Telecommunications (Carrier Licence Fees) Regulations

Legislation au C2004L00024 Regulations Not in force Legislative Instrument

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Telecommunications (Carrier Licence Fees) Regulations

Statutory Rules 1991 No. 358 as amended

made under the

Telecommunications (Carrier Licence Fees) Act 1991

This compilation was prepared on 4 August 2003
taking into account amendments up to SR 1997 No. 125

[Note: The enabling legislation of these Regulations was repealed by Act No. 50 of 1997 on 1 July 1998]

Prepared by the Office of Legislative Drafting,
Attorney-General’s Department, Canberra

Contents

 1 Citation [see Note 1] 

 2 Interpretation 

 3 Amount of licence fee 

 4 Limit on annual fees — proportion of Commonwealth’s contribution to ITU budget             

Notes  

 

 

 

 

 

1 Citation [see Note 1]

  These regulations may be cited as the Telecommunications (Carrier Licence Fees) Regulations.

2 Interpretation

 (1) In these regulations, unless the contrary intention appears:

ACCC costs means the amount determined by a written instrument made by the ACCC under paragraph 6 (c) of the Act.

Act means the Telecommunications (Carrier Licence Fees) Act 1991.

carrier’s traffic share, in relation to a particular carrier, means the figure worked out using the formula:

.

excluded money, in relation to AUSTEL, means the sum of:

 (a) the amount of expenditure by AUSTEL in the relevant financial year on public inquiries that:

 (i) are held under Part 14 of the Telecommunications Act 1991; and

 (ii) do not relate to the regulation of the activities of a holder of a general telecommunications licence and public mobile licence; and

 (b) the amount payable to AUSTEL in the relevant financial year from any source, other than:

 (i) the RFY appropriation; and

 (ii) fees payable under the Act; and

 (c) the received fees.

ITU component, in relation to a fee that is payable under the Act in a calendar year, means the amount determined under regulation 4 for the calendar year.

predecessor, in relation to a carrier, means a body to which the carrier is, under paragraph 11 (c) of the Australian and Overseas Telecommunications Corporation Act 1991, in law a successor.

proportional fee, in relation to a person who does not hold a general telecommunications licence or a public mobile licence for the whole of a financial year, means an amount calculated using the formula:

PY appropriation, in relation to a fee that is payable under the Act in a calendar year, means the total of all amounts appropriated for the purposes of AUSTEL in the financial year that ends on 30 June in the calendar year.

received fees, in relation to AUSTEL, means the sum of the amounts of:

 (a) $500,000; or

 (b) if the proportional fee applies — the proportional fee;

for each general telecommunications licence and public mobile licence in force at any time during the financial year that ends on 30 June in the calendar year in which a fee is payable under the Act.

relevant financial year, for a fee that is payable under the Act on 1 July 1997, means the financial year that ends on 30 June 1996.

RFY appropriation, in relation to a fee that is payable under the Act in a calendar year, means the total of all amounts appropriated for the purposes of AUSTEL in the relevant financial year.

 (2) For the purposes of the formula in the definition of carrier’s traffic share in subregulation (1):

 (a) particular carrier’s timed traffic, in relation to a particular carrier, means the total duration (expressed in minutes) of all timed traffic, within the meaning of section 305 of the Telecommunications Act 1991, in Australia in the relevant financial year, being traffic that is carried by:

 (i) the particular carrier; and

 (ii) any predecessor of the particular carrier.

 (b) all carriers’ timed traffic means the total duration (expressed in minutes) of all timed traffic, within the meaning of section 305 of the Telecommunications Act 1991, in Australia in that financial year, being traffic that is carried by:

 (i) any carrier (including the particular carrier); and

 (ii) any predecessor of a carrier mentioned in subparagraph (i).

3 Amount of licence fee

 (1) Subject to this regulation, for the purposes of section 4 of the Act, the amount of the fee to be paid by the holder of a general telecommunications licence or a public mobile licence, by way of tax in respect of the licence, is the sum of $500,000 (or, if the proportional fee applies, the proportional fee) and:

 (a) an amount calculated using the formula:

or

 (b) if the amount calculated under paragraph (a) is a negative amount — nil.

 (2) Subject to subregulation (3), if the total of the amounts calculated under subregulation (1) in relation to each holder of a general telecommunications licence or a public mobile licence is greater than the sum of the PY appropriation, the ITU component and ACCC costs, the amount of the fee to be paid by each holder of a general telecommunications licence and public mobile licence, by way of tax in respect of the licence, is the sum of:

 (a) $500,000, or, if the proportional fee applies, the proportional fee, and:

 (b) an amount calculated using the formula:

 (3) In spite of subregulations (1) and (2), if, for the purpose of calculating a fee under these Regulations, the amount of the received fees is greater than the amount of the sum of the PY appropriation, the ITU component and ACCC costs, the amount of the fee to be paid by each holder of a general telecommunications licence or a public mobile licence, by way of tax in respect of the licence, is an amount calculated using the formula:

4 Limit on annual fees — proportion of Commonwealth’s contribution to ITU budget

 (1) For the purposes of paragraph 6 (b) of the Act, the amount determined for a calendar year is the product of:

 (a) the Commonwealth’s contribution to the budget of the ITU for that calendar year; and

 (b) the number (rounded to 2 decimal places) obtained using the formula:

  where:

  T is the amount of the budget of the ITU’s Telecommunication Standardization sector for that calendar year; and

  R is the amount of the budget of the ITU’s Radiocommunication sector for that calendar year.

 (2) In this regulation, ITU means the International Telecommunication Union.

Notes to the Telecommunications (Carrier Licence Fees) Regulations

Note 1

The Telecommunications (Carrier Licence Fees) Regulations (in force under the Telecommunications (Carrier Licence Fees) Act 1991) as shown in this compilation comprise Statutory Rules 1991 No. 358 amended as indicated in the Tables below.

Table of Statutory Rules

Year and
number

Date of notification
in Gazette

Date of
commencement

Application, saving or
transitional provisions

1991 No. 358

25 Nov 1991

25 Nov 1991

 

1992 No. 227

30 June 1992

30 June 1992

1994 No. 225

30 June 1994

30 June 1994

1995 No. 219

30 June 1995

30 June 1995

1996 No. 157

24 July 1996

30 June 1996

1997 No. 125

4 June 1997

30 June 1997

Table of Amendments

ad. = added or inserted      am. = amended      rep. = repealed      rs. = repealed and substituted

Provision affected

How affected

R. 2.................

am. 1992 No. 227; 1994 No. 225; 1995 No. 219; 1997 No. 125

R. 3.................

am. 1992 No. 227; 1995 No. 219; 1997 No. 125

R. 4.................

ad. 1995 No. 219

 

rs. 1996 No. 157

 

Overview

The Telecommunications (Carrier Licence Fees) Regulations, which were made under the Telecommunications (Carrier Licence Fees) Act 1991, provide the framework for determining the fees to be paid by holders of general telecommunications and public mobile licences. These regulations were enacted to ensure that the fees collected align with the costs borne by the Australian government for its contributions to the International Telecommunication Union (ITU) and other administrative costs. The regulations specify how the fees are calculated based on various factors, including the carrier's traffic share, the Commonwealth's contribution to the ITU budget, and the costs incurred by the Australian Competition and Consumer Commission (ACCC). The enabling legislation was repealed by Act No. 50 of 1997 on 1 July 1998, but the regulations themselves were retained and amended over the years to reflect changes in the telecommunications industry and the ITU's budget. The policy objective of these regulations is to ensure that the fee structure remains fair and reflective of the actual costs and contributions involved.

Scope and Application

The Telecommunications (Carrier Licence Fees) Regulations apply to holders of general telecommunications licences and public mobile licences in Australia, determining the fees these entities must pay in relation to their licences as a tax. The application of these regulations is limited to the fees and charges prescribed under the Telecommunications (Carrier Licence Fees) Act 1991, which was repealed on 1 July 1998, although these regulations remain in effect for calculating fees payable before that date. The geographic reach of these regulations is national, affecting telecommunications carriers across Australia. The regulations include specific formulas for calculating licence fees based on the carrier's traffic share and the Commonwealth’s contribution to the International Telecommunication Union (ITU) budget, among other factors. These regulations also detail exclusions and limitations, such as the exclusion of certain expenditures and the application of proportional fees for carriers not holding a licence for the entire financial year. The application of these regulations can be extended or modified through subordinate instruments, which provide further detail on fee calculations and adjustments based on various factors, including the ITU component and ACCC costs.

Key Provisions

The Telecommunications (Carrier Licence Fees) Regulations 1991, as amended, provide detailed provisions for the calculation and imposition of fees on telecommunications carriers holding general telecommunications licences or public mobile licences in Australia. Under section 3 of the Regulations, the fee payable by a licence holder is determined by adding $500,000 (or a proportional fee, if applicable) to an amount calculated using a specific formula, unless this results in a negative amount, in which case the fee is set at nil. This formula takes into account the carrier's traffic share, which is based on the duration of timed traffic carried by the carrier and its predecessors in a given financial year, relative to the total timed traffic carried by all carriers in that year. The Regulations also include provisions for adjusting the fee if the total fees calculated exceed certain appropriations and costs (section 3(2)). Entities governed by these Regulations, such as telecommunications carriers, are obligated to accurately calculate their fees according to the specified formulas and to pay the fees by the due date. They must also ensure they are aware of and comply with any amendments to the Regulations. Additionally, the Australian Communications and Media Authority (ACMA) has specific responsibilities, such as determining the amount of costs to be included in the fee calculation under section 6(c) of the enabling Act. Failure to comply with the Telecommunications (Carrier Licence Fees) Regulations can result in various consequences. While the Regulations themselves do not explicitly outline penalties for non-compliance, breaches of related provisions in the Telecommunications (Carrier Licence Fees) Act 1991, which these Regulations support, may incur penalties. Such penalties could include fines or other enforcement actions as prescribed under the Act. It is crucial for licence holders to adhere to the fee calculation and payment requirements to avoid potential legal repercussions.

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