Television Licence Fees Amendment Act (No. 3) 1987

Overview

The Television Licence Fees Amendment Act (No. 3) 1987 was enacted by the Commonwealth Parliament to amend the Television Licence Fees Act 1964, primarily to adjust the fee structure based on the gross earnings of television stations. This Act was introduced to address the need for updating the fee rates in response to changes in the financial circumstances of television stations. The objective of this legislation was to ensure that the licence fees remained reflective of the economic conditions and the revenue generated by the stations, thereby maintaining a fair and equitable system of taxation for the broadcasting sector. The Act outlines amendments to the fee calculation methodology, introducing new percentage rates based on the gross earnings brackets of the stations. It also specifies the application of these amendments to ensure a smooth transition and continued relevance of the licensing framework. This legislative effort was crucial in adapting the regulatory environment to the evolving financial landscape of the television industry, ensuring that the revenue collection mechanism aligns with the actual economic performance of the licensed entities.

Scope and Application

The Television Licence Fees Amendment Act (No. 3) 1987 amends the Television Licence Fees Act 1964 to adjust the fee structure for television licence fees based on the gross earnings of the television broadcasters. This Act applies to entities that hold television broadcasting licences, specifically targeting those whose due dates for fee payments occur on or after 1 January 1988. The amendments revise the percentage rates for licence fees according to the gross earnings brackets, with particular attention to entities with earnings between $45 million and $75 million, and those with earnings of $75 million or more, ensuring that the maximum fee rate does not exceed 9%. The Act extends its reach across the Commonwealth of Australia, applying uniformly to all broadcasters within its jurisdiction. However, it does not specify any exclusions or exemptions, and the applicability of the amendments is contingent on the timing of the fee due dates as defined in the Broadcasting Act 1942 and the Broadcasting and Television Act 1942. The Act may further extend its application or impose restrictions through subordinate instruments, although such details are not elaborated within the primary text of the Act itself.

Key Provisions

The Television Licence Fees Amendment Act (No. 3) 1987 amends the Television Licence Fees Act 1964, primarily altering the fee structures for television stations. Under section 3, the Act revises the fee percentage based on gross earnings of television stations, with new rates set for stations earning between $45 million and $75 million, and those earning more than $75 million. These changes are further detailed in the amended sections (2a)(g) and (2a)(h) of the Principal Act. Additionally, section 4 adjusts the fee structure when the accounting period changes, with similar adjustments to sections (2a)(g) and (2a)(h) to reflect the new earnings thresholds. The Act imposes obligations on television stations to accurately report their gross earnings to ensure they are charged the correct licence fee. This requirement is crucial for compliance with the new fee structures outlined in the Act. The Act also stipulates that these amendments apply to licence anniversaries where the fee due date falls on or after 1 January 1988, as specified in sections 6(1) and 6(2). These provisions ensure that the new fee structures are effectively implemented over time. In terms of consequences for non-compliance, while the Act does not explicitly state penalties, breaches of the Television Licence Fees Act 1964 may result in financial penalties as prescribed by the principal Act or any subsequent amendments. Under the Broadcasting Act 1942 and Broadcasting and Television Act 1942, penalties for non-compliance typically include fines that can be significant, depending on the severity and frequency of the breach. These penalties serve as a deterrent to ensure adherence to the amended fee structures and obligations set out in the Act.