Telecommunications (Specification of Costs by the ACMA) Determination 2015

Administered by Department of Communications and the Arts

Legislation au F2015L01131 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 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

 

Overview

The Telecommunications (Specification of Costs by the ACMA) Determination 2015 was made by the Australian Communications and Media Authority (ACMA) under the Telecommunications (Carrier Licence Charges) Act 1997. This determination was enacted to address the need for specifying certain costs related to the ACMA’s telecommunications functions and the Commonwealth’s contribution to the International Telecommunication Union (ITU), as well as to ensure compliance with the cost limitations set out in the Act. The determination outlines specific amounts for the financial year 2014-2015, which are integral to calculating the annual carrier licence charges. The policy objective is to maintain transparency and fairness in the regulatory process by ensuring that the total charges imposed on carrier licences do not exceed the prescribed limits and are based on clearly defined cost proportions. The determination specifies $19,860,799 as the proportion of the ACMA’s costs attributable to its telecommunications functions and powers for the 2013-2014 financial year, $1,860,447 as the proportion of the Commonwealth’s contribution to the ITU budget for the 2014 calendar year to be recovered from carriers, and $0 as the sum of amounts paid under section 136C of the Telecommunications Act 1997 during the 2013-2014 financial year. These amounts are fundamental in determining the carrier licence charges for the specified financial year, aligning with the requirements of the Act. The ACMA determined that the determination was minor in nature and did not necessitate consultation, nor did it require a Regulation Impact Statement.

Scope and Application

The Telecommunications (Specification of Costs by the ACMA) Determination 2015 is a legislative instrument made by the Australian Communications and Media Authority (ACMA) under the Telecommunications (Carrier Licence Charges) Act 1997. The Determination specifies amounts for certain costs that are attributed to the ACMA’s telecommunications functions and powers, the Commonwealth’s contribution to the International Telecommunication Union (ITU), and payments under a specific section of the Telecommunications Act 1997. These amounts are crucial in determining the total charges imposed on carrier licences at the start of a financial year, ensuring compliance with the legislative limits set forth in the Act. The Determination applies to the financial year 2014-2015 and will cease to have effect at the end of June 2017. The ACMA did not undertake consultation for this Determination, considering it minor and not substantially altering existing arrangements. Furthermore, the Determination is compatible with human rights, as it does not engage any applicable human rights or freedoms.

Key Provisions

The Telecommunications (Specification of Costs by the ACMA) Determination 2015 (the Determination) is a legislative instrument made by the Australian Communications and Media Authority (ACMA) under the Telecommunications (Carrier Licence Charges) Act 1997 (the Act). This Determination sets specific amounts attributable to the ACMA's telecommunications functions and powers, the Commonwealth's contribution to the International Telecommunication Union (ITU) budget, and payments under section 136C of the Telecommunications Act 1997. These amounts are crucial for calculating the total annual carrier licence charges that can be imposed on carrier licences in force at the beginning of a financial year, ensuring they do not exceed the sum specified in the Act. The Act mandates that the total annual carrier licence charges cannot exceed the sum of certain determined amounts, which are specified in subsections 15(1)(a) to (d). The Determination provides specific figures for these amounts: $19,860,799 for the ACMA's telecommunications functions and powers, $1,860,447 for the Commonwealth's contribution to the ITU budget, and $0 for the amounts paid under section 136C of the Telecommunications Act 1997 during the specified financial year. These figures are calculated using accrual-based accounting principles and are integral to the formula used to determine the annual carrier licence charges for the 2014-2015 financial year, as outlined in the Telecommunications (Annual Carrier Licence Charge) Determination 2015. The Determination imposes specific obligations on the ACMA to calculate and determine these amounts accurately, in line with the Act. The ACMA must ensure that these calculations are made in accordance with the accrual-based accounting principles and the definitions provided in the Act. The determination of these amounts is critical as it directly impacts the total charges that can be levied on carrier licences, ensuring compliance with the statutory limits set forth in the Act. Breaches of the provisions in the Act or the Determination could result in penalties, although the specific penalties are not detailed in the explanatory statement. However, under the general framework of the Telecommunications (Carrier Licence Charges) Act 1997, penalties for non-compliance with carrier licence charge regulations can include fines and other civil or administrative actions. The exact penalties would depend on the nature and severity of the breach, as well as any relevant case law or regulatory guidelines.

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Telecommunications Law
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