Federal Register of Legislation - Australian Government

Primary content

Determinations/Communications as made
Provides the amount of charge to be imposed on a carrier licence is the amount ascertained in accordance with a written determination made by the ACA.
Administered by: Communications
Registered 07 Jun 2005
Tabling HistoryDate
Tabled HR14-Jun-2005
Tabled Senate15-Jun-2005
Date of repeal 20 Mar 2014
Repealed by Telecommunications (Carrier Licence Charges) Revocation Determination 2014

EXPLANATORY STATEMENT

 

 

Telecommunications (Carrier Licence Charges) Act 1997

 

Telecommunications (Annual Carrier Licence Charge) Determination 2005

 

Issued by the authority of the Australian Communications Authority (‘ACA’)

 

This instrument sets out the method for calculating the charge on a carrier licence.

 

Legislative Provisions

 

Section 12 of the Telecommunications (Carrier Licence Charges) Act 1997 (the Act) provides that a charge is imposed on a carrier licence that is in force at the beginning of a financial year. 

 

Subsection 14(1) of the Act provides that the amount of charge to be imposed on a carrier licence is the amount ascertained in accordance with a written determination made by the ACA. 

 

Subsection 14(2) of the Act provides that an instrument under subsection (1) is a disallowable instrument for the purposes of section 46A of the Acts Interpretation Act 1901.  The accompanying Determination must therefore be published in the Gazette, tabled in Parliament and is subject to Parliamentary disallowance.

 

Section 15 of the Act puts a limit on the total of the charges that are imposed on carrier licences.

 

Consultation

On application for a licence, carriers are informed that if they hold a licence on the first day of a financial year, a carrier licence charge will be imposed to recover costs for that year.

 

In June 2004, carriers were informed by letter and by press release that the fixed minimum component of their annual carrier licence charge (ACLC) would no longer be $10,000 but a cost recovery based amount calculated each year and that in 2004-05 it would be less than $1,000.

 

Each year the ACLC sent to each carrier is accompanied by information on the components of the total charge imposed under Section 15 of the Act and the components of the individual charge imposed on each carrier.


Attachment 1

Notes on the Instrument

 

Section 1 - Name of Determination

 

This is the Determination title.

 

Section 2 - Commencement

 

This section provides for the Determination to commence on gazettal.

 

Section 3 - Definitions

 

This section sets out the definitions of key terms used in the Determination.

 

Section 4 – Method of ascertaining charge

 

This section specifies how the annual charge is calculated.

 

It states the annual charge payable by a carrier mentioned in Schedule 1, which was a carrier on 1 July 2004, is calculated using the formula described.

 

The amount of the charge imposed on each carrier licence is made up of a fixed component and a variable component.  The fixed component is a cost recovery based administration charge for the calculation, review and approval of the charge. For the 2004/2005 financial year, the fixed component is $455.

 

The variable component is calculated by:

 

1. Dividing a carrier’s eligible revenue for the financial year 2003/2004 by total eligible revenue as set out in the Schedule; and

 

2.  Multiplying that figure by the maximum allowable total amount under section 15 after deducting the following from the maximum allowable total amount:

 

§            the total fixed components which is equal to the number of carrier licences in force on 1 July 2004 multiplied by $455; and

§            the total of the ACA’s costs for the 2003/2004 financial year attributable to the ACA’s telecommunications functions and powers that will be recovered from telecommunications charges other than annual carrier licence charge.

 

Schedule 1

 

Column 2 sets out the persons who were holders of carrier licences as at 1 July 2004.

 

Column 3 sets out the assessment of each carrier's eligible revenue for the 2003/2004 financial year.