Changes to Annual Carrier Licence Charge 2016-17 | ACMA

Changes to Annual Carrier Licence Charge 2016-17

Consultation closes: 15 May 2017

IFC: 6/2017

About this consultation

Submissions
This consultation is now closed and submissions are under review.

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Downloads

Document

Word

Consultation paper:
Changes to Annual Carrier Licence Charge 2016-17

359 KB

Draft Cost Recovery Implementation Statement:
Annual Carrier Licence Charge for the charging period 1 July 2016 to
30 June 2017

421 KB

Background

The Australian Communications and Media Authority (the ACMA) is Australia’s regulator for broadcasting, the internet, radiocommunications and telecommunications. As an Australian Government agency, the ACMA is required to define and implement, where feasible, charges for recovering the costs of its products and services, in accordance with the Australian Government Charging Framework (Charging Framework). 

The Charging Framework provides the overarching framework for government entities to plan, implement and review their charging activities. As part of the Charging Framework, cost recovery agencies are required to undertake reviews periodically in order to reflect their current costs in the charges they have imposed.

The Telecommunications (Carrier Licence Charges) Act 1997 (the Act) imposes an annual carrier licence charge (ACLC) on each eligible carrier licence that is in force at the beginning of a financial year. In accordance with the Act, the calculation of the ACLC is performed annually for the purpose of recovering from carriers certain telecommunications costs incurred by the ACMA, the Australian Competition and Consumer Commission (ACCC) and the Department of Communications and the Arts (DoCA). Annual review of the ACMA’s and ACCC’s cost components reflect a reduction in the ACLC over the past few years, which declined by 11.2 per cent in 2015–16, with the ACMA’s cost component decreasing by 18 per cent over the year. Further information on this reduction is presented at page 5 of the consultation paper (available from the Downloads table above).

The ACMA is required to prepare a Cost Recovery Implementation Statement (CRIS) in accordance with the Australian Government Cost Recovery Guidelines (the Guidelines) for the implementation of the proposed ACLC. The Department of Finance issued the Guidelines, which form part of the Charging Framework. As required by the Guidelines, the ACMA must consult with industry stakeholders on the CRIS before any potential changes are made.

Accordingly, a draft CRIS for the ACMA’s ACLC is available from the ACMA website. The draft CRIS incorporates all the relevant details of the proposed charges, describes the methodology used for the calculation of the proposed ACLC and provides explanations for variances from the previous financial year.

To give effect to the proposed ACLC, a number of written determinations have been or will need to be made by the ACMA, the ACCC and DOCA under sections 14 and 15 of the Act. These determinations are discussed in this consultation paper and in the draft CRIS.

Issue for comment

Opportunity to provide feedback

The ACMA welcomes comments from interested stakeholders on the proposed ACLC, the draft CRIS or any other issues relevant to the proposed charges.