Commonwealth Numbered Regulations - Explanatory Statements

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PRIMARY INDUSTRIES (EXCISE) LEVIES AMENDMENT REGULATIONS 2003 (NO. 17) 2003 NO. 328

EXPLANATORY STATEMENT

STATUTORY RULES 2003 No. 328

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

National Residue Survey (Customs) Levy Act 1998
National Residue Survey (Excise) Levy Act 1998
Primary Industries (Customs) Charges Act 1999
Primary Industries (Excise) Levies Act 1999

Primary Industries Levies and Charges (National Residue Survey Levies) Amendment Regulations 2003 (No. 5)
Primary Industries (Customs) Charges Amendment Regulations 2003 (No. 10)
Primary Industries (Excise) Levies Amendment Regulations 2003 (No. 17)

Section 8 of the National Residue Survey (Customs) Levy Act 1998 (the NRS Customs Act) and the National Residue Survey (Excise) Levy Act 1998 (the NRS Excise Act) and section 8 of the Primary Industries (Customs) Charges Act 1999 (the Customs Charges Act) and the Primary Industries (Excise) Levies Act 1999 (the Excise Levies Act) provide that the Governor-General may make regulations prescribing matters required or permitted to be prescribed by those Acts, or necessary or convenient to be prescribed for carrying out or giving effect to those Acts.

The National Residue Survey implements chemical residue monitoring programs and recovers the costs of the programs from participating industries. These programs form the basis for documentation that enables the Australian Government to certify that raw food products bound for export and domestic consumption are free from significant chemical contamination.

Statutory levies are the preferred mechanism by which primary industries choose to meet the cost of compulsory residue-monitoring programs required for access to international and domestic markets. These levies are collected at the same time, and in the same manner, as other statutory levies such as marketing, research and development (R&D) and Animal Health Council levies in order to reduce collection costs for industries.

Clause 2 of Schedule 5 of the NRS Customs Act, Clause 2 of Schedule 15 of the NRS Excise Act, Clause 2 of Schedule 12 of the Customs Charges Act and Clause 3 of Schedule 18 of the Excise Levies Act all impose levies on the sale of goats.

The goat industry currently pays a total customs charge or excise levy on the sale of each goat of 37.7 cents per transaction, with the following components:

•       an R&D levy of 10.5 cents per head;

•       an Animal Health Council levy of 4.5 cents per head;

•       a National Residue Survey levy of 3 cents per head; and

•       a marketing levy of 19.7 cents per head.

The purpose of the Regulations is to increase the rate of both National Residue Survey levies (customs and excise) on the sale of goats from 3 cents per head to 6 cents per head and to decrease both the marketing customs charge and excise levy on the sale of goats from 19.7 cents per head to 16.7 cents per head.

The R&D levy will remain at 10.5 cents per head and the Animal Health Council levy will remain at 4.5 cents per head, with no change to the total levy of 37.7 cents per head.

Subclause 7 (2) of Schedule 12 to the Customs Charges Act provides that, before the Governor-General makes regulations prescribing an amount for the purposes of a range of levies, including for marketing, R&D and the Animal Health Council, the Minister must take into consideration any relevant recommendation made to the Minister by a body declared by him (pursuant to subclause 7 (1)) for that purpose. Likewise, subclause 6 (2) of Schedule 18 to the Excise Levies Act provides for the Minister to consider any relevant recommendation made by a body declared by him for that purpose, before the Governor-General may make regulations setting a specified levy rate. No industry bodies have been declared by the Minister pursuant to subclause 7 (1) of Schedule 12 to the Customs Charges Act or subclause 6 (1) of Schedule 18 to the Excise Levies Act.

Neither the NRS Customs Act nor the NRS Excise Act specify conditions that need to be met before the power to make the regulations may be exercised.

The Goat Industry Council of Australia (GICA) is the peak industry body for the goat industry. GICA has in place a National Residue Survey Testing Program that underwrites market access requirements into domestic and export markets. Cost recovery for this program is by a statutory levy that has been in place since 1 July 1993.

Funds available for GICA to finance its National Residue Survey residue monitoring program have decreased in recent times due to the impact on goat sales brought about by the drought and a general increase in program costs. The National Residue Survey goat transaction levy has not been amended since 1 July 1998.

The adjustment in the National Residue Survey levy rate and the marketing levy rate on the sale of goats would have the effect of maintaining market access requirements with no actual increase to the total levy amount paid by industry.

Details of the proposal were voted on, and endorsed by industry members, at the GICA general meeting held in Sydney on 5 August 2003.

Details of the Regulations are in the Attachment.

The Regulations will commence on 1 January 2004.

0311700A
0311700B
0311700C

ATTACHMENT

DETAILS OF THE PROPOSED PRIMARY INDUSTRIES LEVIES AND CHARGES (NATIONAL RESIDUE SURVEY LEVIES) AMENDMENT REGULATIONS 2003 (No. 5)

Regulation 1 gives the name of the Regulations as the Primary Industries Levies and Charges (National Residue Survey Levies) Amendment Regulations 2003 (No. 5).

Regulation 2 provides for the Regulations to commence on 1 January 2004.

Regulation 3 provides that Schedule 1 amends the Primary Industries Levies and Charges (National Residue Survey Levies) Regulations 1998.

SCHEDULE 1        Amendments

Item 1 substitutes notes 1 and 2 at the bottom of subregulation 239 (5) with one note advising the maximum rate of levy on lambs under subclause 3 (1) of Schedule 5 to the National Residue Survey (Customs) Levy Act 1998 (the NRS Levies Regulations).

Item 2 inserts a new Regulation 239AA into the NRS Levies Regulations which sets the customs levy rate on the export of goats at 6 cents per head of goats for the purposes of subclause 3 (2) of Schedule 5 of the National Residue Survey (Customs) Levy Act 1998. That Act currently sets the rate of customs levy at either 3 cents per head of goat, or if another rate is set by the regulations, that other rate.

Item 3 omits the note after subregulation 240 (4) of the NRS Levies Regulations. The note advises on the previous operative rate of NRS excise levy on goat transactions and is no longer applicable.

Item 4 inserts a new Regulation 242 into the NRS Levies Regulations which sets the excise levy rate on goat transactions at 6 cents per head of goats for the purposes of subclause 3 (2) of Schedule 15 of the National Residue Survey (Excise) Levy Act 1998. That Act currently sets the rate of excise levy at either 3 cents per head of goats, or if another rate is set by the regulations, that other rate.

DETAILS OF THE PROPOSED PRIMARY INDUSTRIES (CUSTOMS) CHARGES AMENDMENT REGULATIONS 2003 (No. 10)

Regulation 1 gives the name of the Regulations as the Primary Industries (Customs) Charges Amendment Regulations 2003 (No. 10)

Regulation 2 provides for the Regulations to commence on 1 January 2004.

Regulation 3 provides that Schedule 1 amends the Primary Industries (Customs) Charges Regulations 2000 (the Customs Charges Regulations).

SCHEDULE 1        Amendment

Item 1 omits the current rate of 19.7 cents per head and inserts an amount of levy of 16.7 cents per head in subclause 4 (1) of Schedule 12 of the Customs Charges Regulations for the purposes of the marketing levy provided for by paragraph 5 (a) of Schedule 12 to the Primary Industries (Customs) Charges Act 1999.

DETAILS OF THE PROPOSED PRIMARY INDUSTRIES (EXCISE) LEVIES AMENDMENT REGULATIONS 2003 (No. 17)

Regulation 1 gives the name of the Regulations as the Primary Industries (Excise) Levies Amendment Regulations 2003 (No. 17)

Regulation 2 provides for the Regulations to commence on 1 January 2004.

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

SCHEDULE 1        Amendment

Item 1 omits the current rate of 19.7 cents per head and inserts an amount of levy of 16.7 cents per head in paragraph 6 (a) of Schedule 18 of the Excise Levies Regulations for the purposes of the marketing levy provided for by paragraph 4 (4) (a) of Schedule 18 to the Primary Industries (Excise) Levies Act 1999.


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