EXPLANATORY STATEMENT

Telecommunications (Specification of Costs by ACMA) Determination 2010

Telecommunications (Carrier Licence Charges) Act 1997

The Telecommunications (Specification of Costs by ACMA) Determination 2010 (the Determination) is made by the authority of the Australian Communications and Media Authority (‘the ACMA’) pursuant to paragraphs 15(1)(a), (c) and (ca) of the Telecommunications (Carrier Licence Charges) Act 1997 (the Act).

Legislative Provisions

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 Determination has been made for the purposes of paragraphs 15(1)(a), (c) and (ca) of the Act. The Determination provides that:

• Under paragraph 15(1)(a), $23, 828, 445 is the amount determined to be the proportion of ACMA’s costs for the 2008-2009 financial year that is attributable to the ACMA’s telecommunications functions and powers.  The definition of costs in subsection 15(4) of the Act has the effect that the ACMA’s costs are to be calculated in accordance with accrual-based accounting principles.   This amount has been calculated in accordance with those principles.

• Under paragraph 15(1)(c), $1, 921, 987 is the amount determined to be the proportion of the Commonwealth's contribution to the budget of the International Telecommunication Union (ITU) for 2009 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.

• Under paragraph 15(1)(ca), $251, 882 is the amount determined to be sum of the amounts paid under section 136C of the Telecommunications Act 1997 during the immediately preceding (that is, 2008-2009) 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, the 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 a determination under subsection 15(1) of the Act is relevant to the calculation of a charge imposed on persons who hold a carrier licence on the first day of the relevant financial year. The Determination is therefore minor or machinery in nature and consultation is not required in accordance with section 18 of the Legislative Instruments Act 2003.

On 26 March 2010, the Office of Best Practice Regulation advised that a Regulation Impact Statement was not required for the Determination proposed to be made by the ACMA under paragraphs 15(1)(a), (c) and (ca) of the Act, (exemption number ID 11270), on the basis that the proposals would have a low impact on business and would appear to impose no or low compliance costs. .

On 9 March 2010, the Department of Broadband, Communications and the Digital Economy provided the figures for the Commonwealth’s 2009 contribution to the budget of the International Telecommunication Union.

On 20 March 2009, the 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 Mobile Premium Services Code. A related declaration was made by the ACMA pursuant to section 136B of that Act on 1 July 2009.   Payment was made by the ACMA pursuant to subsection 136C(3) on 23 July 2009.

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 – Definition

This section provides a definition of ‘Act’ as meaning the Telecommunications (Carrier Licence Charges) Act 1997.

Section 4 - Determination of amount attributable to telecommunications functions and powers

This section sets out the amount determined under the Determination for the purposes of paragraph 15(1)(a) of the Act.

Section 5 - Determination of amount of ITU contribution to be recovered

This section sets out the amount determined under the Determination for the purposes of paragraph 15(1)(c) of the Act.

Section 6 - Determination of amounts paid under section 136C of Telecommunications Act 1997

This section sets out the amount determined under the Determination for the purposes of paragraph 15(1)(ca) of the Act.