Overview

The Telecommunications (Costs Attributable to Telecommunications Functions and Powers) Determination 2009 was enacted to clarify the method of calculating annual charges for carrier licences held by telecommunications carriers, as stipulated in the Telecommunications (Carrier Licence Charges) Act 1997. This legislation was introduced to ensure that the costs attributed to telecommunications functions and powers are accurately reflected in the charges imposed on carriers, thereby addressing potential gaps in the financial accountability and transparency of regulatory bodies. The determination is made under the authority of the Australian Communications and Media Authority (ACMA) and aims to establish the proportion of ACMA’s costs for the 2007-2008 financial year that pertains to its telecommunications functions and powers, in accordance with accrual-based accounting principles. The policy objective is to maintain a fair and structured approach in cost recovery from telecommunications carriers, ensuring that the charges imposed are proportionate and justifiable based on the costs incurred by regulatory bodies in fulfilling their telecommunications-related mandates.

Scope and Application

The Telecommunications (Carrier Licence Charges) Act 1997 governs the calculation of annual charges applied to carrier licences held by telecommunications carriers. Specifically, the Act mandates that the total charges imposed on carrier licences in force at the beginning of each financial year must not exceed a sum determined by various regulatory bodies. The Australian Communications and Media Authority (ACMA) is responsible for determining the proportion of its costs for the preceding financial year attributable to telecommunications functions and powers, as well as the proportion of the Commonwealth's contribution to the budget of the International Telecommunication Union. The Australian Competition and Consumer Commission (ACCC) also contributes by determining its attributable costs for telecommunications functions and powers. Additionally, the Minister estimates the total amount of grants likely to be made during the financial year under specific sections of the Act. The Act applies to all telecommunications carriers holding a licence on the first day of the financial year and is subject to accrual-based accounting principles for cost calculations. The geographic reach of the Act is national, impacting all telecommunications carriers within Australia. The legislation does not specify exclusions, but the associated determination made under it provides specific figures for the costs attributable to telecommunications functions and powers, which must be adhered to by carriers.

Key Provisions

The main operative sections of the Telecommunications (Costs Attributable to Telecommunications Functions and Powers) Determination 2009 (F2009L02012) establish the method for calculating annual charges that apply to carrier licences held by telecommunications carriers. Section 15(1) of the Telecommunications (Carrier Licence Charges) Act 1997 sets out the total of charges that must not exceed the sum of various amounts, including the proportion of the Australian Communications and Media Authority’s (ACMA) costs attributable to its telecommunications functions and powers for the previous financial year, as well as the proportion of the Australian Competition and Consumer Commission’s (ACCC) costs for the same period. The Determination specifies that $23,053,329 is the amount determined to be the proportion of ACMA's costs for the 2007-2008 financial year that is attributable to the ACMA’s telecommunications functions and powers. This amount is calculated in accordance with accrual-based accounting principles, as required by Section 15(4)(a) of the Act. The Act imposes several obligations on the relevant parties. The ACMA is required to determine the proportion of its costs attributable to its telecommunications functions and powers, while the ACCC must do the same for its costs. The Minister must also determine the estimated total amount of grants likely to be made during the financial year under section 593 of the Telecommunications Act 1997. These determinations must be made in accordance with the specified principles and must be documented in written instruments. Furthermore, carriers are advised that this determination is relevant to the imposition and calculation of a carrier licence charge, to recover costs for a financial year if they hold a licence on the first day of the financial year. There are no explicit offences, penalties, or civil/criminal consequences outlined for breach of the provisions within the Determination itself. However, the Telecommunications (Carrier Licence Charges) Act 1997 likely includes general provisions regarding non-compliance with legislative requirements. Typically, breaches of legislative requirements can result in civil or criminal penalties, depending on the nature and severity of the breach. For instance, under other sections of the Act, penalties may include fines or imprisonment for serious breaches, but the exact penalties would be specified within the primary Act rather than the Determination.