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Determinations/Communications as made
This instrument amends the Radiocommunications (Spectrum Licence Tax) Determination 2014 to introduce the new Electromagnetic Energy (EME) component of the spectrum licence tax imposed on ‘designated spectrum licences’ to recover the costs of the EME Program.
Administered by: Infrastructure, Transport, Regional Development and Communications
Registered 15 Sep 2020

 

Radiocommunications (Spectrum Licence Tax) Amendment Determination 2020 (No. 1)

 

The Australian Communications and Media Authority makes the following amendment under subsection 7(1) of the Radiocommunications (Spectrum Licence Tax) Act 1997.

Dated: 11 September 2020

James Cameron

[signed]

Member

 

Cathy Rainsford

[signed]

Member/General Manager

 

Australian Communications and Media Authority

 

 

 


 

1  Name

                   This is the Radiocommunications (Spectrum Licence Tax) Amendment Determination 2020 (No. 1).

2  Commencement

                   This instrument commences at the start of the day after the day it is registered on the Federal Register of Legislation.

Note:    The Federal Register of Legislation may be accessed free of charge at www.legislation.gov.au.

3  Authority

                   This instrument is made under subsection 7(1) of the Radiocommunications (Spectrum Licence Tax) Act 1997.

4  Amendments

                   The instrument that is specified in Schedule 1 is amended as set out in the applicable items in that Schedule.

 


 

Schedule 1—Amendments

(section 4)

Radiocommunications (Spectrum Licence Tax) Determination 2014 (F2014L00957)

1     Section 1

After section 1, insert:

2      Interpretation

For the purposes of this Determination:

Designated Spectrum Licence means a spectrum licence issued under Part 3.2 of the Radiocommunications Act 1992, other than the following:

(a)     a spectrum licence issued to:

(i)      a Department of State of the Commonwealth of Australia; or

(ii)     an Executive Agency established under section 65 of the Public Service Act 1999; or

(iii)    a Statutory Agency within the meaning of section 7 of the Public Service Act 1999;

(b)     a spectrum licence issued with one or more conditions that require the licensed spectrum to be used only for the provision of a television outside broadcast service; and

(c)     a spectrum licence issued with one or more conditions that require the licensed spectrum to be used only for the provision of rail safety, rail operations or rail control.

EME Component, for a spectrum licence, means the amount calculated in accordance with Schedule 2.

Main Component, for a spectrum licence, means the amount calculated in accordance with Schedule 1.

Note:       For a spectrum licence, the Main Component may be affected by subsection 5(3).

2     Section 5

Repeal the section, substitute:

5      Working out spectrum licence tax

(1)   Subject to subsection (3), for a spectrum licence other than a Designated Spectrum Licence, the amount of tax in relation to the licence is the Main Component.

(2)   For a Designated Spectrum Licence, the amount of tax in relation to the licence is the sum of:

(a)     subject to subsection (3), the Main Component; and

(b)     the EME Component.

(3)   If a spectrum licence authorises the use of spectrum in either of the following frequency ranges:

(a)     2570 – 2585 MHz;

(b)     2605 – 2620 MHz;

the Main Component is reduced by one third.

3    Heading to Schedule 1

Omit ‘(section 5)’, substitute ‘(section 2)’.

4    Schedule 1

Omit each occurrence (including in the heading) of the words ‘spectrum licence tax’, substitute ‘the Main Component’.

5    Schedule 1, Part 1, Table 1, item 10

Omit ‘MHS’, substitute ‘MHz’.

6    Schedule 1, Part 2, Step 3

Omit ‘payable’.

7    After Schedule 1

After Schedule 1, insert:

Schedule 2        Working out the EME Component

(section 2)

Part 1          Definitions

For the purposes of this Schedule:

MCL, for a spectrum licence, means the Main Component for the licence calculated for the relevant day.

relevant day: see subitem (2) of Part 2.

total annual EME Component means:

(a)    for the 2020-2021 financial year$2.6 million;

(b)   for the 2021-2022 financial year$2.6 million;

(c)    for the 2022-2023 financial year$2.6 million; and

(d)   for the 2023-2024 financial year, and each subsequent financial year$1.9 million.

Note:       The Australian Communications and Media Authority (Modification to Apparatus and Spectrum Licences Taxes) Direction 2020 requires the ACMA to increase the amount in paragraph (d) annually, by reference to the Consumer Price Index. See subsection 6(2) of that direction.

total Main Component, for a financial year, means the sum of the Main Component for each Designated Spectrum Licence in force on the relevant day in that financial year, worked out for that day.

Note:       The relevant day will be the initial holding date, or an anniversary of the initial holding date, for a Designated Spectrum Licence.

Part 2          Method statement

(1)  This method statement is to be used when working out the EME Component for a spectrum licence on the initial holding date for the licence, and on each anniversary of the initial holding date for the licence.

(2)  Each date mentioned in subitem (1) is a relevant day.

(3)  The amount of the EME Component for a Designated Spectrum Licence on a relevant day in a financial year is calculated in accordance with the following formula:

 

Example: For the 2020-2021 financial year, where:

(a)            the total annual EME Component for the financial year is $2.6 million;

(b)            the total Main Component for the financial year is $400,000; and

(c)            for a particular spectrum licence, MCL is $100,000;

the EME Component for that licence in that financial year is:

(4)  The amount of the EME Component must be rounded down to the nearest whole dollar.