EXPLANATORY STATEMENT
Telecommunications (Carrier Licence Charges) Act 1997
Determination under Section 15(1)(b) No. 1 of 2011 – 21 December 2011
Issued by the Australian Competition & Consumer Commission
Legislative Provisions
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. Subsection 15(1) of the Act provides that the total of charges that are imposed on carrier licences in force at the beginning of a financial year must not exceed the sum of:
a) the amount determined, by a written instrument made by the ACMA, to be the proportion of the ACMA's costs for the immediately preceding financial year that is attributable to the ACMA's telecommunications functions and powers; and
b) the amount determined, by a written instrument made by the ACCC, to be the proportion of the ACCC's costs for the immediately preceding financial year that is attributable to the ACCC's telecommunications functions and powers; and
c) the amount determined, by a written instrument made by the ACMA, to be the proportion of the Commonwealth's contribution to the budget of the International Telecommunication Union for the calendar year in which the beginning of the financial year occurs that is to be recovered from carriers; and
(ca) the amount determined, by a written instrument made by the ACMA, to be the sum of the amounts paid under section 136C of the Telecommunications Act 1997 during the immediately preceding financial year; and
d) the amount determined, in a written instrument made by the Minister, to be the estimated total amount of grants likely to be made during the financial year under section 593 of the Telecommunications Act 1997.
Section 15(4)(b) of the Act defines “costs” and provides that in relation to the ACCC, costs means an amount that, in accordance with accrual-based accounting principles, is treated as a cost of the ACCC. This amount has been calculated in accordance with those principles.
A Determination made under subsection 15(1) of the Act is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
Purpose
The Determination has been made for the purposes of section 15(1)(b) of the Act. The determination provides that $12,947,022 is the amount determined to be the proportion of ACCC’s cost for the 2010-11 financial year that is attributable to the ACCC’s telecommunications functions and powers.
Consultation
The ACCC did not consult in the calculation of the costs that are attributable to the ACCC’s telecommunications functions and powers under section 15(1)(b) of the Act. Consultation was not undertaken as the calculation of costs is based on actual costs incurred directly by the ACCC in undertaking its regulatory role. This methodology is the same as in prior years.
The Best Practice Regulation Preliminary Assessment was completed and this assessed the impact on business of compliance costs as low or no cost.
STATEMENT OF COMPATIBILITY FOR A BILL OR LEGISLATIVE INSTRUMENT THAT DOES NOT RAISE ANY HUMAN RIGHTS ISSUES
This material is provided to persons who have a role in Commonwealth legislation, policy and programs as general guidance only and is not to be relied upon as legal advice. Commonwealth agencies subject to the Legal Services Directions 2005 requiring legal advice in relation to matters raised in connection with this template must seek that advice in accordance with the Directions.
Overview
The Telecommunications (Carrier Licence Charges) Act 1997 was enacted to provide a framework for the calculation of annual charges that apply to carrier licences held by telecommunications carriers. This legislation was introduced to address the need for a structured and transparent method for determining the fees associated with the telecommunications functions and powers of the Australian Communications and Media Authority (ACMA) and the Australian Competition and Consumer Commission (ACCC). The Act specifies that the total charges imposed on carrier licences must not exceed a sum that includes the proportions of the ACMA's and ACCC's costs attributable to their telecommunications functions, contributions to the International Telecommunication Union, and grants under the Telecommunications Act 1997. The Act was enacted by the Australian Parliament with the policy objective of ensuring that the fees charged to carriers are proportionate to the regulatory costs incurred by the ACMA and the ACCC.
Scope and Application
The Telecommunications (Carrier Licence Charges) Act 1997 applies to telecommunications carriers who hold carrier licences in Australia. The Act sets out the method for calculating the annual charges imposed on these licences, ensuring they do not exceed a specified total. This total is determined by several factors, including the costs attributable to the Australian Communications and Media Authority (ACMA) and the Australian Competition and Consumer Commission (ACCC) related to their telecommunications functions and powers. Additionally, the charges account for the Commonwealth's contribution to the budget of the International Telecommunication Union and the estimated grants under the Telecommunications Act 1997. The Act applies on a national level, affecting all telecommunications carriers operating within Australia, and is enforced by the ACMA and ACCC. There are no stated exclusions or exemptions in the Act itself, but the application may be extended or restricted through subordinate instruments.
Key Provisions
The Telecommunications (Carrier Licence Charges) Act 1997 (the Act) sets out the methodology for calculating annual charges on carrier licences held by telecommunications carriers. According to section 15(1) of the Act, the total charges imposed on carrier licences at the beginning of a financial year must not exceed the sum of several components: the proportion of the Australian Communications and Media Authority's (ACMA) costs attributable to telecommunications functions and powers (subsection 15(1)(a)); the proportion of the Australian Competition and Consumer Commission's (ACCC) costs attributable to telecommunications functions and powers (subsection 15(1)(b)); the proportion of the Commonwealth's contribution to the budget of the International Telecommunication Union (subsection 15(1)(c)); the amounts paid under section 136C of the Telecommunications Act 1997 (subsection 15(1)(ca)); and the estimated total amount of grants under section 593 of the Telecommunications Act 1997 (subsection 15(1)(d)). These costs are determined by written instruments issued by the ACMA, ACCC, and the Minister, respectively.
The obligations imposed by the Act on telecommunications carriers primarily revolve around the payment of the determined charges. Carriers must ensure that they pay the annual charges as calculated and specified in the determinations made by the ACMA, ACCC, and the Minister. This requirement ensures that the regulatory costs associated with telecommunications oversight are adequately funded and allows the regulatory bodies to carry out their functions effectively. The Act also mandates that these determinations be made in accordance with accrual-based accounting principles to maintain transparency and accuracy in the cost allocation process.
Breaches of the Act's provisions, such as failure to pay the determined charges, may have legal consequences. Although specific offences and penalties are not detailed in the explanatory statement, it is reasonable to infer that non-compliance could lead to legal action under the Telecommunications Act 1997 or other relevant legislation. The potential penalties could include fines or other civil or criminal sanctions, depending on the nature and severity of the breach. The maximum penalties would be determined based on the specific provisions of the overarching legislation under which the enforcement action is taken.