EXPLANATORY STATEMENT
Telecommunications (Recovery of ITU Budget Contribution) Determination 2008
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
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)(c) of the Act. The Determination provides that $1,480,840 is the amount determined to be the proportion of the Commonwealth's contribution to the budget of the International Telecommunication Union (ITU) for 2007 calendar year 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.
On 23 April 2008 the Office of Best Practice Regulation advised that a Regulation Impact Statement was not required for this determination (exemption number 9611), as the changes were minor and machinery in nature, and did not substantially alter existing arrangements.
On 27 March 2008 the Department of Broadband, Communications and the Digital Economy provided the figures for the Commonwealth’s 2007 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 2008 was enacted to address the need for a clear methodology in the recovery of the Commonwealth's contribution to the budget of the International Telecommunication Union (ITU) for the 2007 calendar year. This determination was issued by the Australian Communications and Media Authority (ACMA) under the authority of the Telecommunications (Carrier Licence Charges) Act 1997. The policy objective of the Determination is to ensure that the total of charges imposed on carrier licences do not exceed the sum of the ACMA's and Australian Competition and Consumer Commission's (ACCC) costs attributable to their telecommunications functions, the amounts paid under section 136C of the Telecommunications Act 1997, and the estimated total amount of grants likely to be made under section 593 of the same Act. Specifically, the Determination calculated the Commonwealth's ITU contribution and apportioned it between the ITU's Radiocommunication Sector and Telecommunication Standardisation Sector based on the total ITU budget for both sectors.
Scope and Application
The Telecommunications (Carrier Licence Charges) Act 1997 applies to telecommunications carriers that hold a carrier licence on the first day of a financial year. This Act sets the framework for calculating the annual charges imposed on these carrier licences, ensuring that the total charges do not exceed the sum of certain specified costs and contributions. These include the proportion of the Australian Communications and Media Authority's (ACMA) and the Australian Competition and Consumer Commission's (ACCC) costs attributable to their telecommunications functions, as well as the Commonwealth's contribution to the International Telecommunication Union (ITU) budget. The accompanying Determination, made under the authority of the ACMA, specifies the amount of the Commonwealth's ITU contribution for the 2007 calendar year that is associated with telecommunications, which is $1,480,840. This amount is determined by apportioning the total ITU budget between the Radiocommunication Sector and the Telecommunication Standardisation Sector. The Determination is considered a legislative instrument and must be registered on the Federal Register of Legislative Instruments. The Act applies nationally, and while a Regulation Impact Statement was deemed unnecessary for this Determination due to its minor and machinery nature, carriers are informed of its relevance to licence applications and the calculation of carrier licence charges.
Key Provisions
The Telecommunications (Carrier Licence Charges) Act 1997 outlines the process for determining the annual charges applied to carrier licences held by telecommunications carriers. According to section 15(1) of the Act, the total charges for a financial year cannot exceed the sum of specified costs and contributions. This includes the proportion of the Australian Communications and Media Authority’s (ACMA) and the Australian Competition and Consumer Commission’s (ACCC) costs attributable to their telecommunications functions and powers, the amounts paid under section 136C of the Telecommunications Act 1997, and the estimated total amount of grants under section 593 of the Telecommunications Act 1997. The Telecommunications (Recovery of ITU Budget Contribution) Determination 2008 specifies that $1,480,840 is the amount determined for the Commonwealth’s contribution to the International Telecommunication Union (ITU) budget for the 2007 calendar year, apportioned between the ITU’s Radiocommunication Sector and Telecommunication Standardisation Sector.
The Act imposes specific obligations on the parties involved, particularly on telecommunications carriers. Carriers holding a licence at the beginning of a financial year must be aware of the determination's relevance to the calculation of their carrier licence charges for that year. This ensures that the charges imposed reflect the costs associated with regulatory and administrative functions related to telecommunications. Additionally, the ACMA and the ACCC have the responsibility of calculating and determining their respective proportions of costs related to telecommunications functions and powers. The Minister also has the duty of determining the estimated total amount of grants likely to be made during the financial year.
Failure to comply with the provisions of the Act and the accompanying determination can lead to significant legal consequences. While specific penalties are not detailed in the provided text, breaches of similar legislative instruments generally attract fines or other penalties as prescribed by the relevant legislation. Non-compliance could also result in civil or criminal liability, depending on the nature and severity of the breach. For instance, inaccurate reporting or failure to remit the correct charges could lead to enforcement actions by the ACMA or the ACCC, potentially resulting in financial penalties or other corrective measures.