EXPLANATORY STATEMENT

Prepared by the Australian Communications and Media Authority

Telecommunications (Specification of Costs by the ACMA) Determination 2015

Telecommunications (Carrier Licence Charges) Act 1997

The Telecommunications (Specification of Costs by the ACMA) Determination 2015 (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) and in accordance with subsection 33(3) of the Acts Interpretation Act 1901 (the AIA).

Subsection 33(3) of the AIA provides that where an Act confers a power to make a legislative instrument, the power shall be construed as including a power exercisable in the like manner and subject to the like conditions (if any) to repeal, rescind, revoke, amend, or vary any such instrument.

Legislative provisions

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 provides that the total of the annual carrier licence charges that are imposed on carrier licences in force at the beginning of a financial year must not exceed the sum of the amounts described in paragraphs (a) to (d), three of which are amounts determined by a written instrument made by the ACMA:

• the amount determined 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)(a));

• the amount determined 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 (paragraph 15(1)(c)); and

• the amount determined to be the sum of the amounts paid under section 136C of the Telecommunications Act 1997 during the immediately preceding financial year (paragraph 15(1)(ca)).

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 2014-2015 financial year.

Operation

For the purposes of paragraph 15(1)(a) of the Act, the Determination provides that $19 860 799 is the amount determined to be the proportion of the ACMA’s costs for the 2013-2014 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   $1 860 447 is the amount determined to be the proportion of the Commonwealth's contribution to the budget of the ITU for the 2014 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 2013-2014 financial year is $0.

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 2014-2015 financial year, in accordance with the Telecommunications (Annual Carrier Licence Charge) Determination 2015.

Regulation Impact

On 19 February 2014, the Office of Best Practice Regulation provided a standing exemption and advised that a Regulation Impact Statement was not required for the Determination as proposed to be made on the basis that the changes would be minor in nature (reference number ID 2014/16581).

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 regulatory 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 provides that the name of the Determination is the Telecommunications (Specification of Costs by the ACMA) Determination 2015.

Section 2 - Commencement

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

Section 3 - Cessation

This section provides that the Determination ceases to have effect at the end of 30 June 2017 as if it had been repealed by another instrument.

Section 4 - Definition

This section states that, for the purposes of the Determination, Act means the Telecommunications (Carrier Licence Charges) Act 1997.

Section 5 - Determination of amount attributable to telecommunications functions and powers

This section determines an amount of $19 860 799 for the purposes of paragraph 15(1)(a) of the Act, being the proportion of the ACMA’s costs for the 2013–2014 financial year that is attributable to the ACMA’s telecommunications functions and powers.

Section 6 - Determination of amount of ITU contribution to be recovered

This section determines an amount of $1 860 447 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 2014 calendar year that is to be recovered from carriers.

Section 7 - Determination of amounts paid under section 136C of Telecommunications Act 1997

This section determines an amount of $0 for the purposes of paragraph 15(1)(ca) of the Act, as there were no amounts paid under section 136C of the Telecommunications Act 1997 during the 2013–2014 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 2015

Subsection 9(1) of the Human Rights (Parliamentary Scrutiny) Act 2011 requires the rule maker in relation to a legislative instrument to which section 42 (disallowance) of the Legislative Instruments Act 2003 applies to cause a statement of compatibility with human rights to be prepared in respect of that legislative instrument.

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

The Telecommunications (Specification of Costs by the ACMA) Determination 2015 (the Determination) is made under section 15 of the Telecommunications (Carrier Licence Charges) Act 1997 (the Act) which 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.

The Determination determines amounts attributable to those items in paragraphs 15(1)(a), (c) and (ca) of the Act.  

The ACMA has considered whether the Determination engages any applicable human rights or freedoms and has formed the view that it does not. The Determination is compatible with human rights as it does not raise any human rights issues.

Australian Communications and Media Authority