Telecommunications Carrier Licence Charges (Specification of Costs by the ACMA) Determination (No. 1) 2021

Administered by Department of Infrastructure, Transport, Regional Development, Communications, Sport and the Arts

Legislation au F2021L00802 Not in force Legislative Instrument

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EXPLANATORY STATEMENT

Approved by the Australian Communications and Media Authority

 

Telecommunications (Carrier Licence Charges) Act 1997

 

Telecommunications Carrier Licence Charges (Specification of Costs by the ACMA) Determination (No. 1) 2021

 

Authority

 

The Australian Communications and Media Authority (the ACMA) has made the Telecommunications Carrier Licence Charges (Specification of Costs by the ACMA) Determination (No. 1) 2021 (the Determination) under paragraphs 15(1)(a), (c) and (ca) of the Telecommunications (Carrier Licence Charges) Act 1997 (the Act).

 

The Act limits the total of the charges that are imposed on carrier licences in force at the beginning of a financial year.  Subsection 15(1) of the Act provides that the total of the annual carrier licence charges that are imposed on carrier licences in force at the beginning of a financial year must not exceed the sum of the amounts described in paragraphs (a) to (d), three of which are amounts determined by a written instrument made by the ACMA, being:

 

  • the amount determined 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 (paragraph 15(1)(a));

 

  • the amount determined to be the proportion of the Commonwealth’s contribution to the budget of the International Telecommunication Union (ITU) for the calendar year in which the beginning of the financial year occurs that is to be recovered from carriers (paragraph 15(1)(c)); and

 

  • the amount determined to be the sum of the amounts paid under section 136C of the Telecommunications Act 1997 during the immediately preceding financial year (paragraph 15(1)(ca)).

 

The Determination prescribes the relevant amounts under paragraphs 15(1)(a), (c) and (ca) of the Act.

 

Purpose and Operation

 

The Determination has been made for the purposes of paragraphs 15(1)(a), (c) and (ca) of the Act and is relevant to determining the total of the charges that are imposed on carrier licences in force at the beginning of the 2019-2020 financial year.

 

For the purposes of paragraph 15(1)(a) of the Act, the Determination provides that $13 440 806 is the amount determined to be the proportion of the ACMA’s costs for the 2018-2019 financial year that is attributable to the ACMA’s telecommunications functions and powers.  This amount has been calculated in accordance with accrual-based accounting principles in line with the definition of “cost” in subsection 15(4) of the Act. 

 

For the purposes of paragraph 15(1)(c) of the Act, the Determination provides that

$2 109 273 is the amount determined to be the proportion of the Commonwealth's contribution to the budget of the ITU for the 2019 calendar year that is to be recovered from carriers.  This amount has been calculated by apportioning the Commonwealth’s total contribution to the budget of the ITU for that calendar year between the ITU’s Radiocommunication Sector and Telecommunication Standardisation Sector.

 

For the purposes of paragraph 15(1)(ca) of the Act, the Determination provides that the amount determined to be the sum of the amounts paid under section 136C of the Telecommunications Act 1997 during the 2018-2019 financial year is $0.

 

The amounts determined under paragraphs 15(1)(a), (c) and (ca) of the Act are included in the formula that is used to ascertain the amount of charge imposed on a carrier licence that was in force at the beginning of the 2019-2020 financial year, in accordance with the Telecommunications Carrier Licence Charges (Annual Charges) Determination (No. 1) 2021 (the ACLC Determination).

 

A provision-by-provision description of the instrument is set out in the notes in Attachment A.

 

The Determination is a disallowable legislative instrument under the Legislation Act 2003 (the LA).

Documents incorporated by reference

No documents are incorporated by reference in the Determination.

 

Consultation

 

Before the Determination was made, the ACMA was satisfied that consultation was undertaken to the extent appropriate and reasonably practicable, in accordance with section 17 of the LA.

 

The ACMA consulted with the public and industry stakeholders on the making of the instrument for a four-week period ending on 11 May 2021.  The consultation was facilitated through the public release of a consultation paper and a draft cost recovery implementation statement (CRIS) on the ACMA’s website. The CRIS and consultation paper outlined that the Determination would specify the costs referred to in paragraphs 15(1)(a), (c) and (ca).

 

In response to the consultation, ACMA received two written submissions[1]. The submissions did not raise any substantive issues regarding the drafting of the Determination.  

 

Regulation Impact Statement

 

On 19 February 2014, the Office of Best Practice Regulation provided a standing exemption and advised that a Regulation Impact Statement was not required for an instrument in the nature of the Determination (reference number ID 2014/16581).

Statement of Compatibility with Human Rights

 

Subsection 9(1) of the Human Rights (Parliamentary Scrutiny) Act 2011 requires the rule maker in relation to a legislative instrument to which section 42 (disallowance) of the LA applies to cause a statement of compatibility with human rights to be prepared in respect of that legislative instrument.

The statement of compatibility with human rights set out in Attachment B has been prepared to meet that requirement.

 

 

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Attachment A

 

Notes on sections of the Telecommunications Carrier Licence Charges (Specification of Costs by the ACMA) Determination (No. 1) 2021.

 

 

Section 1 - Name

 

This section provides for the Determination to be cited as the Telecommunications Carrier Licence Charges (Specification of Costs by the ACMA) Determination (No. 1) 2021.

 

Section 2 - Commencement

 

This section states that the Determination commences at the start of the day after the day it is registered on the Federal Register of Legislation.

 

The Federal Register of Legislation may be accessed free of charge at www.legislation.gov.au.

 

Section 3 - Authority

 

This section identifies the provisions of the Act that authorise the making of the Determination, namely paragraphs 15(1)(a), (c) and (ca) of the Act.

 

Section 4 - Repeal of this instrument

 

This section provides that the Determination is repealed at the end of 30 June 2022.

 

Section 5 - Definitions

 

This section states that, for the purposes of the Determination, Act means the Telecommunications (Carrier Licence Charges) Act 1997.

 

Section 6 - Determination of amount attributable to telecommunications functions and powers

 

This section determines an amount of $13 440 806 for the purposes of paragraph 15(1)(a) of the Act, being the proportion of the ACMA’s costs for the 2018–2019 financial year that is attributable to the ACMA’s telecommunications functions and powers.

 

Section 7 - Determination of amount of ITU contribution to be recovered

 

This section determines an amount of $2 109 273 for the purposes of paragraph 15(1)(c) of the Act, being the proportion of the Commonwealth’s contribution to the budget of the ITU for the 2019 calendar year that is to be recovered from carriers.

 

Section 8 - Determination of amounts paid under section 136C of Telecommunications Act 1997

 

This section determines an amount of $0 for the purposes of paragraph 15(1)(ca) of the Act, there having been no amounts paid under section 136C of the Telecommunications Act 1997 during the 2018–2019 financial year.

 

Attachment B

 

Statement of compatibility with human rights
 

Prepared by the Australian Communications and Media Authority (ACMA) under subsection 9(1) of the Human Rights (Parliamentary Scrutiny) Act 2011

 

Telecommunications Carrier Licence Charges (Specification of Costs by the ACMA) Determination (No. 1) 2021


Overview of the Determination

 

The Determination is made under paragraphs 15(1)(a), (c) and (ca) of the Act. Subsection 15(1) of the Act provides that the total of the charges that are imposed on carrier licences in force at the beginning of a financial year must not exceed the sum of the amounts determined under paragraphs 15(1)(a) to (d) of the Act.

 

The Determination determines the amounts attributable to those items in paragraphs 15(1)(a), (c) and (ca) of the Act. 

 

Human rights implications

 

The ACMA has assessed whether the Determination is compatible with human rights, being the rights and freedoms recognised or declared by the international instruments listed in subsection 3(1) of the Human Rights (Parliamentary Scrutiny) Act 2011 as they apply to Australia.

 

Having considered the likely impact of the instrument and the nature of the applicable rights and freedoms, the ACMA has formed the view that the Determination does not engage any of those rights or freedoms. 

 

Conclusion

 

The Determination is compatible with human rights as it does not raise any human rights issues.

 

[1] These can be accessed from: https://www.acma.gov.au/consultations/2021-04/proposed-annual-carrier-licence-charge-2019-20-consultation-132021

Overview

The Telecommunications (Carrier Licence Charges) Act 1997 was enacted to regulate the total of the annual carrier licence charges that are imposed on carrier licences in force at the beginning of a financial year. This legislation was introduced to ensure that the charges imposed on telecommunications carriers do not exceed a specified limit, thereby maintaining a fair and regulated telecommunications market. The Australian Communications and Media Authority (ACMA), acting as the relevant legislature, has the responsibility to specify the amounts that contribute to these charges. The policy objective of the Act is to set a cap on carrier licence charges while ensuring that the ACMA's telecommunications functions and powers, the Commonwealth's contribution to the International Telecommunication Union (ITU), and any other specified amounts are accurately reflected in the charges. The recently made Telecommunications Carrier Licence Charges (Specification of Costs by the ACMA) Determination (No. 1) 2021 provides the specific amounts for the 2019-2020 financial year, ensuring compliance with the Act's provisions and maintaining a balanced regulatory environment.

Scope and Application

The Telecommunications Carrier Licence Charges (Specification of Costs by the ACMA) Determination (No. 1) 2021 applies to entities holding carrier licences under the Telecommunications (Carrier Licence Charges) Act 1997, specifically those in force at the beginning of the 2019-2020 financial year. This determination, made by the Australian Communications and Media Authority (ACMA), specifies the costs attributable to telecommunications functions and powers of the ACMA, the proportion of the Commonwealth's contribution to the budget of the International Telecommunication Union (ITU) to be recovered from carriers, and the sum of amounts paid under section 136C of the Telecommunications Act 1997 during the immediately preceding financial year. These specified amounts are integral in calculating the total annual carrier licence charges, which must not exceed certain limits set by the Act. The jurisdiction of this determination is Commonwealth, affecting entities across Australia engaged in telecommunications activities. The determination does not specify any exclusions or exemptions but sets clear thresholds based on the costs and contributions outlined. Additionally, the application and scope of the Act may be further refined through subordinate instruments as deemed necessary by the ACMA.

Key Provisions

The Telecommunications Carrier Licence Charges (Specification of Costs by the ACMA) Determination (No. 1) 2021 specifies certain costs under the Telecommunications (Carrier Licence Charges) Act 1997 (the Act). Specifically, it determines the amounts attributable to the Australian Communications and Media Authority’s (ACMA) telecommunications functions and powers for the 2018-2019 financial year, the proportion of the Commonwealth’s contribution to the budget of the International Telecommunication Union (ITU) for the 2019 calendar year that is to be recovered from carriers, and the sum of the amounts paid under section 136C of the Telecommunications Act 1997 during the 2018-2019 financial year. These amounts are integral to the calculation of the annual carrier licence charges imposed on carrier licences in force at the beginning of a financial year, ensuring that the total of these charges does not exceed the specified sums as outlined in the Act. The Act imposes several obligations on the ACMA in relation to the specification of costs and charges. Under subsection 15(1), the ACMA must ensure that the total annual carrier licence charges do not exceed the prescribed limits. The Determination facilitates this by specifying the amounts attributable to the ACMA's telecommunications functions, the Commonwealth’s contribution to the ITU, and any payments made under section 136C of the Telecommunications Act 1997. The ACMA is also required to consult with the public and industry stakeholders before making such determinations, as evidenced by the consultation process that took place prior to the making of this Determination. Breaches of the provisions of the Act or the Determination may have civil or criminal consequences, although the specific penalties are not detailed within the Determination itself. Generally, under Australian law, breaches of statutory provisions can lead to fines, legal action, and other penalties as prescribed by the relevant legislation. The ACMA, as the enforcing authority, has the power to take appropriate action against entities that fail to comply with the charges and cost specifications outlined in the Act and the Determination. The Determination also specifies that it will be repealed at the end of 30 June 2022, after which new determinations will need to be made for subsequent financial years. This ensures that the cost specifications remain current and reflective of the ACMA's financial obligations and the contributions to international entities. The repeal mechanism ensures that the legal framework remains dynamic and responsive to changes in financial circumstances and international obligations.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.