Overview

The Telecommunications (Costs Attributable to Telecommunications Functions and Powers) Determination 2008, issued under the authority of the Australian Communications and Media Authority (ACMA), is an instrument designed to address the calculation of annual carrier licence charges as stipulated in the Telecommunications (Carrier Licence Charges) Act 1997. This determination specifically aims to quantify the proportion of ACMA's costs for the 2006-2007 financial year that are attributable to its telecommunications functions and powers. By setting this amount at $23,058,238, the determination ensures that the charges imposed on telecommunications carriers reflect the actual costs incurred by the ACMA in fulfilling its regulatory responsibilities, calculated in accordance with accrual-based accounting principles. The determination was introduced without the requirement for a Regulation Impact Statement, as it was deemed to represent minor and machinery-related changes that did not substantially alter existing arrangements.

Scope and Application

The Telecommunications (Carrier Licence Charges) Act 1997 applies to telecommunications carriers who hold a carrier licence on the first day of a financial year. The Act is concerned with the method of calculating annual charges imposed on these licences to recover costs attributable to telecommunications functions and powers. The calculation of these charges is determined by various entities, including the Australian Communications and Media Authority (ACMA) and the Australian Competition and Consumer Commission (ACCC), and is based on a proportion of their costs for the preceding financial year that relate specifically to telecommunications functions and powers. Additionally, the Act incorporates the Commonwealth's contribution to the budget of the International Telecommunication Union, as well as the estimated total amount of grants under the Telecommunications Act 1997. The Act is administered by the ACMA, which is mandated to ensure that the total charges do not exceed the sum of these determined amounts. The Act applies across the Commonwealth and its subordinate instruments extend the application by detailing specific costs and calculations. There are no stated exclusions or exemptions in the primary text, but the Office of Best Practice Regulation has determined that a Regulation Impact Statement was not required for the minor and machinery changes introduced by this legislation.

Key Provisions

The Telecommunications (Costs Attributable To Telecommunications Functions and Powers) Determination 2008 outlines the amount determined to be the proportion of the Australian Communications and Media Authority's (ACMA) costs for the 2006-2007 financial year that is attributable to the ACMA's telecommunications functions and powers (section 3). This determination is made under the Telecommunications (Carrier Licence Charges) Act 1997 (the Act), specifically in accordance with subsection 15(1)(a) of the Act. The determination establishes that the amount is $23,058,238, and this amount is to be applied in the calculation of annual charges imposed on carrier licences (subsection 15(1)). The Act mandates that the total charges imposed on carrier licences in force at the beginning of a financial year must not exceed a sum that includes this proportion of ACMA's costs, along with other specified amounts (subsection 15(1)(a)-(d)). Under the Act, telecommunications carriers who hold a licence on the first day of a financial year are subject to certain obligations related to the payment of carrier licence charges. These charges are intended to recover costs attributable to telecommunications functions and powers exercised by the ACMA and the Australian Competition and Consumer Commission (ACCC), as well as other specified costs (subsection 15(1)). Carriers must ensure that the charges imposed on their licences do not exceed the total amount determined under the Act. This includes adhering to the proportion of ACMA's costs determined by the ACMA itself, as outlined in the Determination. Carriers are also required to be aware of their obligations regarding these charges when applying for a licence, as they are informed that this determination is relevant to the imposition and calculation of the carrier licence charge (subsection 15(4)(a)). Failure to comply with the requirements set out in the Act and the Determination can lead to various consequences. Although the Explanatory Statement does not detail specific offences, penalties, or consequences for breach, the Act likely includes provisions that address non-compliance. Typically, breaches of legislative requirements related to licence charges could result in administrative actions, such as fines or other financial penalties, imposed by the ACMA or other relevant authorities. The maximum penalties would depend on the specific nature of the breach and any additional provisions within the Act that address non-compliance. It is essential for carriers to adhere to the determination to avoid any potential civil or criminal consequences.