Commonwealth Numbered Regulations - Explanatory Statements

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PRIMARY INDUSTRIES LEVIES AND CHARGES REGULATIONS 1999 1999 NO. 119

Statutory Rules 1999 No. 119

Issued by the authority of the Minister for Agriculture, Fisheries and Forestry.

Primary Industries Levies and Charges Regulations 1999

The purpose of the regulations is to make a number of levy amendments and make some minor administrative amendments which have arisen as a result of the commencement of the Primary Industries (Excise) Levies Act 1999 (the Excise Act) on 1 July 1999.

Section 8 of the Excise Act provides that the Governor-General may make regulations prescribing matters required or permitted under the Excise Act or that are necessary or convenient to be prescribed for carrying out or giving effect to the Excise Act. Section 30 of the Primary Industries Levies and Charges Collection Act 1991 (the Collection Act) provides the GovernorGeneral with authority to make regulations under that Act.

Background/context

The Excise Act which commences on 1 July 1999, provides for the imposition of levies that are duties of excise that may be applied to the produce of a primary industry. The Excise Act will subsume a number of levy Acts including the Coarse Grains Levy Act 1992; the Dairy Produce Levy (No. 1) Act 1986, the Rice Levy Act 1991; and the Wheat Industry Fund Levy Act 1989. The new Excise Act will not, of itself, alter the operations of the levy Acts or the impact on the various industries involved. Regulations made under the separate levy Acts continue in effect until changed.

The Collection Act provides a single Act to deal with all levy and export charge collection. The Collection Act allows for the collection of levies and charges through intermediaries on behalf of producers, and other organisations specifically aimed at reducing costs to industry.

The bulk of the regulations are of a minor administrative nature and arise from the amalgamation of the above-mentioned Levy Acts under the Excise Act. The regulations also make the following minor amendments: an increase in the research and development levy rate for maize; amendments to the prescribed rates for the Australian Animal Health Council and manufacturing milk levy; prescribing a new variety of leviable rice; a reduction in the minimum leviable amount for wheat collected for research and development purposes; and a decrease 'm the levy rate applicable to wheat.

Maize

Sub clause 8 of Schedule 4 of the Excise Act deals with coarse grains and allows for the Governor-General to make regulations in relation to the kind of grain to be included under the Excise Act. It also requires that the Minister take into consideration any recommendation made by the grower's organisation. The grower's organisation is recognised in the Excise Act as being the Grains Council of Australia (GCA).

Levies imposed on maize under schedule 4 of the Excise Act are used to fund the maize research and development program of the Grains Research and Development Corporation. The GCA and the Maize Association of Australia have recommended an increase in the maize research and development levy from 0.2% to 0.7% of the net farm gate value of grain.

The increase in levy rate, together with Commonwealth contributions will generate additional income to fund new research initiatives of benefit to the maize industry and the broader community. The purpose of the regulations is to increase, from 1 October 1999, the levy rate on maize from 0.2% to 0.7% of the net farm gate value of the grain sold or processed for commercial use.

Dairy

Sub clause 14 of Schedule 6 of the Excise Act deals with the dairy industry and provides that before the Governor-General makes regulations, the Minister must consider any report relating to the regulations made to the Minister by the Australian Dairy Farmers Federation (ADFF) and the Executive Director of ABARE.

The executive of the ADFF and the Executive Director of ABARE have made recommendations to the Minister regarding the prescribed rate of the Australian Animal Health Council levy and manufacturing milk levy respectively to apply from 1 July 1999. The Australian Animal Health Council levy is used to finance the dairy industry's contribution to the Australian Animal Health Council (AAHC). The manufacturing milk levy is used to finance the Commonwealth's Domestic Market Support Scheme. The levy adjustments are consistent with the recommendations.

The Australian Animal Health Council levy is to be increased from 0.0223 cents per kg milk fat and 0.0543 cents per kg protein to 0.0373 cents per kg milk fat and 0.0880 cents per kg protein. The increase in the Australian Animal Health Council levy will fund an increase in the ADFF's contribution to the AAHC.

The manufacturing milk levy is to decrease from 31.070 cents per kg milk fat and 74.007 cents per kg protein to 29.717 cents per kg milk fat and 70.785 cents per kg protein. ABARE determines this levy rate annually so that the level of assistance afforded to manufacturing milk producers in 1999/2000 is the same as that which would have been provided under the previous market support arrangements (the 1992 Crean Plan which ceased in 1995) if they were still in place.

Rice

Sub clause 6 of Schedule 23 of the Excise Act provides that before the Governor-General makes rice industry regulations for the purposes of clause 1 the Minister must take into consideration any recommendation made to the Minister by a rice Industry body.

The Rice Marketing Board for the State of New South Wales (RMB) has requested a change in the name of one variety, to reflect its uptake from experimental to full commercial production. These changes are to commence on 1 July 1999 and do not affect levy revenue.

The proposal is supported by the RMB, the Ricegrowers' Co-operative Limited, the Ricegrowers' Association of Australia, and the Rice R&D Committee of the Rural Industries Research and Development Corporation.

Wheat

On 1 July 1999 a wheat grower owned and operated company will take over responsibility for marketing the wheat crop from the Australian Wheat Board. On this date the Wheat Industry Fund (WIF), which had been built up by a levy imposed under the Wheat Industry Fund Levy Act 1989, will cease to exist and WIF units will be converted into B class shares in the company.

Sub clause 7 of Schedule 25 of the Excise Act provides that before the Governor-General makes wheat industry regulations for the purposes of imposing a levy or setting a rate of levy, any recommendation made to the Minister by the GCA must be taken into consideration by the Minister.

The Wheat Industry Fund Levy Regulations, established under the Wheat Industry Fund Levy Act 1989 set the operative levy rate on wheat at 3%, comprising 1% for wheat research and development through the Grains Research and Development Corporation and 2% for the WIF. The Wheat Industry Fund Levy Regulations also set the minimum leviable amount at $50.

The Primary Industries Levies and Charges Regulations ensure the continuation of the research and development levy, at the rate of 1% of the value of the wheat, following the cessation of the WIF levy from 1 July 1999. The regulations also amend the minimum leviable amount in any levy year from $50 to $25. The GCA has requested these changes.

Parts 1, 3, 4 and 5 of the regulations commence on 1 July 1999; part 2 commences on 1 October 1999.