EXPLANATORY STATEMENT

 

Select Legislative Instrument 2008 No. 224

 

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

 

Primary Industries Levies and Charges Collection Act 1991

 

Primary Industries Levies and Charges Collection Amendment
Regulations 2008 (No. 4)

 

Section 30 of the Primary Industries Levies and Charges Collection Act 1991 (the Act) provides, in part, 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 Primary Industries Levies and Charges Collection Regulations 1991 (the Principal Regulations) set out collection arrangements for levies and charges on products of primary industry. All levy payers are required to keep records of the details of their levy payments for a period of five years. Offence provisions are associated with this requirement. An offence under the recordkeeping clauses is an offence of strict liability.

 

The farmed prawn levy and charge is imposed on farmed prawns that are produced in Australia and sold or exported. (Part 3 of Schedule 37 to the Principal Regulations refers.) Levy returns and payments are generally submitted quarterly. However, a person who has reasonable grounds for believing that they will pay levy/charge on less than 10,000 kg of farmed prawns in a financial year may apply to the Secretary of the Department of Agriculture, Fisheries and Forestry to lodge an annual return rather than quarterly returns.

 

The Regulations amend the Principal Regulations to add a note to recordkeeping clauses for 60 commodities which directs readers to the offence provisions. They also add new offences of strict liability associated with the recordkeeping requirements for the farmed prawn levy as they were unintentionally not included in the Principal Regulations. This ensures the offence provisions for farmed prawns are consistent with all other levies. The Regulations also include a provision allowing levy payers to seek a review by the Administrative Appeals Tribunal in cases where the Secretary has refused to allow a farmed prawn levy payer to lodge annual levy returns.

 

The changes are administrative in nature and address concerns raised by the Senate Standing Committee on Regulations and Ordinances. As the Regulations are administrative in nature only it has not been necessary to conduct a consultation process with levy payers.

 

Details of the Regulations are contained in Attachment A.

 

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

 

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

 

The Office of Best Practice Regulations (OBPR) was consulted in the preparation of the Regulations. The OBPR has advised that it is not necessary to prepare a Regulation Impact Statement or Business Cost Calculator on this matter (Reference number 9820).

 

An OBPR Preliminary Assessment was completed and is at Attachment B.

 

The Regulations commence on the day after they are registered.

 

 

0621179A

 

Attachment A

 

 

DETAILS OF THE PRIMARY INDUSTRIES LEVIES AND CHARGES COLLECTION AMENDMENT REGULATIONS 2008 (No. 4)

 

Regulation 1 provides for the name of the Regulations to be the Primary Industries Levies and Charges Collection Amendment Regulations 2008 (No. 4).

 

Regulation 2 provides for the commencement date to be the day after registration.

 

Regulation 3 provides that Schedule 1 amends the Primary Industries Levies and Charges Collection Regulations 1991.

 

Schedule 1 Amendments

 

Item [1] adds a note after Schedule 22, subclause 18.15 (2) directing the reader to regulation 12, which sets out offences in relation to recordkeeping. Part 18 of Schedule 22 deals with levy collection arrangements for Agaricus mushrooms.

 

Item [2] adds a note after Schedule 22, subclause 18.16 (3) directing the reader to regulation 12, which sets out offences in relation to recordkeeping.

 

Item [3] adds a note after Schedule 22, subclause 19.19 (4) directing the reader to regulation 12, which sets out offences in relation to recordkeeping. Part 19 of Schedule 22 deals with levy collection arrangements for hard onions.

 

Item [4] adds a second note after Schedule 27, clause 18A, note, directing the reader to regulation 12, which sets out offences in relation to recordkeeping and renumbering the previous note. Schedule 27 deals with levy collection arrangements for livestock transactions.

 

Item [5] adds a subclause after Schedule 37, subclause 3.19 (3), stating that an offence against recordkeeping requirements is an offence of strict liability. It also adds a note directing the reader to regulation 12, which sets out offences in relation to recordkeeping. Part 3 of Schedule 37 deals with levy collection arrangements for farmed prawns.

 

Item [6] amends the numbering in Schedule 37, clause 3.20.

 

Item [7] adds a subclause to Schedule 37, clause 3.20, stating that an offence against recordkeeping requirements is an offence of strict liability. It also adds a note directing the reader to regulation 12, which sets out offences in relation to recordkeeping.

 

Item [8] adds a clause to Schedule 37, Part 3 to allow a person who had been refused permission to lodge annual instead of quarterly return to apply to the Administrative Appeals Tribunal for a review of the decision.

 

Item [9] adds a note after various subclauses directing the reader to regulation 12, which sets out offences in relation to recordkeeping.

 

ATTACHMENT B

 

Best Practice Regulation – Preliminary Assessment

 

Department of Agriculture Fisheries & Forestry

Primary Industries Levies & Charges Collection Amendment Regulations

 

This form is designed to help you undertake a preliminary assessment of the impact of a regulatory proposal on business and individuals or the economy, and to determine what level of regulatory analysis is required. You should consult the Best Practice Regulation Handbook for a full outline of the requirements for developing regulatory proposals. All new and amending regulations and quasi-regulations, including those that impose a cost or confer a benefit, are subject to these processes.

 

Section 1: Business Compliance Costs

 

The Business Cost Calculator (BCC) Quickscan is to be used for all regulatory proposals to identify whether there will be business compliance costs. The following checklist will help you identify if there are compliance costs, and can be used as an alternative to the BCC Quickscan.

 

Will businesses incur costs when they are required to report certain events? Yes No

 

Will costs be incurred by business in keeping abreast of regulatory requirements? Yes No

 

Are costs incurred in seeking permission to conduct an activity? Yes No

 

Are businesses required to purchase materials or equipment? Yes No

 

Are businesses required to keep records up-to-date? Yes No

 

Will businesses incur costs when cooperating with audits or inspections? Yes No

 

Will businesses incur costs when producing documents for third parties? Yes No

 

Will business incur costs that are of a non-administrative nature? Yes No

 

Are there any other compliance costs associated with the regulatory proposal? Yes No

 

If you have answered no to each of these questions there would appear to be nil compliance costs and you may proceed to Section 2 on other impacts (including impacts on competition). If you answered yes to any of the questions you need to asses whether the impact on business is low, medium or significant.

 

Will this proposal have a low impact on business? Yes No

 

If you have assessed the impact on business as low you should attach an explanation of the reason for that assessment. If the impact is medium or significant you are required to estimate the compliance cost using the BCC. If the impact is medium or significant, or you are unsure, please contact the OBPR to discuss/confirm your preliminary assessment, and whether you need to prepare a Regulation Impact Statement (RIS).

 

Section2: Other impacts on business and individuals, including restrictions on competition

 

If a regulatory option is likely to have a significant impact on business and individuals or restricts competition you may be required to prepare a RIS. Restrictions on competition can include a limitation being placed on entry to a market, price, output or production methods. The following checklist will help you to assess whether a proposal restricts competition.

 

Would the regulatory proposal affect the number and range of suppliers? Yes No

For Example: Grant exclusive rights for a supplier to provide a good or service.

Establish a licence, permit or authorisation process as a requirement of operation.

Affect the ability of some types of firms to participate in public procurement.

Significantly alter costs of entry or exit to a supplier.

Create geographic barriers for businesses.

 

Would the regulatory proposal change the ability of suppliers to compete? Yes No

For Example: Control or substantially influence the price at which a good or service is sold.

Alter the ability of suppliers to advertise or market their products.

Set standards for product/service quality that are significantly different from current.

Significantly alter costs for some suppliers relative to others.

 

Would the regulatory proposal alter suppliers’ incentives to compete vigorously? Yes No

For Example: Create a self-regulatory or co-regulatory regime.

Impact on the mobility of customers between suppliers.

Require/encourage the publishing of data on company outputs/price, sales/cost.

Exempt an activity from general competition law.

 

If you tick yes to any of these boxes contact the OBPR to determine whether a RIS is required. If there are other impacts on business and individuals which may be significant you should seek advice from the OBPR.

 

Further action

 

This form and any supporting documents, including a brief outline of the proposal to which it relates, should be kept on file and copied to the person in your department/agency responsible for coordinating matters relating to best practice regulation.

 

 

 

 

 

 

Erin Payne

3 September 2008

 

 

Assessment explanation

 

The Senate Standing Committee on Regulations and Ordinances noted that the regulations for the Farmed Prawn levy do not permit levy payers to seek a review by the Administrative Appeals Tribunal in cases where the Secretary has refused to allow a levy payer to lodge annual levy returns.

 

The Committee requested that an appeal provision, consistent with other levies, be included.

 

In addition, the Committee considered that levy payers may not be sufficiently aware of offence provisions if they did not comply with record keeping requirements. Currently records must be kept for five years. The committee requested that a note be added to record keeping clauses which would direct readers to the regulation that set out the offences.

 

The proposed changes require amendment to the Primary Industries Levies and Charges Collection Regulations 1991.

 

The business impact of this proposal has been assessed as low because the proposed changes provide further information and do not require levy payers to alter their current behaviour.