Commonwealth Numbered Regulations - Explanatory Statements

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PRIMARY INDUSTRIES (EXCISE) LEVIES AMENDMENT REGULATIONS 2002 (NO. 7) 2002 NO. 274

STATUTORY RULES 2002 No. 274

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

Primary Industries (Excise) Levies Act 1999

Primary Industries (Excise) Levies Amendment Regulations 2002 (No. 7)

Section 8 of the Primary Industries (Excise) Levies Act 1999 (the Excise Levies Act) provides that the Governor-General may make regulations prescribing matters required or permitted by that Act to be prescribed or necessary or convenient to be prescribed for carrying out or giving effect to that Act.

The Agaricus mushroom industry has, since 1 January 2002, paid a statutory levy collected on mushroom spawn produced or purchased for use in the production of Agaricus mushrooms to Horticulture Australia Limited (HAL). The levy totals $2.16/kg of which $2.00 goes to HAL for marketing and $0.16 to HAL for research and development (R&D). There is an upper threshold of 250,000 kilograms of spawn upon which levy is paid by any one grower in a financial year.

The purpose of the regulations is to implement a proposal by the Australian Mushroom Growers Association (AMGA) to change the mix of the statutory levy on Agaricus mushrooms between the marketing component and the R&D component, without changing the total rate of the levy. The Agaricus mushroom industry proposal is for the total levy to remain at $2.16/kg but for the marketing levy component to decrease from $2.00/kg to $1.62/kg and for the R&D levy component to increase from $0.16/kg to $0.54/kg.

Subclause 4 (1) and subclause 4 (3) of Schedule 15 of the Excise Levies Act provide that regulations may fix a rate of levy for marketing and for R&D respectively.

Subclause 6 (4) and subclause 6 (6) of Schedule 15 of the Excise Levies Act provide that before the Governor-General makes regulations to respectively fix rates of marketing levy and R&D levy the Minister must take into consideration any relevant recommendations made to the Minister by HAL.

Subclause 6 (7) and subclause 6(8) of Schedule 15 of the Excise Levies Act respectively require HAL to consult with the body that is the eligible industry body for the relevant horticultural product before recommending rates of, and exemptions from, marketing levy and R&D levy to the Minister.

Subclause 6 (9) of Schedule 15 of the Excise Levies Act requires that a recommendation made by HAL to the Minister be accompanied by a written statement of the views of the industry body consulted in relation to the recommendation. Schedule 15, clause 18.8, of the Primary Industries (Excise) Levies Regulations 1999 specifies the AMGA as the eligible industry body with which HAL must consult in relation to Agaricus mushrooms. HAL recommended the change in the mix of the statutory levy on Agaricus mushrooms between the marketing and the R&D components to the Minister after consultation with the AMGA. The Regulations give effect to the recommendations of HAL, which are consistent with the Agaricus mushroom industry request.

The Regulations:

•       set a levy rate of $1.62/kg of spawn sold, purchased or used in growing Agaricus mushrooms to go to HAL for marketing; and

•       set a levy rate of $0.54/kg of spawn sold, purchased or used in growing Agaricus mushrooms to go to HAL for R&D.

Details of the regulations are contained in the attachment.

The Office of Regulation Review (ORR) was consulted in the preparation of the Regulations. ORR have advised that it is not necessary to prepare a Regulation Impact Statement on this matter (ORR no 2002/2983).

The Regulations commence on 1 January 2003.

0209678A

ATTACHMENT

PRIMARY INDUSTRIES (EXCISE) LEVIES AMENDMENT REGULATIONS 2002 (No. 7)

Regulation 1 provides for the name of the regulations to be the Primary Industries (Excise) Levies Amendment Regulations 2002 (No. 7).

Regulation 2 provides for the commencement date to be 1 January 2003.

Regulation 3 provides that Schedule 1 amends the Primary Industries (Excise) Levies Regulations 1999.

Schedule 1 [1] prescribes that the rate of marketing levy on spawn sold, purchased or used in growing Agaricus mushrooms destined for Horticulture Australia Limited is reduced from $2/kg to $1.62/kg.

Schedule 1 [2] prescribes that the rate of research and development levy on spawn sold, purchased or used in growing Agaricus mushrooms destined for Horticulture Australia Limited is increased from $0.16/kg to $0.54/kg.