Telecommunications (Charges) Determination 2007

Administered by Department of Communications and the Arts

Legislation au F2007L00360 Not in force Legislative Instrument

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EXPLANATORY STATEMENT

 

Telecommunications (Charges) Determination 2007

Australian Communications and Media Authority Act 2005

 

Legislative Provisions

 

The Telecommunications (Charges) Determination 2007 (the Determination) has been made by the Australian Communications and Media Authority (ACMA) to revoke and replace the Telecommunications (Charges) Determination 2006.  The Determination provides updated charges arising from a review of ACMA’s cost recovery fees and charges.

Subsection 60(1) of the Australian Communications and Media Authority Act 2005 provides that ACMA may, by written instrument, make determinations fixing charges for services provided by ACMA and in relation to any matter in which expenses are incurred by ACMA under the Telecommunications Act 1997.  A charge must not be such as to amount to taxation.

 

The Determination is a legislative instrument for the purposes of the Legislative Instruments Act 2003.

Background

 

ACMA reviewed its fees and charges as part of a scheduled five-yearly review of its cost recovery arrangements.  ACMA reviewed its existing fees and charges against cost recovery principles outlined in the Australian Government’s Cost Recovery Guidelines.

 

The review resulted in updates to a range of existing charges, including charges for services provided by ACMA under the Telecommunications Act 1997. 

The Determination specifies the charges payable to ACMA to recover the expenses incurred by ACMA for matters that include:

  • considering an application made under subsection 390(1) of the Telecommunications Act 1997 for a connection permit for the connection of customer equipment;
  • considering an application made under subsection 390(2) of the Telecommunications Act 1997 for a connection permit for the connection of customer cabling;
  • considering an application to an officer of ACMA acting as a certification body for a written statement under paragraph 408 (5)(a) of the Telecommunications Act 1997 ; and
  • making an application mentioned in paragraph 457(1)(a) of the Telecommunications Act for the allocation of a number otherwise than in accordance with an allocation system determined under section 463 of the Telecommunications Act 1997.

The Determination is named the Telecommunications (Charges) Determination 2007.

Regulation Impact

 

ACMA has obtained the advice of the Office of Best Practice Regulation (formerly the Office of Regulation Review) that a Regulation Impact Statement is not required for the Determination as the proposal does not have a significant impact on business or the economy.  A Cost Recovery Impact Statement has been prepared which outlines the basis for calculating the charges payable.

Consultation

 

A consultation paper about the review of ACMA’s existing cost recovery fees and charges was released for public comment on 22 December 2006. The consultation paper proposed the changes to the charges provided in this Determination. The consultation paper was also published on ACMA’s website and was provided directly to telecommunications carriers, carriage service providers and to a range of industry bodies and associations. 

 

ACMA received five submissions on the proposed arrangements.

Commencement of Determination


The Determination commences on 1 July 2007

Notes on Sections


Section 1 – Name of Determination

Section 1 provides for the citation of the Determination as the Telecommunications (Charges) Determination 2007.

 

Section 2 – Commencement

Section 2 provides that the Determination commences on 1 July 2007.

 

Section 3 – Revocation

Section 3 revokes the Determination known as the Telecommunications (Charges) Determination 2006.

 

Section 4 – Interpretation

Section 4 defines some of the key terms in the determination and specifies that terms used in the Determination have the same meaning as the Telecommunications Act 1997. Section 4 provides the definition of on-line application.

 

Section 5 – Purpose of this Determination

Section 5 states the purpose of this determination, which is to fix charges for a number of services provided by ACMA and expenses incurred under the Acts specified under subsection 60(1) of the Australian Communications and Media Authority Act 2005.

 

Section 6 - Charges

Section 6 specifies the charges, or hourly rate of charge, for various ACMA telecommunications activities by reference to the attached Schedule 1.

 

Section 7 - By whom and when is the charge payable

Section 7 specifies when and by whom a charge is payable.

 


Schedule 1 Charges Payable

Item [1] Charge for Connection Permit – Customer Equipment

Item [1] details the charge for considering an application made under subsection 390(1) of the Telecommunications Act 1997 for a connection permit for the connection of customer equipment.

Item [2] Charge for Connection Permit – Customer Cabling

Item [2] details the charge for considering an application made under subsection 390(2) of the Telecommunications Act 1997 for a connection permit for the connection of customer cabling.

Item [3] Application for Written Statement

Item [3] details the charge for considering an application to ACMA acting as certification body for a written statement under paragraph 408(5)(a) of the Telecommunications Act 1997.

Item [4] Charge for Allocation of Numbers

Item [4] details the charges payable in relation to making an application for allocation of a number otherwise than in accordance with an allocation system determined under section 463 of the Telecommunications Act 1997 and as provided for by section 457 of that Act.  This item provides differing charges on-line and written applications.

 

Overview

The Telecommunications (Charges) Determination 2007 was enacted to revise and replace the Telecommunications (Charges) Determination 2006, addressing the need for updated charges following the Australian Communications and Media Authority's (ACMA) review of its cost recovery fees and charges. The Australian Communications and Media Authority Act 2005 authorises ACMA to set charges for services provided and expenses incurred, with the goal of ensuring these charges do not amount to taxation. The Determination was created to outline the updated charges necessary to recover ACMA's expenses, particularly for services under the Telecommunications Act 1997, such as the consideration of applications for connection permits and number allocations. The review was conducted in line with the Australian Government's Cost Recovery Guidelines, and a Cost Recovery Impact Statement was prepared to detail the basis for the charges. This Determination commenced on 1 July 2007, replacing its predecessor and setting out the specific charges for various telecommunications-related activities undertaken by ACMA.

Scope and Application

The Telecommunications (Charges) Determination 2007 applies to entities and individuals who engage in telecommunications activities that require oversight or intervention by the Australian Communications and Media Authority (ACMA). Specifically, the Determination is concerned with the charges applicable to services provided by ACMA, such as the consideration of applications for connection permits for customer equipment and cabling, and the allocation of telecommunications numbers. The charges are applicable to any person or entity that incurs expenses under the Telecommunications Act 1997, thereby necessitating payment to ACMA. The Determination is a Commonwealth instrument, applying across Australia, and supersedes the previous charges set out in the Telecommunications (Charges) Determination 2006. Notably, the charges outlined in the Determination are designed to recover the expenses incurred by ACMA, and they must not constitute taxation. The Determination also includes provisions for how and when the charges are payable, with detailed rates specified in Schedule 1. The charges vary depending on the type of application or service, with distinctions made between online and written applications where applicable.

Key Provisions

The Telecommunications (Charges) Determination 2007 (the Determination) is a legislative instrument made by the Australian Communications and Media Authority (ACMA) under the Australian Communications and Media Authority Act 2005. This Determination serves to replace the previous Telecommunications (Charges) Determination 2006 and outlines updated charges for various services provided by ACMA, reflecting a recent review of its cost recovery fees and charges (sections 1 and 3). The primary function of the Determination is to fix charges for services provided by ACMA and to cover expenses incurred by ACMA under the Telecommunications Act 1997 (subsection 60(1)) (section 5). These charges include those for considering applications for connection permits for customer equipment and cabling, for processing applications for written statements under specific provisions of the Telecommunications Act 1997, and for the allocation of numbers outside the standard allocation systems (section 6 and Schedule 1). The Determination specifies the exact charges payable and the parties responsible for these payments (section 7). The obligations imposed by the Determination are primarily financial. Entities and individuals required to pay charges under this Determination must do so by the specified dates and in the specified manner outlined in the Determination (section 7). The charges are payable by those entities or individuals who submit applications for the services covered by the Determination, such as telecommunications carriers or service providers. The Determination mandates that these charges be paid to ACMA to cover the costs associated with processing applications and providing the specified services (section 7). Additionally, the Determination ensures that the charges do not constitute taxation, as per the requirements under subsection 60(1) of the Australian Communications and Media Authority Act 2005. Failure to comply with the requirements of the Determination may result in financial penalties or other consequences. Although the Determination itself does not explicitly state the penalties for non-compliance, the Australian Communications and Media Authority Act 2005 provides a framework within which ACMA can enforce compliance. Generally, non-compliance with charges or fees set by ACMA could potentially lead to enforcement actions under the relevant acts, which may include fines or other civil penalties. The exact nature and severity of these penalties would depend on the specific circumstances and the applicable legislation. The Determination, however, does not specify maximum penalties within its text, leaving the enforcement and penalty details to be addressed under broader regulatory frameworks.

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