EXPLANATORY STATEMENT
Telecommunications (Late Payment of Annual Carrier Licence Charge) Amendment Determination 2005 (No. 1)
Issued by the authority of the Australian Communications Authority (‘ACA’).
This instrument is the Telecommunications (Late Payment of Annual Carrier Licence Charge) Amendment Determination 2005 (No. 1) (the Amendment Determination). It amends the Telecommunications (Late Payment of Annual Carrier Licence Charge) Determination No. 1 of 1999 (the Determination).
Subsection 73(4) of the Telecommunications Act 1997 (the Act) empowers the ACA to impose a late payment penalty on an overdue annual carrier licence charge by written instrument. Under this subsection the penalty amount is calculated at the rate of 20% per annum; or if a determination specifies a lower percentage – that lower percentage.
The ACA made the Determination on 10 June 1999 under subsection 73(4) of the Act.
The purpose of the Amendment Determination is to simplify the late payment penalty calculation by amending the lower percentage specified in the Determination.
Consultation
Application of the amended lower percentage rate simplifies the late payment penalty calculation making it easier for the carrier to understand and results in an immaterial variation to the penalty amount payable (calculated using the previous lower percentage rate).
The Office of Regulation Review advised that a Regulation Impact Statement (RIS) is not required for the change to the instruments (ID number 6402).
The Department of Finance and Administration advised that a Cost Recovery Impact Statement (CRIS) is not required given that fines and pecuniary penalties are excluded from the cost recovery policy.
Notes on the Determination
Section 1 - Name of Determination
Section 1 provides that the name of the Amendment Determination is the Telecommunications (Late Payment of Annual carrier Licence Charge) Amendment Determination 2005 (No. 1).
Section 2 - Commencement
Section 2 provides for the commencement of the Amendment Determination on the day after registration.
Section 3 – Amendment of Telecommunications (Late Payment of Annual Carrier Licence Charge) Determination No. 1 of 1999
Section 3 provides that the Determination is amended in accordance with Schedule 1 of the Amendment Determination.
Schedule 1 - Amendments
Schedule 1 sets out the amendments to the Determination which will be taken to have commenced on the day after registration of the Amendment Determination.
Item [1] – Section 3, definition of general interest charge rate
Item 1 amends the definition of the lower percentage rate applied to calculate the penalty amount. The general interest charge (GIC) rate defined to mean the general interest charge rate provided for by section 8AAD of the Taxation Administration Act 1953 has been omitted. Consequently the previous financial year average GIC rate defined to mean the rate worked out in accordance with Schedule 1 has been inserted.
Item [2] – Subsection 6(2)
Item 2 omits reference to the general interest charge rate and replaces it with the previous financial year average GIC rate.
Item [3] – After Section 10, including the note
Item 3 introduces Schedule 1 Calculation of previous financial year average GIC rate and consists of two sections. Section 1 of Schedule 1 provides the formula definition of the previous financial year average GIC rate in section 3. Section 2 of Schedule 1 specifies the rounding provisions to apply when calculating the previous financial year average GIC rate using the formula definition.