EXPLANATORY STATEMENT

 

 

Select Legislative Instrument 2006 No. 193

 

 

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

 

Primary Industries Levies and Charges Collection Act 1991

 

 

Primary Industries Levies and Charges Collection Amendment Regulations 2006 (No. 4)

 

 

 

Section 30 of the Primary Industries Levies and Charges Collection Act 1991 (the Act) provides that the Governor-General may make regulations prescribing matters required or permitted by the Act to be prescribed or necessary or convenient to be prescribed for carrying out or giving effect to the Act.

 

The Australian citrus, nashi, lychee and custard apple industries currently pay statutory levies and export charges to fund marketing, research and development programs to benefit the industries.  Horticulture Australia Limited (HAL) is the statutory body that performs the function of the industry services body for the citrus, nashi, lychee and custard apple industries.  HAL is responsible for the administration of the levy and charge schemes and co-ordination of research and development programs for those industries.  The Australian Government provides matching funds for eligible research and development expenditure under the Horticulture Marketing and Research and Development Services Act 2000.

 

The purpose of the Regulations is to amend the Primary Industries Levies and Charges Collection Regulations 1991 (the Principal Regulations) to change the return and payment periods:

*        applying to citrus, nashi and lychees from a monthly to a quarterly cycle; and

*        applying to custard apples from an annual to a quarterly cycle.

The effect of the changes would be to align the levy and export charge lodgement cycles across all horticulture commodities.

 

The Regulations will also:

*        make consequential amendments in respect of persons who pay levies and charges on citrus and/or nashi and who have, prior to the commencement of the Regulations, been granted exemptions from the requirement to lodge monthly returns because they would be liable to pay levy or charge of less than $1000 on either of those commodities in the year;

-     annual returns would still be required in these circumstances;

-     the requirement for producers who sell citrus, nashi or lychees by retail sale (such as roadside stalls) to lodge returns and payment on an annual basis would continue; and

*        allow persons who would be liable to pay levy or charge of less than $500 on custard apples in a year to apply for an exemption from the requirement to lodge quarterly returns and payments;

-     annual returns would still be required in these circumstances;

-     the exemption from levy or charge on custard apples sold by producers by retail sale would continue.

 

Returns and payment for citrus, nashi and lychee levies and charges are currently required to be submitted to the Department of Agriculture, Fisheries and Forestry's Levies Revenue Service (LRS) on a monthly basis, 28 days after the end of the month in which the transactions took place, except for persons who are authorised under the legislation to submit return and payments annually.  Returns and payment for custard apple levies are currently required to be submitted to the LRS on an annual basis, one month and 28 days after the end of the levy year.

 

The changes have been proposed to minimise the amount of paperwork required for persons who lodge return and payment for several horticulture commodities by requiring them to lodge only one return and one payment each quarter.  The Regulations will not prevent persons from lodging returns and payment more frequently; if they so chose, persons can continue to lodge their returns and payments each month.  This situation currently occurs with many horticulture commodities, especially custard apples, where some persons lodge returns and payment for the custard apples levy and charge each month.

 

The Regulations are also expected to reduce in the costs of collecting the levies and charges, with the result that more of the funds raised are available for marketing and R&D work for the benefit of the industries.

 

Some minor administrative changes are also being made to the Principal Regulations to ensure correct and efficient wording and references are used.

 

The Levies Revenue Service received the support of the relevant peak industry bodies, namely the Australian Citrus Growers Incorporated, the Australian Custard Apple Growers' Association, the Australian Nashi Growers' Association and the Australian Lychee Growers Association, to progress these changes.  As the Regulations are administrative in nature only, it has not been necessary to conduct a full consultation process, involving a ballot of each industry member.

 

Details of the Regulations are contained in the Attachment.

 

The Act specifies no conditions that need to be met before the power to make the proposed Regulations may be exercised.

 

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

 

The Office of Regulation Review (ORR) was consulted in the preparation of the Regulations.  ORR has advised that it is not necessary to prepare a Regulation Impact Statement on this matter (ORR Number 2006/8375).

 

The Regulations commence on the day after registration on the Federal Register of Legislative Instruments, to allow the LRS adequate time to notify payers of the levies/charges on citrus, custard apple, lychee and nashi.

 

 

0607415A

 

 

Attachment A

 

 

Legislative provisions for the transference to quarterly returns for some levy payers.

 

DETAILS OF THE PROPOSED PRIMARY INDUSTRIES LEVIES AND CHARGES COLLECTION AMENDMENT REGULATIONS 2006 (No. 4)

 

Regulation 1 would provide for the name of the regulations to be the Primary Industries Levies and Charges Collection Amendment Regulations 2006 (No. 4).

 

Regulation 2 would provide for the commencement date to be the day after the Regulations are registered.

 

Regulation 3 would provide for the exemption from lodging monthly returns for payers of citrus and nashi under clauses 7.16 and 11.15 of Schedule 22, respectively, to be transferred to an exemption from lodging quarterly returns, from commencement.

 

Regulation 4 would provide that custard apple levy and charge liability incurred from 1 January to 30 June 2006 remains payable by the due date of 28 February 2007.

 

Regulation 5 would provide that the term commencement day means that day the Regulations commence.

 

Regulation 6 would provide that Schedule 1 amends the Primary Industries Levies and Charges Collection Regulations 1991.

 

Schedule 1                                          Amendments to Schedule 22

 

Item [1] amends clause 7.5 by changing the payment for charge and levy on citrus to a quarterly cycle and setting the due date to be the last day on which the quarterly return for charge and levy on citrus is due, being the 28^th day after the end of the quarter.

 

Item [2] changes the heading of clause 7.6 to reflect the change from monthly to quarterly lodgment cycles.  Clause 7.6 identifies all persons who lodge returns for citrus levy and charge on a quarterly basis.

 

Item [3] changes each occurrence of the word month in subclause 7.6(1) to the word quarter to reflect the change from monthly to quarterly lodgment cycles.  Subclause 7.6(1) states the persons that, from commencement, must lodge a return of citrus levy and charge for a quarter.

 

Item [4] changes each occurrence of the word monthly in subclause 7.6(2) to the word quarterly.  Subclause 7.6(2) outlines that persons listed in subclause 7.6(1) may, from commencement, lodge only one return for citrus levy and charge for a year if they have been given authorization to do so by the Secretary and have not been advised differently, or have applied for exemption from lodging quarterly but have not been informed of a decision.

 

Item [5] amends clause 7.7, which specifies that, from commencement, a return of citrus levy and charge for a quarter must be received no later than 28 days after the end of the quarter.

 

Item [6] changes the heading of clause 7.8 to reflect the change from monthly to quarterly lodgment cycles.  Clause 7.8 identifies, from commencement, the information that first purchasers and agents of citrus must include in their quarterly returns.

 

Item [7] replaces the first sentence in clause 7.8, changing the word "month" to the word "quarter", to reflect the change from monthly to quarterly lodgment cycles.  Clause 7.8 identifies, from commencement, the information that first purchasers and agents must include in their quarterly returns of citrus levy and charge.

 

Item [8] changes the heading of clause 7.9 to reflect the change from monthly to quarterly lodgment cycles.  Clause 7.9 identifies, from commencement, the information that persons who export citrus must include in their quarterly returns.

 

Item [9] replaces the first sentence in clause 7.9, changing the word "month" to the word "quarter", to reflect the change from monthly to quarterly lodgment cycles.  Clause 7.9 identifies, from commencement, the information that persons who export citrus must include in their quarterly returns.

 

Item [10] amends clause 7.10, to require that persons who lodge annual returns must submit payment of the levy and charge no later than the last day on which the annual return is due to be lodged, being 28 February in the following levy year.  The wording in clause 7.10 has been amended so that it is consistent with that used for other commodities.

 

Item [11] changes each occurrence of the word "monthly" in subclause 7.11(2) to the word "quarterly" to reflect the change from monthly to quarterly lodgment cycles.  Subclause 7.11(2) states that first purchasers who are exempt from lodging, after commencement, quarterly returns, must lodge a return for the year if they have bought citrus.

 

Item [12] changes each occurrence of the word "monthly" in subclause 7.11(3) to the word "quarterly" to reflect the change from monthly to quarterly lodgment cycles.  Subclause 7.11(3) states that buying agents or selling agents who are exempt from lodging, after commencement, quarterly returns, must lodge a return for the year if they have bought or sold citrus.

 

Item [13] changes each occurrence of the word "monthly" in subclause 7.11(4) to the word "quarterly" to reflect the change from monthly to quarterly lodgment cycles.  Subclause 7.11(4) states that persons who export citrus who are exempt from lodging, after commencement, quarterly returns, must lodge a return for the year if they have exported citrus.

 

Item [14] inserts a new heading for clause 7.16 to reflect the change from monthly to quarterly lodgment cycles.  Clause 7.16 provides for persons to apply for exemption from the requirement to lodge quarterly returns for citrus levy and charge if they have reasonable grounds for believing that the levy or charge payable in the levy year will be, or will be likely to be, less than a specified amount, currently $1000.

 

Item [15] changes each occurrence of the word "monthly" in subclause 7.16(1) to the word "quarterly" to reflect the change from monthly to quarterly lodgment cycles.  Subclause 7.16(1) provides for first purchasers, buying agents or selling agents to apply for exemption from the requirement to lodge quarterly returns for citrus if they have reasonable grounds for believing that the levy or charge payable in the levy year will be, or will be likely to be, less than the specified amount.

 

Item [16] changes each occurrence of the word "monthly" in subclause 7.16(2) to the word "quarterly" to reflect the change from monthly to quarterly lodgment cycles.  Subclause 7.16(2) provides for persons who export citrus to apply for exemption from the requirement to lodge quarterly returns if they have reasonable grounds for believing that the levy or charge payable in the levy year will be, or will be likely to be, less than the specified amount.

 

Item [17] changes each occurrence of the word "monthly" in subclause 7.19(1) to the word "quarterly" to reflect the change from monthly to quarterly lodgment cycles.  Subclause 7.19(1) prescribes that if a person is exempt from lodging quarterly returns for citrus levy and charge, the Secretary has 14 days after receiving the annual return to notify the person of a change to their exemption status.

 

Item [18] inserts a new heading for clause 7.20 to reflect the change from monthly to quarterly lodgment cycles.  Clause 7.20 prescribes when a person must next lodge a quarterly return for citrus levy and charge following the refusal to grant or continue their exemption from the requirement to lodge quarterly.

 

Item [19] replaces the words "must lodge a return for each month" in clause 7.20 with the words "must lodge a return for each quarter" to reflect the change from monthly to quarterly lodgment cycles.

 

Item [20] changes each occurrence of the word "month" in paragraph 7.20(a) to the word "quarter" to reflect the change from monthly to quarterly lodgment cycles.  Clause 7.20 prescribes when a person must next lodge a quarterly return for citrus levy and charge following the refusal to grant or continue their exemption from the requirement to lodge quarterly.

 

Item [21] replaces the word "month" in paragraph 7.20(b) with the words "quarter to which the return relates" to reflect the change from monthly to quarterly lodgment cycles.

 

Item [22] changes each occurrence of the word "month" in subclause 7.22(1) to the word "quarter" to reflect the change from monthly to quarterly lodgment cycles.  Subclause 7.22(1) specifies the records that must be kept by a producer of citrus in respect of each quarter.

 

Item [23] changes each occurrence of the word "month" in subclause 7.23(1) to the word "quarter" to reflect the change from monthly to quarterly lodgment cycles.  Subclause 7.23(1) specifies the records that must be kept by first purchasers and buying agents of citrus in respect of each quarter.

 

Item [24] changes each occurrence of the word "month" in sublause 7.24(1) to the word "quarter "to reflect the change from monthly to quarterly lodgment cycles.  Subclause 7.24(1) specifies the records that must be kept by selling agents dealing in citrus in respect of each quarter.

 

Item [25] changes each occurrence of the word "month" in subclause 7.25(1) to the word "quarter" to reflect the change from monthly to quarterly lodgment cycles.  Subclause 7.25(1) specifies the records that must be kept by persons who export citrus in respect of each quarter.

 

Item [26] amends the definition of retail sale in clause 8.2 with regards to custard apples to remove the possibility of misinterpretations.  The definition of retail sale in clause 8.2 is a sale by a producer, other than to a first purchaser of through a selling agent, buying agent or exporting agent.

 

Item [27] inserts two new clauses 8.3A and 8.3B after clause 8.3.  Clause 8.3A specifies that cleaning, sorting, grading, packing or fruit conditioning processes including storage and ripening are taken not to be processes for the purposes of liability to pay levy or charge on custard apples.  Clause 8.3B prescribes that a processor for the purposes of the custard apple levy and charge, is taken to be the proprietor of the processing establishment that processes the custard apples.

 

Item [28] inserts a new clause 8.5, to specify that, from commencement, the payment of charge and levy on custard apples for a quarter is due on the same day the return for the quarter is due, being the 28^th day after the end of the quarter.

 

Item [29] inserts a new clause 8.6, to specify the persons who, from commencement, must lodge a return for a quarter, and to stipulate that persons listed in subclause 8.6(1) may, from commencement, lodge only one return for a year if they have been given authorization to do so by the Secretary and have not been advised differently, or have applied for exemption from lodging quarterly but have not been informed of a decision.

 

Item [30] inserts new clauses 8.6A, 8.6B and 8.6C after clause 8.6.  Clause 8.6A specifies that, from commencement, a return for a quarter must be received no later that 28 days after the end of the quarter.  Clause 8.6B specifies that payment of levy or charge payable on custard apples for a levy year is due on the last day on which the annual return for the levy year must be lodged, being 28 February in the next levy year.  Clause 8.6C prescribes that persons listed in subclause 8.6(1) must lodge an annual return for the levy year if they have been given authorization to do so by the Secretary and have not been advised differently, or have applied for exemption from lodging quarterly but have not been informed of a decision.

 

Item [31] changes the heading of clause 8.7, inserting the word "annual", to reflect the fact that quarterly return cycles have been introduced.  Clause 8.7 specifies that a return for a levy year must be received no later than 28 February in the next levy year.

 

Item [32] replaces the first sentence in clause 8.8, inserting the words "quarter or levy year", to reflect the fact that quarterly return cycles have been introduced.  Clause 8.8 identifies, from commencement, the information that first purchasers and agents must include in their quarterly or annual returns.

 

Item [33] inserts five new clauses, 8.8A, 8.8B, 8.8C, 8.8D and 8.8E.  Clause 8.8A provides for a person to apply for exemption from the requirement to lodge quarterly returns if they have grounds for believing that they will be, or will be likely to be, liable to pay less than $500 of levy and charge in the levy year.  Clause 8.8B prescribes the details that a person must include in their application for exemption from the requirement to lodge quarterly returns, including name, address, ABN and a statement indicating that the levy and charge they will incur in the levy year is likely to be less than $500.  Clause 8.8C sets the requirements which must be fulfilled by the Secretary when granting or refusing an application for exemption from the requirement to lodge quarterly returns.  Clause 8.8D provides that if a person is exempt from lodging quarterly returns, the Secretary has 14 days after receiving the annual return to notify the person of a change to their exemption status.  Clause 8.8E prescribes when a person must next lodge a return following the refusal to grant or continue their exemption from the requirement to lodge quarterly.

 

Item [34] inserts a new subclause 8.9(1) to prescribe the persons who must keep records relating to amount of levy and charge paid on custard apples, as detailed in subclause 8.9(2).

 

Item [35] inserts a new clause 8.10 after clause 8.9.  Clause 8.10 prescribes that a person may apply to the Administrative Appeals Tribunal if they are dissatisfied with a decision made by the Secretary to refuse to grant or to continue the person's exemption from the requirement to lodge quarterly returns.

 

Item [36] amends clause 11.5 changing the payment for charge and levy on nashi to a quarterly cycle and sets the due date to be the last day on which the quarterly return for charge and levy on nashi is due, being the 28^th day after the end of the quarter.

 

Item [37] changes the heading of clause 11.6 to reflect the change from monthly to quarterly lodgment cycles.  Clause 11.6 identifies all persons who must lodge returns for nashi levy and charge on a quarterly basis.

 

Item [38] changes each occurrence of the word "month" in subclause 11.6(1) to the word "quarter" to reflect the change from monthly to quarterly lodgment cycles.  Subclause 11.6(1) states the persons that, from commencement, must lodge a return for nashi levy and charge for a quarter.

 

Item [39] changes each occurrence of the word "monthly" in subclause 11.6(2) to the word "quarterly" to reflect the change from monthly to quarterly lodgment cycles.  Subclause 11.6(2) outlines that persons listed in subclause 11.6(1) may, from commencement, lodge only one return for nashi levy and charge for a year if they have been given authorization to do so by the Secretary and have not been advised differently, or have applied for exemption from lodging quarterly but have not been informed of a decision.

 

Item [40] amends clause 11.7, to specify that, from commencement, a return for nashi levy and charge for a quarter must be received no later than 28 days after the end of the quarter.

 

Item [41] changes the heading of clause 11.8 to reflect the change from monthly to quarterly lodgment cycles.  Clause 11.8 identifies, from commencement, the information that first purchasers, buying agents, selling agents and exporters of nashi must include in their quarterly returns.

 

Item [42] replaces the first sentence in clause 11.8, changing the word month to the word quarter, to reflect the change from monthly to quarterly lodgment cycles.  Clause 11.8 identifies, from commencement, the information that first purchasers, buying agents, selling agents and exporters of nashi must include in their quarterly returns.

 

Item [43] amends clause 11.9, requiring that persons who lodge annual returns for nashi must submit payment of the levy no later than the last day on which the annual return is due to be lodged, being 28 February in the following levy year.  The wording in the new clause 11.9 has been amended so that it is consistent with that used for other commodities.

 

Item [44] changes each occurrence of the word "monthly" in subclause 11.10(2) to the word "quarterly" to reflect the change from monthly to quarterly lodgment cycles.  Subclause 11.10(2) states that first purchasers who are exempt from lodging, after commencement, quarterly returns, must lodge a return for the year if they have bought nashi.

 

Item [45] changes each occurrence of the word "monthly" in subclause 11.10(3) to the word "quarterly" to reflect the change from monthly to quarterly lodgment cycles.  Subclause 11.10(3) states that buying agents or selling agents who are exempt from lodging, after commencement, quarterly returns, must lodge a return for the year if they have bought or sold nashi.

 

Item [46] changes each occurrence of the word "monthly" in subclause 11.10(4) to the word "quarterly" to reflect the change from monthly to quarterly lodgment cycles.  Subclause 11.10(4) states that persons who export nashi who are exempt from lodging, after commencement, quarterly returns, must lodge a return for the year if they have exported nashi.

 

Item [47] inserts a new heading for clause 11.15 to reflect the change from monthly to quarterly lodgment cycles.  Clause 11.15 provides for persons to apply for exemption from the requirement to lodge quarterly returns for nashi levy and charge if they have reasonable grounds for believing that the levy or charge payable in the levy year will be, or will be likely to be, less than a specified amount, currently $1000.

 

Item [48] changes each occurrence of the word "monthly" in subclause 11.15(1) to the word "quarterly" to reflect the change from monthly to quarterly lodgment cycles.  Subclause 11.15(1) provides for first purchasers, buying agents or selling agents to apply for exemption from the requirement to lodge quarterly returns for nashi if they have reasonable grounds for believing that the levy or charge payable in the levy year will be, or will be likely to be, less than the specified amount.

 

Item [49] changes each occurrence of the word "monthly" in subclause 11.15(2) to the word "quarterly" to reflect the change from monthly to quarterly lodgment cycles.  Subclause 11.15(2) provides for persons who export nashi to apply for exemption from the requirement to lodge quarterly returns if they have reasonable grounds for believing that the levy or charge payable in the levy year will be, or will be likely to be, less than the specified amount.

 

Item [50] changes each occurrence of the word "monthly" in subclause 11.18(1) to the word "quarterly" to reflect the change from monthly to quarterly lodgment cycles.  Subclause 11.18(1) prescribes that if a person is exempt from lodging quarterly returns for nashi levy and charge, the Secretary has 14 days after receiving the annual return to notify the person of a change to their exemption status.

 

Item [51] inserts a new heading for clause 11.19 to reflect the change from monthly to quarterly lodgment cycles.  Clause 11.19 prescribes when a person must next lodge a quarterly return for nashi levy and charge following the refusal to grant or continue their exemption from the requirement to lodge quarterly.

 

Item [52] changes each occurrence of the word "month" in clause 11.19 to the word "quarter" to reflect the change from monthly to quarterly lodgment cycles.  Clause 11.19 prescribes when a person must next lodge a quarterly return for nashi levy and charge following the refusal to grant or continue their exemption from the requirement to lodge quarterly.

 

Item [53] changes each occurrence of the word "month" in subclause 11.21(1) to the word "quarter" to reflect the change from monthly to quarterly lodgment cycles.  Subclause 11.21(1) specifies the records that must be kept by a producer of nashi in respect of each quarter.

 

Item [54] changes each occurrence of the word "month" in subclause 11.22(1) to the word "quarter" to reflect the change from monthly to quarterly lodgment cycles.  Subclause 11.22(1) specifies the records that must be kept by first purchasers of nashi in respect of each quarter.

 

Item [55] changes each occurrence of the word "month" in subclause 11.23(1) to the word "quarter" to reflect the change from monthly to quarterly lodgment cycles.  Subclause 11.23(1) specifies the records that must be kept by agents dealing in nashi in respect of each quarter.

 

Item [56] changes each occurrence of the word "month" in subclause 11.24(1) to the word "quarter" to reflect the change from monthly to quarterly lodgment cycles.  Subclause 11.24(1) specifies the records that must be kept by persons who export nashi in respect of each quarter.

 

Item [57] amends clause 23.9 changing the payment for charge and levy on lychees to a quarterly cycle and sets the due date to be the last day on which the quarterly return for charge and levy on lychee is due, being the 28^th day after the end of the quarter.

 

Item [58] changes the heading of clause 23.10 to reflect the change from monthly to quarterly lodgment cycles.  Clause 23.10 identifies all persons who must lodge returns for lychee levy and charge on a quarterly basis.

 

Item [59] changes each occurrence of the word "month" in clause 23.10 to the word "quarter" to reflect the change from monthly to quarterly lodgment cycles.  Subclause 23.10 states the persons that, from commencement, must lodge a return of lychee levy and charge for a quarter.

 

Item [60] inserts a new clause 23.11, to specify that, from commencement, a return for lychee levy and charge for a quarter must be received no later than 28 days after the end of the quarter.

 

Item [61] amends clause 23.12, requiring that persons who lodge annual returns must submit payment of the levy no later than the last day on which the annual return is due to be lodged, being 28 February in the following levy year.  The wording in clause 23.12 has been amended so that it is consistent with that used for other commodities.

 

Item [62] replaces the first sentence in clause 23.15, changing the word "month" to the word "quarter", to reflect the change from monthly to quarterly lodgment cycles.  Clause 23.15 identifies, from commencement, the information that must be included in quarterly or annual returns for lychee levy and charge.

 

Item [63] changes each occurrence of the word "month" in subclause 23.16(1) to the word "quarter" to reflect the change from monthly to quarterly lodgment cycles.  Subclause 23.16(1) specifies the records that must be kept by a producer of lychee in respect of each quarter or levy year.

 

Item [64] replaces the first sentence in subclause 23.17(1), changing the word "month" to the word "quarter" to reflect the change from monthly to quarterly lodgment cycles.  Subclause 23.17(1) specifies the records that must be kept by first purchasers, buying agents, selling agents and processors of lychee in respect of each quarter or levy year.

 

Item [65] replaces the first sentence in subclause 23.18(1), changing the word "month" to the word "quarter" to reflect the change from monthly to quarterly lodgment cycles.  Subclause 23.18(1) specifies the records that must be kept by exporters and exporting agents of lychee in respect of each quarter or levy year.

 

Item [66] amends clause 24.6 so that the appropriate clause 24.8 is referred to.  Clause 24.6 prescribes that quarterly payment of levy or charge on persimmons is due on the last day on which a return for a quarter is required to be lodged, being the 28^th day after the end of the quarter.

 

Item [67] amends clause 24.9 so that the appropriate clause 24.11 is referred to.  Clause 24.9 prescribes that annual payment of levy or charge on persimmons is due on the last day on which a return for a year is required to be lodged, being 28 August in the next levy year.