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CATTLE TRANSACTION LEVY REGULATIONS 1997 NO. 182EXPLANATORY STATEMENT
STATUTORY RULES 1997 No. 182
Issued by the Authority of the Minister for Primary Industries and Energy
Cattle Transaction Levy Act 1995
Cattle Transaction Levy Regulations
The Cattle Transaction Levy Act 1995 (the Act) provides that the Governor-General may make regulations for the purposes of the Act.
The Act provides for the imposition of a levy on each cattle transaction involving ownership transfer, delivery to a processor for slaughter, or slaughter of cattle or bobby calves, with certain exclusions principally relating to sale of dairy cattle for dairying purposes.
There are six levy components funding the Meat Industry Council; the Meat Research Corporation; the Australian Meat and Live-stock Corporation; the National Cattle Disease Eradication (NCDE) Trust Account; the National Residue Survey (prior to 1 July 1993); and the Australian Animal Health Council (AAHC) respectively. Operative levy rates may be set by regulation within the constraints of maximums specified within the Act.
The regulations decrease the NCDE Trust Account component by 8 cents and increase the AAHC component by 8 cents, implementing Cattle Council of Australia (CCA) recommendations. The rate of the levy to the NCDE Trust Account is reduced to 17 cents from the previous 25 cents and the rate of the levy to the AAHC is increased to 13 cents from the previous 5 cents per transaction provided for in the Act. The variation affects only the components paid to the NCDE Trust Account and the AAHC, and only adult cattle.
The CCA is recognised as the peak industry body representing cattle producers, the principal levy payers. At its Annual General Meeting held on 29/30 April 1997, the CCA resolved to ask the Minister for Primary Industries and Energy to vary these components of the levy.
The purpose of the NCDE Trust Account is to receive the disease eradication component of cattle industry levies collected by the Commonwealth and to make payments associated with the eradication of any disease in cattle that is endemic in Australia.
The reason for the reduction in the NCDE Trust Account is the current 'healthy' level of the trust fund, combined with the winding down of the Brucellosis and Tuberculosis Eradication Campaign and projected low program costs post 1998 of the follow-on program, the Tuberculosis Freedom Assurance Program.
The AAHC was established in January 1996 to be Australia's peak animal health body, providing the point of reference for strategic policy development and national program funding for animal health matters requiring a response at a national level. The Commonwealth, State/Territory Governments collectively, and the national councils of the livestock based industries (including the CCA) each provide funding for the AAHC.
The reason for the increase to the AAHC component is to provide funding specifically for the Bovine National Johne's Disease Control Program. The AAHC has accepted responsibility for the co-ordination and management of this program.
Details of the regulations are:
Regulation 1 provides for a commencement date of 1 July 1997.
Regulation 2 provides for the Cattle Transaction Levy Regulations to be amended by the Cattle Transaction Levy Regulations (Amendment).
Regulation 3 substitutes a new Regulation 4 in the Cattle Transaction Levy Regulations to prescribe a rate of 17 cents (replacing the current rate of 25 cents) for NCDE purposes.
Regulation 4 substitutes a new Regulation 5 in the Cattle Transaction Levy Regulations to prescribe a rate of 13 cents (replacing the current rate of 5 cents) for AHHC purposes. The rate for bobby calves remains at zero cents.