EXPLANATORY STATEMENT
Issued by the authority of the Australian Communications and Media Authority
Telecommunications (Facility Installation Permit - Application Charge)
Determination 2006
Australian Communications and Media Authority Act 2005
Purpose
The Telecommunications (Facility Installation Permit – Application Charge) Determination 2006 (the Determination) has been made to revoke and replace the Telecommunications (Facility Installation Permit – Application Charge) Determination 2004 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
Clause 21 of Schedule 3 to the Telecommunications Act 1997 (the Telecom Act) provides that a carrier may apply to ACMA for a permit authorising the installation of one or more facilities. This permit is called a facility installation permit.
Clause 23 of Schedule 3 to the Telecom Act provides that an application for a facility installation permit must be accompanied by the charge (if any) fixed by a determination under Section 60 of the ACMA Act in relation to so much of ACMA’s expenses in connection with dealing with the application as do not relate to the conduct of a public inquiry in relation to the permit.
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.
The Telecommunications (Facility Installation Permit—Application Charge)
Determination 2006 specifies:
• the amount of charge imposed for an application for a facility installation permit;
• the person to whom the charge is payable; and
• when the charge is payable.
The Determination will enable ACMA to recover its administrative costs for dealing with applications for facility installation permits directly from each applicant. This does not include ACMA’s costs of conducting a public inquiry about a permit, which is subject to a separate charge specified in the Telecommunications (Facility Installation Permit—Public Inquiry Charges) Determination 2006.
The charge is payable upon application for a facility installation permit. Where the actual costs of dealing with an application for a facility installation permit are less than the amount of the charge, the difference will be refunded to the applicant. Where actual costs exceed the amount of the charge, the applicant will be invoiced for the difference.
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 (Facility Installation Permit - Application Charge) Determination 2006.
Section 2 - Commencement
This section provides for the determination to commence on 1 July 2006.
Section 3 - Revocation
This section specifies the determination 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 defines the purpose of this 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 charge, or hourly rate for the charge, to be imposed on an application for a facility installation permit by reference to the attached Schedule 1.
Section 7 – By whom and when is the charge payable
This section specifies when and by whom the charge is payable.
Schedule 1 – Charges payable
This schedule specifies the amount of the charge.