Commonwealth Numbered Regulations - Explanatory Statements

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WINE GRAPES LEVY REGULATIONS (AMENDMENT) 1994 NO. 423

STATUTORY RULES 1994 No. 423

Issued by the Authority of the Minister for Primary Industries and Energy

Wine Grapes Levy Act 1979

Wine Grapes Levy Regulations (Amendment)

Section 9 of the Wine Grapes Levy Act 1979 (the Act) provides that the GovernorGeneral may make Regulations for the purposes of the Act.

Paragraph 6(1)(a) of the Act provides, in particular, for Regulations setting the rate of levy to be paid to the Australian Wine and Brandy Corporation (the Corporation). The Corporation has recommended a set of levy rates to the Minister under Subsection 9(2) of the Act, having sought and received approval for these rates at the 1993 Annual General Meeting in accordance with Subsection 9(3) of the Act.

These provisions are new and result from the Wine Grapes Levy Amendment Act 1994. Prior to this legislation, levy rates were incorporated in the Act. At present, since no rates are prescribed in either the Act or the Regulations, no levy is payable by the industry to the Corporation.

Subsection 6(3) of the Act limits the levy payable to the Corporation to 0.5% of the Gross Value of Production (GVP) of the industry. Subsection 6(4) permits regulations to specify the means of calculation of the GVP.

The Regulations are to commence on 1 January 1995 in order to cover the 1995 vintage, which should begin in February.

Details of the Regulations are given in the Attachment.

ATTACHMENT

Regulation 1 Commencement

This Regulation states that the Regulations commence on 1 January 1995.

Regulation 2 - Amendment

This Regulation states that the Wine Grapes Levy Regulations are amended.

Regulation 3 - Regulation 2 (Interpretation)

This Regulation defines "Act" to mean the Wine Grapes Levy Act 1979, and "grape industry" to the cover grapes used for processing.

Regulation 4 Regulation 3 (Rate of Levy)

Regulation 3 is replaced by new Regulations 3, 3A and 3B.

Regulation 3 sets out the actual rates of levies directed to the Australian Wine and Brandy Corporation. The levy is a %stepped levy' and is assessed as follows:

Producers who use up to 10 tonnes of prescribed product pay $200.

Producers who use between 11 and 3,000 tonnes of product pay $180 plus $4.20 per tonne.

Producers who use between 3,001 and 6,000 tonnes of prescribed product pay $12,780 plus $3.80 per tonne for each tonne over 3,000 tonnes.

Producers who use between 6,001 and 9,000 tonnes of prescribed product pay $24,180 plus $2.00 per tonne for each tonne over 6000 tonnes.

Producers who use between 9,001 and 12,000 tonnes of prescribed product pay $30,180 plus $1.30 per tonne for each tonne over 9,000 tonnes.

Producers who use between 12,001 and 20,000 tonnes of prescribed product pay $30,180 plus $0.60 per tonne for each tonne over 12,000 tonnes.

Producers who use between 20,001 and 40,000 tonnes of prescribed product pay $38,880 plus $0.50 per tonne for each tonne over 20,000 tonnes.

Producers who use 40,001 tonnes or more of prescribed product pay $48,880 plus $0.40 per tonne for each tonne over 40,000 tonnes.

Regulation 3A specifies the 'research amount', which is directed to the Grape and Wine Research and Development Corporation, and is unchanged from the previous Regulations ($1.90 per tonne).

Regulation 3B sets out the method of calculating the Gross Value of Production (GVP) for the industry as permitted by Subsection 6(4) of the Act. The calculation averages the estimated GVP for the year in respect of which levies are payable and the two previous years.

Regulation 5 - Regulation 4 (Maximum amount of marketing component of levy)

This Regulation referred to Section 6A of the Act which has been deleted from the Act. Section 6(3) of the Act sets the maximum total of the marketing amount at 0.5% of the GVP of the industry as calculated by the method set out in new Regulation 3B.