EXPLANATORY STATEMENT
Prepared by the Australian Communications and Media Authority
Telecommunications (Specification of Costs by the ACMA) Determination 2016
Telecommunications (Carrier Licence Charges) Act 1997
The Telecommunications (Specification of Costs by the ACMA) Determination 2016 (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).
Legislative provisions
The Act limits the total of the charges that may be 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 determines the relevant amounts under paragraphs 15(1)(a), (c) and (ca), in relation to the 2015-16 financial year.
The Determination is a legislative instrument under the Legislation Act 2003.
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 limit on the total of the charges that may be imposed on carrier licences in force at the beginning of the 2015-2016 financial year.
Operation
For the purposes of paragraph 15(1)(a) of the Act, the Determination provides that $23,372,539 is the amount determined to be the proportion of the ACMA’s costs for the 2014-2015 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 $1,861,021 is the amount determined to be the proportion of the Commonwealth's contribution to the budget of the ITU for the 2015 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 2014-2015 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 2015-2016 financial year, in accordance with the Telecommunications (Annual Carrier Licence Charge) Determination 2016.
Regulation Impact Statement
On 19 February 2014, the Office of Best Practice Regulation (OBPR) provided a standing exemption for the yearly determination of the annual carrier licence charge and the relevant costs specified by the ACMA. OBPR advised that a Regulation Impact Statement would not be required for such a regulatory proposal if the changes are minor or machinery in nature (reference number ID 2014/16581).
Consultation
Consultation was not undertaken before making this Determination. The ACMA considered that it was appropriate not to undertake consultation in the circumstances. The Determination is part of routine cost recovery arrangements. Each year the ACMA is required to make a determination of this kind in accordance with paragraphs 15(1)(a), (c) and (ca) of the Act, and this year the ACMA has determined the relevant amounts in substantially the same way as it has done on previous occasions.
Documents incorporated by reference
A number of expressions used in the Determination are defined in the Act. The Determination does not otherwise incorporate any other document by reference.
Notes on Sections
The provisions of the Determination are described in Attachment 1.
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 Legislation Act 2003 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 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 2016.
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 2018 as if it had been repealed by another instrument.
Section 4 - Definitions
This section states that, for the purposes of the Determination, Act means the Telecommunications (Carrier Licence Charges) Act 1997.
A note at the end of this section states that a number of other expressions used in this Determination are defined in the Act, including the following:
(a) ACMA;
(b) ACMA’s telecommunications functions;
(c) ACMA’s telecommunications powers;
(d) cost.
Section 5 - Determination of amount attributable to the ACMA’s telecommunications functions and powers
This section determines an amount of $23,372,539 for the purposes of paragraph 15(1)(a) of the Act, being the proportion of the ACMA’s costs for the 2014–2015 financial year that is attributable to the ACMA’s telecommunications functions and powers. For section 15 of the Act, the ACMA’s telecommunications functions and telecommunications powers are defined in subsection 15(4).
Section 6 - Determination of amount of ITU contribution to be recovered
This section determines an amount of $1,861,021 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 2015 calendar year that is to be recovered from carriers.
Section 7 - Determination of amounts paid under section 136C of the 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 2014–2015 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 2016
The Telecommunications (Specification of Costs by the ACMA) Determination 2016 (the Determination) 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 Determination is made under paragraphs 15(1)(a), (c) and (ca) of the Telecommunications (Carrier Licence Charges) Act 1997 (the Act). Subsection 15(1) 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 considered whether the Determination engages any applicable human rights or freedoms and has formed the view that it does not.
Conclusion
The Determination is compatible with human rights as it does not raise any human rights issues.
Australian Communications and Media Authority