EXPLANATORY STATEMENT
STATUTORY RULE NO. 198 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 the regulations.
Sub-regulation 3(2) of the Radiocommunications (Receiver Licence Tax) Regulations (‘the Regulations’) formerly provided that where a licence was granted for a period of less than one year and the amount of tax in respect of the grant of that licence would, but for sub-regulation 3(2), have been less than $30 the amount of tax in respect of the licence was $30 or the amount for one year, whichever was the less.
The regulation omits the current sub-regulation 3(2) and substitutes a new sub-regulation. The new sub-regulation provides that where the amount of tax in respect of the grant of a receiver licence would, but for the sub-regulation, be $30 or less, the amount of tax is to be $30 or 75% of the amount for one year, whichever is the less.
The effect of the amendment is to allow the Minister to grant licence for periods of less than one year with tax payable on a pro-rata basis. However, a minimum amount of tax of $30 or 75% of the amount of tax for one year is specified for the grant of any licence to ensure that the administrative costs of the licensing scheme are recovered. The previous minimum tax amount of $30 or 100% of the annual amount has been changed to $30 or 75% of the annual amount to enable the Minister to accept certain payments of less than the annual amount which previously could not be accepted.
Authority: Section 9 Radiocommunications (Receiver Licence Tax) Act 1983