EXPLANATORY STATEMENT
Telecommunications (Carrier Licence Charges) Act 1997
Telecommunications (Carrier Licence Charges) Determination No. 2 of 2006
(2005-06 Financial Year)
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 (the Telecommunications Act). Part 2 of Schedule 1 to the Telecommunications Act dealt with industry development plans.
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 2005-06 financial year is $73,754.89. 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 15(1) is a legislative instrument for the purposes of the Legislative Instruments Act 2003 (LIA). The accompanying determination must therefore be tabled in the Parliament and is subject to Parliamentary disallowance. The determination will take effect from the day after registration on the Federal Register of Legislative Instruments (see paragraph 12(1)(d) of the LIA).
The determined costs for the 2005-06 financial year includes only those expenses incurred up to 24 September 2005. On that date, Part 2 of Schedule 1 to the Telecommunications Act was repealed. Thus, no further costs will be incurred in relation to the administration of the provisions concerning industry development plans.
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 method for calculating the annual charges applicable to carrier licences held by telecommunications carriers. This legislation was introduced to address the need for a transparent and systematic approach to determining the financial obligations of telecommunications carriers in relation to their licences. The Act is administered by the Minister for Communications, Information Technology and the Arts, who is authorised to set these charges through written instruments. The policy objective is to ensure that the financial burden on carriers accurately reflects the Commonwealth's costs related to the administration of telecommunications regulation. The accompanying determination, Telecommunications (Carrier Licence Charges) Determination No. 2 of 2006, was made to specify the proportion of the Commonwealth's costs attributable to the administration of industry development plans under the Telecommunications Act 1997 for the 2005-06 financial year, before the relevant provisions were repealed on 24 September 2005.
Scope and Application
The Telecommunications (Carrier Licence Charges) Act 1997 applies to telecommunications carriers who hold a carrier licence, allowing them to provide telecommunications services within Australia. The Act establishes the method for calculating annual charges imposed on these licences, including a specific component related to the Commonwealth’s costs for administering industry development plans. The accompanying determination, which specifies the cost proportion for the 2005-06 financial year as $73,754.89, is made pursuant to paragraph 15(1)(e) of the Act. This amount reflects the Commonwealth's expenses incurred up until 24 September 2005, the date on which Part 2 of Schedule 1 to the Telecommunications Act was repealed, thereby eliminating further costs related to the administration of industry development plans. The determination is a legislative instrument subject to the Legislative Instruments Act 2003, requiring tabling in Parliament and being open to disallowance. It will take effect from the day after registration on the Federal Register of Legislative Instruments.
Key Provisions
The Telecommunications (Carrier Licence Charges) Determination No. 2 of 2006, under the Telecommunications (Carrier Licence Charges) Act 1997, sets the proportion of the Commonwealth’s costs for administering Part 2 of Schedule 1 of the Telecommunications Act for the 2005-06 financial year at $73,754.89. This determination is made pursuant to section 15(1)(e) of the Act, which allows the Minister for Communications, Information Technology and the Arts to determine this amount by written instrument. The costs are calculated using accrual-based accounting principles as defined in section 15(4) of the Act. This calculation method ensures that the costs are accounted for in the period in which they are incurred, regardless of when payment is made.
In terms of obligations, the Act and the accompanying determination impose specific duties on telecommunications carriers holding a carrier licence. These carriers must ensure compliance with the annual charges calculated as per the determination. The carriers must also adhere to the legislative requirements stipulated in section 15(2) of the Act, which mandates that any instrument made under section 15(1) is considered a legislative instrument for the purposes of the Legislative Instruments Act 2003 (LIA). This necessitates that the determination be tabled in Parliament and subjected to potential disallowance by Parliament. Furthermore, the determination is effective from the day after its registration on the Federal Register of Legislative Instruments, as outlined in section 12(1)(d) of the LIA.
The Act and the determination also include provisions for consequences in case of non-compliance. While the explanatory statement does not explicitly outline offences or penalties for breaches of the determination, it is clear that any failure to comply with the annual charges or legislative requirements could potentially lead to legal consequences. The legislative framework, including the LIA, provides mechanisms for enforcement and compliance, which could involve both civil and criminal liabilities depending on the nature and severity of the breach. The maximum penalties for such breaches would typically be in line with the statutory provisions governing administrative and legislative compliance within Australia.