EXPLANATORY STATEMENT
Issued by the Authority of the Australian Communications and Media Authority
Radiocommunications (Transmitter Licence Tax) Amendment Determination 2007 (No. 2)
Radiocommunications Act 1992
Legislative Provisions
Subsection 7 (1) of the Radiocommunications (Transmitter Licence Tax) Act 1983 (the Act) provides that the Australian Communications Authority (ACA), now the Australian Communications and Media Authority (ACMA) may determine the amount of tax in respect of:
- the issue of a transmitter licence;
- the anniversary of a transmitter licence coming into force; and
- the holding of a transmitter licence.
A Determination made under subsection 7 (1) of the Act is a disallowable instrument for the purposes of section 42 of the Legislative Instruments Act 2003.
The Radiocommunications (Transmitter Licence Tax) Amendment Determination 2007 (No. 2) (“the Amendment Determination”) amends the Radiocommunications (Transmitter Licence Tax) Determination 2003 (No. 2) (“the Determination”).
Background
Under the Radiocommunications Act 1992, ACMA is responsible for maintaining an efficient, equitable and transparent system of charging for the use of spectrum. The annual tax levied on apparatus licences has the dual function of encouraging efficient use of the spectrum and recovering the indirect costs of spectrum management.
The Determination sets out different tax rates depending on the siting of the transmitter. Tax rates are on a sliding scale with four fee levels:
- High density (Sydney, Melbourne and Brisbane);
- Medium density (Adelaide, Perth and Newcastle);
- Low density (regional areas); and
- Remote density (remote areas).
Purpose and Operation
The Amendment Determination
a amends the boundaries of the Western Australia low density radiofrequency spectrum area move a section of the boundary 10 kilometres further to the south to:
Reduce the size of the low density area;
Increase the size of the remote density area;
b delete reference to the Land Mobile System (cellular configuration) licensing option; and
c reflect that the ACMA was formed from the amalgamation of the ACA and Australian Broadcasting Authority (ABA) on 1 July 2005.
Changing density boundaries
The amendments will result in a number of transmitters, currently operating near New Norcia (160 kilometres north east of Perth), being charged licence taxes at the lower rate applicable to the remote density area rather than that applicable to the low density area. The amount of revenue collected from these licences will be lower by approximately $746.00 per year in total.
The amendments will also encourage some licence holders in the Perth metropolitan area to relocate operations to the remote density area. This will release spectrum for use by other users in the Perth metropolitan area. The uptake of the released spectrum is likely to offset the reduction in revenue from the redrawing of the low density boundary.
Deletion of the Land Mobile System (cellular configuration) licensing option
The Land Mobile System (Cellular) [LMS(C)] licensing option was introduced by the ACA in 2000 to accommodate cellular trunking systems. However, no apparatus licences have been issued to authorise any cellular trunking system.
On 9 February 2007, following the 2006 review of ACMA cost recovery arrangements, ACMA made the Radiocommunications (Charges) Determination 2007 that removed provisions establishing issue charges for the LMS(C) licensing option.
Impact of proposals
ACMA has undertaken a preliminary assessment of the impact of the regulatory proposals on business, individuals and the economy in accordance with the requirements of the Office of Best Practice Regulation. As there was no direct or significant indirect impact on business, individuals or the economy, other than a reduction in licensing costs for some licensees, a Regulation Impact Statement was not required.
Consultation
In respect of the density boundaries, ACMA consulted with relevant licence holders currently operating in the Perth metropolitan area, who expressed an interest in relocating services to the remote density area.
Determination Details
Details of the Amendment Determination are in Attachment 1.
ATTACHMENT 1
Notes about instrument
Section 1 Name of Determination
Section 1 provides for the name of the Determination.
Section 2 Commencement
Section 2 provides that the Determination commenced on the day after it was registered.
Section 3 Amendment of Radiocommunications (Transmitter Licence Tax) Determination 2003 (No. 2)
Section 3 provides that Schedule 1 amended the Radiocommunications (Transmitter Licence Tax) Determination 2003 (No. 2).
Schedule 1 Amendments (section 3)
[1] Schedule 1, Paragraph 1.3 (1) (b)
Item 1 substitutes the paragraph
(b) the Radiocommunications (Interpretation) Determination 2000, made under section 54 of the Australian Communications Authority Act 1997 and continued in force under section 64 of the Australian Communications and Media Authority Act 2005; or
to reflect that the Australian Communications and Media Authority was formed from the amalgamation of the Australian Communications Authority and Australian Broadcasting Authority in 2005.
[2] Schedule 1, item 109, Subparagraphs (b) (vi) and (vii)
Item2 substitutes the subparagraphs
(vi) proceeding in a straight line to easting 595369 and northing 6559624 of the Grid; and
(vii) proceeding in a straight line to easting 404620 and northing 6559624 of the Grid; and
to move part of the low density area boundary 10km further south, thereby reducing the size of the low density area and increasing the size of the remote density area.
[3] Schedule 2, Table 702, Items 12 to 15
Item 3 omits the items to delete references to Land Mobile System (cellular configuration)
[4] Dictionary, definition of ACA
Item 4 substitutes the definition of ACA with the definition of ACMA to reflect that the Australian Communications and Media Authority was formed from the amalgamation of the Australian Communications Authority and Australian Broadcasting Authority in 2005.
[5] Dictionary, definition of land mobile system (cellular configuration)
Item 5 omits the definition to delete references to Land Mobile System (cellular configuration)
[6] Dictionary, definition of temporary fixed link station, paragraph (b) Item 6 omits the reference to the ACA and replaces it with a reference to ACMA to reflect that the Australian Communications and Media Authority was formed from the amalgamation of the Australian Communications Authority and Australian Broadcasting Authority in 2005.