TELEVISION LICENCE FEES AMENDMENT BILL 2013 Explanatory Memorandum
TELEVISION LICENCE FEES AMENDMENT BILL 2013
2010-2011-2012-2013
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
HOUSE OF REPRESENTATIVES
TELEVISION LICENCE FEES AMENDMENT BILL 2013
EXPLANATORY MEMORANDUM
(Circulated by authority of the Minister for Broadband, Communications
and the Digital Economy, Senator the Honourable Stephen Conroy)
TELEVISION LICENCE FEES AMENDMENT BILL 2013
OUTLINE
The Television Licence Fees Amendment Bill 2013 (the Bill), together with the
Broadcasting Legislation Amendment (Convergence Review and Other Measures) Bill
2013, the Broadcasting Legislation Amendment (News Media Diversity) Bill 2013, the
News Media (Self-regulation) Bill 2013, the News Media (Self-regulation)
(Consequential Amendments) Bill 2013 and the Public Interest Media Advocate Bill
2013 form a package of measures representing the Australian Governments response to
two independent media reviews conducted in 2011 and 2012 - the Convergence Review
and the Independent Inquiry into the Media and Media Regulation.
The Bill provides for the 50 per cent reduction in the licence fees paid by commercial
television broadcasters, currently specified in regulations, to be made permanent in
legislation on an ongoing basis.
The Broadcasting Legislation Amendment (Convergence Review and Other Measures)
Bill 2013 responds to matters raised in the Convergence Review in relation to use of the
sixth channel of television broadcasting spectrum, Australian content and public
broadcasting, and includes certain other measures.
The Broadcasting Legislation Amendment (News Media Diversity) Bill 2013 responds
to matters raised in the Convergence Review in relation to the importance of diversity
of media control by introducing a public interest test for transactions involving
significant news media voices.
The News Media (Self-regulation) Bill 2013 and the News Media (Self-regulation)
(Consequential Amendments) Bill 2013 respond to matters raised in the Convergence
Review and the Independent Inquiry into the Media and Media Regulation relating to
standards of media news and commentary.
The Public Interest Media Advocate Bill 2013 creates a new independent statutory
office which will perform functions under the News Media (Self-regulation) Bill 2013
and the public interest test to be established in the new Part 5A of the Broadcasting
Services Act 1992.
This Bill amends the Television Licence Fees Act 1964 (Licence Fees Act) to introduce
a new annual licence fee scale for commercial television broadcasting licensees. The
Licence Fees Act requires such licensees to pay licence fees in relation to their gross
earnings from the televising of advertisements or other matter on the services provided
under their licences.
The new fee scale reduces the annual licence fees payable by commercial television
broadcasters by 50 per cent, to a maximum 4.5 per cent of gross earnings.
A 50 per cent rebate in the licence fees payable by commercial television broadcasting
licensees in 2011-12 and 2012-13 was provided through the Television Licence Fees
Regulations 1990. The Bill replaces these temporary rebates and provides for a
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permanent reduction in licence fees in recognition of the significant pressures faced by
the commercial broadcasting sector as a result of emerging and convergent technology.
This measure will increase regulatory certainty for the industry and enable broadcasters
to continue to support the production of Australian content in an increasingly
challenging operating environment.
FINANCIAL IMPACT STATEMENT
The measures in the Bill have reduced Commonwealth revenue over the forward
estimates and these revisions have been made in the Mid-Year Economic and Fiscal
Outlook 2012-13.
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STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act
2011
Television Licence Fees Amendment Bill 2013
The Bill is compatible with the human rights and freedoms recognised or declared in the
international instruments listed in section 3 of the Human Rights (Parliamentary
Scrutiny) Act 2011. The Bill does not engage any of the applicable rights or freedoms,
or otherwise raise any human rights issues.
Overview of Bill
The Bill amends the Television Licence Fees Act 1964 to reduce by 50 per cent the
annual licence fee payable by commercial television broadcasting licensees.
Human rights implications
This Bill does not engage any of the applicable rights or freedoms. The measures in the
Bill apply only to corporations, as natural persons are not eligible to hold a commercial
television broadcasting licence.
Conclusion
This Bill is compatible with human rights as it does not engage any of the applicable
rights or freedoms, or otherwise raise any human rights issues.
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NOTES ON CLAUSES
Clause 1 - Short title
Clause 1 is a formal provision specifying the short title for the Act. When enacted, the
Bill is to be cited as the Television Licence Fees Amendment Act 2013 (the Act).
Clause 2 - Commencement
Clause 2 sets out when the provisions of the Act commence. The provisions specified in
column 1 of the table will commence, or will be taken to have commenced, on the day
specified in column 2 of the table.
The covering clauses (sections 1 to 3) and anything not elsewhere covered by the table
commence on the day the Act receives the Royal Assent.
Schedules 1 and 2 to the Act commence on the day after the Act receives the Royal
Assent.
Clause 3 - Schedule(s)
Clause 3 is a machinery provision that provides that each Act specified in a Schedule is
amended or repealed in accordance with the item concerned.
There are two Schedules to the Bill, both of which amend the Television Licence Fees
Act 1964 (the Licence Fees Act).
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Schedule 1-- General amendments
Schedule 1 amends the Licence Fees Act.
Part 1 - Amendments
Item 1 - Subsection 6(2A)
Item 1 repeals and substitutes subsection 6(2A) of the Licence Fees Act.
Sections 5 and 6 of the Licence Fees Act require commercial television broadcasting
licensees to pay to the Commonwealth a licence fee, by way of a tax, which is
calculated by reference to their annual gross earnings from the broadcast of
advertisements and other material. Subsection 6(2A) of the Licence Fees Act sets out a
sliding scale of licence fees, with a percentage rate that increases for higher levels of
gross earnings.
Item 1 of Schedule 1 to the Bill inserts a new sliding scale of licence fees. The effect of
the new scale is to reduce the applicable rate of television licence fees by 50 per cent,
across the board, to a maximum of 4.5 per cent of gross earnings.
Item 2 - Paragraph 6A(e)
Item 2 repeals and substitutes paragraph 6A(e) of the Licence Fees Act.
Section 6A of the Licence Fees Act provides for an assessment of fees where the
licensee changes accounting periods. Subsection 205B(2) of the Broadcasting Services
Act 1992 (BSA) allows a commercial television or radio broadcasting licensee, with the
permission of the Australian Communications and Media Authority, to adopt an
accounting period ending on a date other than 30 June. Such a change of accounting
period may have the effect that a television licence fee period commences before (or
does not commence immediately after) the end of the previous fee period.
The proposed amendments to paragraph 6A(e) are consequential to and reflect the
proposed amendments to subsection 6(2A) (described at item 1 above). Paragraph
6A(e) imposes a similar formula for determining the applicable rate, but with an
additional calculation to recognise the amended fee period.
Part 2 - Application and transitional provisions
Item 3 - Application
Item 3 makes clear that the amendments made by Schedule 1 apply to a licence fee that
is payable by a licensee after the commencement of the item. Item 3 will commence on
the day after the Act receives the Royal Assent.
Item 4 - Transitional - licence fee rebate scheme
Item 4 makes clear that a licensee is not entitled to a rebate under Part 4 of the
Television Licence Fees Regulations 1990 for an accounting period for which the fee is
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payable after the commencement of the item. This reflects the fact that the permanent
licence fee reduction given effect by the Bill is intended to replace existing rebate
arrangements.
Schedule 2-- Technical amendments
Item 1 - Subsection 5(1)
Item 1 of Schedule 2 to the Bill makes a consequential amendment to take account of
the repeal of subsection 6B of the Licence Fees Act (discussed below).
Item 2 - At the end of paragraph 6A(a)
Item 2 of Schedule 2 makes a technical amendment to bring the provision into line with
current drafting practice. It is not intended to change the effect of the provision.
Item 3 - Section 6A
Item 2 of Schedule 2 also makes a technical amendment to remove any possible
ambiguity as to the meaning of the word "anniversary" in section 6A. It is not intended
to alter the effect of the provision.
Item 4 - Section 6B
Item 4 of Schedule 2 repeals subsection 6B of the Licence Fees Act (,,Additional licence
fees payable for 1999, 2000 and 2001) which is a spent provision.
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