EXPLANATORY STATEMENT
Radiocommunications (Frequency Reservation Certificate Tax) Regulation (Amendment)
Statutory Rule 1990 No. 362
Issued by the Authority of the Minister for Transport and Communications
Section 9 of the Radiocommunications (Frequency Reservation Certificate Tax) Act 1983 (the Act) provides that the Governor-General may make regulations prescribing the amounts of tax in respect of the grant of frequency reservation certificates pursuant to section 21 of the Radiocommunications Act 1983.
Frequency reservation certificates have the effect of reserving a frequency or frequencies for the use of a person who intends to apply in future for a radiocommunications transmitter licence, but who needs further time to make technical arrangements such as obtaining suitable equipment. Frequency reservation certificates are generally granted only in respect of those classes of licence where a substantial capital expenditure is likely to be incurred for the necessary equipment.
Certificates are divided into two classes: one relating to frequencies below 1 GHz, while the other relates to frequencies above and including 1 GHz. Different rates of tax are imposed for these two classes of certificate.
Subsection 21(13) of the Radiocommunications Act provides that a frequency reservation certificate may be granted with respect to a specified area. While the practice has been that a certificate is granted with respect to only one frequency at one site, it is possible for a certificate to be granted with respect to one frequency at many sites or Australia-wide. Previously, it was not clear that the tax payable with respect to the classes of certificate is payable with respect to each frequency at each site.
The amending regulations make it clear that the amount of tax payable with respect to the grant of a certificate is payable with respect to each frequency at each site.
The amending regulations also increase the amounts of tax payable in respect of the grant of frequency reservation certificates by 7.7% in line with inflation, in accordance with decisions made by the Government in the Budget context.
The amending regulations commence on 1 December 1990.