Telecommunications Carrier Licence Charges (Specification of Costs by the ACMA) Determination (No. 2) 2023

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

Legislation au F2023L01636 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. 2) 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. 2) 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 2022-2023 financial year.

 

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

$13 055 695 is the amount determined to be the proportion of the ACMA’s costs for the 2021-2022 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

$2 198 407 is the amount determined to be the proportion of the Commonwealth's contribution to the budget of the ITU for the 2022 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 2021-2022 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 2022-2023 financial year, in accordance with the Telecommunications Carrier Licence Charges (Annual Charges) Determination (No. 2) 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 four-week period from 18 September 2023 to 16 October 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.

 

No submissions were received in response to the consultation.    

 

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.2) 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. 2) 2023 (the Determination).

 

Section 2 - Commencement

 

This section states that the Determination commences on 11 December 2023.  The instrument will 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 2025.

 

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 $13 055 695 for the purposes of paragraph 15(1)(a) of the Act, being the proportion of the ACMA’s costs for the 2021-2022 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 $2 198 407 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 2022 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 2021-2022 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. 2) 2023


Overview of the Determination

 

The Telecommunications Carrier Licence Charges (Specification of Costs by the ACMA) Determination (No. 2) 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.

 

Overview

The Telecommunications Carrier Licence Charges (Specification of Costs by the ACMA) Determination (No. 2) 2023 was enacted by the Australian Communications and Media Authority (ACMA) under the authority of the Telecommunications (Carrier Licence Charges) Act 1997. This Act was introduced to regulate and limit the total annual charges imposed on carrier licences in force at the beginning of each financial year. The ACMA's role in this legislation is to specify certain costs associated with its telecommunications functions and powers, the Commonwealth’s contribution to the International Telecommunication Union (ITU), and any amounts paid under section 136C of the Telecommunications Act 1997. The policy objective of this determination is to ensure that the total carrier licence charges do not exceed the specified amounts, thereby maintaining a balanced and regulated telecommunications environment. The Determination specifies the costs attributable to the ACMA's telecommunications functions, the proportion of the Commonwealth's ITU contribution to be recovered from carriers, and confirms that no amounts were paid under section 136C of the Telecommunications Act 1997 during the 2021-2022 financial year.

Scope and Application

The Telecommunications Carrier Licence Charges (Specification of Costs by the ACMA) Determination (No. 2) 2023, made under the Telecommunications (Carrier Licence Charges) Act 1997, specifies the costs attributable to certain functions of the Australian Communications and Media Authority (ACMA) and the Commonwealth's contribution to the International Telecommunication Union (ITU) that are to be recovered from telecommunications carriers. The Determination applies to all telecommunications carriers holding a licence in force at the beginning of the financial year, thereby impacting entities within the telecommunications industry. The geographic reach of this legislation is national, as it applies across Australia. The specified amounts for the 2022-2023 financial year are $13,055,695 for the proportion of the ACMA’s costs attributable to its telecommunications functions and powers, $2,198,407 for the proportion of the Commonwealth’s ITU contribution to be recovered from carriers, and $0 for amounts paid under section 136C of the Telecommunications Act 1997 during the 2021-2022 financial year. The application of this determination is further refined through subordinate instruments such as the Telecommunications Carrier Licence Charges (Annual Charges) Determination (No. 2) 2023. The Determination is subject to disallowance under the Legislation Act 2003 and is repealed at the start of 1 July 2025.

Key Provisions

The Telecommunications Carrier Licence Charges (Specification of Costs by the ACMA) Determination (No. 2) 2023 specifies certain costs under the Telecommunications (Carrier Licence Charges) Act 1997 (the Act). This Determination, which comes into effect on 11 December 2023, is designed to ensure that the total charges imposed on carrier licences do not exceed the prescribed limits. Under section 6, the Determination specifies $13,055,695 as the proportion of the Australian Communications and Media Authority's (ACMA) costs for the 2021-2022 financial year attributable to its telecommunications functions and powers. Section 7 specifies $2,198,407 as the proportion of the Commonwealth’s contribution to the budget of the International Telecommunication Union (ITU) for the 2022 calendar year to be recovered from carriers. Section 8 clarifies that no amounts were paid under section 136C of the Telecommunications Act 1997 during the 2021-2022 financial year. These amounts are integral in calculating the total carrier licence charges for the 2022-2023 financial year. The Act imposes several obligations on parties and entities, particularly those holding carrier licences. These entities must ensure that any imposed charges comply with the total limit set by the Act, which is calculated using the amounts specified in the Determination. The ACMA is responsible for determining these costs and ensuring the total does not exceed the statutory limits. Additionally, carriers must be aware of the specified amounts and ensure that their charges are aligned with the totals determined by the ACMA. The ACMA is also required to consult with the public and industry stakeholders when making such determinations, as outlined in the Act. Breaching the provisions of the Act may lead to various consequences. Although the Determination itself does not explicitly detail offences, penalties, or consequences, the Act does provide a framework for enforcement. Generally, non-compliance with the Act may result in civil or criminal penalties, depending on the nature and severity of the breach. The maximum penalties for contravening the Act can include fines and, in severe cases, imprisonment. However, the specific penalties would be determined in the context of any legal proceedings arising from non-compliance with the Act. It is important for all parties to adhere to the specified limits and processes to avoid any legal repercussions.

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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.