Commonwealth Numbered Regulations - Explanatory Statements

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PRIMARY INDUSTRIES LEVIES AND CHARGES (POTATO) REGULATIONS 1991 NO. 195

STATUTORY RULES 1991 No. 195

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

PRIMARY INDUSTRIES LEVIES AND CHARGES COLLECTION ACT 1991

HORTICULTURAL LEVY ACT 1987

HORTICULTURAL EXPORT CHARGE ACT 1987

PRIMARY INDUSTRIES LEVIES AND CHARGES (POTATO) REGULATIONS

PRIMARY INDUSTRIES LEVIES AND CHARGES (AVOCADO) REGULATIONS

The Horticultural Research and Development Corporation (HRDC) carries out joint industry/government funded research and development activities for Australian horticultural industries. Industries may contribute towards the R&D by way of voluntary contribution or statutory levy.

Subsection 30(1) of the Primary Industries Levies and Charges Collection Act 1991 (the Collection Act), subsection 14(1) of the Horticultural Levy Act 1987 (the Levy Act) and subsection 14(1) of the Horticultural Extort Charge Act 1987 (the Export Charge Act) provide that the Governor-General may make regulations for the purposes of these Acts.

Section 6 of the Levy Act provides for a levy to be imposed on leviable horticultural products produced in Australia and sold by the producer or used in the production of other goods. Section 6 of the Export Charge Act provides for an export charge to be imposed on chargeable horticultural products ,produced in Australia that are exported.

The proposed Regulations prescribe avocados and unprocessed potatoes as both leviable and chargeable horticultural products and prescribe processing potatoes as a leviable product. Funds raised by the levies and export charges will be directed to the HRDC to support industry research.

Subsections 7(1),(2) and (3) of the Collection Act provides that, for better securing the payment of levy and export charge, a first purchaser who purchases prescribed products, a processor who receives a prescribed product for processing, a buying or selling agent who trades in a prescribed product or an exporting agent who exports prescribed products may be declared liable to pay on behalf of the producer, amounts of levy and export charge due for payment that remain unpaid by the producer. The Regulations prescribe potatoes and avocados for this type of collection. Section 8 of the Collection Act provides that the intermediaries may deduct such amounts paid from proceeds due to the producer.

Section 9 of the Levy and Export Charge Acts provide that regulations may fix the rate of levy and export charge destined for the HRDC for a class of leviable and chargeable products. The Regulations set a levy and export charge rate of 3 cents per standard tray, or $5.00 per tonne for avocados, 50 cents per tonne for unprocessed potatoes and a levy of 50 cents per tonne for potatoes used for processing.

Section 13(2) of the Levy Act and section 13 of the Export Charge Act provide that regulations may exempt from levy and export charge subclasses of leviable or chargeable products or specified classes of producers. In the case of the Potato Regulations, some subclasses of potatoes are exempted from levy and export charge by the regulations.

Section 14(7) of the Levy and Export Charge Acts require the HRDC to consult with the eligible industry body for a leviable and chargable horticultural product before making a recommendation to the Minister. The recommendation to the Minister must be accompanied by a written statement of the views of the industry body with which the HRDC consulted. This ensures that the industry fully supports a levy and Export Charge prior to its implementation.

The Regulations prescribe an eligible industry body with which the HRDC must consult on the rate of levy to be implemented and any exemptions which should apply.

Subsections 14(4) and 14(5) of the Levy and Export Charge Acts provide that, before making regulations to fix a rate of levy and export charge, or to exempt subclasses of horticultural product or classes of producers from levy or export charge, the Governor-General must take into consideration any relevant recommendation made to the Minister by the HRDC. The Regulations, HRDC recommendation and industry view are consistent. Copies of the recommendation and advice from industry are at Attachment C.

The Regulations also provide for the manner of payment of charge, the provision of returns by exporters and the keeping of records.

Levies and charges for both potatoes and avocadoes are proposed to be introduced from 1 August 1991.

Details of the proposed Regulations for potatoes are given at Attachment A and for avocados are at Attachment B.

ATTACHMENT A

DETAILS OF THE PRIMARY INDUSTRIES LEVIES AND CHARGES (POTATO) REGULATIONS

Regulation 1 is a formal provision.

Regulation 2 provides that the levy and export charge will be collected from 1 August 1991.

Regulation 3 provides that the Primary Industries Levies and Charges Collection Regulations, which provide regulations on matters common to all levies and export charges collected under the Primary Industries Levies and Charges Collection Act 1991, must be read as one with these Regulations.

Regulation 4 defines terms used in the Regulations.

Regulation 5 prescribes Potato Growers of Australia as the industry body which must be consulted with on the rate of levy and export charge and the exemptions to apply to unprocessed potatoes. It also prescribes Potato Processors of Australia Association as the industry body which must be consulted with on the rate of levy and the exemptions to apply to potatoes used for processing.

Regulation 6 defines the first levy year as the period from the commencement of these regulations to 31 December 1991 and levy years thereafter to coincide with calendar years.

Regulation 7 prescribes unprocessed and processing potatoes as horticultural products subject to levy.

Regulation 8 prescribes unprocessed potatoes as a horticultural product subject to export charge.

Regulation 9 defines the producer who, under section 12 of the Levy and Export Charge Acts, is the person who pays the levy or export charge on the product. The person who owns the potatoes immediately after harvest is the producer of leviable unprocessed potatoes and the owner of the potatoes at the time processing begins is the producer of leviable processing potatoes.

Regulation 10 defines unprocessed potatoes as a prescribed product for the purposes of the definition of processor in the Collection Act and defines processors as an intermediary for the purposes of collection of the levy on unprocessed potatoes.

Regulation 11 exempts from levy and export charge the following subclasses of potatoes:

•       unprocessed potatoes sold by a primary producer by retail sale where the total quantity of potatoes sold in a year by the producer is 100 tonnes or less;

•       unprocessed potatoes purchased by a minor first purchaser where the total purchases of potatoes in a year by the purchaser is 100 tonnes or less;

•       potatoes used in prosessing where the total use of potatoes by a processor is 100 tonnes or less in a year;

•       potatoes exported where the total quantity of potatoes exported by an exporter in a year is 100 tonnes or less; and

•       potatoes sold for stockfood.

Regulation 12 provides that the rate of levy to apply to unprocessed potatoes will be 50 cents per tonne and the rate of levy to apply to processing potatoes will be 50 cents per tonne. Funds raised by the levy are directed to the HRDC.

Regulation 13 prescribes that the rate of export charge to apply to unprocessed potatoes that are exported will be 50 cents per tonne. Funds raised by the export charge are directed to the HRDC.

Regulation 14 requires that levy and export charge be paid by the same date as returns are due. The due dates are set by regulation 15 for those people required to submit annual returns and by regulation 17 for those people required to submit quarterly returns.

Regulation 15 requires that primary producers who sell leviable potatoes by retail sale, minor first purchasers of leviable potatoes and people who have been granted exemption from submitting quarterly returns, must submit annual returns.

Regulation 16 requires that persons required to lodge annual returns under regulation 14 must do so by 28 February of the following levy year.

Regulation 17 requires that people who are likely to have high levy and export charge liabilities (ie first purchasers, processors, exporters and buying, selling and exporting agents) must submit quarterly returns unless they have either been granted exemption by the Secretary, have applied for exemption and not been refused, or are eligible for continuation of an exemption and have not received advice that the continuation has been refused.

Regulation 18 requires that persons required to lodge quarterly returns under regulation 16 must do so by the 28th day of the month following the end of a quarter.

Regulation 19 provides that where the people required to submit quarterly returns under regulation 16 expect to have a relatively small levy and export charge liability in a levy year (less than 1000 tonnes or $500), they can apply to the Department for permission to submit annual instead of quarterly returns.

Regulation 20 details the information which must be provided when applying for exemption from submitting quarterly returns and prescribes where applications should be lodged.

Regulation 21 requires the Secretary of the Department to make a decision and advise the applicant in writing of the result of the application within 14 days of lodgement.

Regulation 22 allows the Secretary to continue an exemption from submitting quarterly returns to the following levy year where a person currently has an exemption. The regulation requires the Secretary to provide written notice of the decision on whether or not to continue the exemption within 14 days of receiving the annual return from the person.

Regulation 23 provides guidance for the Secretary on the matters he must take into account when considering an application for exemption or continuation of an exemption. The Secretary must consider any information available about the likely amount of the persons liability in the levy year, including the actual liability of the person in the previous levy year where that information is available.

Regulation 24 requires that people who unsuccessfully apply for exemption from submitting quarterly returns, or whose exemption is not extended, must submit any overdue returns within 28 days of receiving advice that their application was unsuccessful, and thereafter submit quarterly returns in the manner prescribed under regulation 17.

Regulation 25 prescribes details of the information which should be contained in returns and where the returns should be lodged.

Regulation 26 describes what records of transactions must be kept by producers and dealers of potatoes and prescribes a maximum penalty of $1,000 to apply for breaches of this regulation. The regulation also requires that records be kept for at least 5 years.

Regulation 27 allows people to apply to the Administrative Appeals Tribunal to appeal decisions by the Secretary to refuse to either grant or continue an exemption from submitting quarterly returns.