EXPLANATORY STATEMENT
Telecommunications (Recovery of ITU Budget Contribution) Determination 2006
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 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
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; and
e) the amount determined by the Minister, by written instrument, to be the proportion of the Commonwealth's costs for the immediately preceding financial year that is attributable to the administration of Part 2 of Schedule 1 to the Telecommunications Act 1997. Although paragraph 15(1)(e) of the Act was repealed under Telecommunications Legislation Amendment (Competition Consumer Interests) Act 2005, the operation of transitional provisions in the Act provides a statutory power for the Minister for Communications, Information Technology and the Arts to make a determination.
The accompanying Determination has been made for the purposes of paragraph 15(1)(c) of the Act. The Determination provides that $1,512,435 is the amount determined to be the proportion of the Commonwealth's contribution to the budget of the International Telecommunication Union (ITU) for 2005 associated with telecommunications. The amount is calculated by apportioning the Commonwealth’s total ITU contribution between the ITU’s Radiocommunication Sector and Telecommunication Standardisation Sector on the basis of the total ITU budget for both sectors.
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.
The Office of Regulation Review advised that a Regulation Impact Statement was not required for this determination, as the changes were minor and machinery in nature, and did not substantially alter existing arrangements.
The Department of Communications, Information Technology and the Arts provided the figures for the Commonwealth’s 2005 contribution to the budget of the International Telecommunication Union.
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 – Definitions
This section provides the key definitions used within the determination.
Section 4 – Amount determined
This section sets out the amount determined under the determination.
Overview
The Telecommunications (Recovery of ITU Budget Contribution) Determination 2006 was enacted to address the need for a structured approach to recovering the Commonwealth's contribution to the budget of the International Telecommunication Union (ITU) from telecommunications carriers. This Determination was issued by the Australian Communications and Media Authority (ACMA) under the authority of the Telecommunications (Carrier Licence Charges) Act 1997. The primary policy objective is to ensure that the costs associated with the Commonwealth's contribution to the ITU are fairly allocated among telecommunications carriers through the imposition of annual carrier licence charges. This approach maintains a transparent and consistent method for carriers to contribute to international telecommunications standards and policies.
Scope and Application
The Telecommunications (Carrier Licence Charges) Act 1997 applies to telecommunications carriers holding a licence on the first day of the financial year, governing the calculation and imposition of annual charges to recover certain costs associated with their operations. These charges are determined based on the costs attributable to the Australian Communications and Media Authority's (ACMA) and the Australian Competition and Consumer Commission's (ACCC) telecommunications functions and powers, the Commonwealth's contribution to the International Telecommunication Union's (ITU) budget, and other specified costs. The Telecommunications (Recovery of ITU Budget Contribution) Determination 2006, made by the ACMA, specifies the proportion of the Commonwealth's ITU budget contribution to be recovered from carriers for the 2005 financial year, calculated by apportioning the total ITU budget between its sectors. This Determination must be registered on the Federal Register of Legislative Instruments and comes into effect the day after registration. Although this Determination primarily focuses on the ITU contribution, it operates within the broader framework of the Act, which allows for further adjustments through subordinate instruments issued by the ACMA, ACCC, and the Minister for Communications, Information Technology, and the Arts.
Key Provisions
The Telecommunications (Recovery of ITU Budget Contribution) Determination 2006 (section 1) outlines the specific amount to be recovered from carriers for the Commonwealth’s contribution to the budget of the International Telecommunication Union (ITU) for the calendar year 2005. This amount, set at $1,512,435, is derived by apportioning the total ITU contribution between the ITU’s Radiocommunication Sector and Telecommunication Standardisation Sector based on the total ITU budget for both sectors (section 4). The determination is made under the authority of the Australian Communications and Media Authority (ACMA) and is essential for the calculation of annual charges imposed on carrier licences as outlined in subsection 15(1) of the Telecommunications (Carrier Licence Charges) Act 1997. The commencement of this determination occurs the day after its registration on the Federal Register of Legislative Instruments (section 2).
The Act imposes specific obligations on telecommunications carriers holding a licence on the first day of the financial year. These carriers are required to account for the contribution towards the ITU budget as part of their annual carrier licence charges (subsection 15(1)(c)). The total charges imposed must not exceed the sum of various components, including the ACMA's and ACCC's costs attributable to their telecommunications functions, the Commonwealth's ITU contribution, and the estimated grants under section 593 of the Telecommunications Act 1997. Carriers must ensure compliance with these calculations to avoid any discrepancies in their licence fees.
Any non-compliance with the provisions of the Telecommunications (Carrier Licence Charges) Act 1997, including failure to accurately reflect the ITU contribution in licence charges, could result in legal consequences. While the Act does not specify detailed penalties, breaches of related regulatory requirements can lead to civil or criminal penalties, depending on the severity and intent of the violation. These penalties may include fines and, in more severe cases, imprisonment. The exact penalties would be determined by the courts based on the specific circumstances of the breach.