Telecommunications (Specification of Costs by the ACMA) Determination 2013

Administered by Department of Communications and the Arts

Legislation au F2013L00989 Not in force Legislative Instrument

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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

Overview

The Telecommunications (Specification of Costs by the ACMA) Determination 2013 was enacted to provide clarity and specificity regarding the costs attributable to certain telecommunications functions within the framework of the Telecommunications (Carrier Licence Charges) Act 1997. This determination was made by the Australian Communications and Media Authority (ACMA) under specific sections of the Act, addressing the need to accurately apportion costs related to telecommunications functions and powers, contributions to international bodies, and payments under particular sections of the Telecommunications Act 1997. The overarching policy objective is to ensure that the total charges imposed on carrier licences do not exceed the calculated costs, thereby maintaining financial integrity and transparency in the telecommunications regulatory environment. The determination calculates specific amounts for the ACMA's costs, the Commonwealth's contribution to the International Telecommunication Union, and payments under section 136C of the Telecommunications Act 1997 for the 2011-2012 financial year, which are critical in setting the total charges for the 2012-2013 financial year.

Scope and Application

The Telecommunications (Specification of Costs by the ACMA) Determination 2013, made by the Australian Communications and Media Authority (ACMA) under the Telecommunications (Carrier Licence Charges) Act 1997, specifies particular costs relevant to the calculation of carrier licence charges for the financial year starting in 2012. This Determination applies to entities holding carrier licences in telecommunications, particularly those who are subject to the specified charges outlined in the Act. It operates within the Commonwealth jurisdiction and is instrumental in ensuring that the total charges imposed do not exceed the allowable sums as determined by the ACMA and other relevant authorities. Specifically, the Determination provides the amounts attributable to the ACMA's telecommunications functions, the Commonwealth's contribution to the International Telecommunication Union, and payments made under section 136C of the Telecommunications Act 1997. These amounts are integral in calculating the total charges for carrier licences under the Act. The Determination does not specify any exclusions, exemptions, or thresholds but is subject to the overarching limits set by the Act.

Key Provisions

The Telecommunications (Specification of Costs by the ACMA) Determination 2013 (the Determination) is an instrument made by the Australian Communications and Media Authority (ACMA) under the Telecommunications (Carrier Licence Charges) Act 1997 (the Act). It specifies certain costs that are relevant to determining the total charges imposed on carrier licences at the beginning of the 2012-2013 financial year (sections 1 to 6). Specifically, the Determination sets the proportion of the ACMA's costs attributable to its telecommunications functions and powers for the 2011-2012 financial year at $21,225,696 (section 4), the proportion of the Commonwealth's contribution to the International Telecommunication Union (ITU) budget for the 2012 calendar year to be recovered from carriers at $1,680,159 (section 5), and the sum of the amounts paid under section 136C of the Telecommunications Act 1997 during the 2011-2012 financial year at $210,405 (section 6). These amounts are integral to the calculation of carrier licence charges for that financial year. The Act imposes several obligations on the ACMA, primarily concerning the calculation and determination of specific costs related to telecommunications functions. The ACMA must ensure that the total charges on carrier licences do not exceed the sum of the amounts determined under sections 15(1)(a) to (d) of the Act (subsection 15(1)). This involves calculating the proportion of the ACMA's costs for the preceding financial year attributable to telecommunications functions, the proportion of the Commonwealth's ITU contribution to be recovered from carriers, and the sum of payments made under section 136C of the Telecommunications Act 1997 for the preceding financial year. The ACMA must make these determinations in accordance with accrual-based accounting principles, as defined in subsection 15(4) of the Act. Failure to comply with the provisions of the Act and the Determination could result in legal consequences. While the Determination itself does not explicitly outline specific offences or penalties, breaches of the Act could lead to civil or criminal penalties as stipulated elsewhere in the Act. The Act may impose fines or other penalties for non-compliance, with the specifics of these penalties depending on the nature and severity of the breach. The maximum penalties would be determined in accordance with the provisions of the primary Act, which could include substantial fines for both individuals and corporations. It is essential for entities subject to the Act to adhere to its requirements to avoid any potential legal ramifications.

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