EXPLANATORY STATEMENT
Telecommunications (Carrier Licence Charges) Act 1997
Determination Under Paragraph 15(1)(d) No. 1 of 2016
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 $2,196,000 for 2015-2016 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 2015-2016 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, enacted by the Commonwealth Parliament, was introduced to establish a structured approach for the calculation of annual charges applicable to telecommunications carriers' licences. This legislative framework ensures that carrier licence fees are determined in a fair and transparent manner, reflecting the costs associated with the administration and regulation of the telecommunications sector. The 2016 Determination under Paragraph 15(1)(d) No. 1, issued by the Minister for Communications, specifies the amount to be used in the calculation of these charges for the 2015-2016 financial year, namely $2,196,000, which represents the estimated total amount of grants likely to be made under section 593 of the Telecommunications Act 1997. This amount is allocated to support consumer advocacy and research activities, ensuring that consumer interests and the broader implications of telecommunications developments are adequately represented and studied.
Scope and Application
The Telecommunications (Carrier Licence Charges) Act 1997 Determination Under Paragraph 15(1)(d) No. 1 of 2016 applies specifically to the calculation of annual charges for carrier licences held by telecommunications carriers in Australia. The Act is concerned with the financial obligations of telecommunications carriers and the allocation of these charges, as specified by the determination. This legislation applies to telecommunications carriers, entities that hold carrier licences, and possibly includes the Australian Communications and Media Authority and the Australian Competition and Consumer Commission, which are responsible for making other determinations under different paragraphs of the Act. The scope of the Act is national, as it pertains to the Commonwealth of Australia, and it extends to all telecommunications carriers operating within Australia. The Determination sets the amount for paragraph 15(1)(d) of the Act at $2,196,000 for the 2015-2016 financial year, which is used in calculating the annual charges for carrier licences. This amount relates to the estimated total of grants likely to be made during the financial year under section 593 of the Telecommunications Act 1997. The Determination does not explicitly mention any exclusions, exemptions, or thresholds, but it does note that other determinations under different paragraphs of the Act are made by other authorities.
Key Provisions
The Telecommunications (Carrier Licence Charges) Act 1997 Determination Under Paragraph 15(1)(d) No. 1 of 2016, issued under the authority of the Minister for Communications, specifies the amount to be used in the calculation of annual carrier licence charges for the 2015-2016 financial year. This determination is specifically focused on the amount outlined in paragraph 15(1)(d) of the Act, which concerns the estimated total amount of grants likely to be made during the financial year under section 593 of the Telecommunications Act 1997. The amount determined is $2,196,000. This Determination complements other determinations under paragraphs 15(1)(a), (c), and (ca) of the Act, which will be made by the Australian Communications and Media Authority, and paragraph 15(1)(b), which will be handled by the Australian Competition and Consumer Commission.
The Act imposes obligations on telecommunications carriers to pay annual charges calculated based on the amounts set out in the various determinations under section 15. These charges are integral to the funding mechanism for grants that support telecommunications-related research and consumer representation. For the financial year in question, carriers must account for the $2,196,000 amount in their calculations, as specified in this Determination. The carriers must ensure that the fees are accurately reflected in their financial reporting and payments to the Commonwealth.
Failure to comply with the obligations set out in the Act can result in various consequences. While the specific offences and penalties are not detailed in this Determination, the Act provides for potential enforcement actions against non-compliance. These could include fines or other financial penalties, which might be pursued under relevant sections of the Act or other applicable legislation. The penalties could vary depending on the nature and severity of the breach, but they are designed to ensure that carriers adhere to the prescribed charge calculations and payment obligations.