Telecommunications Carrier Licence Charges (Specification of Costs by the ACMA) Determination (No. 1) 2023

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

Legislation au F2023L00562 Not in force Legislative Instrument

Legislation content

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) 2023

 

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) 2023 (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 15(1)(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 2021-2022 financial year.

 

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

$15 123 299 is the amount determined to be the proportion of the ACMA’s costs for the 2020-2021 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

$2 209 549 is the amount determined to be the proportion of the Commonwealth's contribution to the budget of the ITU for the 2021 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 no amounts were paid under section 136C of the Telecommunications Act 1997 during the 2020-2021 financial year.

 

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 2021-2022 financial year, in accordance with the Telecommunications Carrier Licence Charges (Annual Charges) Determination (No. 1) 2023 (the ACLC Determination).

 

A provision-by-provision description of the Determination 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

The Determination incorporates the following Acts (including by the adoption of definitions), or otherwise refers to them:

 

-          the Act

-          the Telecommunications Act 1997.

 

The Acts listed above may be accessed, free of charge, from the Federal Register of Legislation (http://www.legislation.gov.au).  The Acts listed above are incorporated as in force from time to time, in accordance with section 10 of the Acts Interpretation Act 1901 and subsection 13(1) of the LA.

 

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 seven-week period from 16 December 2022 to 3 February 2023.  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) of the Act.

 

In response to its consultation, ACMA received three written submissions[1]. The submissions sought clarification about certain costs that formed part of the ACMA and ACCCs’ telecommunications costs. None of the submissions affected the total costs specified under paragraphs 15(1)(a), (c) and (ca) of the Act and no changes were made to the Determination as a result of consultation. The ACMA took the submissions into account when making 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.

 

 

 

 

 

 

 

 


Attachment A

 

Notes on sections of the Telecommunications Carrier Licence Charges (Specification of Costs by the ACMA) Determination (No. 1) 2023.

 

 

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) 2023 (the Determination).

 

Section 2 - Commencement

 

This section states that the Determination commences on 23 May 2023.  The instrument will also be 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 Telecommunications (Carrier Licence Charges) Act 1997 (the Act).

 

Section 4 – Repeal of this instrument

 

This section provides that the Determination is repealed at the start of 1 July 2024.

 

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 $15 123 299 for the purposes of paragraph 15(1)(a) of the Act, being the proportion of the ACMA’s costs for the 2020–2021 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 $2 209 549 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 2021 calendar year that is to be recovered from carriers.

 

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

 

This section determines, for the purposes of paragraph 15(1)(ca) of the Act, that no amount was paid under section 136C of the Telecommunications Act 1997 during the 2020–2021 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) 2023


Overview of the Determination

 

The Telecommunications Carrier Licence Charges (Specification of Costs by the ACMA) Determination (No. 1) 2023 (the Determination) is made under paragraphs 15(1)(a), (c) and (ca) of the Telecommunications (Carrier Licence Charges) Act 1997 (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 Determination 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 at: Proposed Annual Carrier Licence Charge 2021–22 - consultation 42/2022 | ACMA

Overview

The Telecommunications Carrier Licence Charges (Specification of Costs by the ACMA) Determination (No. 1) 2023 was enacted under the Telecommunications (Carrier Licence Charges) Act 1997. This legislation was introduced to address the need for a structured and transparent method to determine the costs associated with telecommunications functions managed by the Australian Communications and Media Authority (ACMA). The Australian Parliament authorised this determination to ensure that the total annual carrier licence charges imposed do not exceed the sum of specified amounts, including those attributable to ACMA’s costs and the Commonwealth’s contribution to the International Telecommunication Union (ITU). The primary policy objective is to maintain a balanced approach to cost recovery that reflects the actual expenses incurred by the ACMA for its telecommunications functions while ensuring that the charges remain within the legislative limits. The ACMA, acting under the authority granted by the Act, made this determination to specify the relevant amounts for the 2021-2022 financial year. The Determination sets out the proportion of ACMA’s costs for the 2020-2021 financial year attributable to its telecommunications functions and powers, the proportion of the Commonwealth's contribution to the ITU budget for the 2021 calendar year to be recovered from carriers, and confirms that no amounts were paid under section 136C of the Telecommunications Act 1997 during the 2020-2021 financial year. These specified amounts are integral in calculating the annual charges imposed on carrier licences in force at the beginning of the financial year, ensuring compliance with the statutory limits and maintaining an equitable cost recovery mechanism.

Scope and Application

The Telecommunications Carrier Licence Charges (Specification of Costs by the ACMA) Determination (No. 1) 2023 applies to carrier licences that are in force at the beginning of the financial year, specifically those regulated under the Telecommunications (Carrier Licence Charges) Act 1997. The Australian Communications and Media Authority (ACMA), acting as the rule-making authority, specifies certain costs attributable to telecommunications functions and powers, the Commonwealth's contribution to the International Telecommunication Union (ITU), and payments under section 136C of the Telecommunications Act 1997. The determination of these costs is crucial in ensuring that the total annual carrier licence charges do not exceed the prescribed limits set by the Act. The jurisdictional reach of this legislation is national, as it pertains to the regulatory framework governing telecommunications across Australia. The ACMA consulted with the public and industry stakeholders before making the determination, although no changes were made as a result of the submissions received. Notably, the legislation does not specify any exclusions, exemptions, or thresholds beyond those outlined in the Act itself. The Determination is effective from 23 May 2023 and will be repealed at the start of 1 July 2024.

Key Provisions

The Telecommunications Carrier Licence Charges (Specification of Costs by the ACMA) Determination (No. 1) 2023 (the Determination) specifies the costs that the Australian Communications and Media Authority (ACMA) is required to determine under the Telecommunications (Carrier Licence Charges) Act 1997 (the Act). Specifically, the Determination provides the amounts attributable to the ACMA’s telecommunications functions and powers, the Commonwealth’s contribution to the budget of the International Telecommunication Union (ITU), and any amounts paid under section 136C of the Telecommunications Act 1997 (section 6, 7 and 8). The Determination is made under the authority provided by paragraphs 15(1)(a), (c) and (ca) of the Act, which set out the requirements for the total of the annual carrier licence charges (section 3). The Act imposes obligations on the ACMA to ensure that the total of the annual carrier licence charges does not exceed the specified amounts determined under the Act. In this regard, the ACMA must calculate and specify the relevant amounts for the preceding financial year and include them in the formula for determining the annual charges imposed on carrier licences (subsection 15(1)). The Determination plays a crucial role in this process by providing the necessary amounts that must be considered in the formula. Additionally, the ACMA must ensure that the specified amounts are accurately calculated and reflect the costs attributable to the ACMA’s telecommunications functions and powers and the Commonwealth’s contribution to the ITU. Failure to comply with the requirements of the Act and the Determination may result in legal consequences. While the Determination itself does not explicitly outline specific offences or penalties, non-compliance with the Act could lead to legal action or other remedies available under the legislation. The Act provides a framework for the imposition of charges and the determination of costs, and any breaches of these provisions could result in penalties as outlined in the Act or other relevant legislation. The precise penalties would depend on the nature and severity of the breach, as well as any applicable laws or regulations. In summary, the Determination specifies the amounts attributable to certain costs under the Act, which are essential for determining the annual carrier licence charges. The ACMA is required to ensure that these amounts are accurately calculated and included in the formula for determining the charges. Non-compliance with the Act’s requirements could lead to legal consequences, although the specific penalties would depend on the nature of the breach and applicable laws.

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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.