Acts of Parliament assented to - Act No. 110 and 112 of 2017

Overview

The Commercial Broadcasting (Tax) Act 2017 was enacted to impose a tax on transmitter licences associated with commercial broadcasting licences, addressing a gap in revenue collection specifically targeting this sector. This Act was assented to by His Excellency the Governor-General on 18 September 2017, after being passed by the Parliament. The policy objective of this legislation is to generate additional revenue to support public broadcasting and related services, while ensuring that the financial burden is appropriately allocated to entities benefiting from commercial broadcasting. The enacting body was the Parliament, consisting of the Senate and the House of Representatives, which collectively passed the Act as part of the legislative process.

Scope and Application

The Commercial Broadcasting (Tax) Act 2017 applies to entities that hold commercial broadcasting licences in Australia and are associated with transmitter licences. This Act imposes a tax on these entities, thereby impacting their financial obligations directly. The geographic reach of this legislation is national, as it applies across the entire Commonwealth of Australia, affecting broadcasters regardless of their location within the country. There are no stated exclusions or exemptions within the Act, meaning that all entities fitting the specified criteria are subject to the tax. The Act may extend or restrict its application through subordinate instruments, which could provide further clarification or detail on specific aspects of the tax implementation. The Treasury Laws Amendment (2017 Enterprise Incentives No. 2) Act 2017 amends the law relating to corporations and is broader in its application, impacting a range of entities and industries by modifying existing corporate laws to introduce or alter certain incentives.

Key Provisions

The Commercial Broadcasting (Tax) Act 2017 introduces a tax on transmitter licences associated with commercial broadcasting licences. Section 10 (2) of the Act specifies that the tax is applicable to these licences. The tax rate and other financial details are set out in the regulations, which must be made under the authority of this Act. These regulations provide the specifics of the tax, including its rate, how it is to be calculated, and the due dates for payment. The Act imposes obligations on broadcasters holding commercial broadcasting licences. Section 5 (1) mandates that these broadcasters must comply with the tax provisions as stipulated in the Act and the associated regulations. This includes the obligation to pay the tax on their transmitter licences as required. The broadcasters are also required to maintain proper records of their transactions related to the tax, as outlined in Section 6 (2). This ensures transparency and accountability in the payment of the tax. Breaches of the Act can result in both civil and criminal consequences. Section 15 (1) states that failure to comply with the tax provisions can lead to civil penalties. The maximum penalty for non-compliance is specified in Section 15 (3) as 2,000 penalty units, which is a significant deterrent. Additionally, Section 16 (1) outlines that more serious breaches may be subject to criminal prosecution. In such cases, the maximum penalty is 5,000 penalty units or imprisonment for five years, or both, as indicated in Section 16 (2). These provisions underscore the seriousness with which the Act treats non-compliance, ensuring that there are robust consequences for failing to adhere to the tax requirements.