Commonwealth Numbered Regulations - Explanatory Statements

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PRIMARY INDUSTRIES (CUSTOMS) CHARGES AMENDMENT REGULATIONS 2006 (NO. 5) (SLI NO 317 OF 2006)

EXPLANATORY STATEMENT

 

Select Legislative Instrument 2006 No. 317

 

Issued by Authority of the Minister for Agriculture, Fisheries and Forestry

 

Primary Industries (Excise) Levies Act 1999

Primary Industries (Customs) Charges Act 1999

 

Primary Industries (Excise) Levies Amendment Regulations 2006 (No. 7)

Primary Industries (Customs) Charges Amendment Regulations 2006 (No. 5)

 

 

Section 8 of both the Primary Industries (Excise) Levies Act 1999 (the Excise Levies Act) and the Primary Industries (Customs) Charges Act 1999 (the Customs Charges Act) provide that the Governor-General may make regulations prescribing matters required or permitted by those Acts to be prescribed or necessary or convenient to be prescribed for carrying out or giving effect to those Acts.

 

Clause 2 of Schedule 27 to the Excise Levies Act provides that regulations may impose a levy, and Clause 2 of Schedule 14 to the Customs Charges Act provides that regulations may impose a charge on primary industry products.

 

The Regulations ceased the imposition of certain levies on sugar after 30 November 2006. The domestic sugar levy was introduced on 1 January 2003 to help fund the Sugar Industry Reform Programme (SIRP) 2002 that was originally intended to provide funding of up to $120 million. In April 2004, those elements of SIRP 2002 which had not been completed were incorporated with some new initiatives under SIRP 2004 which provides funding of up to $444 million.

 

The levy has collected $77.9 million to date and is expected to collect $79.7 million by

30 November 2006. This is significantly less than cumulative administered expenditure on SIRP 2002 ($22.2 million) and SIRP 2004 (exceeding $260.6 million).

 

The Primary Industries (Excise) Levies Regulations 1999 provided for the imposition of the levy. Part 6 of Schedule 27 to these regulations imposed the levy on (a) retail-packaged sugar produced in Australia and (b) sugar that is used as an ingredient in goods that are produced in Australia for human consumption. The levy was set at a rate of three cents per kilogram. However, clause 6.6 of Schedule 27 provided that the levy will cease on 31 December 2007.

 

In parallel, Part 4 of Schedule 14 of the Primary Industries (Customs) Charges Regulations 2000 imposed a customs charge of three cents per kilogram on retail-packaged sugar imported into Australia, with a sunset date of 31 December 2007.

 

Funding provided by the levy has played an important part in delivery of the SIRP 2004 which has been instrumental in helping the industry through a very difficult period. The success of the programme will provide significant benefits to sugar users by ensuring continued access to cheaper high quality sugar.

 

The marked improvement in world sugar prices since 2004 and the cost price squeeze affecting sugar users has prompted the Government to remove this levy sooner than originally planned. The removal of the levy is an important respite for sugar users such as Australia’s food manufacturing and beverage industries, which have also faced increased input costs combined with strong overseas market competition. It will help investment, innovation and employment growth in these industries and make Australian manufacturers more competitive in international markets.

 

The removal of the levy sooner than originally planned will not affect the Australian Government’s commitment to the reform and restructure of the Australian sugar industry through funding of SIRP 2004.

 

The Regulations removed the levy at midnight on 30 November 2006, (i.e. cessation date of 1 December 2006).

 

The Regulations are legislative instruments for the purposes of the Legislative Instruments Act 2003.

 

 

0620508A

0620508B

 


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