spectrum licence. The last column indicates the percentage increase or decrease reflected in the proposed base amount, where applicable. Table 2 Base amounts: current vs recalculated (with 2010–11 costs/revenue) In some bands, the recalculated base amount figures do not differ greatly from current figures. However, the percentage changes to some base amount figures are significant. The reasons for these differences, and information on the method used to calculate the proposed base amounts, are set out below. Aim of proposed changes Method of calculating base amounts The method applied to determine the base amount first involves the calculation of the spectrum maintenance component (SMC). This is the component of an apparatus licence fee that is designed to recover the indirect costs of spectrum management. The SMC is the total indirect cost of spectrum management expressed as a percentage of total apparatus licence tax revenue. The objective of applying the SMC as part of the calculation for the base amounts for spectrum licence tax is to create parity between the recovery of indirect costs for the two types of licensing (apparatus and spectrum). This need for parity is an objective of the Spectrum Licence Tax Act. The intention to use the SMC percentage for this purpose is also expressly mentioned in the Explanatory Memorandum. Consequently, even though the ACMA no longer calculates an annual SMC to be included in the breakdown of apparatus licence tax, an SMC percentage was calculated using cost and revenue figures for the purpose of updating the base amounts for spectrum licence tax. The current SMC percentage is 20.6 per cent. The method used to calculate the base amounts for each band is as follows: using a general assigned apparatus licence type, an amount equivalent to the licence fee of an Australia-wide apparatus licence is calculated for the spectrum licensed band. That fee amount is then multiplied by the SMC percentage to produce a base amount of the total spectrum licence tax that applies to the whole band. As set out in the SLT Determination, the amount of spectrum licence tax paid on an individual spectrum licence is calculated as a share of that base amount on a per population, per MHz basis.
spectrum licence. The last column indicates the percentage increase or decrease reflected in the proposed base amount, where applicable. Table 2 Base amounts: current vs recalculated (with 2010–11 costs/revenue) In some bands, the recalculated base amount figures do not differ greatly from current figures. However, the percentage changes to some base amount figures are significant. The reasons for these differences, and information on the method used to calculate the proposed base amounts, are set out below. Aim of proposed changes Method of calculating base amounts The method applied to determine the base amount first involves the calculation of the spectrum maintenance component (SMC). This is the component of an apparatus licence fee that is designed to recover the indirect costs of spectrum management. The SMC is the total indirect cost of spectrum management expressed as a percentage of total apparatus licence tax revenue. The objective of applying the SMC as part of the calculation for the base amounts for spectrum licence tax is to create parity between the recovery of indirect costs for the two types of licensing (apparatus and spectrum). This need for parity is an objective of the Spectrum Licence Tax Act. The intention to use the SMC percentage for this purpose is also expressly mentioned in the Explanatory Memorandum. Consequently, even though the ACMA no longer calculates an annual SMC to be included in the breakdown of apparatus licence tax, an SMC percentage was calculated using cost and revenue figures for the purpose of updating the base amounts for spectrum licence tax. The current SMC percentage is 20.6 per cent. The method used to calculate the base amounts for each band is as follows: using a general assigned apparatus licence type, an amount equivalent to the licence fee of an Australia-wide apparatus licence is calculated for the spectrum licensed band. That fee amount is then multiplied by the SMC percentage to produce a base amount of the total spectrum licence tax that applies to the whole band. As set out in the SLT Determination, the amount of spectrum licence tax paid on an individual spectrum licence is calculated as a share of that base amount on a per population, per MHz basis.