Overview

The Telecommunications (Costs Attributable To Telecommunications Functions and Powers) Determination 2007 was enacted to provide a method for calculating annual charges that apply to carrier licences held by telecommunications carriers, in accordance with the Telecommunications (Carrier Licence Charges) Act 1997. This legislation was introduced to address the need for a systematic approach to determining the costs attributable to telecommunications functions and powers, ensuring that the charges imposed on carriers are both fair and reflective of the actual costs incurred by regulatory bodies. The enacting body for this determination was the Australian Communications and Media Authority (ACMA), operating under the authority delegated by the Act. The policy objective of this determination was to maintain transparency and accountability in the cost recovery process for telecommunications functions, ensuring that carriers are charged amounts that accurately reflect the costs borne by the ACMA and other relevant entities in performing their telecommunications-related duties.

Scope and Application

The Telecommunications (Costs Attributable To Telecommunications Functions and Powers) Determination 2007, issued under the Telecommunications (Carrier Licence Charges) Act 1997, applies to telecommunications carriers who hold a licence on the first day of a financial year. This instrument is issued by the Australian Communications and Media Authority (ACMA) and establishes the proportion of ACMA's costs for the 2005-2006 financial year that is attributable to its telecommunications functions and powers, which is calculated to be $22,417,119. This amount must be recovered from carriers as part of the carrier licence charge for that financial year, in accordance with the accrual-based accounting principles stipulated in the Act. The determination does not require a Regulation Impact Statement as the changes are minor and machinery in nature, and it was registered on the Federal Register of Legislative Instruments on the day following its registration. This instrument is a legislative instrument and applies on a Commonwealth level, impacting the telecommunications industry by governing how costs are attributed and recovered from carriers through licence charges.

Key Provisions

The main operative sections of the Telecommunications (Costs Attributable To Telecommunications Functions and Powers) Determination 2007 are Section 1, which names the determination, Section 2, which details the commencement of the determination, and Section 3, which provides the amount determined under the determination. Section 1 names the determination, providing it with a formal title for identification and reference. Section 2 specifies the commencement date of the determination, which is the day after it is registered on the Federal Register of Legislative Instruments (FRLI). Section 3 sets out the specific amount determined under the determination, which is $22,417,119, representing the proportion of the Australian Communications and Media Authority’s (ACMA) costs for the 2005-2006 financial year attributable to its telecommunications functions and powers. This amount has been calculated in accordance with accrual-based accounting principles as required by paragraph 15(4)(a) of the Telecommunications (Carrier Licence Charges) Act 1997. The obligations and requirements imposed by the Act on the parties or entities it governs include the calculation of annual charges for carrier licences, ensuring these charges do not exceed the specified sum, and adhering to the cost attribution principles outlined in the Act. Carriers holding a licence on the first day of a financial year are subject to these charges to recover costs. The ACMA and the Australian Competition and Consumer Commission (ACCC) are tasked with determining the proportion of their respective costs attributable to telecommunications functions and powers, while the Minister for Communications, Information Technology and the Arts is responsible for determining the proportion of the Commonwealth's costs attributable to the administration of certain parts of the Telecommunications Act 1997. The Minister is also required to determine the estimated total amount of grants likely to be made under section 593 of the Telecommunications Act 1997. These determinations must be made in accordance with accrual-based accounting principles, ensuring a transparent and accurate method of cost attribution. The Act provides for various civil and criminal consequences for breaches, although specific offences and penalties are not detailed within the text provided. The overarching framework of the Act, however, implies that non-compliance with the determinations and obligations outlined could result in legal actions. The determinations themselves, as legislative instruments, must be registered on the Federal Register of Legislative Instruments, and failure to comply with this requirement could result in administrative penalties. Additionally, the Act likely incorporates general provisions for penalties and enforcement mechanisms found in related legislation, such as the Legislative Instruments Act 2003, which could include fines or other sanctions for non-compliance. The exact nature and extent of these penalties would need to be further examined within the broader legal context and relevant statutes.