EXPLANATORY STATEMENT
Telecommunications (Recovery of amounts paid under section 136C of the Telecommunications Act 1997) Determination 2009
Telecommunications (Carrier Licence Charges) Act 1997
This instrument is issued by the authority of the Australian Communications and Media Authority (‘ACMA’).
Legislative Provisions
The Telecommunications (Carrier Licence Charges) Act 1997 (the Act) sets out the method of calculating annual charges that apply to the carrier licences held by the telecommunications carriers. Subsection 15(1) of the Act states that the total of charges that are imposed on carrier licences in force at the beginning of a financial year must not exceed the sum of:
a) the amount determined, by a written instrument made by the ACMA, to be the proportion of the ACMA's costs for the immediately preceding financial year that is attributable to the ACMA's telecommunications functions and powers; and
b) the amount determined, by a written instrument made by the Australian Competition and Consumer Commission (ACCC), to be the proportion of the ACCC's costs for the immediately preceding financial year that is attributable to the ACCC's telecommunications functions and powers; and
c) the amount determined, by a written instrument made by the ACMA, to be the proportion of the Commonwealth’s contribution to the budget of the International Telecommunication Union for the calendar year in which the beginning of the financial year occurs that is to be recovered from carriers; and
ca) the amount determined, by a written instrument made by the ACMA, to be the sum of the amounts paid under section 136C of the Telecommunications Act 1997 during the immediately preceding financial year; and
d) the amount determined, in a written instrument made by the Minister, to be the estimated total amount of grants likely to be made during the financial year under section 593 of the Telecommunications Act 1997.
The accompanying Determination has been made for the purposes of paragraph 15(1)(ca) of the Act. The Determination provides that $280,640 is the amount determined to be sum of the amounts paid under section 136C of the Telecommunications Act 1997 during the immediately preceding financial year. The total amount is the sum of all amounts paid by ACMA pursuant to subsection 136C(3) of the Telecommunications Act 1997.
For the purposes of the Legislative Instruments Act 2003, a Determination is considered as a legislative instrument. The accompanying Determination must therefore be registered on the Federal Register of Legislative Instruments (FRLI).
Consultation
On application for a licence, carriers are advised that this determination is relevant to the calculation and imposition of a carrier licence charge, to recover costs for a financial year if they hold a licence on the first day of the financial year.
On 15 April 2009 the Office of Best Practice Regulation advised that a Regulation Impact Statement was not required for this determination (exemption number ID 10261), as the changes were minor and machinery in nature, and did not substantially alter existing arrangements.
On 25 February 2008, ACMA gave a written notice of entitlement to reimbursement of refundable costs under subsection 136C of the Telecommunications Act 1997 to Communications Alliance Limited, in relation to the development of the Telecommunications Consumer Protections Code (a related declaration was made pursuant to section 136B of that Act on 12 October 2006). Payment was made by ACMA pursuant to subsection 136C(3) on 13 March 2008.
Attachment 1
Notes on the Instrument
Section 1 – Name of Determination
This section sets out the name of the determination.
Section 2 – Commencement
This section provides for the commencement of the determination; which is the day after it is registered on the FRLI.
Section 3 – Amount determined
This section sets out the amount determined under the determination.
Overview
The Telecommunications (Carrier Licence Charges) Act 1997 was enacted to establish a structured method for calculating annual charges on carrier licences held by telecommunications carriers. This legislation was introduced to ensure that the costs associated with regulatory functions and powers are fairly distributed among the carriers, reflecting the actual expenses incurred by the Australian Communications and Media Authority (ACMA) and the Australian Competition and Consumer Commission (ACCC) in their telecommunications-related activities. The Act aims to maintain a transparent and cost-reflective framework for carrier licensing, ensuring that the financial burden on carriers aligns with the regulatory costs. The determination made under this Act for 2009 specifies the amount to be recovered from carriers, ensuring compliance with the legislative mandate to cover the costs related to telecommunications functions and powers.
Scope and Application
The Telecommunications (Carrier Licence Charges) Act 1997 applies to telecommunications carriers that hold a carrier licence in Australia. The Act sets out the method of calculating annual charges that apply to these carrier licences, which must not exceed certain prescribed sums determined by the Australian Communications and Media Authority (ACMA) and the Australian Competition and Consumer Commission (ACCC). Specifically, the Act details that the total of charges imposed on carrier licences must not surpass the proportion of ACMA's and ACCC's costs attributable to telecommunications functions and powers, the Commonwealth's contribution to the budget of the International Telecommunication Union, amounts paid under section 136C of the Telecommunications Act 1997, and estimated grants under section 593 of the same Act. The Act extends its application nationally, affecting all telecommunications carriers operating within Australia. Notably, the Act does not require a Regulation Impact Statement for minor changes, as was the case for the Determination made on 15 April 2009, which specified the amount to be recovered under section 136C for a given financial year.
Key Provisions
The Telecommunications (Carrier Licence Charges) Act 1997 (the Act) primarily establishes the method for calculating the annual charges applied to carrier licences held by telecommunications carriers (s 15(1)). It stipulates that the total of these charges for a financial year must not surpass a specified sum. This includes the proportion of the Australian Communications and Media Authority's (ACMA) and Australian Competition and Consumer Commission's (ACCC) costs attributable to their telecommunications functions and powers for the previous financial year (s 15(1)(a) and (b)). It also accounts for the proportion of the Commonwealth’s contribution to the International Telecommunication Union's budget for the calendar year in which the financial year begins (s 15(1)(c)), and the sum of the amounts paid under section 136C of the Telecommunications Act 1997 during the preceding financial year (s 15(1)(ca)). Additionally, the Act incorporates the estimated total amount of grants likely to be made during the financial year under section 593 of the Telecommunications Act 1997 (s 15(1)(d)).
The Act imposes several obligations on the telecommunications carriers. Firstly, carriers must be aware that this determination is relevant to the calculation and imposition of a carrier licence charge if they hold a licence on the first day of the financial year (s 15(1)). Secondly, carriers must ensure compliance with the calculated charges to avoid penalties or legal repercussions. The Act also requires ACMA and ACCC to determine the specified proportions of their costs and the Commonwealth’s contribution to the International Telecommunication Union’s budget (s 15(1)(a) to (c)). Furthermore, the Minister must determine the estimated total amount of grants under section 593 of the Telecommunications Act 1997 (s 15(1)(d)).
The Act does not explicitly outline specific offences or penalties for breaches related to the carrier licence charges. However, failure to comply with the imposed charges could result in legal consequences under other sections of the Telecommunications Act 1997 or related legislation. The penalties for non-compliance may vary depending on the nature and severity of the breach, and could include fines or other enforcement actions as prescribed by law. It is important for carriers to adhere to the determined charges to avoid any potential legal repercussions.