EXPLANATORY STATEMENT
Telecommunications (Carrier Licence Charges) Act 1997
Determination Under Paragraph 15(1)(d) No. 1 of 2015
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 $2,164,000 for 2014-2015 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 2014-2015 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 annual charges applicable to carrier licences held by telecommunications carriers. This Act addresses the need for a systematic approach to managing the financial obligations of telecommunications carriers. The enacting body for this Act is the Parliament of Australia, with the policy objective of ensuring that the financial contributions of carriers are aligned with the regulatory and operational costs borne by the government. In 2015, a determination under paragraph 15(1)(d) of the Act specified an estimated total amount of grants likely to be made during the 2014-2015 financial year, which was set at $2,164,000. This determination was made to provide clarity on the financial commitments related to grants for research and consumer representation in telecommunications. The determination process was overseen by the Minister for Communications, with consultation deemed unnecessary due to its minor nature and the absence of substantial changes to existing arrangements.
Scope and Application
The Telecommunications (Carrier Licence Charges) Act 1997 Determination Under Paragraph 15(1)(d) No. 1 of 2015 applies to the calculation of annual charges for carrier licences held by telecommunications carriers, specifically setting the amount for grants under section 593 of the Telecommunications Act 1997 at $2,164,000 for the 2014-2015 financial year. The Act applies to telecommunications carriers and the Minister for Communications, who is authorised to make grants of financial assistance under section 593 to consumer bodies and entities engaged in telecommunications research. The geographic reach of the Act is national, as it pertains to the Commonwealth. The Determination itself does not extend or restrict the application of the Act but specifies an amount for the calculation of carrier licence charges. The Act does not provide for exclusions, exemptions, or thresholds, but rather specifies the parameters for financial assistance grants to support consumer advocacy and research in telecommunications.
Key Provisions
The Telecommunications (Carrier Licence Charges) Act 1997 (the Act) is primarily concerned with the calculation of annual charges applicable to carrier licences held by telecommunications carriers. Section 15 outlines the method for calculating these charges, with specific amounts stipulated in paragraphs 15(1)(a) to (d). Notably, the Explanatory Statement issued under paragraph 15(1)(d) No. 1 of 2015 specifies the amount to be used for the purposes outlined in paragraph 15(1)(d) as $2,164,000 for the 2014-2015 financial year. This amount represents the estimated total of grants likely to be made during the financial year under section 593 of the Telecommunications Act 1997. It is important to note that this Determination only addresses the amount for paragraph 15(1)(d), while other amounts for paragraphs 15(1)(a), (c), and (ca) are determined by the Australian Communications and Media Authority, and the amount for paragraph 15(1)(b) is determined by the Australian Competition and Consumer Commission.
The Act imposes specific obligations on telecommunications carriers, mandating them to pay annual charges calculated in accordance with the provisions of Section 15. The charges are determined by the amounts specified in paragraphs 15(1)(a) to (d), with the Explanatory Statement providing the required figure for paragraph 15(1)(d). This ensures that the charges are accurately calculated and that the financial burden on carriers is appropriately reflected in the licence fees. The determinations for other paragraphs are made by relevant authorities, ensuring a coordinated approach to the regulation of telecommunications carrier charges.
Section 593 of the Telecommunications Act 1997 allows the Minister to provide grants for research into the social, economic, environmental, and technological implications of telecommunications developments, as well as for consumer bodies representing the interests of telecommunications consumers. The Explanatory Statement specifies the estimated amount of such grants for the 2014-2015 financial year as $2,164,000. Non-compliance with the obligations set out in the Act, including the payment of accurate carrier licence charges, could result in civil or criminal consequences. Although the specific penalties are not detailed in the provided text, breaches of telecommunications regulations in Australia generally carry significant fines and potential criminal charges, depending on the severity and intent of the violation. The Australian Communications and Media Authority and the Australian Competition and Consumer Commission play pivotal roles in enforcing these provisions and ensuring compliance.