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.
Overview
The Radiocommunications (Frequency Reservation Certificate Tax) Regulation (Amendment) Statutory Rule 1990 No. 362, issued under the authority of the Minister for Transport and Communications, amends the Radiocommunications (Frequency Reservation Certificate Tax) Act 1983. This legislation was enacted to address the ambiguity regarding the tax liability on frequency reservation certificates granted for multiple sites or Australia-wide. The policy objective is to clarify the tax obligations for frequency reservation certificates and ensure they are aligned with inflation, thereby maintaining the financial sustainability of the regulatory framework. The amendments make it explicit that tax is payable for each frequency at each site and adjust the tax rates by 7.7% to reflect inflationary changes, as determined in the Budget context. These regulations commenced on 1 December 1990.
Scope and Application
The Radiocommunications (Frequency Reservation Certificate Tax) Regulation (Amendment) Statutory Rule 1990 No. 362 applies to entities seeking to obtain frequency reservation certificates in Australia under the Radiocommunications Act 1983. These certificates are intended for those who need to reserve radio frequencies for future use in the application for a radiocommunications transmitter licence, particularly where significant capital investment in equipment is involved. The certificates are classified based on the frequency band, with distinct tax rates for frequencies below 1 GHz and those at or above 1 GHz. The regulations clarify that the tax is applicable per frequency at each site specified in the certificate, resolving ambiguities in the previous practice. The tax rates are adjusted to reflect inflation, increasing by 7.7% to align with budgetary decisions. The amendments come into effect from 1 December 1990, impacting all persons or entities that apply for frequency reservation certificates from that date onwards across Australia.
Key Provisions
The main operative sections of the Radiocommunications (Frequency Reservation Certificate Tax) Regulation (Amendment) Statutory Rule 1990 No. 362 clarify that the tax payable for the grant of frequency reservation certificates is applicable per frequency at each site. This amendment rectifies a previous ambiguity regarding the tax liability, ensuring that it is explicitly stated that the tax applies to each frequency at each site where the certificate is effective (section 9). This change is crucial for entities applying for frequency reservation certificates, as it provides clear guidance on the scope of their tax obligations.
These regulations impose specific obligations on entities seeking frequency reservation certificates. They must now ensure that they account for the tax liability on a per-frequency basis at each site where the certificate is valid. This means that if a certificate covers multiple frequencies or sites, the tax must be calculated and paid for each individual frequency at each site. This requirement enhances transparency and accuracy in the tax obligations of these entities, ensuring they do not underestimate their liabilities (subsection 21(13)).
Failure to comply with these tax obligations can result in various consequences. Although the specific offences and penalties are not detailed in the provided text, it is reasonable to infer that non-compliance with tax regulations could lead to legal repercussions. Typically, such breaches might result in fines, interest on unpaid taxes, or other civil penalties as prescribed by the Radiocommunications Act 1983. While the exact penalties are not stated in the amending regulations, they likely align with those set out in the principal Act or other relevant legislation. This highlights the importance for entities to adhere strictly to the tax provisions to avoid any potential legal and financial consequences.