EXPLANATORY STATEMENT
Issued by the authority of the Australian Communications and Media Authority
Radiocommunications (Foundation Category 2 Digital Radio Multiplex Transmitter Licence - Application Fee) Determination 2008
Radiocommunications Act 1992
Purpose
The Radiocommunications (Foundation Category 2 Digital Radio Multiplex Transmitter Licence - Application Fee) Determination 2008 (the Determination) sets the fee amount that is payable to ACMA by applicants who apply for foundation category 2 digital radio multiplex transmitter licences. This fee is $383 per application.
Legislative Provisions
Section 102D of the Radiocommunications Act 1992 (the Act) sets out the requirements to be met before a foundation category 2 digital radio multiplex transmitter licence can be issued. Paragraph 102D(2)(b) provides that ACMA must not issue a foundation category 2 digital radio multiplex transmitter licence unless the application is accompanied by a fee to be determined by ACMA by legislative instrument.
The Act at subsection 102D (9) requires that the fee for a foundation category 2 digital radio multiplex transmitter licence must not amount to taxation.
Background
On 10 May 2007, the Parliament passed the Broadcasting Legislation Amendment (Digital Radio) Act 2007 that, amongst other things, gives effect to the Government’s digital radio policy announced in October 2005 and facilitates the introduction of digital radio services by amending the Act and the Broadcasting Services Act 1992. Digital radio services will initially be introduced by 1 January 2009 in the six state capital cities, by commercial radio broadcasters, national broadcasters and wide-coverage community radio broadcasters. Introduction of digital radio to other areas will be considered later.
Operation
The Determination sets the amount of fee that is to accompany an application to ACMA for a foundation category 2 digital radio multiplex transmitter licence. This fee is $383.00 per application.
It is estimated that for ACMA to consider and process an application for a foundation category 2 digital radio multiplex transmitter licence would amount to two hours and twenty minutes work per application. Multiplied by the current ACMA cost recovery rate of $164 an hour set by the Radiocommunications (Charges) Determination 2007, this comes to $382.67 per application which is rounded up to $383.00.
Consultation
On 26 November 2007, ACMA wrote to all national, commercial and community radio broadcasting licensees which operate in the designated BSA radio areas which are to commence digital radio services by January 2009, inviting those persons to make submissions on the instruments. The draft determination was also published on the ACMA internet site on 28 November, inviting comments on the instrument.
ACMA ceased accepting comments on the draft determination on 5 December 2007, having received one submission from Commercial Radio Australia on the proposed arrangements. ACMA considered this submission when making these instruments.
Regulation Impact
ACMA obtained advice from its SES contact officer for the Government’s regulation impact analysis arrangements that the Determination has no or low impact. For those reasons under the self-assessment regime administered by the Office of Best Practice Regulation, ACMA has determined that there is no need to produce a Business Cost Calculator report or to prepare a Regulation Impact Statement. The ACMA RIS exemption reference number is ACMA 029
Advice from the Department of Finance and Deregulation indicates that due to the relatively minor cost incurred by ACMA in considering and processing the applications for the foundation category 2 digital radio multiplex transmitter licences, no Cost Recovery Impact Statement (CRIS) is required to be completed. In determining the fee ACMA cost recovery guidelines were followed.
Attachments
Details of the Determination are in Attachment 1.
ATTACHMENT 1
Notes on sections
Section 1 Name of Determination
This section provides for the name of the Determination.
Section 2 Commencement
This section provides for the Determination to commence on the day after it is registered.
Section 3 Definition
This section provides a definition for Act, being the Radiocommunications Act 1992.
Section 4 Amount of application fee
This section determines that the amount of the application fee is $383.
Overview
The Radiocommunications (Foundation Category 2 Digital Radio Multiplex Transmitter Licence - Application Fee) Determination 2008, enacted by the Australian Communications and Media Authority (ACMA), establishes the fee payable by applicants for a foundation category 2 digital radio multiplex transmitter licence. This Determination was introduced to address the need for a fee structure associated with the application process for digital radio licences as stipulated by the Radiocommunications Act 1992. The fee set forth in this Determination is $383 per application, calculated based on the estimated time and cost required by ACMA to process each application. This legislative instrument ensures that the fee collected does not amount to taxation and follows ACMA’s cost recovery guidelines. The Determination came into effect following consultation with relevant industry stakeholders and was deemed to have no or low regulatory impact.
Scope and Application
The Radiocommunications (Foundation Category 2 Digital Radio Multiplex Transmitter Licence - Application Fee) Determination 2008 applies to any entity or person seeking to apply for a foundation category 2 digital radio multiplex transmitter licence in accordance with section 102D of the Radiocommunications Act 1992. This includes commercial, national, and wide-coverage community radio broadcasters, and it is specifically targeted at those entities intending to commence digital radio services in the six state capital cities by 1 January 2009 as mandated by the Broadcasting Legislation Amendment (Digital Radio) Act 2007. The geographic reach of this Determination is national, as it pertains to the overarching framework established by the Commonwealth under the Radiocommunications Act 1992. There are no stated exclusions or exemptions in this Determination; however, it is limited to the specific context of application fees for the stated licence type. The application fee is set at $383 per application, which is derived from ACMA's cost recovery rate and the estimated time required to process each application. This amount is not considered taxation, aligning with the legislative requirements outlined in the Radiocommunications Act 1992.
Key Provisions
The Radiocommunications (Foundation Category 2 Digital Radio Multiplex Transmitter Licence - Application Fee) Determination 2008 (the Determination) (Section 1) sets out the fee applicants must pay to the Australian Communications and Media Authority (ACMA) when applying for a foundation category 2 digital radio multiplex transmitter licence under Section 102D of the Radiocommunications Act 1992 (the Act). The fee specified in Section 4 of the Determination is $383 per application. This Determination came into effect the day after it was registered, as outlined in Section 2.
Applicants must ensure they pay the specified fee of $383 when submitting their application to ACMA, as required by Paragraph 102D(2)(b) of the Act. The fee is determined by ACMA through this legislative instrument to ensure a clear and consistent process for applicants. The Act mandates that this fee must not be considered as taxation, in accordance with Subsection 102D(9). This requirement ensures the fee is purely administrative and not a form of taxation, thereby maintaining the distinction between regulatory fees and government revenue.
The obligations under this Determination fall on applicants for foundation category 2 digital radio multiplex transmitter licences. They must adhere to the fee structure outlined in Section 4 of the Determination, ensuring the correct amount is paid with their application. ACMA is responsible for processing these applications and must consider them in accordance with their cost recovery guidelines, which were followed in setting the fee amount. The Determination ensures that the fee covers the estimated cost of processing each application, which is calculated based on the work hours required and the hourly cost recovery rate set by the Radiocommunications (Charges) Determination 2007.
Breaches of the requirements set out in the Determination may lead to administrative consequences. However, the primary focus is on ensuring compliance with the fee structure to facilitate smooth processing of applications. While the Determination itself does not explicitly state penalties for non-payment or incorrect payment of the fee, failure to comply with the fee requirements could potentially delay or prevent the processing of the licence application. The Act and associated regulations may provide for additional penalties or consequences for non-compliance with related administrative requirements.