EXPLANATORY STATEMENT
Telecommunications (Recovery of ITU Budget Contribution) 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)(c) of the Act. The Determination provides that $1,662,426 is the amount determined to be the proportion of the Commonwealth's contribution to the budget of the International Telecommunication Union (ITU) for 2008 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 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 26 March 2009 the Department of Broadband, Communications and the Digital Economy provided the figures for the Commonwealth’s 2008 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 2009 was introduced to address the need for a specific calculation method to determine the proportion of the Commonwealth's contribution to the budget of the International Telecommunication Union (ITU) that is to be recovered from telecommunications carriers. This determination was made under the authority of the Australian Communications and Media Authority (ACMA) as stipulated in the Telecommunications (Carrier Licence Charges) Act 1997. The policy objective of this legislation is to ensure that the total charges imposed on carrier licences do not exceed the calculated costs attributable to telecommunications functions and powers of the ACMA and the Australian Competition and Consumer Commission (ACCC), along with the Commonwealth's contribution to the ITU budget. The Determination specifies that the amount to be recovered from carriers for the 2008 calendar year is $1,662,426, calculated by apportioning the Commonwealth's total ITU contribution 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 governs the calculation of annual charges applicable to carrier licences held by telecommunications carriers, ensuring that these charges do not exceed specific sums determined by various authorities. This Act applies to telecommunications carriers holding a carrier licence on the first day of a financial year, as these charges are directly relevant to their licensing fees. The geographic and jurisdictional reach of the Act is federal, applying across Australia. The Act extends its application through subordinate instruments such as the Determination made by the Australian Communications and Media Authority (ACMA), which specifies the proportion of the Commonwealth's contribution to the budget of the International Telecommunication Union (ITU) for a particular year that is to be recovered from carriers. The Telecommunications (Recovery of ITU Budget Contribution) Determination 2009, for example, specifies that $1,662,426 is the amount attributable to the 2008 calendar year. This amount is calculated by apportioning the Commonwealth’s total ITU contribution between the ITU’s Radiocommunication Sector and Telecommunication Standardisation Sector based on the total ITU budget for both sectors. The Act does not specify exclusions or exemptions other than those determined by the relevant authorities in their respective written instruments.
Key Provisions
The Telecommunications (Recovery of ITU Budget Contribution) Determination 2009 (subsection 15(1)(c) of the Telecommunications (Carrier Licence Charges) Act 1997) provides the specific amount to be recovered from carriers as part of their annual licence charges. According to the Determination, the proportion of the Commonwealth’s contribution to the budget of the International Telecommunication Union for the 2008 calendar year is $1,662,426. This amount is calculated by apportioning the Commonwealth’s total ITU contribution between the ITU’s Radiocommunication Sector and Telecommunication Standardisation Sector based on the total ITU budget for both sectors. This Determination is integral to the overall calculation of carrier licence charges, which must not exceed the sum of several components, including the ACMA's and ACCC's costs attributable to their telecommunications functions and powers, the Commonwealth's ITU contribution, amounts paid under section 136C of the Telecommunications Act 1997, and the estimated total amount of grants under section 593 of the same Act.
The Telecommunications (Carrier Licence Charges) Act 1997 imposes several obligations on telecommunications carriers. Primarily, it mandates that the total of charges imposed on carrier licences in force at the beginning of a financial year must be calculated in accordance with the provisions of the Act. Carriers must ensure that they adhere to the stipulated limits on charges, which are derived from various sources, including the ACMA, ACCC, and the Commonwealth’s contributions to the ITU budget. Additionally, the Act requires the ACMA and other relevant authorities to determine the specific amounts attributable to their respective costs and contributions through written instruments. Carriers are also required to be aware of the Determination and include it in their calculations for the imposition of annual licence charges.
Breaches of the Telecommunications (Carrier Licence Charges) Act 1997 may result in civil or criminal consequences, although specific offences and penalties are not detailed in the Determination. The Act, however, provides a framework for the imposition of charges that must be strictly adhered to. Non-compliance with the Act's provisions could potentially lead to legal actions, fines, or other penalties as prescribed by relevant laws. The seriousness of the breach and the extent of non-compliance would be factors considered in determining the appropriate consequences. The Determination itself, being a legislative instrument, must be registered on the Federal Register of Legislative Instruments, ensuring its legal standing and enforceability.