Commonwealth Numbered Regulations - Explanatory Statements

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DAIRY PRODUCE LEVY REGULATIONS (AMENDMENT) 1995 NO. 210

STATUTORY RULES 1995 No. 210

Issued by the Authority of the Minister for Primary Industries and Energy

Dairy Produce Levy (No. 1) Act 1986

Dairy Produce Levy Regulations (Amendment)

The Dairy Produce Levy (No. 1) Act 1986 (the Act) provides for the imposition of levies on all milk produced and used in the manufacture of dairy products in Australia. These levies are the market milk levy, the manufacturing milk levy, the research levy, the Corporation levy and the promotion levy. All levies, except for the manufacturing milk levy, are paid by the producer. The manufacturing milk levy is paid by the manufacturer on milk used in the manufacture of dairy products. The rate of levy is determined on the milk fat and protein content of the milk.

Funds collected from the market and manufacturing milk levies are used to finance the domestic market support scheme for the dairy industry which commenced on 1 July 1995 and ends on 30 June 2000. The implementation of this scheme from 1 July 1995 was necessitated by Australia's commitments under the Uruguay Round of Trade Negotiations. The impact of this scheme is to deliver the same level of support to manufacturing milk producers as that which would have been provided under the previous scheme, had it continued until its original termination on 30 June 2000.

Support for manufacturing milk producers is obtained through an inter-sectoral transfer from market milk producers via the market milk levy and through a financial transfer from domestic consumers via the levy paid by manufacturers. Manufacturers can recoup the levy through the price to domestic consumers or through an export rebate.

The research levy is used to fund the activities of the Dairy Research and Development Corporation while the promotion and Corporation levies fund the promotion and administration activities of the Australian Dairy Corporation.

The Act works in conjunction with the Dairy Produce Act 1986, the Dairy Produce Levy (No. 2) Act 1986 and the Primary Industries Levies and Charges Collection Act 1991.

Sections 6, 7 and 9 of the Act provides for the levies imposed by section 5 of the Act to be set at the rates prescribed, on a milk fat and protein content basis, by Regulations.

Subsection 14 (2) of the Act provides for the Australian Dairy Industry Council to make recommendations on the appropriate rates for the market milk levy, the Corporation levy, the promotion levy and the research levy.

Subsection 14 (3) of the Act provides for the Executive Director of the Australian Bureau of Agricultural and Resource Economics to make a report relating to an appropriate rate for the manufacturing milk levy.

Recommendations have been received from the ADIC and the Executive Director of ABARE.

Details of the regulations are set out below..

Regulation 1 provides for these regulations to commence on 1 July 1995.

Regulation 2 provides for the Dairy Produce Levy Regulations to be amended.

Regulation 3 provides for the amendment of Regulation 2 of the Dairy Produce Levy Regulations to incorporate the definition of each levy imposed under Section 5 of the Act.

Regulation 4 provides for the amendment of Regulation 4 of the Dairy Produce Levy Regulations to specify the prescribed milk fat and protein rates for each levy, for the purposes of Sections 6, 7 and 9 of the Act. These prescribed rates are those recommended by the ADIC and the Executive Director of ABARE.

Regulation 5 provides for the deletion of Regulation 5 of the Dairy Produce Levy Regulations as it relates to the Supplementary Market Support Payment Scheme which has been terminated and wound up.

Regulation provides for the deletion of Regulation SA of the Dairy Produce Levy Regulations as it relates to the Supplementary Market Support Payment Scheme which has been terminated and wound up.

Regulation 7 provides for the deletion of Regulation 6 of the Dairy Produce Levy Regulations as it relates to the Supplementary Market Support Payment Scheme which has been terminated and wound up.

Regulation 8 provides for the deletion of Schedule 2 of Regulation 6 of the Dairy Produce Levy Regulations as it relates to the Supplementary Market Support Payment Scheme which has been terminated and wound up.