Television Licence Fees Regulations (Amendment) (Cth)

        

Statutory

Rules1991No. 79 1

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Television Licence Fees Regulations 2(Amendment)

I, THE GOVERNOR-GENERAL of the Commonwealth of Australia, acting with the advice of the Federal Executive Council, hereby make the following Regulations under the Television Licence Fees Act 1964.

 Dated 18 April 1991.

  BILL HAYDEN

 Governor-General

 By His Excellency’s Command,

KIM C. BEAZLEY

Minister of State for Transport

and Communications

____________

 

1.   Commencement

1.1   These Regulations are taken to have commenced on 1 January 1991.

  

2.   Amendment

2.1   The Television Licence Fees Regulations are amended as set out in these Regulations.

   

3.   Application

3.1 Subject to subregulation 3.2, the amendments of the Television Licence Fees Regulations made by these Regulations apply to fees payable by licensees on or after 1 January 1991.

 

3.2 The amendments of the Television Licence Fees Regulations made by these Regulations apply to fees payable on or after 1 January 1990 by licensees who hold licences in Approved Market C, being an approved market specified in the Indicative Plan published by the Minister under section 94E of the Broadcasting Act 1942 in the Gazette on 26 August 1987.

  

4.   Regulation 2 (Interpretation)

4.1   Insert the following definition:

“‘unused credit amount’, in relation to a licensee or new licensee, means the amount by which $1,600,000 exceeds the fee payable by the licensee or new licensee in respect of one year;”.

  

5.   New Regulation 2A

5.1   After regulation 2, insert:

 

Rebates of fees

“2A.

(1)  These Regulations make provision for rebates of fees payable by licensees.

“(2)

A rebate of fees for a period may be payable to a person under Rebate Scheme A or Rebate Scheme B but not under both Schemes.

“(3)

Rebate Scheme A will only apply to a person in respect of a period if the amount of rebate to which the person would be entitled for a year under that Scheme would be greater than the amount of rebate to which the person would be entitled under Rebate Scheme B.

“(4)

Examples included with these Regulations are provided to show how the substantive provisions are intended to operate, but they do not override those provisions.”.

   

6.   Regulation 3 (Rebate Scheme A—commercial television licence rebates)

6.1   Paragraph 3(1)(a):

After “approved market”, insert “or in Tasmania”.

6.2   Paragraph 3(2)(a):

After “approved market”, insert “or in Tasmania”.

6.3   Subregulation 3(2):

After paragraph (c), insert:

“and (d)

the licensee has taken reasonable steps to comply with the  implementation plan applicable to that licensee in respect  of that licence;”.

  

7.   Regulation 4 (Rebate Scheme A—consolidated licence rebates)

7.1   Subregulation 4(1):

After paragraph (b), insert:

• “and (c)

  the new licensee has taken reasonable steps to comply with the implementation plan applicable to that licensee in respect of that licence;”.

  

8.   New regulations 5 and 6

8.1   After regulation 4, insert:

Rebate Scheme B—commercial television licence rebates

“5.

(1)  This regulation applies to a licensee who holds a commercial television licence:

(a)

in an approved market; and

(b)

for which a fee is payable.

“(2)

If:

• (a)

  a licensee notifies the Tribunal in writing that the licensee claims a rebate of fees payable by the licensee for a commercial television licence in an approved market; and

(b)

the Minister has directed the Tribunal under section 94S of the Broadcasting Act 1942 to extend the service area of  that licence: and

• (c)

  in a case where there is no unused credit amount in relation to the licensee—the licence has not been in force for more than 6 years since the direction was given; and

(d)

the licensee has taken reasonable steps to comply with the  implementation plan applicable to that licensee in respect  of that licence;

the licensee is entitled to a rebate of those fees.

“(3)

If a licensee is entitled to a rebate of fees, the amount of rebate to which the licensee is entitled for a year is:

(a)

if the fee payable by the licensee is the fee payable on an  anniversary of the date of commencement of the licence  that occurs before the seventh anniversary of that date:

 (i) while the licence is in force, or during the 24 months immediately following the expiration of the licence; and

(ii) after the Minister has directed the Tribunal under section 94S of the Broadcasting Act 1942 to extend the service area of the licence; and

 (iii) if there is no unused credit amount in relation to the licensee;

 an amount equal to the amount of that fee, or $1,600,000, whichever is the lesser; and

• (b)

  if the fee payable by the licensee is the fee payable on or after the seventh anniversary of that date—nil, unless there is an unused credit amount in relation to the licensee.

“(4)

If a licensee is entitled to a rebate of fees and there is an unused credit amount in relation to that licensee, the amount of rebate to which the licensee is entitled for a year is:

 (a) if the fee payable by the licensee is the fee payable on an  anniversary of the date of commencement of the licence  that occurs before the seventh anniversary of that date:

 (i) while the licence is in force, or during the 24 months immediately following the expiration of the licence; and

(ii) after the Minister has directed the Tribunal under section 94S of the Broadcasting Act 1942 to extend the service area of the licence;

 an amount equal to the amount of that fee, or the sum of $1,600,000 and the unused credit amount, whichever is the lesser, and the unused credit amount is reduced by the amount (if any) by which the amount of rebate exceeds $1,600,000; and

• (b)

  if the fee payable by the licensee is the fee payable on or after the seventh anniversary of that date—an amount not exceeding the amount of that fee, or the unused credit amount, whichever is the lesser, and the unused credit amount is reduced by the amount of rebate.

“(5)

In spite of subregulations (3) and (4), if the Minister has directed the Tribunal under section 94S of the Broadcasting Act 1942 to extend theservice area of a commercial television licence held by a licensee to a part of an approved market, the amount of $1,600,000 referred to in subregulations (3) and (4) is to be read as the amount worked out using the formula:

Service Area Population

$1,600,000 x ————————————————

Approved Market Population

where:

‘Service Area Population’means the number specified, in a notice in force under section 91aad of the Broadcasting Act 1942, as the population of the service area of the licence;

‘Approved Market Population’ means the population of the approved market in which the licensee holds the licence, as determined by reference to sections 91aad and 94c of that Act.

Rebate Scheme B—consolidated licence rebates

“6.

(1)  If:

• (a)

  one or more of the former licensees in relation to a consolidated licence would have been entitled to a rebate under regulation 5 for the former licence on the relevant anniversary in relation to that former licence; and

• (b)

  the new licensee notifies the Tribunal in writing that the licensee claims a rebate of fees payable for the consolidated licence; and

• (c)

  the new licensee has taken reasonable steps to comply with the implementation plan applicable to that licensee in respect of that licence;

the new licensee is entitled to a rebate of those fees.

“(2)

If more than one former licensee in relation to a consolidated licence would have been entitled to a rebate under regulation 5 for a former licence on its relevant anniversary, the rebate to which the holder

of the consolidated licence is entitled is to be worked out as if the relevant anniversary referred to in subregulation (1) is the anniversary of the former licence in relation to which the direction day first occurs.

“(3)

If a licensee is entitled to a rebate of fees, the amount of rebate to which the new licensee is entitled for a year is:

• (a)

  if the fee payable by the new licensee is the fee payable on an anniversary of the date of commencement of the consolidated licence that occurs:

 (i) before the seventh anniversary of that date; and

 (ii) while the licence is in force or during the 24 months immediately following the expiration of the licence; and

 (iii) if there is no unused credit amount in relation to one or more of the former licensees or the new licensee;

 an amount equal to the amount of that fee, or $1,600,000, whichever is the lesser; and

• (b) 

  if the fee payable by the new licensee is the fee payable on or after the seventh such anniversary—nil, unless there is an unused credit amount in relation to one or more of the former licensees or the new licensee.

“(4)

If a licensee is entitled to a rebate of fees and there is an unused credit amount in relation to one or more of the former licensees or the new licensee, the amount of rebate to which the new licensee is entitled for a year is:

• (a)

  if the fee payable by the new licensee is the fee payable on an anniversary of the date of commencement of the consolidated licence that occurs before the seventh anniversary of that date:

 (i) while the licence is in force; or

 (ii) during the 24 months immediately following the expiration of the licence;

 an amount equal to the amount of that fee, or the sum of $1,600,000 and the unused credit amount, whichever is the lesser, and the unused credit amount is reduced by the amount (if any) by which the amount of rebate exceeds $1,600,000; and

• (b) 

  if the fee payable by the new licensee is the fee payable on or after the seventh anniversary of that date—an amount not exceeding the amount of that fee, or the unused credit

 

 amount, whichever is the lesser, and the unused credit amount is reduced by the amount of rebate.

“(5)

In spite of subregulations (3) and (4), if the Minister has directed the Tribunal under section 94S of the Broadcasting Act 1942 to extend theservice area of a commercial television licence held by a new licensee to a part of an approved market, the amount of $1,600,000 referred to in subregulations (3) an (4) is to be read as the amount worked out using the formula:

Service Area Population

$1,600,000 x ————————————————

Approved Market Population

where:

‘Service Area Population’means the number specified, in a notice in force under section 91aad of the Broadcasting Act 1942, as the population of the service area of the licence;

‘Approved Market Population’ means the population of the approved market in which the new licensee holds the licence, as determined by reference to sections 91aad and 94c of that Act.”.

Note: Under subsection 94c(1) of the Act, each area that is an approved market consists of the combined service areas of 2 or more regional licences.

  

EXAMPLE 1

 Year 1

Year 2 Year 3 Year 4 Year 5 Year 6

$ m

$ m $ m $ m $ m $ m

Fee 1.90 2.38 2.70 3.00 3.50 3.60

Rebate 1.90 1.78 1.60 1.60 1.60 1.60

 

In years 1 and 2, the amount of rebate to which the licensee would be entitled under  Rebate Scheme A would be greater than the amount to which the licensee would be entitled under Rebate Scheme B. Consequently, in those years, Rebate Scheme A would apply to the licensee who would be entitled to a 100% rebate in year 1 and a 75% rebate in year 2.

 

In subsequent years, the amount of rebate to which the licensee would be entitled under Rebate Scheme B would be greater than that applying under Rebate Scheme A.

 Consequently, in those years, Rebate Scheme B would apply to the licensee who

 

EXAMPLE 1 - continued

 

would be entitled to a rebate of $1.60 million in each year.

 In cases where there is

no unused credit amount brought forward from previous years, $1.60 million is the maximum annual rebate under that Scheme.

 

Note: For a definition of“unused credit amount” see regulation 2.

  

EXAMPLE 2

Year 1

Year 2 Year 3 Year 4 Year 5 Year 6 Year 7

$ m

$ m $ m $ m $ m $ m $ m

Fee 0.95 1.80 2.00 2.25 2.50 2.60 2.70

Rebate 0.95 1.80 2.00 1.65 1.60 1.60 nil

Unused

credit

amount 0.65 0.45 0.05 nil nil nil nil

 

In year 1, the amount of rebate to which the licensee would be entitled would be the same under either Scheme.

 Consequently, in year 1, Rebate Scheme B would apply to the licencee who would be entitled to a rebate equalling the amount of the fee payable ($0.95 million).  The difference between that amount and the standard maximum annual rebate under that Scheme ($1.60 million), would be carried forward as an unused credit amount ($0.65 million).

 

In year 2 and subsequent years, Rebate Scheme B would continue to apply to the licensee.

 Rebates in years 2, 3 and 4 could not exceed the amount of the fee payable by the licensee for each of those years and would be made up of the sum of the standard maximum annual rebate ($1.60 million) and an amount deducted from the unused credit amount brought forward from year 1.

 

After year 4, there would no unused credit amount left in relation to the licensee. Consequently, in years 5 and 6, the licensee would be entitled to a rebate of $1.60 million only, namely the standard maximum annual rebate. In year 7, the licensee would not be entitled to a rebate because where there is no unused credit amount brought forward from previous years Rebate Scheme B operates for 6 years only.

 

Note: For a definition of“unused credit amount” see regulation 2.

        

EXAMPLE 3

 

  Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8

 $ m $ m $ m $ m $ m $ m $ m $ m

Fee 1.52 1.10 1.16 1.16 1.25 1.40 1.58 1.70

Rebate 1.52 1.10 1.16 1.16 1.25 1.40 1.58 0.43

Unused

credit

amount 0.08 0.58 1.02 1.46 1.81 2.01 0.43 nil

 

As in Example 2 above, Rebate Scheme B would apply to the licensee.

  In years 1 to 6, the licensee would be entitled to rebates equalling the amounts of the fees payable and, each year, the difference between those amounts and the standard maximum annual rebate under Rebate Scheme B ($1.60 million) would be carried forward as an unused credit amount.

 

Where there is no unused credit amount brought forward from previous years, Rebate Scheme B operates for 6 years only. In this Example, however, at the end of year 6 the licensee has an unused credit amount of $ 2.01 million. Consequently, in year 7, the licensee would be entitled to a rebate equalling the amount of the fee payable ($1.58 million) and that amount would be deducted from

the unused credit amount. In year 8, the licensee would be entitled to a final rebate of $0.43 million representing the remaining balance of the unused credit amount.

 

Note: For a definition of“unused credit amount” see regulation 2.

  

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NOTES

1. Notified in the Commonwealth of Australia Gazette on 30 April 1991.

 

2. Statutory Rules 1990 No. 3.