5Direction—spectrum access charge payable in instalments

5 Direction—spectrum access charge payable in instalments

(1) This direction is given to the ACMA under subsection 294(2) of the Radiocommunications Act. Payment by instalments (2) I direct the ACMA, in making a charges determination that fixes a relevant spectrum access charge, to permit payment of that charge in instalments, subject to the terms set out in subsections (3) to (6) and so long as the precondition set out in section 6 is met.

Note: Paragraph 294(1)(b) of the Radiocommunications Act provides that the ACMA may, by written instrument, make determinations specifying the times when spectrum access charges are payable.

Terms for payment by instalments (3) If a person elects to pay a relevant spectrum access charge in instalments: (a) the full amount of the charge must be payable in five instalments; (b) each instalment must equal 20.32% of the upfront payment amount; and (c) each instalment must be payable in accordance with the timeframes set out in subsections (4) to (6). (4) The first instalment must be payable prior to the issue of the licence. (5) The second instalment must be payable by: (a) if the licence comes into force on the day on which it is issued—the day which is 12 months from that day; or (b) if the licence comes into force later than the day on which it is issued—a day which is no earlier than 12 months from the day the licence is issued but no later than 12 months from the day the licence comes into force. (6) Each of the third, fourth and fifth instalments must be payable by: (a) for the third instalment—the first anniversary of the day by which the second instalment is payable; (b) for the fourth instalment—the second anniversary of the day by which the second instalment is payable; (c) for the fifth instalment—the third anniversary of the day by which the second instalment is payable.

Note: Example 1: For a relevant spectrum licence proposed to be issued and to come into force on 1 August 2021, and for which the upfront payment amount is $1,000,000, the instalments would be the following amounts payable by the following times, if an election to pay in instalments is made:

(a) a first instalment of $203,200 by 31 July 2021;
(b) a second instalment of $203,200 by 1 August 2022;
(c) a third instalment of $203,200 by 1 August 2023;
(d) a fourth instalment of $203,200 by 1 August 2024;
(e) a fifth instalment of $203,200 by 1 August 2025.

Note: Example 2: For a relevant spectrum licence proposed to be issued on 1 August 2021 and to come into force on 1 November 2021, the date by which the second instalment must be paid must be no earlier than 1 August 2022 but no later than 1 November 2022. If the due date of payment of the second instalment is 31 October 2022, each of the third, fourth and fifth instalments must be paid by 31 October each year in 2023, 2024 and 2025 respectively.