Telecommunications (Specification of Costs by the ACMA) Determination 2019

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

Legislation au F2019L01600 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 2019

 

Authority

 

The Australian Communications and Media Authority (the ACMA) has made the Telecommunications (Specification of Costs by the ACMA) Determination 2019 (the Determination) 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, being:

 

  • 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) of the Act.

 

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 2018-2019 financial year.

 

For the purposes of paragraph 15(1)(a) of the Act, the Determination provides that $13 473 497 is the amount determined to be the proportion of the ACMA’s costs for the 2017-2018 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

$2 194 009 is the amount determined to be the proportion of the Commonwealth's contribution to the budget of the ITU for the 2018 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 2017-2018 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 2018-2019 financial year, in accordance with the Telecommunications (Annual Carrier Licence Charge) Determination 2019 (the ACLC Determination).

 

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

 

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 the public and industry stakeholders on the making of the instrument for a four-week period from 22 July 2019, inviting feedback on the proposed changes to the annual carrier licence charge determined under cost recovery arrangements.  The consultation was facilitated through the public release of a consultation paper and a draft cost recovery implementation statement on the ACMA’s website.

 

In response to the consultation, ACMA received two written submissions[1]. The submissions did not raise any substantive issues regarding the drafting of this Determination.  

 

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 an instrument in the nature of the Determination (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.

The statement of compatibility with human rights set out in Attachment B has been prepared to meet that requirement.

 

 

.


Attachment A

 

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 2019.

 

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 free of charge at www.legislation.gov.au.

 

Section 3 – Authority

 

This section identifies the provisions of the Act that authorise the making of the Determination, 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 2021.

 

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 $13 473 497 for the purposes of paragraph 15(1)(a) of the Act, being the proportion of the ACMA’s costs for the 2017–2018 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 $2 194 009 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 2018 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 2017–2018 financial year.

 

Attachment B

 

Statement of compatibility with human rights
 

Prepared by the Australian Communications and Media Authority (ACMA) under subsection 9(1) of the Human Rights (Parliamentary Scrutiny) Act 2011

 

Telecommunications (Specification of Costs by the ACMA) Determination 2019


Overview of the Determination

 

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 the 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.

 

[1] These can be accessed from: https://www.acma.gov.au/consultations/2019-08/proposed-annual-carrier-licence-charge-2018-19-consultation-242019

Overview

The Telecommunications (Carrier Licence Charges) Act 1997 was enacted to establish a framework for setting carrier licence charges for telecommunications services in Australia, aiming to balance the need for revenue to cover regulatory costs with the need to maintain competitive and fair pricing for consumers and businesses. This legislation was introduced to address the need for a transparent, accountable, and cost-effective regulatory regime in the telecommunications sector. The Act was passed by the Australian Parliament and mandates that the total annual carrier licence charges must not exceed certain specified amounts, including those attributable to the Australian Communications and Media Authority's (ACMA) telecommunications functions and powers. The ACMA, as the enacting body, is responsible for determining these amounts through written instruments, ensuring that the charges imposed are fair and justifiable. The policy objective is to ensure that the regulatory costs are efficiently recovered while maintaining the integrity and stability of the telecommunications market.

Scope and Application

The Telecommunications (Specification of Costs by the ACMA) Determination 2019 is a legislative instrument made by the Australian Communications and Media Authority (ACMA) under the Telecommunications (Carrier Licence Charges) Act 1997. This Determination specifies the amounts attributable to certain costs related to the ACMA’s telecommunications functions and powers, the Commonwealth's contribution to the budget of the International Telecommunication Union (ITU), and payments made under section 136C of the Telecommunications Act 1997. These specified amounts are integral to calculating the annual carrier licence charges imposed on carrier licences in force at the beginning of a financial year, ensuring they do not exceed the prescribed limits set out in the Act. The Determination applies nationally across Australia, targeting telecommunications carriers who hold a carrier licence. It excludes any entities or persons not holding a carrier licence and does not impose any additional charges beyond those calculated under the specified parameters. The instrument operates in conjunction with other related determinations and legislative acts, which may extend or clarify its application through subordinate instruments.

Key Provisions

The Telecommunications (Specification of Costs by the ACMA) Determination 2019, made under the Telecommunications (Carrier Licence Charges) Act 1997, specifies the amounts attributable to the ACMA’s telecommunications functions and powers, the Commonwealth’s contribution to the International Telecommunication Union (ITU) budget, and the sums paid under section 136C of the Telecommunications Act 1997. These amounts are integral for determining the total of the charges imposed on carrier licences in force at the beginning of a financial year. Specifically, Section 6 determines that $13,473,497 is the proportion of the ACMA’s costs for the 2017-2018 financial year attributable to its telecommunications functions and powers. Section 7 specifies that $2,194,009 is the proportion of the Commonwealth’s contribution to the ITU budget for the 2018 calendar year to be recovered from carriers. Section 8 determines that $0 is the sum of the amounts paid under section 136C of the Telecommunications Act 1997 during the 2017-2018 financial year. The Act imposes certain obligations on the ACMA to ensure that the total of the annual carrier licence charges does not exceed the prescribed amounts. The ACMA must calculate these amounts in accordance with the specified criteria, including the use of accrual-based accounting principles. These calculations are essential for maintaining compliance with the Act and ensuring that carrier licence charges are imposed within the legislative limits. Furthermore, the ACMA is required to consult with the public and industry stakeholders before making such determinations, as mandated by the Legislation Act 2003. The consultation process ensures that the views and feedback of relevant parties are considered, which can be seen in the two written submissions received during the consultation period. Breaches of the provisions in the Act or the Determination can lead to various consequences. While the specific penalties are not detailed in the Determination itself, the Act generally provides for civil and criminal penalties for non-compliance. For example, entities may face fines or other sanctions for exceeding the specified charges on carrier licences. Additionally, the ACMA, as the enforcing authority, may take appropriate action against entities that fail to comply with the requirements, which could include financial penalties or other corrective measures. The Determination, as a disallowable legislative instrument, is subject to review and potential disallowance by Parliament, further underscoring the importance of compliance with the Act's provisions.

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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.