EXPLANATORY STATEMENT

 

Select Legislative Instrument 2007 No. 209

 

Issued by 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 2007 (No. 5)

Section 30 of the Primary Industries Levies and Charges Collection Act 1991, provides that the Governor-General may make regulations, not inconsistent with this Act, prescribing matters required or permitted by this Act to be prescribed, or necessary or convenient to be prescribed for carrying out or giving effect to this Act.

The purpose of the Primary Industries Levies and Charges Collection Amendment Regulations 2007 (No. 5) (the Collection Amendment Regulations) is to reflect a change to the return lodgement period for beef production and livestock slaughter to 28 days after the end of the month to which it relates. The amendments also reword a clause which saw processors being unreasonably penalised for submitting a return prior to the due date.

Background

Since the 1998 red meat industry restructure, the red meat processor industry has paid voluntary contributions to a private sector company – the Australian Meat Processor Corporation Ltd (AMPC) – to fund its marketing and research and development programmes.

The red meat processor industry has requested that funding arrangements for AMPC be changed from a voluntary contributions system to a statutory based one. The voluntary contribution system was failing due to highly competitive industries and the emergence of “free riders” – processors who weren’t contributing but still benefiting from the sector’s marketing and R&D activities. Under the voluntary system, contributions raised approximately $14 million a year; in comparison the statutory levy system will raise approximately $16 million a year, with the funds to be managed by AMPC. Following this request, amendments have been made to the Australian Meat and Live-stock Industries Act 1997 (AMLI Act) and the Excise Act through the Agriculture, Fisheries and Forestry Legislation Amendment (2007 Measures No 1) Act 2007.

The Collection Amendment Regulations reflect a change to the compliance arrangements. As the Beef Production (Schedule 2, clause 7) and Livestock Slaughter (Schedule 26, clause 5) clauses of the Primary Industries Levies and Charges Collection Regulations 1991 were written, when a return is lodged prior to the last day of the return lodgement period and payment is not received on the same day, the payment becomes overdue. Late payment penalty is incurred from that day until payment is received. This means that levy payers may be unreasonably penalised for submitting a return prior to the due date. Many levy payments are made by electronic funds transfer so the return and payment may not reach the Commonwealth on the same day. Penalty should only be incurred when payment is not paid by the return due date. The Collection Amendment Regulations correct this to align the due date for levy payments with the due date for levy returns.

The amendments to Schedule 2, clause 9 and Schedule 26, clause 7 of the Primary Industries Levies and Charges Collection Regulations 1991 amend the return lodgement period for beef production and livestock slaughter to 28 days after the end of the month to which it relates. This change reflects the outcome of negotiations with the industry representative body Australian Meat Industry Council (AMIC) and is consistent with the lodgement period applied to the majority of levies.

Details of the Regulations are provided in the Attachment.

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

The Regulations commence on 1 September 2007.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ATTACHMENT

Details of the Primary Industries Levies and Charges Collection Amendment Regulations 2007 (No. 5)

Regulation 1 - Name of Regulations

This regulation provides that the title of the Regulations is the Primary Industries Levies and Charges Collection Amendment Regulations 2007 (No. 5).

Regulation 2 - Commencement

This regulation provides for the Regulations to commence on 1 September 2007.

Regulation 3 - Amendment of Primary Industries Levies and Charges Collection Regulations 1991

This regulation provides that the Primary Industries Levies and Charges Collection Regulations 1991 are amended as set out in the Schedule.

Schedule - Amendments

Item [1]

Schedule 2, clause 7. This item allows for the payment of a levy due on the slaughter of cattle as prescribed by Schedule 2, clause 9.

Item [2]

Schedule 2, clause 9. This item allows for the lodgement of a levy return within 28 days after the end of the month to which it relates.

Item [3]

Schedule 26, clause 5. This item allows for the payment of a levy due on the slaughter of livestock as prescribed by Schedule 26, clause 7.

Item [4]

Schedule 26, clause 7. This item allows for the lodgement of a levy return within 28 days after the end of the month to which it relates.