[AusNOG] From Commsday - Small carriers to get levies break

[Skeeve Stevens]

Small carriers to get levies break


The majority of Australian carriers would be exempt from paying universal service and national relay service levies under draft legislation put forward by communications minister Stephen Conroy, while most could also be exempt from the annual carrier licence charge in future.


The proposals come in the draft Telecommunications (Participating Persons) Determination 2011, which has now been released for public consultation. According to the minister, the aim of the draft determination is to remove unnecessary regulatory red tape for small telecommunications carriers.


In the current regulatory regime, telcos pay USO and NRS levies based on their eligible revenue. However, under the proposed draft, an eligible revenue threshold of $25 million would be set. Accord- ing to the Australian Communication and Media Authority’s 2008–09 eligible revenue assessment, 170 of 194 carriers had eligible revenue of less than $25 million and would be exempt under the proposed draft changes.


Conroy said the move was part of the government's commitment to streamlining the eligible revenue assessment process. “It will reduce the regulatory compliance costs for smaller carriers as well as reduce administrative costs for the ACMA,” he noted.


As well as the levies, the minister said the government would also take steps to exempt smaller carri- ers from paying the annual carrier licence charge.


To calculate eligible revenue, carriers are required to submit an eligible revenue return to the ACMA at the end of each financial year, which includes a form and supporting documents including an inde- pendent auditors report. The ACMA then uses the information to assess each carrier’s eligible revenue, which is used to calculate a carrier’s contribution to the USO and NRS levies.


The ACMA also currently uses eligible revenue to calculate the variable component of a carrier’s an- nual carrier licence charge. The annual carrier licence charge also includes a fixed component.


However, according to the draft, for smaller carriers the cost of preparing and submitting their eligi- ble revenue return will often exceed their actual contribution to the levies.


The draft also noted that a $25 million eligible revenue threshold has been selected because it would align more closely with reporting processes mandated for Australian businesses under Commonwealth legislation and regulations. It will allow the ACMA to align its requirements with the Corporations Act so that a company required to submit a return under the act would be required to submit a return to the ACMA.


The communications minister will also issue a direction to the ACMA to make necessary changes under the Telecommunications (Carrier Licence Charges) Act 1997 to exempt carriers with eligible reve- nue of less than $25 million from paying the annual carrier licence charges. The ACMA is expected to consult on this at a later time.


Comments on the draft ministerial directive are due on May 16.

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>From Commsday 10220503.  Check them out @ www.commsday.com.au and get the news before other people do.



...Skeeve



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