EXPLANATORY STATEMENT
Telecommunications (Carrier Licence Charges) Act 1997
DETERMINATION UNDER PARAGRAPH 15(1)(e) No. 1 of 2005
Issued by the authority of the Minister for Communications, Information Technology and the Arts.
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 the telecommunications carriers. Paragraph 15(1)(e) of the Act provides that part of the total charges that may be imposed on carrier licences includes an amount determined by the Minister for Communications, Information Technology and the Arts, by written instrument, to be the proportion of the Commonwealth’s costs for the immediately preceding financial year that is attributable to the administration of Part 2 of Schedule 1 to the Telecommunications Act 1997. Part 2 of Schedule 1 to the Telecommunications Act deals with industry development plans, which must be provided by carriers.
The accompanying determination has been made for the purposes of paragraph 15(1)(e) of the Act. The determination provides that the amount determined to be the proportion of the Commonwealth’s costs for administering Part 2 of Schedule 1 for the 2003-04 financial year is $168,309.06. The definition of ‘costs’ in subsection 15(4) of the Act requires that the Commonwealth’s costs are to be calculated in accordance with accrual-based accounting principles. This amount has been calculated in accordance with those principles.
Subsection 15(2) of the Act provides that an instrument under subsection (1) must be notified in the Gazette before the day on which charges referred to in subsection (1) become due for payment. Subsection 15(3) of the Act provides that an instrument under subsection (1) is a disallowable instrument for the purposes of section 46A of the Acts Interpretation Act 1901.
As a consequence of the commencement of the Legislative Instruments Act 2003 (LIA) and the repeal of section 46A of the Acts Interpretation Act 1901 on 1 January 2005, the accompanying determination is a legislative instrument for the purposes of the LIA (see LIA s.6(1)(d)). The accompanying determination must therefore be tabled in the Parliament and is subject to Parliamentary disallowance. The requirement for gazettal in subsection 15(2) of the Act has been satisfied by the registration of the accompanying determination and this explanatory statement on the Federal Register of Legislative Instruments before the day on which the charges referred to in subsection (1) become due for payment (see LIA s.56(1)).
Consultation was considered unnecessary due to the minor and machinery nature of the accompanying determination (see paragraph 18(2)(a) of the LIA).
Overview
The Telecommunications (Carrier Licence Charges) Act 1997 was enacted to provide a structured approach to calculating annual charges on carrier licences held by telecommunications carriers. This legislation was introduced to address the need for a clear and equitable method for determining the financial contributions of telecommunications carriers towards the costs incurred by the Commonwealth in administering relevant aspects of the telecommunications industry. The Act was enacted by the Parliament of Australia, aiming to ensure that the administrative costs associated with the industry development plans, as outlined in Part 2 of Schedule 1 to the Telecommunications Act 1997, are appropriately shared. The policy objective is to maintain a balanced and sustainable regulatory framework that supports the efficient operation of the telecommunications sector while ensuring that the Commonwealth's expenditure on regulatory activities is fairly allocated among the industry participants.
Scope and Application
The Telecommunications (Carrier Licence Charges) Act 1997 applies to telecommunications carriers who hold carrier licences in Australia, imposing annual charges on these licences. The Act specifies a method for calculating these charges, which includes an amount determined by the Minister for Communications, Information Technology and the Arts, reflecting the Commonwealth’s costs related to the administration of industry development plans under Part 2 of Schedule 1 of the Telecommunications Act 1997. The geographic and jurisdictional reach of the Act is national, as it applies across all states and territories of Australia, impacting the telecommunications industry nationwide. Any determinations made under the Act, such as the specified amount for the proportion of Commonwealth costs, are subject to disallowance under the Legislative Instruments Act 2003 and must be tabled in Parliament. This legislative framework ensures that the charges are transparent, calculated according to accrual-based accounting principles, and communicated to affected parties through official gazettes.
Key Provisions
The Telecommunications (Carrier Licence Charges) Act 1997 (the Act) primarily governs the calculation of annual charges applicable to carrier licences held by telecommunications carriers. Under section 15(1)(e), the Act stipulates that a portion of these charges includes an amount determined by the Minister for Communications, Information Technology and the Arts. This amount is intended to cover the Commonwealth’s costs for the preceding financial year, specifically relating to the administration of Part 2 of Schedule 1 to the Telecommunications Act 1997, which concerns industry development plans. The accompanying determination (paragraph 15(1)(e) No. 1 of 2005) sets the proportion of these costs for the 2003-04 financial year at $168,309.06, calculated using accrual-based accounting principles as defined in section 15(4) of the Act.
The Act imposes obligations on telecommunications carriers to comply with the determined charges, which are to be included in their annual licence fees. It also mandates that any such determinations be notified in the Commonwealth Gazette before the charges become due for payment, as per section 15(2). The determination must be in accordance with section 15(3) and is subject to disallowance, meaning that it can be reviewed and potentially rejected by Parliament. Given the commencement of the Legislative Instruments Act 2003 and the repeal of the relevant section in the Acts Interpretation Act 1901, the determination now qualifies as a legislative instrument under the LIA, requiring it to be tabled in Parliament and subject to disallowance.
Under the Act, breaches or non-compliance with the determined charges can result in significant consequences. Although specific offences and penalties are not detailed in the provided text, it is clear that any failure to adhere to the prescribed charges could lead to civil or administrative actions. Historically, non-compliance with similar legislative instruments could result in fines or other penalties as stipulated in the respective Acts. Additionally, ongoing non-compliance could jeopardise the carrier's licence, impacting their ability to operate legally within the telecommunications industry. The precise nature and extent of penalties would typically be further defined within the Act or related legislation.