EXPLANATORY STATEMENT
Issued by the authority of the Australian Communications and Media Authority
Telecommunications (Freephone and Local Rate Numbers Auctions — Registration
Charge) Determination 2006 (No. 1)
Australian Communications and Media Authority Act 2005
Purpose
The Telecommunications (Freephone and Local Rate Numbers Auctions – Registration Charge) Determination 2006 (No. 1) (the Determination) has been made to revoke and replace the Telecommunications (Freephone and Local Rate Numbers Auctions – Registration Charge) Determination 2005 (No. 1) in order to remove the goods and services tax (GST) from the charges imposed by that determination. These fees 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
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.
This determination sets a fee to recover expenses incurred by ACMA 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.
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 is the determination title.
Section 2— Commencement
This section provides for the determination to commence on 1 July 2006.
Section 3 — Revocation
Section 3 provides that the Telecommunications (Freephone and Local Rate Numbers Auctions — Registration Charge) Determination 2005 (No. 1) 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 an Allocation Determination.
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 an Allocation Determination.
Subsection ( 1) states that ACMA is authorised by subsection 60 (1) of the ACMA Act to fix charges for services provided by ACMA and to recover expenses incurred under specified Acts (including the Telecommunications Act 1997).
Subsection (2) states that ACMA 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 ACMA has determined
such a system via an Allocation Determination.
Subsection (3) states that ACMA will incur expense in providing registration facilities set down in an Allocation Determination.
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 Allocation Determination.
Subsection (2) states that the charge is not payable by charities which meet the definition of eligible charity. The exemption for eligible charities applies to applications for registration lodged under the Allocation Determination.
Schedule 1—Charges payable
Schedule 1 specifies the charge for applications for registration under the Allocation Determination. The fee is specified for the Allocation Determination,
notwithstanding that eligible charities are exempt under subsection 6(2). Their participation in the auction process as eligible charities is governed by the terms of the Allocation Determination.