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PRIMARY INDUSTRIES (EXCISE) LEVIES AMENDMENT REGULATIONS 2003 (NO. 10) 2003 NO. 145

STATUTORY RULES 2003 No. 145

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 2003 (No. 10)

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 nursery industry pays a statutory levy to Horticulture Australia Limited (HAL), collected on the purchase price of pots and other containers that are used in the production or preparation of a nursery product for sale or for use in the production of other goods. The total levy is 5% of the purchase price, of which 3.4% goes to HAL for marketing and promotion and 1.6% goes to HAL for research and development (R&D).

The purpose of the regulations is to implement a proposal by Nursery & Garden Industry Australia Ltd (NGIA) to change the mix of the statutory levy on the purchase price of pots and other containers between the marketing component and the R&D component, without changing the total rate of the levy. The nursery industry proposal is for the total levy to remain at 5% of the purchase price but for the marketing levy component to decrease from 3.4% to 2% and for the R&D levy component to increase from 1.6% to 3%.

Subclause 4(1) and subclause 4(3) of Schedule 15 of the Excise Levies Act provide that regulations may fix rates 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 fix rates of marketing levy and R&D levy respectively, 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 12.5, of the Primary Industries (Excise) Levies Regulations 1999 specifies NGIA as the eligible industry body with which HAL must consult in relation to the nursery levy. HAL recommended the change in the mix of the statutory nursery levy between the marketing and the R&D components to the Minister after consultation with NGIA. The regulations give effect to the recommendations of HAL, which are consistent with the nursery industry request.

The regulations:

•       set a levy rate of 2% of the purchase price of pots and other containers that are used in the production or preparation of a nursery product for sale or for use in the production of other goods to go to HAL for marketing; and

•       set a levy rate of 3% of the purchase price of pots and other containers that are used in the production or preparation of a nursery product for sale or for use in the production of other goods 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 has advised that it is not necessary to prepare a Regulation Impact Statement on this matter.

The Regulations commence on 1 July 2003.

0305190A

ATTACHMENT

PRIMARY INDUSTRIES (EXCISE) LEVIES AMENDMENT REGULATIONS 2003 (No. 10)

Regulation 1 provides for the name of the regulations to be the Primary Industries (Excise) Levies Amendment Regulations 2003 (No. 10).

Regulation 2 provides for the commencement date to be 1 July 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 the purchase price of pots and other containers that are used in the production or preparation of a nursery product for sale or for use in the production of other goods is reduced from 3.4% to 2%.

Schedule 1 [2] prescribes that the rate of research and development levy on the purchase price of pots and other containers that are used in the production or preparation of a nursery product for sale or for use in the production of other goods is increased from 1.6% to 3%.