PRIMARY INDUSTRIES (EXCISE) LEVIES AMENDMENT (POTATOES, VEGETABLES AND GINGER) REGULATIONS 2018 (F2018L01237) EXPLANATORY STATEMENT

Commonwealth Numbered Regulations - Explanatory Statements

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PRIMARY INDUSTRIES (EXCISE) LEVIES AMENDMENT (POTATOES, VEGETABLES AND GINGER) REGULATIONS 2018 (F2018L01237)

EXPLANATORY STATEMENT

 

 

Issued by Authority of the Minister for Agriculture and Water Resources

 

Primary Industries (Excise) Levies Act 1999

 

Primary Industries (Excise) Levies Amendment (Potatoes, Vegetables and Ginger) Regulations 2018

 

Legislative Authority

The Primary Industries (Excise) Levies Act 1999 (the Excise Levies Act) authorises the imposition of primary industries levies, that are duties of excise.

 

Section 8 of the Excise Levies 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.

 

Parts 2, 3 and 4 of Schedule 27 to the Excise Levies Act provides that Regulations may impose primary industries levies, set the rate of the levies and specify the person liable to pay the levy. Schedule 15 to the Excises Levies Act imposes a levy on unprocessed potatoes, vegetables and ginger.

 

Subclause 14(2) of Schedule 27 to the Excise Levies Act provides that if there is a single body that is a designated body for a particular product, then, before the Governor-General makes a regulation in relation to the product, the Minister must take into consideration any relevant recommendation made to the Minister by the body. AUSVEG, the peak industry body for the Australian potato and vegetable industry, was designated as the body for potatoes and vegetables by the Minister within the Primary Industries (Excise) Levies (Designated Bodies) Declaration 2017, in line with the Act.

 

Purpose

The purpose of the Primary Industries (Excise) Levies Amendment (Potatoes, Vegetables and Ginger) Regulations 2018 (the Regulations) is to implement an Emergency Plant Pest Response (EPPR) levy for ginger set to a nil rate, and to activate the EPPR levy on:

*         unprocessed potatoes to 10 cents per tonne, and

*         vegetables to 0.01 per cent of the amount paid for vegetables at the first point of sale (if the vegetables are first sold after being processed, the rate of EPPR levy is 0.01 per cent of the expected price of the vegetables).

 

Levies are introduced, administered and collected by the Australian Government, usually at the request of industry. The Department of Agriculture and Water Resources (the department) collects the levy and disburses the funds to the relevant recipient body.

 

Background

On 25 August 2017 the peak industry body for the Australian ginger industry, the Australian Ginger Industry Association (AGIA) wrote to the Minister for Agriculture and Water Resources requesting the implementation of an EEPR levy set to a nil rate. The AGIA is a signatory to the Emergency Plant Pest Response Deed (EPPRD). Under that deed, the Australian Government may, on request, underwrite an industry's contribution to an emergency response. EPPR levies may be used to pay for industry contributions to emergency responses under the EPPRD.

 

On 21 December 2017 AUSVEG advised that it would request that the department activate the EPPR levy on unprocessed potatoes and vegetables and set the levy at a rate of 10 cents per tonne on unprocessed potatoes and 0.01 per cent of the amount paid for vegetables at the first point of sale (if the vegetables are first sold after being processed, the rate of EPPR levy is 0.01 per cent of the expected price of the vegetables). On 16 January 2018 AUSVEG formally made the request.

 

The funds raised through the EPPR levy on unprocessed potatoes and vegetables will be used to repay the Australian Government for costs paid on behalf of AUSVEG for the emergency response plan to manage the tomato potato psyllid incursion in Western Australia.

 

The department has assessed the AGIA and AUSVEG requests and considers that they meet the Australian Government Levy Principles and Guidelines for the implementation and activation of an EPPR levy.

 

Impact and Effect

The amendments provide a mechanism for the ginger industry to meet their financial obligations for nationally cost shared emergency responses under the EPPRD if the need arises. The amendments activate the EPPR levies for unprocessed potatoes and vegetables. The levy is set at a rate of 10 cents per tonne on unprocessed potatoes and 0.01 per cent of the amount paid for vegetables at the first point of sale (if the vegetables are first sold after being processed, the rate of EPPR levy is 0.01 per cent of the expected price of the vegetables).

 

The levy rates for unprocessed potatoes and vegetables were calculated to ensure that the industries' liability to the Australian Government will be repaid within approximately three years, at which time AUSVEG intends to request that the levies are reset to a nil rate.

 

The EPPR levy increases are a small amount that is unlikely to influence the price of potato and vegetable products. There will be no impact on the cost of ginger.

 

Consultation

Consistent with the Australian Government Levy Principles and Guidelines for the implementation and activation of an EPPR levy, AGIA and AUSVEG notified levy payers of the levy proposals on their respective products.

 

AGIA held a nine month consultation period and a ballot process which culminated in 39 out of a possible 58 votes cast with all votes in favour of the proposal.

 

AUSVEG advised levy payers of its intention to activate the levy through notifications on their website, via email (3051 in database), articles in their weekly update (3051 subscribers) and e-bulletin (2935 receivers) and emails to charge agents (669 agents). AUSVEG held an objection period from 29 January 2018 to 14 March 2018 and received three objections. AUSVEG wrote to the stakeholders to address the concerns raised.

 

Details / Operation

Details of the Regulations are set out in Attachment A.

 

The Regulations are compatible with the human rights and freedoms recognised or declared under section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011. A full statement of compatibility is set out in Attachment B.

 

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


 

 

Attachment A

 

Details of the Primary Industries (Excise) Levies Amendment (Potatoes, Vegetables and Ginger) Regulations 2018

 

Section 1 - Name of Regulations

 

This section provides that the name of the Regulations is the Primary Industries (Excise) Levies Amendment (Potatoes, Vegetables and Ginger) Regulations 2018.

 

Section 2 - Commencement

 

This section provides for the Regulations to commence on 1 October 2018.

 

Section 3 - Authority

 

This section provides that the Regulations are made under the Primary Industries (Excise) Levies Act 1999.

 

Section 4 - Schedule

 

This section provides for the Primary Industries (Excise) Levies Regulations 1999 to be amended as set out in Schedule 1.

 

Schedule 1 - Amendments

 

Item 1 amends subclause 14.7(2) of Schedule 15 to provide that the EPPR levy on unprocessed potatoes is 10 cents per tonne.

 

Item 2 amends subclause 17.9(2) of Schedule 15 to provide that the EPPR levy on vegetables is 0.01% of the amount paid for the vegetables at the first point of sale.

 

Item 3 inserts a subclause, subclause 2A, after subclause 17.9(2) of Schedule 15 to provide that the EPPR levy on vegetables first sold after being processed is 0.01% of the expected price of the vegetables. An additional subclause defines expected price.

 

Item 4 inserts a division heading "Division 9.1---Definitions for this Part" before clause 9.1 of Schedule 27.

 

Item 5 inserts a division heading 'Division 9.2-Product levy' after clause 9.1 of Schedule 27.

 

Item 6 amends clauses 9.3 and 9.4 of Schedule 27 to insert 'imposed by clause 9.2' after levy'.

 

Item 7 inserts a division heading 'Division 9.3-Special purpose levies'. Under the heading, the item inserts clauses to establish an EPPR levy (set to a nil rate) on ginger.

 

Subclause 9.5(1) provides that for clause 2 of Schedule 27 to the Excise Levies Act, EPPR levy is imposed on ginger on which levy is imposed by clause 9.2 of this Schedule.

 

Subclause 9.5(2) provides that for clause 6 of Schedule 27 to the Excise Levies Act, the rate of EPPR levy on ginger is nil.

 

Subclause 9.5(3) provides for clause 11 of Schedule 27 to the Excise Levies Act, EPPR levy on ginger is payable by the producer of the ginger.

 

A note at the end of clause 9.5 directs the reader, in relation to EPPR levy, to the Plant Health Australia (Plant Industries) Funding Act 2002.

 


 

 

Attachment B

 

Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

 

Primary Industries (Excise) Levies Amendment (Potatoes, Vegetables and Ginger) Regulations 2018

 

This Legislative Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

 

Overview of the Legislative Instrument

The purpose of the Primary Industries (Excise) Levies Amendment (Potatoes, Vegetables and Ginger) Regulations 2018 (the Regulations) is to implement an Emergency Plant Pest Response (EPPR) levy for ginger set to a nil rate, and to activate the EPPR levy on:

*         unprocessed potatoes to 10 cents per tonne, and

*         vegetables to 0.01 per cent of the amount paid for vegetables at the first point of sale (if the vegetables are first sold after being processed, the rate of EPPR levy is 0.01 per cent of the expected price of the vegetables).

 

The Regulations commence on 1 October 2018.

 

Human rights implications

These Regulations do not engage any of the applicable rights or freedoms.

 

Conclusion

The measures in the Regulations are compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011 as the Regulations do not engage any human rights issues.

 

The Hon. David Littleproud MP

Minister for Agriculture and Water Resources

 


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