Radiocommunications (Transmitter Licence Tax) Regulations (Amendment) 1993 No. 165
EXPLANATORY STATEMENT STATUTORY RULES 1993 No. 165
Issued by the authority of the Minister for Communications Radiocommunications (Transmitter Licence Tax) Act 1983 Radiocommunications (Transmitter Licence Tax) Regulations (Amendment)
The Radiocommunications (Transmitter Licence Tax) Act 1983 (the Act) with its associated regulations is part of the regime by which the Government imposes a tax on Radiocommunications Receivers. Section 6 of the Act imposes a tax on the grant of a receiver licence and Section 7 of the Act provides that the amount of tax is the amount which is prescribed in the Radiocommunications (Transmitter Licence Tax) Regulations. Another part of the regime is the Radiocommunications (Licensing and General) Regulations which contain definitions of the types of transmitters to be taxed.
Section 9 of the Act provides that the Governor-General may make regulations for the purposes of section 7 of the Act.
As part of the spectrum management reform established in the Radiocommunications Act 1992 the government established the Spectrum Management Agency (the SMA) which will come into operation on 1 July 1993. The SMA will continue to derive revenue by recovering transmitter tax, but rather than prescribing the amount of transmitter tax in regulations the SMA may set determinations of the amount of transmitter tax.
The Radiocommunications (Transmitter Licence Tax) Amendment Act 1992 (the 1992 Act) commences on 1 July 1993. Subsection 7(1) of the 1992 Act repeals section 7 of the Radiocommunications (Transmitter Licence Tax) Act 1983 and substitutes a new Section 7 that provides for the amount of tax in respect of the issue of a transmitter licence to be the amount determined by the SMA. Subsection 7(2) of the 1992 Act provides that until the SMA makes a determination under section 7 of the Radiocommunications (Transmitter Licence Tax) Act 1983, as amended by the 1992 Act, the regulations made under section 9 that were in force immediately before the commencement of the 1992 Act continue in force as if they were determinations made by the SMA.
The purpose of the regulations is to insert a new definition and to clearly refer to the version of the Radiocommunications (Licensing and General) Regulations which was in force on 30 June 1993. Thus linking the SMA determination on 1 July 1993 to the transmitter licence tax .regime in place on 30 June 1993 which provides the framework whereby the SMA may continue the imposition and recovery of
transmitter tax, currently imposed in the Radiocommunications (Transmitter Licence Tax) Regulations and the Radiocommunications (Licensing and General) Regulations.
Overview
The Radiocommunications (Transmitter Licence Tax) Regulations (Amendment) 1993 No. 165 was enacted to address the transition in the management of spectrum and the imposition of transmitter tax from the government to the newly established Spectrum Management Agency (SMA). This regulation was introduced as part of the broader spectrum management reforms under the Radiocommunications Act 1992. The Radiocommunications (Transmitter Licence Tax) Act 1983 previously imposed a tax on the grant of a receiver licence and specified the tax amount in regulations, but with the establishment of the SMA, there was a need to update the legislative framework to reflect the new entity's role in setting the tax amount. The objective of the regulation is to ensure a seamless transition of the transmitter tax regime to the SMA while maintaining the existing tax structure until the SMA makes its determinations.
Scope and Application
The Radiocommunications (Transmitter Licence Tax) Regulations (Amendment) 1993 apply to the imposition and recovery of transmitter licence tax within Australia. The Act applies to the government's tax on radiocommunications receivers as stipulated in Section 6, and to the amount of tax prescribed in Section 7, which has been updated by the Radiocommunications (Transmitter Licence Tax) Amendment Act 1992. The Act applies to entities that hold a transmitter licence in Australia and is administered by the Spectrum Management Agency (SMA), which will set the tax determinations. The regulatory regime extends nationally and encompasses all licensed transmitters within Australia. There are no stated exclusions, exemptions, or thresholds in the Act itself; however, the specific amount of tax is determined by the SMA. The Act is supported by subordinate instruments such as the Radiocommunications (Licensing and General) Regulations, which define the types of transmitters subject to the tax. These regulations were in force prior to the commencement of the 1992 Act and continue to apply until the SMA issues its own determinations.
Key Provisions
The main operative sections of the Radiocommunications (Transmitter Licence Tax) Regulations (Amendment) 1993 No. 165 include Section 7, which now provides for the amount of tax on transmitter licences to be determined by the Spectrum Management Agency (SMA) rather than prescribed by regulation, as was previously the case (s. 7(1)). The amendment also includes a transitional provision in Section 7(2) that allows existing regulations to continue in force until the SMA makes its first determination, ensuring a seamless transition (s. 7(2)). The regulations also include a definition that clarifies the framework under which the SMA will operate, linking the new determinations to the existing tax regime (s. 3).
The obligations imposed by these regulations on the parties or entities they govern primarily involve compliance with the new transmitter tax determinations set by the SMA. Entities must ensure they are aware of and comply with the tax amounts determined by the SMA for transmitter licences. The regulations also impose a requirement on the SMA to make determinations on the tax amounts and to communicate these determinations effectively to ensure that the tax regime operates smoothly (s. 7). Additionally, there is an obligation on the SMA to ensure that the transition from the old regulatory framework to the new one is managed without disruption.
Failure to comply with the new transmitter tax determinations can result in civil and criminal consequences. The specific penalties for non-compliance are not detailed in the explanatory statement, but generally, breaches of tax laws can attract fines and other penalties as stipulated by the relevant legislation. The exact penalties would be determined in accordance with the Radiocommunications (Transmitter Licence Tax) Act 1983 and other applicable laws. It is essential for entities to adhere to the new tax determinations to avoid potential legal repercussions, including the possibility of enforcement actions by the SMA or other relevant authorities.