{"id":"C2004A05147","name":"Telecommunications (Carrier Licence Charges) Act 1997","slug":"telecommunications-carrier-licence-charges-act-1997","collection":"act","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":"49 of 1997","makingDate":null,"administeringDepartment":null,"currentVersion":{"id":55417,"registerId":"commonwealth-C2004A05147-1775103662867","compilationNumber":null,"startDate":"2026-04-02","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"Part 1","sectionType":"part","heading":"Introduction","content":"## Part 1—Introduction","sortOrder":0},{"sectionNumber":"1","sectionType":"section","heading":"Short title","content":"#### 1 Short title\n\n  This Act may be cited as the Telecommunications (Carrier Licence Charges) Act 1997.","sortOrder":1},{"sectionNumber":"2","sectionType":"section","heading":"Commencement","content":"#### 2 Commencement\n\n  (1) Subject to this section, this Act commences on the day on which it receives the Royal Assent.\n  (2) If the day on which this Act receives the Royal Assent is a later day than 5 June 1997, this Act is taken to have commenced on 5 June 1997.","sortOrder":2},{"sectionNumber":"3","sectionType":"section","heading":"Act to bind Crown","content":"#### 3 Act to bind Crown\n\n  This Act binds the Crown in right of each of the States, of the Australian Capital Territory and of the Northern Territory.","sortOrder":3},{"sectionNumber":"4","sectionType":"section","heading":"Extension to eligible Territories","content":"#### 4 Extension to eligible Territories\n\n  (1) This Act extends to each eligible Territory.\n  (2) The operation of this Act in relation to Norfolk Island is not affected by the amendments made by Division 1 of Part 1 of Schedule 5 to the Territories Legislation Amendment Act 2016.","sortOrder":4},{"sectionNumber":"5","sectionType":"section","heading":"Interpretation","content":"#### 5 Interpretation\n\n  In this Act:\n\n> ACCC means the Australian Competition and Consumer Commission.\n\n> ACMA means the Australian Communications and Media Authority.\n\n> carrier has the same meaning as in the Telecommunications Act 1997.\n\n> carrier licence has the same meaning as in the Telecommunications Act 1997.\n\n> eligible Territory has the same meaning as in the Telecommunications Act 1997.","sortOrder":5},{"sectionNumber":"Part 2","sectionType":"part","heading":"Application charge","content":"## Part 2—Application charge","sortOrder":6},{"sectionNumber":"6","sectionType":"section","heading":"Definition of charge","content":"#### 6 Definition of charge\n\n  In this Part:\n\n> charge means charge imposed by this Part.","sortOrder":7},{"sectionNumber":"7","sectionType":"section","heading":"Imposition of charge","content":"#### 7 Imposition of charge\n\n  Charge is imposed on an application for a carrier licence.","sortOrder":8},{"sectionNumber":"8","sectionType":"section","heading":"By whom charge payable","content":"#### 8 By whom charge payable\n\n  Charge imposed on an application for a carrier licence is payable by the applicant.","sortOrder":9},{"sectionNumber":"9","sectionType":"section","heading":"Amount of charge","content":"#### 9 Amount of charge\n\n  (1) The amount of charge imposed on an application for a carrier licence is the amount ascertained in accordance with a written determination made by the ACMA.\n  (2) A determination under subsection (1) is a legislative instrument.","sortOrder":10},{"sectionNumber":"10","sectionType":"section","heading":"Maximum charge","content":"#### 10 Maximum charge\n\n  The amount of charge imposed on an application for a carrier licence must not exceed $100,000.","sortOrder":11},{"sectionNumber":"Part 3","sectionType":"part","heading":"Annual charge","content":"## Part 3—Annual charge","sortOrder":12},{"sectionNumber":"11","sectionType":"section","heading":"Definition of charge","content":"#### 11 Definition of charge\n\n  In this Part:\n\n> charge means charge imposed by this Part.","sortOrder":13},{"sectionNumber":"12","sectionType":"section","heading":"Imposition of charge","content":"#### 12 Imposition of charge\n\n  Charge is imposed on a carrier licence that is in force at the beginning of a financial year, where the financial year begins on or after 1 July 1998.","sortOrder":14},{"sectionNumber":"13","sectionType":"section","heading":"By whom charge payable","content":"#### 13 By whom charge payable\n\n  Charge imposed on a carrier licence is payable by the holder of the licence.","sortOrder":15},{"sectionNumber":"14","sectionType":"section","heading":"Amount of charge","content":"#### 14 Amount of charge\n\n  (1) The amount of charge imposed on a carrier licence is the amount ascertained in accordance with a written determination made by the ACMA.\n  (2) A determination under subsection (1) is a legislative instrument.","sortOrder":16},{"sectionNumber":"15","sectionType":"section","heading":"Limit on total of charges","content":"#### 15 Limit on total of charges\n\n  (1) 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:\n    (a) the amount determined, by a written instrument made by the ACMA, 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; and\n    (b) the amount determined, by a written instrument made by the ACCC, to be the proportion of the ACCC’s costs for the immediately preceding financial year that is attributable to the ACCC’s telecommunications functions and powers; and\n    (c) the amount determined, by a written instrument made by the ACMA, to be the proportion of the Commonwealth’s contribution to the budget of the International Telecommunication Union for the calendar year in which the beginning of the financial year occurs that is to be recovered from carriers; and\n    (ca) the amount determined, by a written instrument made by the ACMA, to be the sum of the amounts paid under section 136C of the Telecommunications Act 1997 during the immediately preceding financial year; and\n    (d) the amount determined, in a written instrument made by the Minister, to be the estimated total amount of grants likely to be made during the financial year under section 593 of the Telecommunications Act 1997.\n  (2) An instrument under subsection (1) is a legislative instrument.\n  (4) In this section:\n\n> ACCC’s telecommunications functions and powers has the same meaning as in the Telecommunications Act 1997.\n\n> ACMA’s telecommunications functions has the same meaning as in the Telecommunications Act 1997, but does not include functions conferred on the ACMA by or under:\n\n    (a) the Do Not Call Register Act 2006; or\n    (b) the Telecommunications Act 1997 to the extent to which that Act relates to the Do Not Call Register Act 2006; or\n    (c) Part 6 of the Telecommunications Act 1997 to the extent to which that Part relates to telemarketing activities (within the meaning of that Part).\n\n> ACMA’s telecommunications powers has the same meaning as in the Telecommunications Act 1997, but does not include powers conferred on the ACMA by or under:\n\n    (a) the Do Not Call Register Act 2006; or\n    (b) the Telecommunications Act 1997 to the extent to which that Act relates to the Do Not Call Register Act 2006; or\n    (c) Part 6 of the Telecommunications Act 1997 to the extent to which that Part relates to telemarketing activities (within the meaning of that Part).\n\n> cost:\n\n    (a) in relation to the ACMA, means an amount that, in accordance with accrual‑based accounting principles, is treated as a cost of the ACMA; and\n    (b) in relation to the ACCC, means an amount that, in accordance with accrual‑based accounting principles, is treated as a cost of the ACCC.","sortOrder":17}],"analysis":{"kimi_summary":{"content_quality":"ok","complexity_score":3,"scope_assessment":{"changed":false,"description":"The legislation remains focused on its original purpose of imposing charges on carrier licences. While section 15 has been amended over time to expand the cost recovery base (adding ITU contributions, section 136C payments, and regional grants), these changes represent incremental expansion within the original framework rather than scope creep into unrelated areas."},"complexity_factors":["Short statute with only 15 sections across 3 Parts","Minimal defined terms (only 7 definitions in the interpretation section, most referencing external legislation)","Simple structure: Part 2 covers one-off application charges, Part 3 covers recurring annual charges","Some complexity in section 15 with nested cost recovery formula involving multiple agencies (ACMA, ACCC, Minister) and specific exclusions for Do Not Call Register functions","Cross-references to the Telecommunications Act 1997 for key definitions (carrier, carrier licence, eligible Territory)","Legislative instrument requirements for fee determinations add procedural layer but not substantive complexity"],"plain_english_summary":"This law sets up a system for charging telecommunications companies (carriers) fees for their licences to operate in Australia.\n\n**What it does:**\n- **Application fee**: When a company applies for a carrier licence, they must pay a fee (up to $100,000). The exact amount is set by the communications regulator (ACMA).\n- **Annual fee**: Companies holding carrier licences must pay an annual charge for each financial year starting from 1 July 1998. The amount is also set by ACMA.\n\n**Who it affects:**\n- Telecommunications companies that hold or apply for carrier licences (the licences that let them own and operate telecom networks in Australia).\n- The regulators ACMA (Australian Communications and Media Authority) and ACCC (Australian Competition and Consumer Commission), who determine the fee amounts.\n\n**Why it matters:**\nThe annual charges are capped at a specific total amount that covers:\n- The regulators' costs for telecom-related work\n- Australia's contribution to the International Telecommunication Union (a UN agency)\n- Certain payments made under the Telecommunications Act\n- Estimated grants for regional telecom services\n\nThis ensures carriers collectively pay for the cost of regulating the industry and Australia's international telecom obligations, without the government making a profit."},"flash_summary":{"complexity_score":4,"scope_assessment":{"changed":false,"description":"The text establishes a framework for charging applicants and licence-holders for carrier licences, sets who pays, gives ACMA/ACCC/Minister roles in determining amounts, and prescribes numerical limits and accounting bases (see ss7–15). Nothing in the supplied text shows an alteration of the Act’s core scope from imposing and limiting application and annual carrier licence charges; the provisions define how charges are calculated, capped and recovered rather than expanding or narrowing the categories of persons or activities subject to charges."},"complexity_factors":["Multiple interlocking written determinations and legislative instruments set amounts (s9(1)–(2), s14(1)–(2), s15(2)).","Aggregate annual cap is computed from several distinct prior-year cost items and statutory payments (s15(1)(a)–(d), (ca)).","ACMA and ACCC must allocate their overall costs to telecommunications using accrual accounting rules (s15(4)), requiring accounting judgment and data.","Exclusions to ACMA’s telecommunications functions/powers (Do Not Call Register and telemarketing under Part 6) change the cost base (s15(4)).","Different payers and timing: application charge (when applying) vs annual charge (for licences in force at start of financial year) create separate compliance points (s7, s12).","Absolute cap on a single application charge ($100,000) plus a separate aggregate cap for annual charges introduces two parallel numerical limits (s10, s15).","Minister, ACMA and ACCC each have formal roles in setting components of the cap, creating distributed administrative responsibility (s15(1)).","Commencement rule with a retrospective-start clause (s2) and territorial/Crown application settings add formal technical detail (s2–s4)."],"plain_english_summary":"# What this law does (mechanics)\n\n- The Act creates two fees tied to Australian carrier licences: an application charge (charged when someone applies for a carrier licence) and an annual charge (charged each year for licences that are in force at the start of a financial year) (see s7, s12).\n- The applicant pays the application charge (s8). The holder of a carrier licence pays the annual charge (s13).\n- The Australian Communications and Media Authority (ACMA) decides the dollar amounts for the application charge and the annual charge by written determination; those determinations are legislative instruments (s9(1)–(2), s14(1)–(2)).\n- The application charge cannot exceed $100,000 (s10).\n- The total of all annual charges in a year cannot exceed a calculated cap. That cap is the sum of amounts determined by: (a) the ACMA to be the part of the ACMA’s prior-year costs attributable to telecommunications, (b) the ACCC to be the part of the ACCC’s prior-year costs attributable to telecommunications, (c) the ACMA to be the portion of the Commonwealth’s ITU contribution to be recovered from carriers, (ca) the ACMA to be the sum of amounts paid under section 136C of the Telecommunications Act 1997 during the prior year, and (d) the Minister to be the estimated total of grants payable under section 593 of the Telecommunications Act 1997 in the financial year (s15(1)(a)–(d), (ca)). Those determinations are legislative instruments (s15(2)).\n- The Act binds the Crown in each State and in the territories and extends to eligible Territories (s3, s4). The Act has a commencement rule that can treat the Act as starting on 5 June 1997 in certain circumstances (s2).\n\n# Stated purpose-claims and how they map to mechanics\n\n- The text sets up a system for carriers to fund a portion of telecommunications-related regulatory costs through specified charges. The mechanism for achieving that is: ACMA and ACCC measure their prior-year telecommunications-related costs and related items, and ACMA/ACCC/Minister make written determinations that set the amounts that limit total charges recoverable from carriers (s14, s15).\n\n# Who pays, who decides, and what changes behaviour\n\n- Who pays: applicants pay the application charge (s8); licence-holders pay the annual charge (s13).\n- Who decides amounts: ACMA determines individual application and annual charge amounts (s9(1), s14(1)); ACMA and ACCC each determine their attributable prior-year costs and related amounts that feed the annual-charge cap; the Minister determines an estimate of grants under s593 of the Telecommunications Act 1997 (s15(1)). All these determinations are made by written instruments that are legislative instruments (s9(2), s14(2), s15(2)).\n- Behavioural change: carriers and applicants face a direct cash cost when applying for licences and each year a licence remains in force at the start of the financial year. Those costs may influence decisions such as whether to apply for a licence, how many licences an entity holds, pricing of services, and how carriers allocate resources to regulatory compliance (s7, s8, s12, s13).\n\n# Costs, incentives and trade-offs (implementation, compliance and discretion)\n\n- Funding target and cost-recovery: the annual cap ties recoverable licence fees to measured prior-year costs of the ACMA and ACCC, plus specific international and statutory items (s15(1)). That links what carriers pay to recorded regulator costs in the previous year, rather than to a forward-looking fixed schedule.\n- Discretion and administrative control: ACMA and ACCC (and the Minister for one item) each determine amounts used in the cap; ACMA determines the per-application and per-licence amounts within statutory limits (s9(1), s14(1), s15(1)). These are legislative instruments (s9(2), s14(2), s15(2)), so the executive bodies make the numeric choices within the statutory framework.\n- Compliance burden: licence applicants and licence-holders must pay the imposed amounts; calculating and collecting the charges requires administrative interaction with ACMA (s7–s9, s12–s14). The Act defines \"cost\" for the ACMA and ACCC by reference to accrual-based accounting (s15(4)), which requires accounting procedures to establish the base figures.\n- Implementation timing and volatility: the cap is based on the immediately preceding financial year’s costs (s15(1)(a)–(b)), creating a lag between when regulator costs are incurred and when those costs are recovered from carriers. That design can produce year-to-year variability in the total recoverable amount.\n- Scope limits and exclusions: the Act excludes certain ACMA functions and powers from the telecommunications cost base — specifically functions and powers related to the Do Not Call Register Act 2006 and telemarketing activities under Part 6 of the Telecommunications Act 1997 (s15(4)). That changes which ACMA costs may be recovered via these charges.\n- Caps and legal limits: for applications the Act imposes an absolute ceiling ($100,000) on a single application charge (s10). For annual charges the aggregate is capped by the sum of specified items (s15(1)).\n\n# Effects on private enterprise, competition and individual choice (concise assessment)\n\n- Direct effect on private enterprise: carriers are the direct payers; these charges transfer a portion of regulator-related costs to market participants (s8, s13, s15).\n- Competition and pricing: the statute does not direct how carriers should absorb the charges; carriers can respond by raising prices, reducing costs elsewhere, or altering market participation. The law creates a predictable legal channel for regulators to recover costs but leaves economic responses to market actors (s9, s14, s15).\n- Contract freedom and ownership: the Act imposes statutory payment obligations but does not, in the text provided, alter contract rights or ownership structures beyond creating cost obligations for licence applicants and holders (s7, s12–s13).\n\n# Concentrated benefits, diffuse costs and risk points\n\n- Concentrated benefits: the identified beneficiaries of the charges are the ACMA and ACCC (and the Commonwealth budget items specified) which receive funding determined under the Act (s15(1)).\n- Diffuse costs: carriers collectively fund those amounts through application and annual charges (s7, s12, s13). Many licence-holders together bear the total.\n- Implementation risks: accurate attribution of \"telecommunications\" costs requires accounting judgments (the Act defines \"cost\" using accrual accounting) and the ACMA/ACCC must prepare legislative instruments each year to set amounts (s15(4), s9(2), s14(2), s15(2)). This creates administrative work and potential timing or estimation errors.\n\n# Key statutory references (selected)\n\n- Charges imposed on application: s7–s10\n- Annual charges and who pays: s11–s14\n- Aggregate cap and basis for cap: s15(1)–(4)\n- Determinations as legislative instruments: s9(2), s14(2), s15(2)\n- Binding Crown and territorial application: s3–s4\n- Commencement rule: s2\n\n"},"summary":{"complexity_score":4,"scope_assessment":{"changed":true,"description":"The Act's original scope has been incrementally expanded beyond its core cost-recovery purpose. Amendments added recovery of ITU (International Telecommunication Union) contribution costs, section 136C payments under the Telecommunications Act, and Minister-determined grant estimates — components not obviously inherent in a simple carrier licence charging regime. Conversely, Do Not Call Register costs were explicitly carved out, narrowing the ACMA cost-recovery scope. The Norfolk Island-specific provision also reflects scope adjustments following broader Territories legislation reform."},"complexity_factors":["References multiple external Acts (Telecommunications Act 1997, Do Not Call Register Act 2006, Territories Legislation Amendment Act 2016) requiring cross-reading to fully understand scope","Two distinct charging regimes (application and annual) with different rules, caps, and payers","Annual charge cap formula involves multiple components determined by different government bodies (ACMA, ACCC, Minister), adding administrative complexity","Specific exclusions for Do Not Call Register functions require careful parsing of defined terms like 'ACMA's telecommunications functions and powers'","Accrual-based accounting principles referenced without further explanation, requiring specialist knowledge to apply","Retrospective commencement provision (backdated to 5 June 1997) adds a minor interpretive wrinkle","Norfolk Island-specific carve-out adds a layer of territorial complexity"],"plain_english_summary":"## Telecommunications (Carrier Licence Charges) Act 1997\n\n### What does this law do?\nThis Act sets up a system of **fees that telecommunications carriers must pay** to operate in Australia. A 'carrier' is a company that owns and operates the physical infrastructure used to provide phone and internet services (like Telstra, Optus, or TPG).\n\nThere are **two types of charges**:\n\n1. **Application Charge** — A one-off fee paid when a company *applies* for a carrier licence (permission to operate as a telco). This fee is capped at **$100,000**, with the exact amount set by the Australian Communications and Media Authority (ACMA — Australia's communications regulator).\n\n2. **Annual Charge** — A yearly fee paid by every company that *holds* a carrier licence, charged each financial year from 1 July 1998 onwards. The exact amount is again set by the ACMA.\n\n### Who does this affect?\nAnyone who **owns or wants to own telecommunications infrastructure** in Australia — think large telcos, not individual consumers. Your phone or internet bill is not directly affected by this Act, though these costs may indirectly influence what carriers charge customers.\n\n### Why does it matter?\nThe annual charges are designed to **recover the costs of regulating the telco industry**. The total amount charged to all carriers combined cannot exceed the sum of:\n- The ACMA's costs for running telecommunications regulation\n- The ACCC's (Australian Competition and Consumer Commission — the competition watchdog) costs for overseeing telecommunications competition\n- Australia's contribution to the **International Telecommunication Union** (the United Nations body that coordinates global communications standards)\n- Certain payments made under the Telecommunications Act 1997\n- Estimated government grants to support telecommunications services\n\nImportantly, costs related to the **Do Not Call Register** (the list that stops telemarketers calling you) are *excluded* from what carriers can be charged — those costs are funded separately.\n\n### The bottom line\nThis is a cost-recovery mechanism: carriers pay fees to fund the government agencies that regulate them. The fees are capped and transparent, with the amounts publicly set through formal legal instruments."}},"importantCases":[],"_links":{"self":"/api/acts/telecommunications-carrier-licence-charges-act-1997","history":"/api/acts/telecommunications-carrier-licence-charges-act-1997/history","analysis":"/api/acts/telecommunications-carrier-licence-charges-act-1997/analysis","conflicts":"/api/acts/telecommunications-carrier-licence-charges-act-1997/conflicts","importantCases":"/api/acts/telecommunications-carrier-licence-charges-act-1997/important-cases","documents":"/api/acts/telecommunications-carrier-licence-charges-act-1997/documents"}}