Telecommunications (Freephone and Local Rate Numbers Auctions - Registration Charge) Determination 2005 (No. 1)

Administered by Department of Communications and the Arts

Legislation au F2005L00875 Not in force Legislative Instrument

Legislation content

EXPLANATORY STATEMENT

 

Issued by the authority of the Australian Communications Authority

 

Telecommunications (Freephone and Local Rate Numbers Auctions – Registration Charge) Determination 2005 (No. 1)

 

Australian Communications Authority Act 1997

 

Legislative Provisions

 

Subparagraph 53(1)(b)(ii) of the Australian Communications Authority Act 1997 (the ACA Act) allows for the ACA to make determinations fixing charges for any matter in relation to which expenses are incurred by the ACA under the Telecommunications Act 1997.  Subsection 53(2) of the ACA Act requires that the charges so fixed must be reasonably related to the expenses incurred or to be incurred in relation to the matters to which the charge relates and must not be such as to amount to taxation.  Subsection 53(4) of the ACA Act provides that a determination made under subsection 53(1) is a disallowable instrument for the purposes of section 46A of the Acts Interpretation Act 1901.  The accompanying determination must therefore be tabled in Parliament and is subject to disallowance by Parliament.

 

Background

 

Section 53 of the ACA Act obliges the ACA to ensure accurate cost recovery and charging.  Consequently, the ACA has adopted a rigorous activity based costing methodology to ensure the costings which underpin pricing decisions accurately and equitably reflect the costs incurred by the ACA for the services it provides to clients. 

 

This determination sets a fee to recover expenses incurred by the ACA in providing a registration facility for those people wishing to participate in public auctions using the smartnumbers™ auction system for allocating 13, 1300 and 1800 telephone numbers.  This is an online system established by the Telecommunications (Freephone and Local Rate Numbers) Allocation Determination 2005 (No. 1). 

 

The fee set by this determination will not be imposed on eligible charities seeking to register for special charities auctions on the smartnumbers™ auction system, which is the preferential allocation process described by the Telecommunications (Freephone and Local Rate Numbers – Charities) Allocation Determination 2005 (No. 1).

 

The registration fee has been determined on a ‘user pays’ basis, and in addition to cost-recovery is intended to serve the purposes of:

  • deterring parties that do not have a legitimate interest in participating in the allocation process from using the auction system, thereby reducing the potential for system failure and reducing the potential for improper behaviour in the auction process; and
  • providing a means of identity verification (relevant to ensuring systems integrity).

 

The expenses to be incurred in relation to registration for public auctions that are to be recovered are:

  • capital costs attributable to the IT system component used to support the registration process;
  • registration IT system operation and maintenance costs;
  • the cost of help desk support for the new registration system;
  • costs associated with internal and external reporting that relates to the registration process;
  • the cost of activity relating to deregistration or deactivation of registrations to remedy anomalies in auction activity; and
  • the costs of processing the registration fee, including expenses incurred in relation to payment using an Online Payment Gateway.

 

The fee has been set on the basis of the assumption that there will be 1200 registrations to participate in public auctions per year over five years.  This assumption is based on analysis of demand for numbers.

 

The fee has been determined in accordance with the Commonwealth Cost Recovery Guidelines for Regulatory Agencies.

 

In ensuring its cost recovery regime is robust, the ACA has employed an external financial consultancy firm in a quality assurance role.  This has included review of the activity based costing model for setting standard ACA hourly rates, which have been used, where relevant, to calculate the expenses to be recovered by this fee.

 


NOTES ON SECTIONS

 

Section 1 – Name of Determination

 

This is the determination title.

 

Section 2 – Commencement

 

This section provides for the determination to commence on the day after it is registered.

 

Section 3 – Revocation

 

Section 3 provides that the Telecommunications (Freephone and Local Rate Numbers Auctions – Registration Charge) Determination 2004 (No. 2) is revoked.  This means that the previous instrument has no effect because it is superseded by the determination to which this statement relates.

 

Section 4 – Definitions

 

This section defines words and references to legislation and subordinate instruments referred to in the determination.  Specifically, the section includes references to the Telecommunications (Freephone and Local Rates Numbers) Allocation Determination 2005 (No. 1) and the Telecommunications (Freephone and Local Rates Numbers - Charities) Allocation Determination 2005 (No. 1) (the Determinations) as amended from time to time. 

 

Section 5 – Purpose of this Determination

 

This section states the purpose of the determination is to fix the charges to be applied to recover expenses incurred in providing registration services under the Determinations. 

 

Subsection (1) states that the Australian Communications Authority (ACA) is authorised by subsection 53(1) of the Australian Communications Act 1997 to fix charges for services and facilities provided by the ACA and to recover expenses incurred under specified Acts (including the Telecommunications Act 1997). 

 

Subsection (2) states that the ACA may, pursuant to section 463 of the Telecommunications Act 1997, determine a system for allocating specified numbers to carriage service providers.  The subsection also states that the ACA has determined such a system via the Determinations.

 

Subsection (3) states that the ACA will incur expense in providing registration facilities set down in the Determinations.

 

Subsection (4) confirms that the purpose of the determination is to fix a charge for the purposes of recovering those expenses.

 

 

Section 6 – Charge

 

This section states that the charge which is to be applied is specified in Schedule 1. 

 

Section 7 – By whom and when is the charge payable

 

This section specifies when and by whom a charge is payable.  Specifically, subsection (1) states that the charge is payable in accordance with the Determinations. 

 

Subsection (2) states that the charge is not payable by charities which meet the definition of “eligible charity” within the meaning of the Telecommunications (Freephone and Local Rates Numbers - Charities) Allocation Determination 2005 (No. 1).  The exemption for eligible charities applies to applications for registration lodged under either of the Determinations.

 

Schedule 1 – Charges payable

 

Schedule 1 states that the charge for applications for registration under the Determinations is $88 inclusive of GST.  The fee is specified for both Determinations, notwithstanding that eligible charities are exempt under subsection 6(2), as it is possible that non-eligible charities may attempt to, or will in fact be, registered under the Telecommunications (Freephone and Local Rates Numbers - Charities) Allocation Determination 2005 (No. 1).  Their participation in the auction process as eligible charities is governed by the terms of the Determinations.

Overview

The Telecommunications (Freephone and Local Rate Numbers Auctions – Registration Charge) Determination 2005 (No. 1) was enacted by the Australian Communications Authority (ACA) under the authority granted by the Australian Communications Authority Act 1997. This determination was introduced to address the need for a structured cost recovery mechanism for the expenses incurred by the ACA in providing a registration facility for participants in the smartnumbers™ auction system, which allocates 13, 1300, and 1800 telephone numbers. The primary objective of this determination is to ensure that the charges set for registration are reasonably related to the expenses incurred by the ACA, thereby avoiding any taxation implications. The fees set out in this determination aim to deter illegitimate participation in the auction process, thereby safeguarding the integrity of the system, while also providing a means of identity verification. The determination outlines a registration fee of $88 inclusive of GST for those wishing to participate in public auctions, except for eligible charities, which are exempt from this charge. This fee is calculated based on an assumption of 1200 registrations annually over a five-year period, and it is set in accordance with the Commonwealth Cost Recovery Guidelines for Regulatory Agencies. The ACA has employed an external financial consultancy firm to review its costing model, ensuring that the fee structure accurately reflects the incurred expenses. The determination also revokes the previous Telecommunications (Freephone and Local Rate Numbers Auctions – Registration Charge) Determination 2004 (No. 2), superseding it with the current instrument.

Scope and Application

The Telecommunications (Freephone and Local Rate Numbers Auctions – Registration Charge) Determination 2005 (No. 1) applies to individuals and entities participating in public auctions for the allocation of 13, 1300, and 1800 telephone numbers, as established by the Telecommunications (Freephone and Local Rate Numbers) Allocation Determination 2005 (No. 1). This determination sets a registration charge to recover expenses incurred by the Australian Communications Authority (ACA) in providing a registration facility for these auctions. Notably, the charge does not apply to eligible charities seeking to register for special charity auctions on the smartnumbers™ auction system, which is the preferential allocation process described by the Telecommunications (Freephone and Local Rate Numbers – Charities) Allocation Determination 2005 (No. 1). The charge is set on a ‘user pays’ basis, reflecting the costs of the IT system, help desk support, reporting, and processing associated with the registration process. This determination, which is subject to disallowance by Parliament, aims to deter parties without a legitimate interest and to ensure system integrity through identity verification. The scope of this determination is national, operating under the legislative framework of the Australian Communications Authority Act 1997 and the Telecommunications Act 1997. The ACA’s authority to fix charges is underpinned by the need for accurate cost recovery and charging, and the expenses to be recovered include capital and operational costs of the IT system, help desk support, and administrative costs. The fee of $88 inclusive of GST has been calculated based on an assumed demand of 1200 registrations per year over five years. The determination also revokes the previous Telecommunications (Freephone and Local Rate Numbers Auctions – Registration Charge) Determination 2004 (No. 2), ensuring that the new charges and provisions are effective from the day after registration.

Key Provisions

The Telecommunications (Freephone and Local Rate Numbers Auctions – Registration Charge) Determination 2005 (No. 1) sets out the charges to be applied for the recovery of expenses incurred by the Australian Communications Authority (ACA) in providing a registration facility for participants in public auctions for 13, 1300, and 1800 telephone numbers. Section 6 of the Determination specifies the charge, which is $88 inclusive of GST, as detailed in Schedule 1 (section 6). This charge is payable by those seeking to register for public auctions under the Telecommunications (Freephone and Local Rate Numbers) Allocation Determination 2005 (No. 1), but not by eligible charities seeking to register for special charities auctions under the Telecommunications (Freephone and Local Rate Numbers – Charities) Allocation Determination 2005 (No. 1) (section 7). The Determination imposes several obligations on parties wishing to participate in public auctions for telephone numbers. Primarily, it mandates that the specified registration charge be paid to the ACA by applicants, unless they qualify as an "eligible charity" under the Charities Allocation Determination (section 7). This ensures that the ACA can recover the costs associated with providing the registration facility and maintain the integrity and functionality of the auction system. The Determination also requires compliance with the terms and conditions of the relevant Allocation Determinations, which govern the auction process and eligibility criteria. Breach of the requirements stipulated in the Determination can lead to various consequences. While the Determination itself does not explicitly detail offences or penalties for non-compliance, failure to pay the registration charge or comply with the terms of the Allocation Determinations could result in disqualification from participating in the auction process. Additionally, any non-compliance with the ACA's regulations or the Telecommunications Act 1997 may attract separate penalties, which can include fines and other enforcement actions as prescribed by the relevant legislation. In summary, the Determination establishes a clear framework for cost recovery through a registration charge, delineates the obligations of participants in the auction process, and ensures that the ACA can maintain and operate the registration facility effectively. By doing so, it supports the efficient allocation of telephone numbers and maintains the integrity of the auction system.

Legal classification tags

Area of Law
Commercial Law
Instrument
Regulation
Concepts
Definitions & Interpretation
Regulatory Standards
Charges & Fees

Interactions

Authorises

All Versions

Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.