Telecommunications (Specification of Costs by the ACMA) Determination 2018

Administered by Department of Infrastructure, Transport, Regional Development, Communications, Sport and the Arts

Legislation au F2018L01790 Not in force Legislative Instrument

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EXPLANATORY STATEMENT

Approved by the Australian Communications and Media Authority

Telecommunications (Carrier Licence Charges) Act 1997

Telecommunications (Specification of Costs by the ACMA) Determination 2018

Authority

The Telecommunications (Specification of Costs by the ACMA) Determination 2018 (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).

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)).

The Determination prescribes the relevant amounts under paragraphs 15(1)(a), (c) and (ca).

Purpose and Operation

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 2017-2018 financial year.

For the purposes of paragraph 15(1)(a) of the Act, the Determination provides that $18 264 770 is the amount determined to be the proportion of the ACMA’s costs for the 2016-2017 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 $2 003 511 is the amount determined to be the proportion of the Commonwealth's contribution to the budget of the ITU for the 2017 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 2016-2017 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 2017-2018 financial year, in accordance with the Telecommunications (Annual Carrier Licence Charge) Determination 2018 (the ACLC Determination).

A provision-by-provision description of the instrument is set out in the notes in Attachment 1.

The Determination is a disallowable legislative instrument under the Legislation Act 2003 (the LA).

Documents incorporated by reference

No documents are incorporated by reference in the Determination.

Consultation

Before the Determination was made, the ACMA was satisfied that consultation was undertaken to the extent appropriate and reasonably practicable, in accordance with section 17 of the LA.

The ACMA consulted with industry stakeholders on the making of the instrument for a six-week period from 16 April 2018, inviting feedback on the proposed changes to the annual carrier licence charge determined under cost recovery arrangements. The consultation was facilitated through the release of a consultation paper and a draft cost recovery implementation statement on the ACMA’s website.

The ACMA received two written submissions[1] on 25 May 2018 in response to the consultation. The submissions did not raise any substantive issues regarding the drafting of this instrument but commented on issues relating to the ACLC Determination and the ACMA’s cost recovery implementation statement. The ACMA responded to the submissions.

Regulation Impact Statement

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).

Statement of Compatibility with Human Rights

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 LA applies to cause a statement of compatibility with human rights to be prepared in respect of that legislative instrument.

A statement of compatibility with human rights set out below has been prepared to meet that requirement.

Overview of the Legislative Instrument

The Determination is made under paragraphs 15(1)(a), (c) and (ca) of the Act. Subsection 15(1) of 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.

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

Human rights implications

The ACMA has assessed whether the Determination is compatible with human rights, being the rights and freedoms recognised or declared by the international instruments listed in subsection 3(1) of the Human Rights (Parliamentary Scrutiny) Act 2011 as they apply to Australia.

Having considered the likely impact of the instrument and the nature of the applicable rights and freedoms, the ACMA has formed the view that the Determination does not engage any of those rights or freedoms.

Conclusion

The Determination is compatible with human rights as it does not raise any human rights issues.

Attachment 1

Notes on sections of the Determination

Section 1 - Name of Determination

This section provides for the Determination to be cited as the Telecommunications (Specification of Costs by the ACMA) Determination 2018.

Section 2 - Commencement

This section states that the Determination commences at the start of the day after it is registered on the Federal Register of Legislation.

The Federal Register of Legislation may be accessed at www.legislation.gov.au

Section 3 – Authority

This section identifies the provisions of the Act that authorise the making of the instrument, namely paragraphs 15(1)(a),(c) and (ca) of the Telecommunications (Carrier Licence Charges) Act 1997.

Section 4 – Repeal of this Determination

This section provides that the Determination is repealed at the end of 30 June 2020.

Section 5 - Definition

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

Section 6 - Determination of amount attributable to telecommunications functions and powers

This section determines an amount of $18 264 770 for the purposes of paragraph 15(1)(a) of the Act, being the proportion of the ACMA’s costs for the 2016–2017 financial year that is attributable to the ACMA’s telecommunications functions and powers.

Section 7 - Determination of amount of ITU contribution to be recovered

This section determines an amount of $2 003 511 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 2017 calendar year that is to be recovered from carriers.

Section 8 - 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, being the amount paid under section 136C of the Telecommunications Act 1997 during the 2016–2017 financial year.

[1] These can be accessed from: https://www.acma.gov.au/theACMA/changes-to-annual-carrier-licence-charge-2017-18

Overview

The Telecommunications (Specification of Costs by the ACMA) Determination 2018 was enacted to provide specific figures for certain costs under the Telecommunications (Carrier Licence Charges) Act 1997, as determined by the Australian Communications and Media Authority (ACMA). This legislative instrument was introduced to ensure transparency and compliance with the Act's stipulations regarding carrier licence charges. The Determination is made by the ACMA under the authority granted by paragraphs 15(1)(a), (c), and (ca) of the Act and aims to specify the costs attributable to the ACMA's telecommunications functions, the Commonwealth's contribution to the International Telecommunication Union (ITU), and the sum of amounts paid under section 136C of the Telecommunications Act 1997. The policy objective is to maintain the financial integrity of the telecommunications sector by ensuring that the total carrier licence charges do not exceed the specified amounts, thereby providing a clear framework for cost recovery.

Scope and Application

The Telecommunications (Specification of Costs by the ACMA) Determination 2018, made under the Telecommunications (Carrier Licence Charges) Act 1997, applies to the Australian Communications and Media Authority (ACMA) and its functions within the telecommunications sector. It specifies the amounts attributable to certain costs that are relevant to determining the total of the charges imposed on carrier licences in force at the beginning of a financial year. The Determination is pertinent to all telecommunications carriers holding licences that were active at the start of the 2017-2018 financial year, and it operates nationally within Australia as it pertains to the Commonwealth's regulatory functions. The Act itself does not explicitly state exclusions or thresholds, but the amounts determined by the ACMA for specific costs ensure that the overall charges remain within the limits prescribed by the Act. The application of the Act can be extended or restricted through subordinate instruments, such as the ACLC Determination, which incorporates the amounts specified in the current Determination into the formula used for annual carrier licence charges.

Key Provisions

The Telecommunications (Specification of Costs by the ACMA) Determination 2018 sets out specific amounts under paragraphs 15(1)(a), (c) and (ca) of the Telecommunications (Carrier Licence Charges) Act 1997. These amounts are used in calculating the total annual carrier licence charges for the 2017-2018 financial year. Section 6 specifies that $18,264,770 is the proportion of the Australian Communications and Media Authority's (ACMA) costs for the 2016-2017 financial year attributable to its telecommunications functions and powers. Section 7 determines that $2,003,511 is the proportion of the Commonwealth's contribution to the International Telecommunication Union's budget for the 2017 calendar year to be recovered from carriers. Lastly, Section 8 states that the amount paid under section 136C of the Telecommunications Act 1997 during the 2016-2017 financial year is $0. The Determination imposes certain obligations on the ACMA to ensure that the specified costs are accurately calculated and reported. The ACMA must calculate the costs in accordance with accrual-based accounting principles and in line with the definition of “cost” as set out in subsection 15(4) of the Act. The ACMA must also ensure that the specified amounts are included in the formula used to determine the carrier licence charges for the relevant financial year. The ACMA must consult with industry stakeholders to gather feedback on the proposed changes to the annual carrier licence charge and respond to any substantive issues raised during the consultation period. There are no specific offences, penalties, or civil/criminal consequences outlined in the Determination itself. However, the Determination is a disallowable legislative instrument under the Legislation Act 2003, which means that it can be disallowed by either House of the Parliament within 15 sitting days after the instrument is tabled. If disallowed, the Determination would cease to have effect. Additionally, the ACMA is required to prepare a statement of compatibility with human rights in accordance with the Human Rights (Parliamentary Scrutiny) Act 2011, which assesses whether the Determination is compatible with human rights as recognised by the international instruments listed in subsection 3(1) of that Act. The ACMA has concluded that the Determination is compatible with human rights as it does not raise any human rights issues.

Area of Law: Telecommunications Law
Instrument: Regulation
Concepts: Definitions & Interpretation; Regulatory Standards; Reporting & Disclosure Obligations

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.

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