Telecommunications (Specification of Costs by ACMA) Determination 2011

Administered by Department of Communications and the Arts

Legislation au F2011L01400 Not in force Legislative Instrument

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EXPLANATORY STATEMENT

Telecommunications (Carrier Licence Charges) Act 1997

Issued by the authority of the Australian Communications and Media Authority

The Telecommunications (Specification of Costs by ACMA) Determination 2011 (the Determination) is made by 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 limits the total amount of annual charges that may be imposed on carrier licences held by the telecommunications carriers. Subsection 15(1) of the Act states that the total of the 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 (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

(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.

A determination made under subsection 15(1) of the Act is a legislative instrument for the purposes of the Legislative Instruments Act 2003.

Purpose

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), $22 008 004 is the amount determined to be the proportion of the ACMA’s costs for the 2009-2010 financial year that is attributable to the ACMA’s telecommunications functions and powers. Paragraph (a) of the definition of “cost” 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), $1 603 978 is the amount determined to be the proportion of the Commonwealth's contribution to the budget of the International Telecommunication Union (ITU) associated with telecommunications for the 2010 calendar year that is to be recovered from carriers. 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), the amount determined to be the sum of the amounts paid under section 136C of the Telecommunications Act 1997 during the 2009-2010 financial year is nil. No amounts were paid by the ACMA pursuant to subsection 136C(3) of the Telecommunications Act 1997 during the 2009-2010 financial year.

Consultation

On application for a licence, carriers are advised that a determination made by the ACMA under subsection 15(1) of the Act is relevant to the calculation of annual carrier licence charge, which is imposed on a carrier licence in force on the first day of the relevant financial year and is payable by the holder of the licence. 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 14 April 2011, 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, (reference number ID 12559), on the basis that the proposals would have a low impact on business and would appear to impose no or low compliance costs.

On 7 March 2011, the Department of Broadband, Communications and the Digital Economy provided the figures for the Commonwealth’s contribution to the budget of the International Telecommunication Union for the 2010 calendar year.

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 that the Determination commences on the day after it is registered.

Section 3 – Definition

This section provides a definition of ‘Act’ and ‘ACMA’.

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

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

Overview

The Telecommunications (Specification of Costs by ACMA) Determination 2011 was enacted to provide the specific amounts that the Australian Communications and Media Authority (ACMA) is to use in determining the annual carrier licence charges for telecommunications carriers under the Telecommunications (Carrier Licence Charges) Act 1997. This legislation was introduced to address the need for clear and specific guidelines on how the costs attributable to the ACMA’s telecommunications functions and powers, the Commonwealth’s contribution to the International Telecommunication Union, and payments made under section 136C of the Telecommunications Act 1997, should be calculated and applied to the annual charges imposed on carrier licences. The determination was made by the ACMA in accordance with subsection 15(1) of the Act, which mandates that the total annual charges on carrier licences must not exceed the sum of specific cost-related amounts, and it serves to operationalise these provisions by providing precise figures for the financial year 2009-2010. The policy objective of this determination is to ensure transparency and predictability in the cost structure of telecommunications carrier licences, thereby supporting fair and efficient market operations.

Scope and Application

The Telecommunications (Specification of Costs by ACMA) Determination 2011 applies to telecommunications carriers who hold a carrier licence under the Telecommunications (Carrier Licence Charges) Act 1997. The determination, made by the Australian Communications and Media Authority (ACMA), specifies the costs attributable to telecommunications functions and powers, the proportion of the Commonwealth's contribution to the International Telecommunication Union (ITU) to be recovered from carriers, and the sums paid under certain sections of the Telecommunications Act 1997. The Act's provisions apply across the Commonwealth of Australia, regulating the total amount of annual charges imposed on carrier licences. The Determination is a legislative instrument made under the authority of the Legislative Instruments Act 2003 and specifies the amounts for the 2009-2010 financial year. The ACMA's costs are calculated in accordance with accrual-based accounting principles, and the Commonwealth's ITU contribution is apportioned between the Radiocommunication Sector and Telecommunication Standardisation Sector. Notably, no amounts were paid under section 136C of the Telecommunications Act 1997 during the specified financial year. The Determination does not require consultation as it is considered minor or machinery in nature, with a low impact on business and minimal compliance costs.

Key Provisions

The Telecommunications (Specification of Costs by ACMA) Determination 2011 (the Determination) made by the Australian Communications and Media Authority (ACMA) under the Telecommunications (Carrier Licence Charges) Act 1997 (the Act) specifies the amounts that are to be used in calculating the total annual charges that may be imposed on carrier licences. The Determination identifies specific amounts for the proportion of the ACMA's costs attributable to telecommunications functions and powers, the proportion of the Commonwealth's contribution to the budget of the International Telecommunication Union for telecommunications that is to be recovered from carriers, and the sum of the amounts paid under section 136C of the Telecommunications Act 1997. These amounts are determined by written instruments made by the ACMA and other authorities as stipulated in the Act. The Act imposes certain obligations on telecommunications carriers and the ACMA. Carriers must be informed that a determination made by the ACMA under subsection 15(1) of the Act is relevant to the calculation of annual carrier licence charges. The ACMA is obligated to determine and publish the amounts attributable to various costs and contributions as per the Act. This includes calculating the proportion of the ACMA's costs for the preceding financial year that is attributable to telecommunications functions and powers, the proportion of the Commonwealth's contribution to the International Telecommunication Union's budget that is to be recovered from carriers, and the sum of the amounts paid under section 136C of the Telecommunications Act 1997. The Determination does not explicitly mention any offences, penalties, or civil/criminal consequences for non-compliance. However, the legislative framework under which the Determination is made suggests that non-compliance with the Act's provisions could lead to penalties. Under the Legislative Instruments Act 2003, a failure to comply with a legislative instrument could result in civil or criminal penalties as prescribed by the relevant legislation. The specific penalties would depend on the nature and severity of the breach, as well as any additional provisions outlined in the Telecommunications (Carrier Licence Charges) Act 1997 or other applicable laws.

Area of Law: Regulatory Standards
Instrument: Regulation
Concepts: Definitions & Interpretation; Reporting & Disclosure Obligations; Regulatory Standards
Catchwords: Costs by ACMA

Interactions

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