Response to the implementation of the Spectrum Pricing Review (part 2) - consultation 38/2021

Second tranche reforms

We have made the second (and final) tranche of Spectrum Pricing Review (SPR) reforms.

The reforms include:

• updating the assigned apparatus licence tax formula, including:
  • changes to the structure of the location weightings table
  • a rebalance of some of the weightings
  • changes to the way we update taxes each year
  • changes to the Perth and Adelaide medium-density areas
• reducing tax rates for transmitter licences used to provide high-power open narrowcasting (HPON) services
• adjusting some tranche one reforms following industry feedback.

Details of these reforms are included in the outcomes paper below:

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Outcomes paper: ACMA Spectrum Pricing Review

Most of these pricing reforms will come into effect on 21 August 2022. However, the changes to the Perth and Adelaide areas won't be implemented until mid-2025, to allow affected licensees time to prepare for the changes. We also intend to implement the first annual update of taxes in April 2023 (consistent with the timing of previous annual updates), and we will consult beforehand (likely in Q4 2022) on new prices based on the new methodology.

For licensees with renewals that fall due on or after 21 August 2022, these taxes will reflect the new pricing and may be different from the indicative value shown in validation notices. When the new taxes commence, pro rata tax adjustment will not be applied to existing licences.

We will soon update our apparatus licence fee schedule and the online apparatus licence fee calculator to reflect these changes.

Access the amendment determinations and explanatory statements below:

• Radiocommunications (Transmitter Licence Tax) Amendment Determination 2022 (No. 2)
• Explanatory statement to the Radiocommunications (Transmitter Licence Tax) Amendment Determination 2022 (No. 2)
• Radiocommunications (Receiver Licence Tax) Amendment Determination 2022 (No. 2)
• Explanatory statement to the Radiocommunications (Receiver Licence Tax) Amendment Determination 2022 (No. 2)

Conclusion of our implementation of the Spectrum Pricing Review

Tranche two concludes the ACMA's implementation of the Spectrum Pricing Review. We would like to thank all the submitters who have taken the time and effort to engage with the implementation of the Spectrum Pricing Review process. The submissions received have played a pivotal role in informing the policy proposals put forward and eventual outcomes of the review.

As demand for spectrum continues to evolve, we welcome ongoing feedback on pricing issues, and we will continue to engage with stakeholders to seek views on proposed changes to the spectrum pricing framework as appropriate.

The ACMA is proposing a second tranche of Spectrum Pricing Review (SPR) tax reforms. They address the remaining SPR report recommendations and feedback from earlier consultations.

In the Response to implementation of the Spectrum Pricing Review, we:

• responded to industry submissions on the 6 focus areas for review of prices
• published spectrum pricing guidelines
• proposed a first tranche of reforms that came into effect on 12 July 2021.

 We now put forward a second tranche of reform proposals. These focus on:

• updating the assigned apparatus licence tax formula, including:
  • proposed changes to the structure of the location weightings table
  • a rebalance of some of the weightings
  • changes to the way we update taxes each year
  • changes to the Perth and Adelaide medium-density areas.
• reducing tax rates for transmitter licences used to provide high-power open narrowcasting (HPON) services.
• adjusting some tranche one reforms following industry feedback.

We invite comments on the issues set out in the consultation paper.

Use the ‘Upload a submission’ button at the top of this page to send us your views.

Submissions by post can be sent to:

The Manager

Economics Advisory

Australian Communications and Media Authority

PO Box 13112 Law Courts

Melbourne Victoria 8010

Consultation enquiries can be emailed to spectrumpricing@acma.gov.au.

We received 10 submissions responding to the proposals in the paper. We would like to thank all submitters for their contribution to the consultation. We are considering submissions and working on implementing tranche 2 proposals.

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Submissions to IFC 38 2021