EXPLANATORY STATEMENT

 

Select Legislative Instrument 2008 No. 84

 

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

Primary Industries (Excise) Levies Act 1999

Primary Industries (Excise) Levies Amendment Regulations 2008 (No. 1)

Statutory Basis

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 revenue raised under the Schedule are appropriated for Meat & Livestock Australia Ltd (MLA) for marketing and research activities, Australian Animal Health Council Ltd to ensure that Australia’s national animal health system delivers competitive advantage for Australia’s livestock, and National Residue Survey for recovery of costs incurred in monitoring and testing residues and contaminants in food production.

Purpose of the Regulations

The purpose of the regulations is to decrease the marketing component of the excise levy from $4.08 to $3.41 and to increase the research component of the excise levy from $0.50 to $1.17 per head for lot-fed cattle. The regulations do not alter the existing overall excise levy rate of $5.00 for each transaction per head for adult cattle.

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

Background to the Regulations

The Australian Lot Feeders’ Association (ALFA) is the lot-fed cattle industry’s peak body and it requested changes to the levy mix for lot-fed cattle to achieve a more balanced marketing / research and development reserves for the next 18 months. ALFA recommends the lot-fed levy allocations on behalf of industry following annual re-assessment of its MLA-managed programs. In order to prevent these programs being driven or constrained by pre-determined allocations, ALFA reallocates the lot-fed cattle transaction levy on an “as needs basis”.

Details of the Regulations are provided in the Attachment.

 

ATTACHMENT

 

 

Details of the Primary Industries (Excise) Levies Amendment
Regulations 2008 (No. 1)

 

Schedule – Amendments

 

Item [1] – Schedule 3A, subclause 4 (1)

 

Item [1] amends Schedule 3A, subclause 4 (1) of the Excise Regulations to decrease the marketing component of the excise levy from $4.08 per head to $3.41 per head for lot-fed cattle.

 

Item [2] – Schedule 3A, subclause 4 (2)

 

Item [2] amends Schedule 3A, subclause 4 (2) of the Excise Regulations to increase the research component of the excise levy from 50 cents per head to $1.17 per head for lot-fed cattle.