Telecommunications (Facility Installation Permit - Public Inquiry Charges) Determination 2006

Administered by Department of Communications and the Arts

Legislation au F2006L01963 Not in force Legislative Instrument

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EXPLANATORY STATEMENT

 

Issued by the authority of the Australian Communications and Media Authority

 

Telecommunications (Facility Installation Permit - Public Inquiry Charges)

Determination 2006

 

Australian Communications and Media Authority Act 2005

 

Purpose

 

The Telecommunications (Facility Installation Permit – Public Inquiry Charges) Determination 2006 (the Determination) has been made to revoke and replace the Telecommunications (Facility Installation Permit – Public Inquiry Charges) 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

 

Subclause 25(1) of Schedule 3 to the Telecommunications Act 1997 (the Telecom Act) allows ACMA to issue a facility installation permit authorising a carrier to install one or more facilities specified in the carrier’s application. Subclause 25(5) of

Schedule 3 to the Telecom Act provides that ACMA may make a determination under section 60 of the ACMA Act fixing a charge that relates to the holding of a public inquiry about a facility installation 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—Public Inquiry Charges) Determination 2006 specifies:

  • the amount of charge imposed on an applicant for a facility installation permit where ACMA decides to conduct a public inquiry about the permit;
  • the person by whom the charge is payable; and
  • when the charge is payable.

 

The Determination will enable ACMA to recover the costs of conducting a public inquiry about an application for a facility installation permit directly from the applicant.  This charge is additional to the application charge specified in the Telecommunications (Facility Installation Permit—Application Charge) Determination 2006.

 

The charge is payable upon notification by ACMA that it intends to conduct a public inquiry about a permit and prior to ACMA commencing that inquiry. Where the actual costs of conducting the inquiry 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 section specifies the determination title.

 

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 explains the purpose of the 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 section specifies the amount of the charge.

Overview

The Telecommunications (Facility Installation Permit – Public Inquiry Charges) Determination 2006, made under the Australian Communications and Media Authority Act 2005, was introduced to address the need for the Australian Communications and Media Authority (ACMA) to recover costs associated with conducting public inquiries about facility installation permits. The primary objective of the Determination is to fix the charges for such services and to ensure that these charges reflect the actual costs incurred by ACMA. This was necessitated by the exemption of these charges from the goods and services tax (GST) under the A New Tax System (Goods and Services Tax) (Exempt Taxes, Fees and Charges) Determination 2006. The Determination also serves to update references from the former Australian Communications Authority (ACA) to ACMA, reflecting the legislative changes following the establishment of ACMA on 1 July 2005. By specifying the charge amount, the person responsible for payment, and the timing of payment, the Determination allows ACMA to directly recover the costs of public inquiries from applicants, ensuring accurate cost recovery and charging as mandated by the ACMA Act.

Scope and Application

The Telecommunications (Facility Installation Permit – Public Inquiry Charges) Determination 2006 applies to any applicant for a facility installation permit under the Telecommunications Act 1997. This includes telecommunications carriers applying for permits to install telecommunications facilities. The Determination applies nationally across Australia as it is made under the Australian Communications and Media Authority Act 2005 which has a Commonwealth reach. The charge applies to the specific service of conducting a public inquiry about a facility installation permit application. There are no stated exclusions, exemptions or thresholds in the Determination. However, the amount of the charge is set to cover the costs incurred by the Australian Communications and Media Authority in conducting the inquiry, with any over or under recovery of costs being adjusted by refund or invoicing of the applicant. The Determination itself does not extend application through subordinate instruments but references other instruments that set the application charge and GST treatment.

Key Provisions

The Telecommunications (Facility Installation Permit – Public Inquiry Charges) Determination 2006 (the Determination) specifies the charges imposed on applicants for a facility installation permit when the Australian Communications and Media Authority (ACMA) decides to conduct a public inquiry about the permit. The charge is designed to recover the costs of conducting the public inquiry directly from the applicant, in addition to the application charge specified in another determination (Sections 2, 4, and 6). The charge must be paid before ACMA commences the public inquiry, as notified to the applicant (Section 7). The charge amount is detailed in Schedule 1 of the Determination. The Determination imposes several obligations on applicants for a facility installation permit. These include the requirement to pay the specified charge if a public inquiry is conducted, and to pay this charge prior to the commencement of the inquiry (Section 7). If the actual costs of the inquiry are less than the charge, the applicant is entitled to a refund of the difference. Conversely, if the actual costs exceed the charge, the applicant is required to pay the additional amount invoiced by ACMA (Section 6). There are no specific offences or penalties outlined in the Determination itself. However, the ACMA Act, under which this Determination is made, includes provisions for enforcing compliance with its determinations. Failure to comply with a charge determination could potentially lead to enforcement actions under the ACMA Act, although the specific penalties for such actions are not detailed in this Determination. The ACMA Act also provides for both civil and criminal penalties for serious breaches of its provisions, although again, these are not detailed in the Determination. The Determination ensures that ACMA can recover the costs associated with conducting public inquiries into facility installation permit applications. It sets out the charge to be imposed on applicants, the circumstances under which the charge is payable, and the process for refunding or invoiced additional costs. The rigorous Activity Based Costing methodology employed by ACMA ensures that the costs attributed to these activities are accurate and equitable. This Determination is a legislative instrument under the Legislative Instruments Act 2003, and it has been made to update references to the Australian Communications Authority with references to ACMA, reflecting the establishment of ACMA on 1 July 2005.

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Telecommunications Law
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Determination
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Definitions & Interpretation
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