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LIBRARY
1997
THE PARLIAMENT OF THE COMMONWEALTH OFAUSTRAJJIA
HOUSE OF REPRESENTATIVES
BROADCASTThIG SERVICES LEGISLATION AMENDMENT BILL 1997
TELEVISION LICENCE FEES AMENDMENT BILL 1997
RADIO LICENCE FEES AMENDMENT BILL 1997
EXPLANATORY MEMORANDUM
(Circulated by authority of the Minister for Communications and the Arts,
Senator the Hon Richard Aiston)
80938 Cat. No. 96 7379 2 ISBN 0644 49791 2
Hit HI~Il I~ii~H~Il
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9 7806144 497916
BROADCASTING SERVICES LEGISLATION AMENDMENT BILL 1997
TELEVISION LICENCE FEES AMENDMENT BILL 1997
RADIO LICENCE FEES AMENDMENT BILL 1997
OUTLINE
The Broadcasting Services Legislation Amendment Bill 1997 amends the Broadcasting
I
Services Act 1992 (the Broadcasting Services Act) and the Broadcasting Services
(Transitional Provisions and Consequential Amendments) Act 1992 (the Transitional
Provisions Act) so that:
provisions relating to the administration of the annual licence fees in the former
BroadcastingAct 1942 (the former Act), as kept in force by provisions of the
Transitional Provisions Act, are re-located in the Broadcasting Services Act;
· newspapers whose circulation within a commercial radio licence area is only a small
proportion (not more than 2%) ofthe total licence area population are not entered
in the Associated Newspaper Register under section 59 ofthe Broadcasting
Services Act as being associated with the licence area ofthat licence; and
· there are consequential provisions enabling appeals on the merits to the
Administrative Appeals Tribunal in respect of relevant decisions relating to the
administration of licence fees and entries in the Associated Newspaper Register.
The amendments in the Broadcasting Services Legislation Amendment Bill relating to
the administration of licence fees are consequential on the provisions in the Television
Licence Fees Amendment Bill 1997 and the Radio Licence Fees Amendment Bill 1997.
These Bills amend the Television Licence Fees Act 1964 (the Television Licence Fees
Act) and the Radio Licence Fees Act 1964 (the Radio Licence Fees Act) respectively
so that commercial radio and television broadcasting licences allocated under the
Broadcasting Services Act are subject to the annual licence fees regime that currently
applies to commercial radio and television broadcasting licences granted under the
former Act.
Licence Fees
The existing Licence Fees Acts do not apply to commercial broadcasting licences
allocated since commencement ofthe Broadcasting Services Act in 1992. The
Government has decided the same licence fee regime should apply to all commercial
broadcasting licences. This is to ensure:
· fair treatment between commercial broadcasters whose licences were granted under
the former Act and commercial broadcasters who have been, or will be, allocated
licences under the Broadcasting Services Act, and
3
· that the Commonwealth receives economic returns for allowing commercial
broadcasters access to the broadcasting spectrum and for allocating licences in a
restricted market.
Associated Newspaper Register
The Broadcasting Services Legislation Amendment Bill 1997 amends section 59 of the
Broadcasting Services Act so that a newspaper whose circulation within a commercial
` radio broadcasting licence area does not exceed 2% of the licence area population is
not entered by the Australian Broadcasting Authority (ABA) in the Associated
Newspaper Register as being associated with that commercial radio broadcasting
licence. This amendment will remove an unintended consequence of the current
provisions whereby newspapers are taken to be associated with the licence area of a
particular commercial radio broadcasting licence even ifthey have very limited
circulations in comparison with the total population of the commercial radio
broadcasting licence area.
FINANCIAL IMPACT STATEMENT
it is difficult to predict accurately the financial impact of the proposed amendments to
make commercial radio and television broadcasting licences allocated under the
Broadcasting Services Act subject to annual licence fees. This is because it is
uncertain how many new licences will be made available, how many will be taken up,
what the gross earnings of new licences might be and therefore what additional
-
revenue might accrue to the Commonwealth from the extension ofthe licence fees
regime. The amendments are expected to have a progressively increasing positive net
effect on the budget, levelling out at about $0.1 34m per annum after 1998-99.
However, should discounting at auction occur there may be an initial negative net
effect.
The other amendments in the Bills are expected to have no significant impact on
Commonwealth expenditure or revenue.
4
NOTES ON CLAUSES
BROADCASTING SERVICES LEGISLATION AMENDMENT BILL 1997
Clause 1 Short title
-
This clause provides for the citation of the amending Act 4
Clause 2 Commencement
-
This clause provides for the amending Act to commence on Royal Assent.
Clause 3 - Schedule(s)
This clause makes the amendments set out in the Schedules to the Acts specified in the
Schedules and gives force to the other provisions in the Schedules.
SCHEDULE!- AMENDMENT OF THE BROADCASTING SERVICES ACT
1992
Item 1 Subsections 59(3) and (4)
-
Item 2 After subsection 59(4)
-
Section 59 of the Broadcasting Services Act 1992 (the Broadcasting Services Act)
requires the ABA to maintain an Associated Newspaper Register which contains the
names of newspapers associated with the licence areas of particular commercial radio
or commercial television broadcasting licences. The effect of such an entry in the
Register is that there will be a breach of the cross-media ownership and control limits if
a person is in a position to control both the licence and the newspaper (section 60), or
is a director of companies that are in a position to control both the licence and the
newspaper, or holds a combination of directorships / controlling company interests in
both the licence and the newspaper (section 61).
Subsection 5 9(3) requires the ABA to enter the name of a newspaper in the Register as
being associated with the licence area of a particular licence ifit is satisfied that at least
50% of the circulation of the newspaper is within the licence area ofthe licence.
Subsection 59(4) requires the ABA to remove the name of a newspaper from the
Register if it is satisfied that less than 50% of the circulation of the newspaper is within
the licence area of the licence.
The ABA has a ftinction under section 30 of determining the "licence area
populations" of commercial radio and television licences, having regard to the most
recently published census count prepared by the Australian Statistician.
5
Item I omits from subsections 59(3) and (4) references to "commercial radio
` broadcasting licences". The effect of this amendment is that the existing provisions in
section 59 in relation to entering newspapers on the Associated Newspaper Register
and their removal from the Register will apply only to the association of newspapers
with commercial television broadcasting licences.
Item 2 introduces new subsections 59(4A) and (4B) which deal with the entry of
` newspapers on the Register and their removal from the Register in respect of their
association with commercial radio broadcasting licences. The effect ofthese
provisions is that a newspaper would not appear on the Register as being associated
with the licence area of a particular commercial radio broadcasting licence unless:
(a) the newspaper meets the 50% circulation test currently provided in subsections
5 9(3) and (4); and
(b) the circulation of the newspaper within the licence area exceeds 2% of the
licence area population.
The inclusion of the additional legislative criterion at (b) above will remove an
unintended consequence of the existing provisions whereby newspapers are taken to be
associated with the licence areas of particular commercial radio broadcasting licences
even if they have very limited circulations in comparison with the total population of
the commercial radio broadcasting licence area. This is particularlythe case in regional
areas where newspapers serve small population centres within commercial radio
licence areas.
It is not proposed that the additional test at(b) above apply to the association of
newspapers with commercial television licence areas. This is because commercial
television licensees in regional areas serve much larger markets than are served by
commercial radio licensees; and a newspaper that was circulated to only a small
proportion of a television licence area could still serve a significant regional population
centre.
Item 3 Section 204 (after table row relating to decision to remove newspaper
-
from the Register)
Section 204 ofthe Broadcasting Services Act sets out a table of decisions in respect of
` which appeals on the merits may be made to the Administrative Appeals Tribunal
(AAT). Among the decisions which are subject to AAT appeal are a decision by the
ABA under subsection 59(3) to enter a newspaper in the Associated Newspaper
Register and a decision by the ABA under subsection 5 9(4) to reftise to remove a
newspaper from the Register. Section 204 currently confers this right of appeal on the
publisher of a newspaper and on a commercial television broadcasting licensee in the
relevant licence area.
This item amends section 204 to ensure that the right of AAT appeal in respect of
ABA decisions under section 59 extends to a commercial radio broadcasting licensee
in the relevant licence area, as well as the publisher of an affected newspaper and a
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commercial television broadcasting licensee in the relevant licence area. The item
amends the table in section 204 to make separate reference to decisions made under
new subsections 59(4A) and (4B) in respect of the association ofnewspapers with
particular commercial radio licences (see explanatory notes on Item 2). 4
Item 4 - Section 204 (at the end of the table)
This item amends section 204 to extend the range of decisions in respect of which an
appeal on the merits may be made to the AAT, to include an appeal by a commercial
radio broadcasting licensee or a commercial television broadcasting licensee against the
following decisions which may be made under proposed Part l4A ofthe Broadcasting
Services Act (see explanatory notes on Item 5):
· a decision by the ABA to refuse to permit an accounting period ending on a day
other than 30 June (see new subsection 205B(2));
· a decision by the ABA to issue a notice relating to the amount oflicence fee paid
(see new subsection 205C(2)); and
· a decision by an authorised person that no additional fee be remitted or that part
only of the additional fee be remitted (see new subsection 205D(4)).
As these decisions may adversely affect the interests of licensees, it is appropriate that
they be subject to review by the AAT.
Item 5 After Part 14
-
Part 14A Accounts and payment of licence fees
-
Paragraph 6(2)(a) ofthe Television Licence Fees Act 1964 (the Television Licence
Fees Act) and paragraph 6(2)(a) of the Radio Licence Fees Act 1964 (the Radio
Licence Fees Act) require an annual licence fee to be paid on 31 December in each
year. The amount ofthe annual fee is calculated in accordance with subsections 6(2)
and 6(2A) ofthe Licence Fees Acts, and is based on gross earnings in respect of the
licence during the previous financial year. The Licence Fees Acts, however, apply
only to commercial broadcasting licences which were granted under the former
Broadcasting Act 1942 (the former Act) and were continued in force by section 5 of
the Broadcasting Services (Transitional Provisions and Consequential Amendments)
Act 1992 (the Transitional Provisions Act).
The amendments ofthe Licence Fees Acts made by the Television Licence Fees
Amendment Bill 1997 and by the Radio Licence Fees Amendment Bill 1997 will make 4
commercial broadcasting licences allocated under the Broadcasting Services Act also
subject to the licence fees regime.
As a consequence ofthese amendments of the Licence Fees Acts, this item inserts a
new Part 1 4A in the Broadcasting Services Act which sets out provisions governing
the administration of the annual licence fee payable by commercial broadcasting
licensees.
7
The new Part is modelled on the provisions in sections 123, 123AA and l23A of the
former Act. Section 22 of the Transitional Provisions Act presently applies those
provisions to commercial broadcasting licences which were granted under the former
Act and which have been continued in force as commercial licences under the
Broadcasting Services Act.
New section 205A Definitions
-
` This section defines the terms "gross earnings" and "licence fee" to have the same
meaning as in the Licence Fees Acts. This is to ensure that the requirements ofthis
Part apply to fees imposed by the Licence Fees Acts.
New section 205B Licensees to keep accounts
-
New section 205B requires commercial broadcasting licensees to keep financial
accounts and makes provision for licensees to adopt non-financial year accounting
periods. The section re-enacts the provisions in section 123 of the former Act, with
some minor drafting changes but no change to the substance ofthe provisions.
Subsection 205B(1) requires commercial radio and television licensees to:
· keep and maintain financial accounts in relation to the service provided under the
licence;
· make the accounts available for inspection by the ABA or an authorised officer
when requested;
· give the ABA an audited balance-sheet and profit and loss account, and a statutory
declaration as to gross earnings, within 6 months ofthe end ofthe financial year;
and
· keep such records in respect ofthe service provided under the licence as the ABA
directs and give the ABA copies when requested.
Subsection 205B(2) enables a licensee to adopt a non-financial year accounting period,
with the permission of the ABA. Proposed subsection 6(3) of the Licence Fees Acts
allows any accounting period adopted with the permission of the ABA to be used for
the purposes of calculating the licence fee (see explanatory notes on item 6 of
Schedule 1 ofthe Television Licence Fees Amendment Bill 1997 and the item 8 of
Schedule I ofthe Radio Licence Fees Amendment Bill 1997.
Subsection 205B(3)
New paragraph 205B(1)(c) requires licensees to give certain audited accounts and a
statutory declaration stating the gross earnings for the accounting period within 6
months after 30 June (ie by 31 December) in each year.
New subsection 205B(3) sets out different deadlines for the provision of these
documents for licensees who have adopted a non-financial year accounting period in
accordance with new subsection 205B(2). If this accounting period ends in the first
half of the calendar year, the documents must be provided within 6 months after the
8
end of the accounting period. If the accounting period ends in the second half of the
calendar year, the documents must be provided by 3 1 December.
Subsection 205B(4) requires the statutory declaration as to gross earnings under
subparagraph 205B(l)(c)(ii) to be made by the chief executive officer or secretary of
4
the licensee.
Subsection 205B(5) defines "authorised officer" for the purposes ofproposed
paragraph 205B(l)(b), which requires commercial radio and television broadcasting
licensees to make financial accounts available for inspection to the ABA or an 4
authorised officer when requested to do so.
The definition of"authorised officer" requires the ABA to make any authorisations in
writing, and limits the range of persons who can be authorised to members, associate
members and members of staff of the ABA.
New section 205C Payment of licence fees
-
New section 205C provides a basis for self-assessment ofannual licence fees by
commercial broadcasting licensees. The section re-enacts the provisions in section
123AA of the former Act, with some minor drafting changes but no change to the
substance of the provisions.
Subsection 205C(1) requires a licensee who pays an amount that it believes is the
licence fee payable to inform the ABA of the method used to calculate that amount.
Subsection 205C(2) requires the ABA to noti& the licensee if it determines that a
different amount is payable to the amount the licensee has paid. This notice must set
out:
· the amount worked out;
· details of how this amount was worked out;
· the amount of the licence fee that is either unpaid or overpaid; and
if it is satisfied that there has been a deliberate miscalculation ofthe amount ofthe
licence fee, a statement to this effect.
The latter requirement ensures that a deliberate miscalculation oflicence fees payable
does not delay payment of fees owing. The effect of the ABA including a statement in
the notice that there has been a deliberate miscalculation is to make the licensee liable
to pay a penalty on the unpaid amount (see explanatory notes on proposed subsections
205D(1) (2) below).
-
Subsection 205C(3) requires the ABA to arrange for a refund to the licensee of any
overpaid amount, within 21 days of the issue ofa notice under proposed subsection
205C(2). I
9
New section 205D Penalty for unpaid licence fees
-
New section 205D sets out the circumstances in which penalties are to be paid in
respect of an amount oflicence fees that remains payable after the due date. The
section re-enacts the provisions in section 123A of the former Act, with some minor
drafting changes but no change to the substance of the provisions.
Subsection 205D(1) creates a penalty for an amount of licence fee remaining unpaid
after the due date (ie 31 December), computed from that day at the rate of 20% per
annum, unless subsections 205D(2) or (3) apply. This has the effect that the penalty
imposed by this subsection only applies in relation to unpaid amounts if the notice
issued by the ABA under subsection 205C(2) following its re-working of the licensee's
self-assessed fee includes a statement by the ABA that there has been a deliberate
miscalculation of licence fees payable.
Subsection 205D(2) provides for a penalty to be paid by a licensee in respect of an
amount of licence fee that is specified as unpaid in a notice issued by the ABA under
subsection 205C(2) where that notice does not include a statement that the ABA is
satisfied that there has been a deliberate miscalculation, but the licensee does not pay
the specified amount within 21 days (the same period within which the ABA is
required to refund overpayments). In this case, the penalty is calculated from the date
the notice is issued by the ABA.
Subsection 205D(3) makes it clear that no penalty fee is payable where an amount of
licence fee is specified as unpaid in a notice issued by the ABA under subsection
205C(2) if the notice does not include a statement that the ABA is satisfied that there
has been a deliberate miscalculation and the licensee pays the amount within 21 days of
the notice being issued.
Subsection 205D(4) enables an authorised person to remit all or part of a penalty for
late payment where the licensee has taken reasonable action to mitigate the
circumstances leading to the delay in payment and, having regard to those
circumstances, it would be reasonable to remit the penalty or part ofthe penalty.
"Authorised person" is defined in proposed subsection 205D(9) to mean the Minister
or an officer authonsed by the Minister for the purpose ofthis section.
Subsection 205D(5) requires an authorised person who has remitted all or part ofa
P late payment penalty which has been paid by the licensee to arrange within 21 days for
the refund to be paid to the licensee.
Subsection 205D(6) ensuresthat an amount ofunpaid licence fee can be recovered
immediately after the due date in a court of competent jurisdiction as a debt due to the
P Commonwealth, regardless of whether a penalty is payable under subsections 205D( 1)
or(2).
Subsection 205D(7) provides for the reduction ofthe amount ofthe penalty for late
payment imposed by this section where interest is payable on a judgment debt for an
10
amount of licence fee. The penalty is reduced by the amount of interest payable on the
judgment debt.
Subsection 205D(8) provides for the reduction of the amount of the penalty for late 4
payment where interest is payable on a judgment debt for an amount which includes an
amount of licence fee. The amount of penalty for late payment is reduced on a
proportional basis reflecting the proportion ofthe judgment debt that relates to the
amount of licence fee unpaid.
Subsection 205D(9) defines terms used in new section 205D. 4
Item 6 After paragraph 7(1)(i) of Schedule 2
-
Clause 7 of Schedule 2 to the Broadcasting Services Act sets out standard conditions
applying to commercial television broadcasting licences.
This item inserts a new paragraph (ia) in clause 7(1) to make it a condition of these
licences that the licensee comply with the requirements set out in proposed subsection
205B( 1) relating to the keeping of financial accounts (see explanatory notes on Item 5
above).
This item reflects previous arrangements under the former Act which made the
requirements to keep accounts a condition of commercial television broadcasting
licences (by the operation of section 129 ofthat Act).
Item 7 After paragraphs 8(1)(h) of Schedule 2
-
Clause 8 of Schedule 2 to the Broadcasting Services Act sets out standard conditions
applying to commercial radio broadcasting licences.
This item inserts a new paragraph (ha) in clause 8(1) to make it a condition of these
licences that the licensee comply with the requirements set out in proposed subsection
205B( 1) relating to the keeping of financial accounts (see explanatory notes on Item 5
above).
This item reflects previous arrangements under the former Act which made the
requirements to keep accounts a condition of commercial radio broadcasting licences
(by the operation of section 129 ofthat Act).
Item S Application
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This item ensures that the amendments to clauses 7 and 8 of Schedule 2 (relating to the
requirements under proposed section 205B that licensees keep accounts) extend to all
commercial radio and television broadcasting licences, including:
· commercial radio and television licences granted under the former Act and still in
force by virtue of section 7 of the Transitional Provisions Act;
· commercial radio and television licences granted under the former Act that have
been renewed under the Broadcasting Services Act; and
11
· commercial radio and television broadcasting licences allocated under the
Broadcasting Services Act prior to commencement of the Broadcasting Services
Legislation Amendment Act 1997.
Item 9 - Transitional
Items 9(1) and (2) ensure that the amendments of section 59 of the Broadcasting
Services Act made by Item 2 in relation to entries in the Associated Newspaper
` Register of newspapers associated with the licence areas of particular commercial
radio broadcasting licences do not affect the validity of decisions made under section
59 prior to commencement.
Item 9(1) has the effect of deeming decisions made by the ABA under subsection 59(3)
to enter a newspaper in the Register as being associated with the licence area of a
particular commercial radio broadcasting licence, which is in force immediately prior to
commencement, to have been made under the provisions in new subsection 59(4A)
which are inserted by Item 2.
Item~9~) the effect of deeming decisions made by the ABA under subsection 59(4)
has
to remove a newspaper from the Register because it is no longer associated with the
licence area of a particular commercial radio broadcasting licence, which is in force
immediately prior to commencement, to have been made under the provisions in new
subsection 59(4B) which are inserted by Item 2.
Items 9(3) (9) contain transitional provisions intended to ensure that licence fee
-
arrangements are not disrupted by the transfer of the relevant administrative provisions
to the Broadcasting Services Act (see explanatory notes on Item 5).
Item 9(3) continues in force any direction, requirement, approval or leave given, or
taken to have been given, by the ABA under a continued section of the former Act and
which is in force immediately before commencement, as if it were made under the
correspondingprovision of new Part 14A of the Broadcasting Services Act.
Item 9(4) deems any request made, or taken to have been made, by the ABA under the
continued subsection 123(4) of the former Act which has not been complied with
immediately before commencement to have been made under the corresponding
provision of new Part 14A of the Broadcasting Services Act.
Item 9(5 ) deems any request made, or taken to have been made, by the ABA under
P the continued subsection 123(4AA) ofthe former Act which has not been complied
with immediately before commencement to have effect as if it were a notice in writing
made under the corresponding provision of new Part I 4A of the Broadcasting Services
Act.
P Item 9(6) deems any notice of a reassessed licence fee given by the ABA under the
continued subsection 123AA(3) of the former Act before commencement to have been
given under the corresponding provision of new Part 1 4A of the Broadcasting Services
Act.
12
Item 9(7~ ensures that any late payment penalty payable under the continued
subsections 123A(lA) and (IB) ofthe former Act at the time of commencement
continue to be payable under the corresponding provisions of new Part 14A of the
Broadcasting Services Act.
Item 9(8) deems any action taken by a licensee before the commencement day under a
continued provision of the former Act to have effect on or after commencement as if it
had been taken under the corresponding provision of new Part l4A of the
Broadcasting Service Act.
Item 9(9~ deems any action taken by a corporation related to a licensee in response to
a request for information under subsection 123(4AA) of the former Act to have effect
after commencement as if it had been taken in response to a corresponding notice
under section 173 of the Broadcasting Services Act.
Item 9(10) contains definitions of terms used in Schedule 1.
SCHEDULE 2- AMENDMENT OF THE BROADCASTING SERVICES
(TRANSITIONAL PROVISIONS AND CONSEQUENTIAL AMENDMENTS)
ACT 1992
Item 1 - Sections 14, 15 and 22
This item repeals sections 14,15 and 22 ofthe Transitional Provisions Act.
Sections 14 and 15 of the Transitional Provisions Act relate to AM/FM conversion
arrangements and are now spent (see explanatory notes on Item 9 ofthe Radio Licence
Fees Amendment Bill 1997).
Section 22 of the Transitional Provisions Act continues in force sections 123 and 1 23A
of the former Act, relating to the administration of licence fees for commercial radio
and television broadcasting licences. These licences are preserved by section 5 of the
Transitional Provisions Act.
The repeal of section 22 is consequential upon the amendments in Schedule 1 bringing
the provisions relating to the administration of the annual licence fees for commercial
broadcasting services into the Broadcasting Services Act.
I
I
13
TELEVISION LICENCE FEES AMENDMENT BILL 1997
Clause 1 - Short title
This clause provides for the citation of the amending Act.
Clause 2 - Commencement
This clause provides for the amending Act to commence on Royal Assent.
Clause 3 Schedule(s)
-
The amendments to the Television Licence Fees Act 1964 (the Television Licence Fees
Act) are set out in Schedule 1.
SCHEDULE 1- AMENDMENT OF THE TELEVISION LICENCE FEES ACT
1964
Section 5 of the Television Licence Fees Act provides that licence fees are payable by
a licensee. The amount of the annual fee is calculated in accordance with subsections
6(2) and 6(2A) of the Television Licence Fees Act, and is based on gross earnings in
respect of the licence during the previous financial year.
At present, only commercial television broadcasting licences which were granted under
the former BroadcastingAct 1942 (the former Act) and which were continued in force
by section 5 ofthe BroadcastingServices (Transitional Provisions and Consequential
Amendments) Act 1992 (the Transitional Provisions Act) are subject to annual licence
fees. The amendments in Schedule 1 provide for annual licence fees also to be payable
in respect of commercial television broadcasting licences allocated under the
Broadcasting Services Act 1992 (the Broadcasting Services Act), including licences
renewed under that Act.
Item 1 - Subsection 4(1) (definition of ABA)
` Subsection 4(1) of the Television Licence Fees Act contains definitions ofterms used
in that Act.
This item inserts a definition of "ABA" in subsection 4(1) ofthe Television Licence
Fees Act. The "ABA" is defined as the Australian Broadcasting Authority. (Item 7
amends section 7 of the Television Licence Fees Act to confer a power on the ABA.)
14
Item 2 - Subsection 4(1) (definition of gross earnings)
This item amends the definition of "gross earnings" in subsection 4(1) ofthe Television
Licence Fees Act so that the language used in the provision is consistent with that used
in the Broadcasting Services Act.
Item 3 - Subsection 4(1) (definition of licence)
This item substitutes a new definition of "licence" in subsection 4(1) of the Television
Licence Fees Act to make commercial television broadcasting licences allocated under
the Broadcasting Services Act also subject to annual licence fees.
Section 5 of the Television Licence Fees Act provides that fees are payable by a
licensee in respect of a licence. Subsection 4(1) of the Television Licence Fees Act
defines "licence" as a commercial television broadcasting licence referred to in
paragraph 5(I)(b) or (e) of the Transitional Provisions Act.
Paragraphs 5(1 )(b) and (e) of the Transitional Provisions Act preserve licences granted
under the former Act so that they continue in force as if they had been allocated under
the Broadcasting Services Act. Section 7 of the Transitional Provisions Act ensures
that a licence preserved under section 5 continues for the unexpired term of the
licence, but enables the licence to be renewed under the Broadcasting Services Act.
This item substitutes a new definition of "licence" in subsection 4(1). "Licence" is
defined as a commercial television broadcasting licence referred to in paragraph
5(1)(b) or (e) of the Transitional Provisions Act, or a commercial television
broadcasting licence allocated or renewed under the Broadcasting Services Act.
Commercial television broadcasting licences allocated under the Broadcasting Services
Act are licences allocated under Part 4 of the Broadcasting Services Act, namely:
· commercial television broadcasting licences allocated under section 36;
· additional commercial television broadcasting licences in single markets allocated
under section 38A; and
· other commercial television broadcasting licences that are allocated under section
40 (ie non-broadcasting services bands licences).
Item 4 - Section 5 I
This item amends section 5 ofthe Television Licence Fees Act to replace the gender
specific term "his" with a non-gender specific term "the".
Item 5 - Subsection 6(1) I
This item repeals subsection 6(1) ofthe Television Licence Fees Act, which provides
for a $500 fee payable on the grant of a commercial television broadcasting licence.
This fee is considered unnecessary, given that the provisions of Part 4 of the
15
Broadcasting Services Act allow the ABA to determine application fees or fees
representing the administrative costs ofallocating a licence, in respect of commercial
television broadcasting licences,
Item 6 - Paragraph 6(3)(b)
This item amends subsection 6(3) of the Television Licence Fees Act to ensure that
licensees who adopt a different accounting period under the Broadcasting Services Act
after it is amended have their annual licence fee calculated by reference to any different
accounting period they may adopt.
Under the former Act, licensees could adopt an accounting period ending on a date
other than 30 June. This mechanism has been kept in force by the operation of section
22 of the Transitional Provisions Act.
The proposed amendments in the Broadcasting Services Legislation Amendment Bill
1997 will transfer the mechanism for adopting a different accounting period to the
Broadcasting Services Act. Proposed section 205B of the Broadcasting Services Act
providesthat a licensee may adopt a different accounting period with the permission of
the ABA (see explanatory notes on Item 5 of Schedule 1 of the Broadcasting Services
Legislation Amendment Bill 1997).
Subsection 6(3) ofthe Television Licence Fees Act allows the amount ofthe annual
fee to be calculated by reference to any different accounting period adopted by
licensees under the Broadcasting Act or the Transitional Provisions Act.
This item will allow the amount ofthe annual licence fee to be calculated by reference
to any different accounting period licensees may adopt under the Broadcasting
Services Act.
Item 7 - Section 7
Section 7 of the Television Licence Fees Act is an anti-avoidance provision which
gives the Minister a discretion to treat the earnings of associates as the earnings of a
licensee for the purposes of the licence fee provisions.
This item amends section 7 to transfer this power from the Minister to the ABA in
recognition that the ABA administers the licence fee provisions and is therefore the
appropriate body to hold this power.
16
RADIO LICENCE FEES AMENDMENT BILL 1997
Clause 1 - Short title
This clause provides for the citation of the amending Act
Clause 2 Commencement
-
Clause 2(1) provides for the amending Act, other than item 2 of the Schedule, to
commence on Royal Assent.
Item 2 of the Schedule corrects a typographical error in the definition of "licence" in
subsection 4(1) ofthe Radio Licence Fees Act 1964 (the Radio Licence Fees Act).
Clause 2(2) makes the amendment in Item 2 retrospective to the time that subsection
4(1) of the Radio Licence Fees Act commenced (5 October 1992), in order to remove
any uncertainty caused by the typographical error.
Clause 3 - Schedule(s)
The amendments to the Radio Licence Fees Act are set out in Schedule 1.
SCHEDULE!- AMENDMENT OF THE RADIO LICENCE FEES ACT 1964
Section 5 of the Radio Licence Fees Act provides that licence fees are payable by a
licensee. The amount of the annual fee is calculated in accordance with subsections
6(2) and 6(2A) ofthe Radio Licence Fees Act, and is based on gross earnings in
respect of the licence during the previous financial year.
At present, only commercial radio licences which were granted under the former
BroadcastingAct 1942 (the former Act) and have been continued in force by section 5
ofthe Broadcasting Services (Transitional Provisions and Consequential
Amendments) Act 1992 (the Transitional Provisions Act) are subject to annual licence
fees. The amendments in Schedule 1 provide for annual licence fees also to be payable
in respect ofcommercial radio broadcasting licences allocated under the Broadcasting
Services Act 1992 (the Broadcasting Services Act), including licences renewed under
that Act.
Item 1 - Subsection 4(1) (definition of ABA)
Subsection 4(1) of the Radio Licence Fees Act contains definitions of terms used in
that Act.
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This item inserts a definition of "ABA" in subsection 4(1) ofthe Radio Licence Fees
Act. The "ABA" is defined as the Australian Broadcasting Authority. (Item 10
amends section 7 of the Radio Licence Fees Act to confer a power on the ABA.)
Item 2 - Subsection 4(1) (definition of FM access fee)
Subsection 4(1) of the Radio Licence Fees Act defines "FM access fee" as the fee
payable in respect of a licence under section 6B of that Act. Section 6B of the Radio
Licence Fees Act imposes an FM access fee for the grant of non-metropolitan FM
commercial radio licences and supplementary radio licences, and for the conversion of
non-metropolitan AM commercial radio licences to FM.
Section 6B, along with sections 6BA and 6C, are now spent and are repealed by Item
9 (see explanatory notes on Item 9 below). The definition of"FM access fee" is made
redundant by the repeal of sections 6B, 6BA and 6C, and this item repeals the
definition.
Item 3 Subsection 4(1) (definition of gross earnings)
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This item amends the definition of "gross earnings" in subsection 4(1) of the Radio
Licence Fees Act so that the language used in the provision is consistent with that used
in the Broadcasting Services Act.
Item 4 - Subsection 4(1) (definition of licence)
This item corrects a typographical error in the definition of"licence" in subsection 4(1)
of the Radio Licence Fees Act.
Subsection 4(1) of the Radio Licence Fees Act defines "licence" to mean a commercial
radio broadcasting licence referred to in paragraph 5(1 )(b), (d) or (f) ofthe
Transitional Provisions Act. These paragraphs preserve licences which were granted
under the former Act so that they continue in force as if they had been allocated under
the Broadcasting Services Act.
The definition in subsection 4(1) ofthe Radio Licence Fees Act mistakenly refers to
paragraph 5(lXb) of the Transitional Provisions Act, which deals with commercial
television licences, rather than to paragraph 5(1)(a), which deals with commercial radio
licences.
This item substitutes a new definition of licence in subsection 4(1) of the Radio
Licence Fees Act to define "licence" as a commercial radio broadcasting licence
referred to in paragraph 5(1)(a), (d) or (f) of the Transitional Provisions Act.
Clause 2(2) makes the amendment retrospective to the time that the provision
P ensure that to remove in respect of commercial the typographical error. This will
commencedlicence fees any uncertainty caused byradio licences granted under the
former Act and preserved by the Transitional Provisions Act were imposed validly
under the Radio Licences Fees Act.
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From the time this Bill receives the Royal Assent, the definition is itself repealed and a
new definition substituted by the following item.
Item 5 - Subsection 4(1) (definition of licence)
This item substitutes a new definition of"licence" in subsection 4(1) ofthe Radio
Licence Fees Act to make commercial radio licences allocated under the Broadcasting
Services Act also subject to annual licence fees.
Section 5 of the Radio Licence Fees Act providesthat fees are payable by a licensee in
respect of a licence. Subsection 4(1) of the Radio Licence Fees Act defines "licence"
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as a commercial radio broadcasting licence referred to in paragraph 5(1 )(b), (d) or (0
of the Transitional Provisions Act.
As noted in the explanatory notes on Item 4, paragraphs 5(1)(a), (d) and (f) of the
Transitional Provisions Act preserve licences granted under the former Act so that they
continue in force as if they had been allocated under the Broadcasting Services Act.
Section 7 of the Transitional Provisions Act enables a licence preserved under section
5 to continue in force for the unexpired term of the !icence, but enables the licence to
be renewed under the Broadcasting Services Act.
This item substitutes a new definition of "licence" in subsection 4(1). "Licence" is
defined as a commercial radio broadcasting licence referred to in paragraph 5(1 )(a), (d)
or (f) of the Transitional Provisions Act, or a commercial radio broadcasting licence
allocated or renewed under the Broadcasting Services Act.
Commercial radio broadcasting licences allocated under the Broadcasting Services Act
are licences allocated under Part 4 ofthe Broadcasting Services Act, namely:
· commercial radio broadcasting licences allocated under section 36;
· additional commercial radio broadcasting licences in single markets allocated under
section 39; and
· other commercial radio broadcasting licences that are allocated under section 40
(ie non-broadcasting services bands licences).
Item 6 - Section 5'
This item amends section 5 of the Radio Licence Fees Act to replace the gender
specific term "his" with a non-gender specific term "the". I
Item 7 - Subsection 6(1)
This item repeals subsection 6(1) ofthe Radio Licence Fees Act, which provides for a
$500 fee payable on the grant of a commercial radio licence. This fee is considered
unnecessary, given that the provisions of Part 4 of the Broadcasting Services Act allow
the ABA to determine application fees or fees representing the administrative costs of
allocating a licence, in respect of commercial radio broadcasting licences.
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Item 8 - Paragraph 6(3)(b)
This item amends subsection 6(3) of the Radio Licence Fees Act to ensure that
J licensees who adopt a different accounting period under the Broadcasting Services Act
after it is amended have their annual licence fee calculated by reference to any different
accounting period they may adopt.
Section 5 of the Radio Licence Fees Act provides that licence fees are payable by a
licensee. The amount of the annual fee is calculated in accordance with subsections
) 6(2) and 6(2A) of the Radio Licence Fees Act, and is based on gross earnings in
respect of the licence during the previous financial year.
Under the former Act, licensees could adopt an accounting period ending on a date
other than 30 June. This mechanism has been kept in force by the operation of section
22 of the Transitional Provisions Act.
The proposed amendments in the Broadcasting Services Legislation Amendment Bill
1997 will transfer the mechanism for adopting a different accounting period to the
Broadcasting Services Act. Proposed section 205B of the Broadcasting Services Act
provides that a licensee may adopt a different accounting period with the permission of
the ABA (see explanatory notes on Item 5 of Schedule 1 ofthe Broadcasting Services
Legislation Amendment Bill 1997).
Subsection 6(3) of the Radio Licence Fees Act allows the amount ofthe annual fee to
be calculated by referenceto any different accounting period adopted by licensees
under the former Act or the Transitional Provisions Act.
This item will allow the amount ofthe annual licence fee to be calculated by reference
to any different accounting period licensees may adopt under the Broadcasting
Services Act after it is amended.
Item 9 Sections 6B, 6BA and 6C
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This item repeals sections 6B, 6BA and 6C of the Radio Licence Fees Act, which are
spent.
Section 6B of the Radio Licence Fees Act imposes an FM access fee for the grant of
non-metropolitan FM commercial radio licences and supplementary radio licences, and
for the conversion of non-metropolitan AM commercial radio licences to FM.
Section 6BA provides for the calculation of the FM access fee.
Section 6C imposes a fee for the conversion of an AM licence to FM under the
National Metropolitan Radio Plan.
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Item 10 - Section 7
Section 7 ofthe Radio Licence Fees Act is an anti-avoidance provision which gives the
Minister a discretion to treat the earnings of associates of licensees as the earnings of a
licensee for the purposes of the licence fee provisions.
This item amends section 7 to transfer this power from the Minister to the ABA in
recognition that the ABA administers the licence fee provisions and is therefore the
appropriate body to hold this power.
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