Commonwealth Numbered Regulations - Explanatory Statements

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PRIMARY INDUSTRIES LEVIES AND CHARGES COLLECTION (WINE EXPORT) REGULATIONS1997 NO. 219

STATUTORY RULES 1997 No. 219

Issued by the Authority of the Minister for Primary Industries and Energy

Primary Industries Levies and Charges Collection Act 1991

Wine Export Charge Act 1997

Primary Industries Levies and Charges Collection (Wine Export) Regulations

The Wine Export Charge Act 1997 (the Charge Act) imposes a statutory export charge on wine.

The Regulations implement the rates of charge at a level agreed to and requested by the wine industry and the Australian Wine and Brandy Corporation (AWBC).

The Regulations also provide for the manner of payment of charge, the provision of returns by persons who must lodge quarterly or annual returns for wine export charge and the keeping of records.

The Governor-General may make regulations to set the rate of charges on wine under subsection 10(1) of the Charge Act. The Governor-General may also make regulations to provide for the collection of charge under subsection 30(1) of the Primary Industries Levies and Charges Collection Act 1991 (the Collection Act).

The request for Regulations has come from the AWBC, consistent with subsections 10(2) and 10(3) of the Charge Act, after motions at its 1995 and 1996 AGMs were passed calling for the imposition of an export charge at the proposed rates. The amount of charge payable is on a sliding scale, reducing as export thresholds are met.

Under the Regulations, at the end of each quarter the AWBC will forward to licensed exporters details of the exports carried out under the licence. Wine producers (defined as exporters licensed by the AWBC) will forward the the amount of export charge owing on their exports to the Commonwealth. Funds raised under the arrangements will be directed to the AWBC to be used to support overseas wine promotion programs. At present, these programs, which formerly relied on Government funding, are being paid for out of the Corporation's cash reserves.

Background

For the purposes of subsection 4(1) of the Collection Act, the Regulations prescribe wine and define exporters licensed by the AWBC as "producers", which thereby makes exporters liable for payment of the charge on exports of wine.

Section 6 of the Charge Act imposes a charge on exports of wine. The Regulations set a charge rate, calculated on the value of the wine, of

*       0.25% for the first $10 million of FOB sales in export

*       0.15% for the next $40 million of FOB sales in export

*       0.05% for the remainder of FOB sales in export.

On 1 June 1998, these rates will decline to

*       0.20% for the first $10 million of FOB sales in export

*       0.10% for the next $40 million of FOB sales in export

*       0.05% for the remainder of FOB sales in export.

Subsection 10(4) of the Charge Act requires the Governor-General to take into account any recommendation to the Minister by the AWBC before making regulations in relation to the charge rate.

Subsection 10(2) of the Charge Act permits the AWBC to make recommendations to the Minister regarding regulations made for the purposes of section 7 of the Charge Act, which relates to rates of charge. Subsection 10(3) requires that before the Corporation makes a recommendation to the Minister under subsection 10(2), a motion considering the recommendation must be considered at an annual general meeting of the Corporation. The rates of charge recommended to the Minister are consistent with the motions passed at the 1995 and 1996 annual general meetings.

The Minister has been informed of the voting amongst levy payers. The voting was analysed by state and and showed that there was a majority of winemakers in each state supporting the export charge. The voting was also analysed by size of winemaker, and showed a substantial majority in each class of winemaker supporting the export charge.

Subsection 10(4) of the Charge Act also requires the Governor-General to take into account any relevant matters of which the Minister has been notified under section 29ZA of the Australian Wine and Brandy Corporation Act 1980 (the AWBC Act). This section requires the AWBC to inform the Minister of details of motions passed at an annual general meeting of the AWBC relating to rates of levy imposed under the Winegrapes Levy Act 1979 (rather than export charge imposed under the Charge Act) and of the votes cast for and against the motion.

The Wine Export Charge (Consequential Amendments) Act 1997 should have included a provision amending Section 29ZA to refer to the Charge Act, but due to a drafting oversight, no amendment was included.

As a result, there are no matters of which the Minister has been notified under Section 29ZA of the AWBC Act which are relevant to export charge. Nevertheless, under section 10(2) of the Charge Act, the AWBC has informed the Minister of details of the motions relating to rates of export charge and the votes cast for and against those motions.

Details of the Regulations are set out at Attachment A.

The Regulations will commence on 1 September 1997.