EXPLANATORY STATEMENT

Prepared by the Australian Communications and Media Authority

Telecommunications (Specification of Costs by the ACMA) Determination 2013

Telecommunications (Carrier Licence Charges) Act 1997

The Telecommunications (Specification of Costs by the ACMA) Determination 2013 (the Determination) is made by the Australian Communications and Media Authority (the ACMA) under paragraphs 15(1)(a), (c) and (ca) of the Telecommunications (Carrier Licence Charges) Act 1997 (the Act).

Background

The Act limits the total of the charges that are imposed on carrier licences in force at the beginning of a financial year.  Subsection 15(1) of the Act states that the total of those charges 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;

(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;

(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 (ITU) for the calendar year in which the beginning of the financial year occurs that is to be recovered from carriers;

(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.

Purpose

The Determination has been made for the purposes of paragraphs 15(1)(a), (c) and (ca) of the Act and is relevant to determining the total of the charges that are imposed on carrier licences in force at the beginning of the 2012-2013 financial year.

Operation

For the purposes of paragraph 15(1)(a) of the Act, the Determination provides that $21 225 696 is the amount determined to be the proportion of the ACMA’s costs for the 2011-2012 financial year that is attributable to the ACMA’s telecommunications functions and powers.  This amount has been calculated in accordance with accrual-based accounting principles in line with the definition of “cost” in subsection 15(4) of the Act. 

For the purposes of paragraph 15(1)(c) of the Act, the Determination provides that    $1 680 159 is the amount determined to be the proportion of the Commonwealth's contribution to the budget of the ITU for the 2012 calendar year that is to be recovered from carriers.  This amount has been calculated by apportioning the Commonwealth’s total contribution to the budget of the ITU for that calendar year between the ITU’s Radiocommunication Sector and Telecommunication Standardisation Sector.

For the purposes of paragraph 15(1)(ca) of the Act, the Determination provides that the amount determined to be the sum of the amounts paid under section 136C of the Telecommunications Act 1997 during the 2011-2012 financial year is $210 405.

The amounts determined under paragraphs 15(1)(a), (c) and (ca) of the Act are included in the formula that is used to ascertain the amount of charge imposed on a carrier licence that was in force at the beginning of the 2012-2013 financial year, in accordance with the Telecommunications (Annual Carrier Licence Charge) Determination 2013.

Regulation Impact

On 15 April 2013 the Office of Best Practice Regulation advised that a Regulation Impact Statement was not required for the Determination then proposed to be made on the basis that the changes would be minor in nature (reference number ID 2013/14937).

Consultation

Consultation was not undertaken before making this Determination.  The ACMA considered that consultation was unnecessary on the basis that the Determination is minor in nature and does not substantially alter existing arrangements.

Notes on Sections

The provisions of the Determination are described in Attachment 1.

Statement of Compatibility with Human Rights

A statement of compatibility with human rights for the purposes of Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011 is set out in Attachment 2.

Attachment 1

Notes on sections of the Determination

Section 1 - Name of Determination

This section provide that the name of the Determination is the Telecommunications (Specification of Costs by the ACMA) Determination 2013.

Section 2 - Commencement

This section provides that the Determination commences on the day after it is registered.

Section 3 - Definition

This section provides that in the Determination ‘Act’ means the Telecommunications (Carrier Licence Charges) Act 1997.

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

This section determines an amount of $21 225 696 for the purposes of paragraph 15(1)(a) of the Act, being the proportion of the ACMA’s costs for the 2011–2012 financial year that is attributable to the ACMA’s telecommunications functions and powers.

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

This section determines an amount of $1 680 159 for the purposes of paragraph 15(1)(c) of the Act, being the proportion of the Commonwealth’s contribution to the budget of the International Telecommunication Union for the 2012 calendar year that is to be recovered from carriers.

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

This section determines an amount of $210 405 for the purposes of paragraph 15(1)(ca) of the Act, being the sum of the amounts paid under section 136C of the Telecommunications Act 1997 during the 2011–2012 financial year.

Attachment 2
 

Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

Telecommunications (Specification of Costs by the ACMA) Determination 2013

This Legislative Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

Overview of the Legislative Instrument

Section 15 of the Telecommunications (Carrier Licence Charges) Act 1997 (the Act) provides 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 the amounts determined under paragraphs 15(1)(a) to (d) of the Act.

Paragraph 15(1)(a) of the Act provides for the determination of an amount by the Australian Communications and Media Authority (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.  Paragraph 15(1)(c) of the Act provides for the determination of an amount 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.  Paragraph 15(1)(ca) of the Act provides for the determination of an amount 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.

The Telecommunications (Specification of Costs by the ACMA) Determination 2013 has been made by the ACMA for the purposes of paragraphs 15(1)(a), (c) and (ca) of the Act and is relevant to determining the total of the charges that are imposed on carrier licences in force at the beginning of the 2012-2013 financial year.

Human rights implications

This Legislative Instrument does not engage any of the applicable rights or freedoms.

Conclusion

This Legislative Instrument is compatible with human rights as it does not raise any human rights issues.

Australian Communications and Media Authority