EXPLANATORY STATEMENT
STATUTORY RULES 1985 NO. 197
Issued by the Authority of the Minister for Communications
Section 9 of the Radiocommunications (Transmitter Licence Tax) Act 1983 (the Act) provides that the Governor-General may make regulations for the purposes of Section 7.
Section 7 of the Act provides that the amount of tax in respect of the grant of a transmitter licence is such amount as is ascertained in accordance with the regulations. Different amounts of tax may be prescribed in respect of transmitter licences included in different classes of transmitter licence or in respect of persons included in different classes of persons.
On commencement, section 23 of the Radiocommunications Act 1983 will make it an offence to operate or to possess a radiocommunications transmitter without a transmitter licence or a temporary permit. Section 24 empowers the Minister to grant a licence to operate and to possess specified radiocommunications transmitters. Details of the various classes of transmitter licence will be contained in the Radiocommunications (licensing and General) Regulations under the Radiocommunications Act 1983.
Fees for transmitter licences will be levied under the Act. The amount of fees will be calculated in accordance with regulations pursuant to section 9 of the Act.
The Radiocommunications Act 1983 and cognate Acts, of which the Act is one, will commence on 20 August 1985. Pursuant to section 4 of the Acts Interpretation Act 1901, which enables regulations to be made before commencement of an Act, it is wished to make the required regulations under the Act now so as to take effect from commencement.
Details of the proposed regulations are as follows:
Regulation 1 provides a citation for the regulations.
Regulation 2 provides definitions of terms used frequently throughout the regulations. The terms used in Column 2 of the Schedule have the same meaning as in the Radiocommunications (Licensing and General) Regulations.
Regulation 3 provides that the amount of tax in respect of a station, irrespective of the number of transmitters or other radiocommunications devices constituting that station, is calculated in accordance with the annual rate applicable to the type of station to which the licence relates, which
is set out in the schedule to the regulations. In the case of a network licence, the annual rate is $3,742,000. Where a licence is granted for less than a year, the minimum tax will be $30. There is a 15% discount in the case of a non-profit organisation which makes simultaneous application for the grant of twenty five or more licences for equipment connected with its activities, otherwise than for reward or in connection with the operation of a business.
Regulation 4 provides that the annual rate of tax on a licence for a fixed station, Class C (high density location) or a fixed station, Class C (low densty location) is calculated in accordance with the following formula. For each frequency not exceeding 10,000 kiloherz, the amount of tax is an amount ascertained in accordance with the table in sub-regulation(3), For each frequency exceeding 10,000 kiloherz, the amount of tax is an amount ascertained in accordance with the table in sub-regulation (4). The tables specify varying levels of tax depending on the bandwidth of the transmission and whether the station is in a high or a low density location. The rate of tax for a fixed station, Class C will be the aggregate of the rates calculated for each transmitting frequency.
The schedule to the regulations sets out the annual rate of tax in relation to stations specified in column 2 of the schedule.
Authority: section 9 of the Radiocommunications (Transmitter Licence Tax) Act 1983.
Overview
The Radiocommunications (Transmitter Licence Tax) Act 1983 was enacted to establish a framework for imposing tax on the grant of transmitter licences under the Radiocommunications Act 1983. The legislation was introduced to address the need for a systematic approach to levying taxes on the operation and possession of radiocommunications transmitters, ensuring a regulated and orderly market for these services. The Act was enacted by the Commonwealth Parliament and its primary objective was to provide the necessary legislative underpinning for the imposition of taxes on transmitter licences, thereby generating revenue and ensuring compliance with licensing requirements. The explanatory statement accompanying the Act highlights that the tax rates are determined through regulations made under section 9 of the Act, allowing for flexibility in setting different tax amounts for various classes of transmitter licences or persons.
Scope and Application
The Radiocommunications (Transmitter Licence Tax) Act 1983 applies to entities seeking to operate or possess radiocommunications transmitters in Australia, requiring them to obtain a transmitter licence and pay the prescribed tax. The Act covers various types of entities, including businesses, non-profit organisations, and individuals, that require such transmitters for their operations. The tax rates are differentiated based on the type of station and its location, with specific provisions for network licences, fixed stations in high or low density locations, and a discount for non-profit organisations applying for multiple licences. The Act's regulatory framework extends to the entire Commonwealth of Australia, ensuring uniform application across all states and territories. Exemptions and specific thresholds for tax application are detailed in subordinate regulations, which include detailed calculations and rates based on frequency bandwidth and station classification. The Act’s provisions commence on 20 August 1985, and regulations are designed to take effect from this date, with some provisions enabled for pre-commencement under the Acts Interpretation Act 1901.
Key Provisions
The main sections of the Radiocommunications (Transmitter Licence Tax) Act 1983 and the accompanying Statutory Rules establish the framework for the tax on transmitter licences, as well as the licensing and fees associated with operating radiocommunications transmitters. Section 7 of the Act determines the amount of tax to be levied, which is to be calculated according to regulations (reg. 3). Section 23 makes it an offence to operate or possess a transmitter without a licence or permit (reg. 1). Section 24 provides the Minister with the authority to issue such licences (reg. 2). The fees for these licences are governed by the Act and calculated according to regulations (reg. 2).
The Act imposes several obligations on entities wishing to operate radiocommunications transmitters. Firstly, they must obtain a transmitter licence or temporary permit as per section 23, which can be granted by the Minister under section 24. Secondly, they must pay the tax on their transmitter licence, which is calculated according to the regulations. The tax is based on the type of station, the frequency of transmission, and other factors specified in the regulations. For example, a network licence incurs a tax of $3,742,000 per annum, with a minimum tax of $30 for licences less than a year (reg. 3). Non-profit organisations may receive a 15% discount if they apply for 25 or more licences (reg. 3).
Breach of the Act can lead to both civil and criminal consequences. Section 23 of the Radiocommunications Act 1983, which is enforced by this Act, makes it an offence to operate or possess a transmitter without the appropriate licence or permit. This offence is subject to penalties prescribed under the Radiocommunications Act 1983. The penalties for contravening these provisions can include fines, imprisonment, or both, depending on the severity and circumstances of the breach. It is important for entities to comply with these requirements to avoid any legal repercussions.