Telecommunications (Carrier Licence Fees) Regulations (Amendment) 1992 No. 227
EXPLANATORY STATEMENT
Statutory Rules 1992 No. 227
Issued by the Authority of the Minister for Transport and Communications
TELECOMMUNICATIONS (CARRIER LICENCE FEES) ACT 1991
TELECOMMUNICATIONS (CARRIER LICENCE FEES) REGULATIONS (AMENDMENT)
Section 8 of the Telecommunications (Carrier Licence Fees) Act 1991 (the Act) provides that the Governor-General may make regulations for the purposes of the Act.
Section 4 of the Act provides for a fee to be payable by the holder of a general telecommunications licence or a public mobile licence. Paragraph 5(1)(b) of the Act provides that regulations may prescribe a procedure in accordance with which the amount of the fee is to be determined.
The Telecommunications (Carrier Licence Fees) Regulations (the Regulations) set out the procedure for determining each carrier licence fee, based on a fixed and variable component.
Under regulation 3 of the Regulations, the variable component of the fee is set by a formula which, in part, relies on the amount each carrier pays being determined by reference to their share of timed telecommunications traffic in the financial year preceding the financial year immediately before the 1 July on which the tax is to be paid.
A technical difficulty has emerged with the definition of ,timed traffic, in relation to the fee which will become payable on 1 July 1992. The variable component of the fee depends on timed traffic of the holder of a licence in the 1990/91 financial year. one of the licence holders, the Australian and Overseas Telecommunications Corporation (AOTC), did not exist during that financial year, and accordingly the variable component of the fee would not apply to it as it had no timed traffic at that time. Telecom and OTC Limited were providing timed traffic at that time and AOTC became their successor at law when they were subsequently merged.
The regulations solve the difficulty with the current definition of 'timed traffic' by omitting the current definition and substituting new definitions of 'particular carrier's timed traffic' and 'all carriers' 'timed traffic' which will take into account the timed traffic of Telecom and OTC during the relevant financial year.
Clauses 2.1 and 2.2 of regulation 2 make amendments to the regulations consequential upon the inclusion of the new definitions of 'particular carrier's timed traffic' and 'all carriers' 'timed traffic'.
Clause 2.3 of regulation 2 adds a new subregulation 2(2) which Includes the new definitions of 'particular carrier's timed traffic' and 'all carriers' 'timed traffic'.
Regulation 3 corrects a typographical error in paragraph 3(1)(a) of the Regulations.
Overview
The Telecommunications (Carrier Licence Fees) Regulations (Amendment) 1992 No. 227, issued under the authority of the Minister for Transport and Communications, amend the Telecommunications (Carrier Licence Fees) Regulations 1991 to address a technical issue with the definition of 'timed traffic' as it pertains to the calculation of carrier licence fees. The primary objective of these amendments is to ensure that the variable component of the fee, which is based on the share of timed telecommunications traffic, is accurately determined for all carriers, including those that have undergone mergers or acquisitions. The changes involve redefining 'particular carrier's timed traffic' and 'all carriers' 'timed traffic' to incorporate the traffic of predecessor entities where applicable. This amendment ensures that the fee structure remains fair and reflective of the actual telecommunications traffic, thereby maintaining the integrity of the fee calculation process as intended by the Telecommunications (Carrier Licence Fees) Act 1991.
Scope and Application
The Telecommunications (Carrier Licence Fees) Regulations (Amendment) 1992 No. 227 amends the existing regulations to address a technical issue related to the definition of 'timed traffic' in the context of determining carrier licence fees under the Telecommunications (Carrier Licence Fees) Act 1991. The Act applies to holders of general telecommunications licences or public mobile licences, requiring them to pay fees determined by a combination of fixed and variable components. The variable component is calculated based on the carrier's share of timed telecommunications traffic from the previous financial year. The amendment specifically rectifies a problem arising from the definition of 'timed traffic', which excluded certain carriers, like the Australian and Overseas Telecommunications Corporation (AOTC), who did not exist during the relevant financial year. The new regulation incorporates the timed traffic of predecessors like Telecom and OTC Limited into the calculation, ensuring an equitable assessment of fees. The amendment is confined to the Commonwealth jurisdiction and does not alter the broader application or scope of the Act. The regulations are made under the authority of the Minister for Transport and Communications and are intended to ensure the proper functioning of the fee determination process without introducing new exclusions or thresholds.
Key Provisions
The primary operative sections of the Telecommunications (Carrier Licence Fees) Regulations (Amendment) 1992 No. 227 include Section 8 of the Telecommunications (Carrier Licence Fees) Act 1991, which empowers the Governor-General to create regulations to implement the Act. Section 4 establishes the fee payable by holders of general telecommunications licences or public mobile licences. Regulation 3 in particular sets out the method for determining the fee, incorporating both fixed and variable components. Regulation 2 addresses the technical issue with the definition of 'timed traffic', which was previously causing complications in fee calculation for certain carriers. The new definitions introduced in clauses 2.1 and 2.2 of regulation 2 ensure that the variable component of the fee is determined by including the timed traffic of relevant carriers, even if they were not in existence during the financial year in question. Regulation 3 corrects a typographical error in an existing regulation.
The Telecommunications (Carrier Licence Fees) Regulations (Amendment) 1992 impose specific obligations on licence holders and the regulatory authority. Licence holders must ensure their telecommunications traffic is accurately reported to the relevant authority for the purpose of calculating their share of the fee. The regulatory authority is responsible for implementing the amended definitions and ensuring that the fee calculation process is fair and accurate, reflecting the true share of timed traffic among all carriers. Both parties must adhere to the new definitions of 'particular carrier's timed traffic' and 'all carriers' 'timed traffic' as specified in the amended regulations.
The Act does not explicitly state any offences, penalties, or civil/criminal consequences for breaches of the regulations. However, failure to comply with the fee calculation requirements or inaccuracies in reporting timed traffic could potentially lead to disputes or investigations by the regulatory authority. While the Act does not specify maximum penalties for non-compliance, it is reasonable to assume that any discrepancies or deliberate inaccuracies could result in financial penalties or corrective actions to ensure accurate fee collection. The precise nature and extent of any penalties would depend on the specific circumstances of the non-compliance and any subsequent findings by the regulatory authority.