Commonwealth Numbered Regulations - Explanatory Statements

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PRIMARY INDUSTRIES (EXCISE) LEVIES AMENDMENT REGULATIONS 2003 (NO. 16) 2003 NO. 326

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

Schedule 3 to the Act imposes levies in relation to cattle transactions. Funds corresponding with the amounts of levies revenue raised under this Schedule are appropriated for various destinations, namely Meat and Livestock Australia (MLA) for marketing and research purposes, Australian Animal Health Council (Animal Health Australia), and National Residue Survey (NRS).

Subclause 8(1) of Schedule 3 to the Act provides that the Minister may declare an industry body to be the body for the purposes of subclause 8(2). Subclause 8(2) provides that if a declaration is in force under subclause 8(1) then, before the Governor-General makes regulations for the purposes of the paragraph to which the declaration relates, the Minister must take into consideration any relevant recommendation made to the Minister by the body specified in the declaration in relation to that paragraph.

No declarations have been made under subclause 8(1) of Schedule 3 to the Act. However the proposed regulations implement recommendations from the peak industry body that represents the lot fed cattle production sector, namely the Australian Lot Feeders Association (ALFA).

The purpose of the Regulations is, in respect of lot fed cattle, to decrease the marketing levy rate from $1.97 to $1.51 per head and to increase the research levy rate from $1.11 to $1.57 per head.

The total current make up of the levy imposed in respect of lot fed cattle is shown in the following table:

Destination	Rate	Where rate is prescribed
MLA Marketing	$1.97	Clause 2(1) of Schedule 3 to the Primary Industries (Excise) Levies Regulations 1999
MLA Research	$1.11	Clause 2(2) of Schedule 3 to the Primary Industries (Excise) Levies Regulations 1999
Animal Health Australia	$0.30	Clause 2(4) of Schedule 3 to the Primary Industries (Excise) Levies Regulations 1999
National Residue Survey	$0.12	Clause 3(1)(ca) of Schedule 1 to the National Residue Survey (Excise) Levy Act 1998
Total	$3.50

The Regulations would amend the existing Schedule 3 to the Primary Industries (Excise) Levies Regulations 1999, which sets out the applicable rates of cattle transaction levy applying to lot fed cattle.

By paying the cattle transaction levy in respect of lot fed cattle, the lot fed cattle production sector contributes to the activities of the organisations listed in the above table, including Meat and Livestock Australia (MLA) in the areas of marketing and research.

ALFA, in association with MLA has developed programs and projects which are being undertaken by MLA, and which clearly reflect industry needs and wishes and are based on maximum potential return to levy payers.

ALFA has recommended that the funding directed to marketing and to research under the Regulations be adjusted to reflect the agreed MLA programs and projects.

The adjustment calls for a levy rate of $1.57 per head in respect of the research component, and a levy rate of $1.51 per head in respect of the marketing component. Allocations with respect to Animal Health Australia and the National Residue Survey are to remain unchanged. The overall total levy rate of $3.50 will remain unchanged as a result of the amendments with the rise in the research component being equivalent to the decrease in the marketing component of the levy.

Details of the proposed Regulations are provided in the Attachment.

The Office of Regulation Review have been consulted in the preparation of these regulations and a Regulation Impact Statement exemption has been granted, with reference number RIS ID 5917.

The Regulations will commence on 1 January 2004.

0313136A

ATTACHMENT

THE PROPOSED PRIMARY INDUSTRIES (EXCISE) LEVIES AMENDMENT REGULATIONS 2003 (NO. 16)

Details of the proposed regulations are as follows:

Regulation 1 provides for the citation of the regulations.

Regulation 2 provides that the regulations will commence on 1 January 2004.

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

Schedule 1 identifies the amendments to be made.

Amendment [1] decreases the marketing component of the levy from $1.97 per head to $1.51 per head.

Amendment [2] increases the research component of the levy from $1.11 per head to $1.57 per head.