The first step for any person who holds a radiocommunications licence is to identify which category of tax applies to each licence they hold. Apparatus licence tax and spectrum licence tax have different due dates, different payment periods, and different penalty regimes. A person who holds both types of licences must track them separately. The instrument type and the taxing Act that applies to it will determine the category.
The second step is to determine the due date for each tax. For apparatus licence tax on the issue of an instrument, the due date is the issue date. For apparatus licence tax on an anniversary, the due date is that anniversary. For apparatus licence tax on holding 60 days after the anniversary, the due date is the day after that 60-day period. For spectrum licence tax, the due date is 60 days after the initial holding date or 60 days after each anniversary. These dates should be recorded in a compliance calendar. A calendar that uses only one rule for all licences will produce errors.
The third step is to ensure payment is made by the due date. The Act does not specify the method of payment. Section 11(2)(a) permits regulations to prescribe the manner of payment. Practitioners should check the current regulations to determine whether electronic payment, cheque, or other methods are accepted. If the ACMA has entered an arrangement with a third-party collection agent under section 10A, payment should be made to that agent in accordance with the arrangement. However, the person should ensure that payment to an agent discharges the obligation, because the Act does not guarantee that.
The fourth step is to monitor for penalty determinations made by the ACMA under section 7A. The penalty is set by legislative instrument, which is published on the Federal Register of Legislation. A person should check the current determination at least quarterly, because the ACMA can change the rate without notice. A person who assumes the penalty rate remains static from year to year may face a higher penalty than budgeted.
The fifth step is to check whether any exemption applies under the regulations made under section 8. The regulations may exempt classes of persons from apparatus licence tax or spectrum licence tax. A person who believes they fall within an exempt class should confirm that the exemption is current and that they meet all conditions. A person who does not fall within an exempt class cannot obtain an individual exemption.
The sixth step is to track overpayments. If a person pays more tax than is due, they are entitled to a refund under section 10B. The refund must be requested from the ACMA. The Act does not require the ACMA to refund automatically. A person should review their payment records annually and request a refund if an overpayment is identified. The same applies to penalty overpayments under subsection 7A(1B).
The seventh step applies only to persons who hold a transmitter licence issued before 1 July 2017 under section 100 or 102 of the Radiocommunications Act 1992 and associated with a commercial broadcasting licence. Those persons should calculate their entitlement to a pro-rata refund under sections 10C and 10D. The refund is calculated by formula and must be requested from the ACMA. The Act does not require automatic refund. A person who does not apply may miss the refund entirely.
The eighth step is to consider set-off. If a person has an amount of interim tax payable and also has a refund due under section 10B, 10C or 10D, they can request the ACMA to set off the refund against the interim tax. The set-off is discretionary under section 10E. A person should make the request in writing and ask for confirmation that the set-off has been applied. Relying on an automatic set-off is risky.
The ninth step is to ensure that the person understands the incorporation of the Radiocommunications Act 1992. Questions about whether a licence is in force, who holds it, and what its period is are determined by that Act. If that Act is amended, the effect on tax liability changes without any amendment to this Act. A person should monitor amendments to the Radiocommunications Act 1992 as part of their tax compliance process.
The tenth step is to ensure that any refund application for transmitter licence tax complies with the requirement to disregard Division 6 of Part 3.3 of the Radiocommunications Act 1992 and Part 10 of the Broadcasting Services Act 1992 when working out the licence period. A person who uses the actual licence period including any statutory extensions will miscalculate the refund. The refund formula assumes the original unadjusted period.
The eleventh step applies to statutory corporations. They cannot rely on their enabling legislation to claim immunity from tax. Any such corporation should budget for apparatus licence tax and spectrum licence tax unless a regulation under section 8 specifically exempts it. A statutory corporation that has historically not paid tax should not assume the exemption continues.