Updates to spectrum licence taxes

We received 2 submissions to the consultation. These are available at the bottom of the page. In taking into account the submissions, we made the Radiocommunications (Spectrum Licence Tax) Amendment Determination 2023 (No. 1) to:

• update the EME component for 2023–24 to $2,014,000
• include the 3700–3800 MHz frequency range and update to the corresponding base amount.

These changes were as proposed in the July consultation paper. 

Submitters to the consultation supported the need for the EME component as necessary to support the Government’s EME Program. Submissions also raised a number of matters that are beyond our remit and are for consideration by the government. These are:

• Both submitters suggested that the total EME component should be based on the costs of the EME program and requested greater transparency about those costs. 
• Both submitters noted the introduction of the EME component for designated spectrum licence holders in 2020 was appropriate to address community concerns regarding 5G and EME over carrier deployment of new and emerging technologies. However, submissions suggested that given 5G devices have now proliferated through other licensing arrangements, the government should review the range of licence holders responsible for contributing to the cost recovery of the EME program. 

Neither submission raised concerns about incorporating the 3700–3800 MHz frequency band and the subsequent change in the base amount into the SLT Determination.
 

Spectrum licence tax is charged on spectrum licences on 11 October of each year. There are 2 components to the spectrum licence tax:

1. Main Component
2. EME Component.

Read more about spectrum licence taxes.

In 2023–24 and each subsequent financial year, the Australian Communications and Media Authority (Modifications to Apparatus and Spectrum Licences Taxes) Direction 2020 requires the ACMA to collect EME components totalling no more than $1.9 million, indexed by no more than the Consumer Price Index (CPI).

The June 2023 CPI is 6.0% and we want to amend the SLT Determination to update the EME component to $2,014,000. Our consultation paper outlines the calculation and the proposal.

Previously we consulted on a proposal to include the 3700–3800 MHz frequency range and update to the corresponding base amount in the SLT Determination. The change in the base amount will not increase the spectrum licence tax for existing spectrum licences in the 3400–3700 MHz frequency range. No concerns were raised by the proposal. Information about the proposed change is also included in this consultation paper.