Commonwealth Numbered Regulations - Explanatory Statements

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PRIMARY INDUSTRIES (CUSTOMS) CHARGES AMENDMENT (MACADAMIA NUTS) REGULATIONS 2018 (F2018L00270)

EXPLANATORY STATEMENT

Issued by Authority of the Deputy Prime Minister and Minister for Agriculture and Water Resources

Primary Industries (Excise) Levies Act 1999

Primary Industries (Excise) Levies Amendment (Macadamia Nuts) Regulations 2018

The Primary Industries (Excise) Levies Act 1999 (the Act) provides for the ability to impose levies on a range of horticultural products, including macadamia nuts.

Section 8 of the Act provides that the Governor-General may make regulations prescribing matters required or permitted by that Act to be prescribed for carrying out or giving effect to that Act or that are necessary or convenient to be prescribed for carrying out or giving effect to that Act.

Subclause 14(2) of Schedule 27 of the Act provides that if there is a single body that is a designated body in relation to a particular product, then, before the Governor-General makes a regulation in relation to the product, the Minister must take into consideration any relevant recommendation made to the Minister by the body.

The Primary Industries (Excise) Levies Regulations 1999 (the Principal Regulations) imposes the Emergency Plant Pest Response (EPPR) levy on macadamia nuts sold domestically in Australia and sets the rate of the EPPR levy.

The Primary Industries (Excise) Levies Amendment (Macadamia Nuts) Regulations 2018 (the Regulations) increased the rate of the EPPR levy on macadamia nuts from nil to 0.2 cents per kilogram of dried kernels of macadamia nut.

This is because the Australian Macadamia Society (the AMS) wrote to the Minister on 30 June 2017 seeking to activate the EPPR levy on macadamia nuts. The funds raised from this levy will be used to repay the Australian Government for costs paid on behalf of the AMS in relation to the response plan for the eradication of varroa mite from Queensland. It is expected that the AMS' contribution to the eradication response will be no more than $30,160, in total.

Levies are introduced, administered and collected by the Australian Government, usually at the request of industry. The Department of Agriculture and Water Resources (the department) collects the levy and disburses the funds to the relevant recipient body, in this instance Plant Health Australia (PHA). The AMS is a member of PHA, representing macadamia nuts.

The EPPR levy on macadamia nuts will be 0.2 cents per kilogram of dried kernels of macadamia nut. 

The levy rate was calculated to ensure that the industry's liability to the Australian Government is repaid within two years based on estimated production. Due to varying annual production, it is difficult to predict the exact timeframe for completion of repayment. Therefore, the EPPR levies are being implemented without a specified end date. However, the AMS intends to request that the Minister reset the EPPR levies to nil once repayment is complete.

The levy increases are a small enough percentage of the overall levy applied to macadamia nut kernels (including R&D, marketing and national residue survey levies) that it is very unlikely to influence the price of macadamia products.

Consistent with the Australian Government Levy Principles and Guidelines for the activation of an emergency response levy, the AMS notified levy payers of the request to activate the EPPR levy on macadamia nuts.

The AMS held an objection period from 28 July 2017 to 28 August 2017. One objection was received from a group of four levy payers. The group considered that the AMS had not sought formal levy payer approval and had not met the AMS Constitution's requirements for the imposition of a "special levy."

The objection was resolved after AMS wrote to the objecting party on 25 August 2017, explaining that formal levy payer approval for the activation of the EPPR levy in the case of an emergency response affecting macadamias had been obtained at the time the levy was introduced at a nil rate in 2005, and that the EPPR levy is a statutory levy, rather than a special levy under the AMS Constitution.

Details of the Regulations are set out in Attachment A.

The Regulations are compatible with the human rights and freedoms recognised or declared under section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011. A full statement of compatibility is set out in Attachment B.

The Regulations are a legislative instrument for the purposes of the Legislation Act 2003.

Attachment A

Details of the Primary Industries (Excise) Levies Amendment (Macadamia Nuts)

Regulations 2018

Section 1 - Name of Regulations

This section provides that the name of the Regulations is the Primary Industries (Excise) Levies Amendment (Macadamia Nuts) Regulations 2018.

Section 2 - Commencement

This section provides for the Regulations to commence on 1 April 2018.

Section 3 - Authority

This section provides that the Regulations are made under the Primary Industries (Excise) Levies Act 1999.

Section 4 - Schedule

This section provides for the Primary Industries (Excise) Levies Regulations 1999 to be amended as set out in Schedule 1.

Schedule 1 - Amendments

Item 1 amends paragraph 10.6(2) of Schedule 15 to provide that the EPPR levy on macadamia nuts is 0.2 cents per kilogram of dried kernels of macadamia nut. 

Attachment B

Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

Primary Industries (Excise) Levies Amendment (Macadamia Nuts) Regulations 2018

This Legislative Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

Overview of the Legislative Instrument

The purpose of the Primary Industries (Excise) Levies Amendment (Macadamia Nuts) Regulations 2018 (the Regulations) is to increase the Emergency Plant Pest Response (EPPR) levy on macadamia nuts from nil to 0.2 cents per kilogram of dried kernels of macadamia nut.

The Regulations commence on 1 April 2018.

Human rights implications

These Regulations do not engage any of the applicable rights or freedoms.

Conclusion

The measures in the Regulations are compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011 as the Regulations do not engage any human rights issues.

The Hon. David Littleproud MP

Minister for Agriculture and Water Resources