EXPLANATORY STATEMENT
Issued by the authority of the Australian Communications and Media Authority
Telecommunications (Charges) Determination 2006
Australian Communications and Media Authority Act 2005
Purpose
The Telecommunications (Charges) Determination 2006 (the Determination) has been made to revoke and replace the Telecommunications (Charges) Determination 2005 in order to remove the goods and services tax (GST) from the charges imposed by that determination. These charges have become exempt from GST because of the A New Tax System (Goods and Services Tax) (Exempt Taxes, Fees and Charges) Determination 2006.
The Determination also updates references to the Australian Communications Authority (ACA) with references to the Australian Communications and Media Authority (ACMA). ACMA was established on 1 July 2005, and performs the merged functions of the ACA and the Australian Broadcasting Authority. Legislative references to the replacement act, the Australian Communications and Media Authority Act 2005 (the ACMA Act), have also been updated.
Legislative Provisions
Subsection 60(1) of the ACMA Act provides that ACMA may, by written instrument, make determinations fixing charges.
A determination made under subsection 60(1) of the ACMA Act is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
Background
Section 60 of the ACMA Act obliges ACMA to ensure accurate cost recovery and charging. Consequently, ACMA has adopted a rigorous Activity Based Costing (ABC) methodology to ensure the costings which underpin pricing decisions accurately and equitably attribute costs to the range of outputs which ACMA provides to clients. In ensuring its cost recovery regime is robust, ACMA has employed an external financial consultancy firm in a quality assurance role.
Consultation
There was no consultation on the Determination. The Determination is of a minor or machinery nature and does not substantially alter existing arrangements.
NOTES ON SECTIONS
Section 1 - Name of determination
This states that the name of the determination is the Telecommunications (Charges) Determination 2006.
Section 2 - Commencement
This section provides for the determination to commence on 1 July 2006.
Section 3 - Revocation
This section states the determination’s predecessor, the Telecommunications (Charges) Determination 2005 is revoked by this determination.
Section 4 - Definitions
This section defines some of the key terms in the determination.
Section 5 – Purpose of this Determination
This section states the purpose of the Determination which is to fix charges for services provided by ACMA and any matter in which expenses are incurred by ACMA under specified Acts.
Section 6 - Charges
This section specifies the charges for various ACMA telecommunications activities by reference to the attached Schedule 1.
Section 7 - By whom and when the charge is payable
This section specifies when and by whom a charge is payable.
Schedule 1 – Charges payable
Schedule 1 details the charges for specified ACMA activities.
Overview
The Telecommunications (Charges) Determination 2006, enacted under the Australian Communications and Media Authority Act 2005, was introduced to update the charges for telecommunications services regulated by the Australian Communications and Media Authority (ACMA). This Determination was necessary following the exemption of these charges from the goods and services tax (GST) as a result of the A New Tax System (Goods and Services Tax) (Exempt Taxes, Fees and Charges) Determination 2006. The Determination also updated references from the Australian Communications Authority (ACA) to ACMA, reflecting the establishment of ACMA on 1 July 2005 and its consolidation of the ACA and Australian Broadcasting Authority functions. The purpose of this Determination is to ensure accurate cost recovery and charging, with ACMA employing a rigorous Activity Based Costing methodology to underpin its pricing decisions. This Determination does not substantially alter existing arrangements and was made without consultation due to its minor or machinery nature.
Scope and Application
The Telecommunications (Charges) Determination 2006 applies to entities and individuals who are subject to charges for services provided by the Australian Communications and Media Authority (ACMA) as well as to any matters in which expenses are incurred by ACMA under specified Acts. This Determination specifically addresses the imposition of charges for various telecommunications activities that ACMA regulates and administers, such as licensing, spectrum management, and enforcement. The Determination applies nationally across Australia, with its jurisdiction stemming from the Australian Communications and Media Authority Act 2005. The Determination revokes its predecessor, the Telecommunications (Charges) Determination 2005, and updates references to the former Australian Communications Authority with references to ACMA, reflecting the merger of the ACA and the Australian Broadcasting Authority into a single entity. The charges outlined in the Determination are exempt from goods and services tax (GST) pursuant to the A New Tax System (Goods and Services Tax) (Exempt Taxes, Fees and Charges) Determination 2006. The Determination includes a Schedule detailing the specific charges for various ACMA activities and specifies when and by whom these charges are payable.
Key Provisions
The Telecommunications (Charges) Determination 2006 (section 6) sets out the charges applicable for various telecommunications activities undertaken by the Australian Communications and Media Authority (ACMA). These charges are detailed in Schedule 1, which provides a comprehensive list of fees associated with different services and activities, ensuring transparency and predictability in the cost structure for those who use ACMA's services. The fees cover a range of activities, from spectrum licensing to compliance and enforcement actions, and are designed to reflect the actual costs incurred by ACMA in delivering these services.
The Act imposes several obligations on the entities it governs. Under subsection 60(1) of the Australian Communications and Media Authority Act 2005, ACMA is required to ensure that the charges imposed are fair and accurately reflect the costs of providing the services. To achieve this, ACMA employs a rigorous Activity Based Costing (ABC) methodology, which ensures that costs are accurately attributed to the various outputs it provides to clients. Additionally, ACMA must ensure that the charges are payable as specified in section 7 of the Determination. This includes stipulating that charges must be paid by the due date set forth in the invoices issued by ACMA.
Failure to comply with the charges specified in the Determination may result in various consequences. While the Determination does not explicitly outline offences, penalties, or civil/criminal consequences for non-payment or breach of the charges, the broader legislative framework under the Australian Communications and Media Authority Act 2005 may impose such penalties. Typically, non-payment or failure to comply with the payment of charges could lead to legal action by ACMA to recover the owed amounts, which could include interest and additional costs associated with the enforcement of the debt. Additionally, persistent non-compliance might result in further administrative or legal actions, as outlined in the overarching legislation.