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2002-2003-2004
THE PARLIAMENT OF THE
COMMONWEALTH OF
AUSTRALIA
SENATE
POSTAL
SERVICES LEGISLATION AMENDMENT BILL
2003
SUPPLEMENTARY EXPLANATORY
MEMORANDUM
Amendment to be moved on behalf of the
Government
(Circulated by authority of the Minister for
Communications, Information Technology and the Arts,
the Hon. Daryl
Williams AM QC MP)
AMENDMENT TO THE POSTAL SERVICES LEGISLATION AMENDMENT
BILL 2003
OUTLINE
The Postal Services Legislation Amendment Bill 2003 (the Bill) makes
amendments to the Australian Communications Authority Act 1997, the
Australian Postal Corporation Act 1989 (the Act), and the Trade
Practices Act 1974 to address various regulatory and consumer issues
relating to Australia Post.
Currently, proposed section 56A of the Act
(in item 22 in Schedule 1 to the Bill) in effect provides for an annual levy to
be imposed on Australia Post to fund the new roles of the Australian
Communications Authority (ACA) and the Australian Competition and Consumer
Commission (ACCC), as provided for by the Bill. It is proposed to amend item 22
in Schedule 1 to the Bill to omit proposed section 56A and insert new proposed
section 56A.
The purpose of new proposed section 56A is to ensure that
the ACA and ACCC are able to collect the levy from Australia Post on behalf of
the Commonwealth and to remove the need for a standing appropriation to deal
with any over-payment made by Australia Post to the ACA or the ACCC.
The proposed Government amendment is not expected to have any significant
impact on Commonwealth expenditure or revenue.
ABBREVIATIONS
The following abbreviations are used in this supplementary explanatory
memorandum:
ACCC: Australian Competition and Consumer
Commission
ACA: Australian Communications Authority
ACA
Act: Australian Communications Authority Act 1997
Bill: Postal Services Legislation Amendment Bill 2003
NOTES ON AMENDMENT
POSTAL SERVICES LEGISLATION AMENDMENT BILL
2003
Amendment (1) amends item 22 in Schedule 1 to the Bill by omitting
proposed section 56A and inserting new proposed section 56A.
Currently,
proposed section 56A provides that the Minister may direct Australia Post to pay
a levy to the Commonwealth based on an estimation of the costs of the ACA and
ACCC, for a financial year, in carrying out their postal functions. As it is
expected that the Minister would direct Australia Post to pay the levy in the
same financial year in which the costs are incurred, proposed section 56A also
provides a mechanism to adjust any over- or under-payment made by Australia Post
if, at the end of the financial year, it is determined that the actual costs of
the ACA and/or the ACCC have been greater or smaller than originally estimated
by the Minister. The reimbursement of an overpayment by the Commonwealth to
Australia Post is currently covered by a standing appropriation (proposed
subsection 56A(6)).
The purpose of Amendment (1) is to ensure that the ACA and ACCC are able to
collect the levy from Australia Post on behalf of the Commonwealth and to remove
the need for a standing appropriation to cover any over-payment that has been
paid by Australia Post to the ACA or the ACCC.
Amendment (1) would
provide for the ACA and ACCC to collect the levy, on the Commonwealth’s
behalf (proposed new subsection 56A(3)). This approach to the recovery of the
levy would be similar to the approach that applies under telecommunications
legislation for the collection of fees and charges. As the ACA is responsible
under telecommunications legislation for the collection of all fees and charges
on behalf of the Commonwealth, it is proposed that the ACA and ACCC should be
responsible for recovering their own costs in relation to their postal functions
on behalf of the Commonwealth.
To avoid having a separate process for the
adjustment of an under- or over-payment made by Australia Post, and a standing
appropriation to deal with over-payments, new proposed section 56A enables the
Minister to direct Australia Post to pay a single amount in a financial year to
both the ACA and ACCC. This payment would comprise the estimated costs of the
ACA or the ACCC for that financial year, adjusted to take into account any
difference between the ACA’s or the ACCC’s actual costs for the
previous financial year and the ACA’s or the ACCC’s estimated costs
for the previous financial year.
Under proposed new subsection 56A(1),
the Minister would be able to notify Australia Post of the estimated costs of
the ACA and ACCC for a financial year. The Minister would also be able to
determine, in a financial year, the actual costs of the ACA and ACCC for the
previous financial year (proposed new subsection 56A(2)). The Minister would be
able to direct Australia Post, under proposed new subsection 56A(3), to pay to
the ACA the Minister’s estimate of the ACA’s costs for the financial
year, adjusted in accordance with proposed new subsections 56A(4) or (5). The
Minister would also be able to direct Australia Post to pay to the ACCC the
Minister’s estimate of the ACCC’s costs for the financial year,
adjusted in accordance with proposed new subsections 56A(7) or (8).
Under
proposed new subsection 56A(6) the ACA which, unlike the ACCC, holds money on
its own account (see section 43 of the ACA Act) will be required to bank any
amount it receives from Australia Post on behalf of the Commonwealth in a
separate official account as soon as practicable.