide a transparent and equitable method for determining these charges, ensuring that they reflect the costs associated with the regulation of telecommunications services. This legislation addresses the need for a structured approach to carrier licensing fees, which are critical for the ongoing oversight and management of the telecommunications sector in Australia. Enacted by the Australian Parliament, the Act sets out specific provisions to achieve its policy objective of maintaining an efficient and fair regulatory environment for telecommunications carriers. This legislation ensures that the charges imposed on carriers are based on a well-defined and consistent methodology, thereby promoting stability and predictability in the industry.
Scope and Application
The Telecommunications (Carrier Licence Charges) Act 1997 Determination under paragraph 15(1)(d) No. 1 of 2014, issued by the Minister for Communications, pertains to the calculation of annual charges applicable to the carrier licences held by telecommunications carriers, specifically setting the amount for grants under section 593 of the Telecommunications Act 1997. This determination, setting the estimated total amount of grants likely to be made during the 2013-14 financial year at $2,166,000, applies to the Commonwealth and involves financial assistance to consumer bodies and entities engaged in research relating to telecommunications. The determination is narrowly focused on the amount specified in paragraph 15(1)(d), with other related determinations managed by the Australian Communications and Media Authority and the Australian Competition and Consumer Commission. This legislation does not impose any substantial changes to existing arrangements and was deemed not to require consultation due to its minor nature. The determination is also compatible with human rights, as it does not engage any applicable rights or freedoms.
Key Provisions
The main operative sections of this Determination are set out under section 15 of the Telecommunications (Carrier Licence Charges) Act 1997. Specifically, this Determination addresses 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’, which is outlined in paragraph 15(1)(d) (paragraph 15(1)(d)). For the 2013-14 financial year, this amount is set at $2,166,000 (paragraph 2). This amount is used in the calculation of annual charges that apply to the carrier licences held by telecommunications carriers.
The Act imposes obligations on telecommunications carriers to pay annual charges based on the amounts determined under section 15. The amounts determined include those set out in the current Determination, as well as those determined by the Australian Communications and Media Authority and the Australian Competition and Consumer Commission for other purposes. Telecommunications carriers must ensure they comply with these obligations to avoid any potential consequences. The Act also requires the Minister for Communications to make this Determination, which is done to provide clarity on the charges applicable for the financial year.
Breach of the obligations under this Act can result in civil or criminal penalties, depending on the nature and severity of the breach. For example, failure to pay the annual charges as required could result in fines or other penalties as outlined in the relevant legislation. Additionally, any misuse of the grants provided under section 593 of the Telecommunications Act 1997 could lead to further legal consequences. The maximum penalties for breaches are not specified in this Determination but would be defined in the broader telecommunications and administrative laws. Compliance with the Act is crucial to avoid these potential consequences.