ACCC now supporting broadband tax on 4G and 5G fixed wireless

The Australian Competition and Consumer Commission (ACCC) has decided to support the expansion of the 'broadband tax' to include 4G and 5G fixed wireless services. This marks a shift from its previous stance against such a move, despite ongoing lobbying by NBN Co.

The broadband tax, formally known as the regional broadband scheme (RBS), is an $8.26 monthly charge on services similar to the National Broadband Network (NBN). This tax helps fund NBN Co's non-commercial fixed wireless and satellite services. 

Since the introduction of the scheme, NBN Co has pushed for cellular fixed wireless services to be taxed as well, seeing them as competitors.

The ACCC had previously resisted this, arguing that cellular fixed wireless services were not equivalent to fixed-line NBN services. However, with the RBS scheme under review, the ACCC has changed its position. 

4G and 5G tax ‘necessary’

The commission now agrees that taxing 4G and 5G fixed wireless services is necessary. They explained that as more people choose 4G and 5G fixed wireless over fixed-line broadband, the funding base for the RBS will shrink, leading to increased RBS levy amounts, which would unfairly disadvantage fixed-line network operators.

The ACCC acknowledges that adding the tax to 4G and 5G fixed wireless services could make them more expensive and less competitive against NBN Co's pricing. They suggest that the government should consider redefining who pays the RBS charge, potentially simplifying it by basing it on the number of services in operation rather than 'chargeable premises.' This approach could lower and simplify the levy amount.

The ACCC added that it did not support taxing LEOsat services, “as these services are largely supplied in areas outside of NBN Co’s fixed line footprint and are currently priced at a significant premium to NBN equivalent services.”

“They are not considered to be close substitutes in terms of price at this time,” it said.

Are you looking to change your 4G or 5G provider?

Do you have any concerns about the decision made by the ACCC? Want to talk to someone about switching your 4G or 5G Internet provider? Contact our Aussie-based Compare Broadband team today on 1300 764 000 - we're more than happy to chat.