EXPLANATORY STATEMENT
STATUTORY RULE 1987 NO. 59
ISSUED BY THE AUTHORITY OF THE MINISTER FOR COMMUNICATIONS
Section 9 of the Radiocommunications (Receiver Licence Tax) Act 1983 (the ‘Act’) provides that the Governor-General may make regulations for the purposes of section 7 of the Act.
Amongst other things section 7 provides that the amount of tax in respect of the grant of a receiver licence is such amount as is ascertained in accordance with regulations.
Sub-regulation 3(2) of the Radiocommunications (Receiver Licence Tax) Regulations sets minimum amounts of tax for licences which are issued for periods of less than one year.
The regulation inserts a new sub-regulation 3(2A) which waives the minimum tax requirement imposed by sub-regulation 3(2) in relation to a licence issued for a period of less than one year for the purpose of bringing about a common renewal date with another licence issued under the Act. Without such a waiver there is a financial disincentive to persons applying for shorter licences in order to achieve common renewal dates. The creation of common renewal dates reduces the administrative costs of licensing under the Act.
The opportunity has also been taken to amend sub-regulation 3 (2) to remove an ambiguity from the previous minimum tax provisions. The new sub-regulation 3(2) makes it clear that in the case of a licence for which the annual tax does not exceed $40 the minimum tax is 75% of the annual amount. In the case of a licence for which the annual tax exceeds $40 the minimum tax is $30.