Commonwealth of Australia

Telecommunications (Consumer Protection and Service Standards) Act 1999

NRS Levy Formula Modification

 Determination 2005 (No. 1)

I, HELEN LLOYD COONAN, Minister for Communications, Information Technology and the Arts, make the following Determination under subsection 100(2A) of the Telecommunications (Consumer Protection and Service Standards) Act 1999.

Dated 28 November 2005.

HELEN COONAN

1        Name of Determination

This Determination is the NRS Levy Formula Modification Determination

2005 (No. 1).

2        Commencement

This Determination commences on the day after it is registered on the Federal Register of Legislative Instruments.

3        Application

This Determination applies to each levy quarter beginning with the first quarter that commences after the day on which this Determination commences.

4    Definitions

In this Determination:

Act means the Telecommunications (Consumer Protection and Service Standards) Act 1999.

5    Modification of the formula in subsection 100(2) of the Act

The formula in subsection 100(2) of the Act is modified by omitting subsection 100(2) and substituting the following:

(2)         If there is no defaulting taxpayer, and no recovered funds that can be applied, in relation to the current quarter, each taxpayer’s NRS contribution amount for the current quarter is calculated as follows:

                                 Total levy   x   Taxpayer’s eligible revenue

                                                      Total eligible revenue of all the taxpayers

Note:  Levy is imposed on the NRS contribution amount by the NRS Levy Imposition Act 1998.

(2AA)   If there is a defaulting taxpayer, or there are recovered funds that can be applied, in relation to the current quarter, each taxpayer’s NRS contribution amount for the current quarter is calculated as follows:

              (Total levy + levy deficit – recovered funds)   x   Levy contribution factor

                                                                                        Adjustment factor

(2AB)   In subsections (2) and (2AA):

adjustment factor means the sum of the levy contribution factors of all taxpayers for a quarter minus the levy contribution factor of a defaulting taxpayer for the quarter.

defaulting taxpayer  means a taxpayer who is in receivership or liquidation or for any reason ceases to exist on or before the end of the third month of the previous quarter in relation to the current quarter to which this Determination applies. 

Note:  Receivership and liquidation are primarily dealt with by Chapter 5 of the Corporations Act 2001 (Cth) but may in some cases be dealt with by a law of a State or Territory. Chapter 5 includes provisions dealing with schemes of arrangement, receivership and winding up.  However, Chapter 5 does not apply to a scheme of arrangement, receivership, winding up or other external administration of a company to the extent to which the scheme, winding up or administration is carried out in accordance with a provision of a law of a State or Territory (see s. 5G(8) of the Corporations Act 2001).

levy contribution factor means the ratio of a taxpayer’s eligible revenue for a quarter to the total eligible revenue of all taxpayers for the quarter.

levy deficit means any shortfall in the total levy for a quarter. 

recovered funds means an amount paid on or before the end of the third month of the previous quarter to the ACMA in relation to a defaulting taxpayer’s NRS contribution amount included in the levy deficit for any previous quarter in relation to the current quarter to which this Determination applies.