Commonwealth Numbered Regulations - Explanatory Statements

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RADICOMMUNICATIONS TAXES COLLECTION REGULATIONS (AMENDMENT) 1997 NO.158

STATUTORY RULES 1997 No. 158

Issued by the Authority of the Minister for Communications and the Arts

Radiocommunications Taxes Collection Act 1983

Radicommunications Taxes Collection Regulations (Amendment)

Section 11 of the Radiocommunications Taxes Collection Act 1983 provides that the Governor-General may make regulations prescribing matters for carrying out or giving effect to the Act.

The new regulation provides a one-off refund of licence tax to Telstra of $828 774. This is the amount of tax Telstra paid for the analogue Advanced Mobile Phone System (AMPS) spectrum which was withdrawn from 1 January 1997.

Details

On 1 January 1997, Telstra was required to surrender three megahertz of spectrum in both Sydney and Melbourne, because of the government's decision to phase-out analogue AMPS spectrum. Telstra had paid licence fees to use this spectrum until 19 May 1997 but, because of the AMPS phase-out, were not permitted to use it. No other carrier paid licence tax for spectrum which they have not been permitted to use. The withdrawal of this spectrum was achieved by varying the conditions of the Public Mobile Telecommunications Service Class A licence issued to Telstra. There are no provisions in the Radiocommunications Act 1992, the Radiocommunications Taxes Collection Act 1983 or associated regulations that permit a refund because of a variation to licence conditions. Telstra is not entitled to any form of compensation as this is clearly precluded by section 308 of the Radiocommunications Act 1992.

The new regulation provides a one-off, pro rata refund to Telstra for fees paid for the withdrawn spectrum.

Details of the new regulation are as follows:

Regulation 1: Amendment

Sub-regulation 1.1 provides that the Radiocommunications Taxes Collection Regulations are amended as set out in the new regulations

Regulation 2: New Regulation 4B

Sub-regulation 2.1 provides that a refund of $828 774 is payable to Telstra. This refund is paid for the withdrawal of 3 MHz of spectrum in the 880-890 MHz band in Sydney and Melbourne from the Public Mobile Telecommunications Service Class A licence held by Telstra until 19 May 1997.