Commonwealth Numbered Regulations - Explanatory Statements

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PRIMARY INDUSTRIES (EXCISE) LEVIES AMENDMENT REGULATIONS 2007 (NO. 4) (SLI NO 122 OF 2007)

 

 

EXPLANATORY STATEMENT

 

 

Select Legislative Instrument 2007 No. 122

 

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 2007 (No. 4)

 

 

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.

 

A levy imposed on logs produced in Australia and delivered to a mill for processing. An export charge is imposed on logs produced in and exported from Australia as unprocessed wood. The levy and/or charge are not imposed if the total amount of levy and/or charge that a person is liable to pay for the year is less than $330.

 

The Forest and Wood Products Research and Development Corporation (FWPRDC) is responsible for the administration of the levy and charge schemes and for the co-ordination of research and development programs for the forestry industry using the funds collected through the levy. The Australian Government provides matching funds for eligible research and development expenditure under the Primary Industries and Energy Research and Development Act 1989.

 

The purpose of the Regulations is to increase the levy and charge on hardwood sawlogs by 7 cents per cubic metre. The rate that previously applied to hardwood sawlogs was 22 cents per cubic metre. The peak industry bodies for the forestry industry - National Association of Forest Industries Limited (NAFI), Australian Plantation Products and Paper Industry Council, Australian Forest Growers and Australian Timber Importers Federation - proposed that the rate be increased to 29 cents per cubic metre. The change will achieve equity between the hardwood and softwood sectors, as the levy and charge rate for softwood sawlogs was 29 cents per cubic metre.

 

A full consultation process, involving a ballot of each affected industry member was conducted during March and April 2006. Of the 77 sawmillers who exercised a vote in the ballot, 54 voted against the increase. However, of the seven largest hardwood sawmillers, who are defined as those who process over 50,000 cubic metres of hardwood sawlogs per year, five voted in support of the increase. These five votes represent over 70 per cent of the hardwood sawlogs produced in Australia. Following the ballot, the hardwood sector representative body, NAFI, publicly announced its support to the levy increase on behalf of the sector.

 

The Regulations increase the levy and charge rate to 29 cents per cubic metre for leviable hardwood sawlogs. Approximately an additional $16,300 each year will be collected under the Regulations.

 

The Primary Industries (Excise) Levies Regulations 1999 set the rate of the excise levy and the Primary Industries (Customs) Charges Act 1999 provides that the customs charge shall be the same rate as the excise levy provided by the Primary Industries (Excise) Levies Regulations 1999.

 

Details of the Regulations are contained in the Attachment.

 

The Regulations are a legislative instrument for the purposes of the Legislative Instruments Act 2003.

 

In accordance with the Government's Regulation Impact Statement (RIS) requirements, the Office of Regulation Review (ORR) was consulted in the preparation of the proposal and advised that a RIS was not required (ORR ID 8343). 

 

The Regulations commence on 1 July 2007.

 

0700219A

 


Attachment

 

 

DETAILS OF THE PRIMARY INDUSTRIES (EXCISE) LEVIES AMENDMENT REGULATIONS 2007 (No. 4)

 

Regulation 1 provide for the name of the Regulations to be the Primary Industries (Excise) Levies Amendment Regulations 2007 (No. 4).

 

Regulation 2 provide for the commencement date to be 1 July 2007.

 

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

 

Schedule 1 Amendment to Part 1 of Schedule 10

 

Item [1] substitutes item 3 of the table in clause 1 with new item 3.

 

Item 3 sets an operative rate of levy on hardwood sawlogs of 29 cents per cubic metre.

 

Item [2] omits the words, for subregulation (1) and substitute with for this clause in subclause 2 (2).

 

This substitution amends a cross reference in subclause 2 (2).

 

 

 

 


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