Dairy Produce Levy (No. 1) Act 1986 (Cth)

Dairy Produce Levy (No. 1) Act 1986

Act No. 55 of 1986 as amended

Consolidated as in force on 18 August 1997

(includes amendments up to Act No. 77 of 1997)

Prepared by the Office of Legislative Drafting,

Attorney-General’s Department, Canberra

Contents

An Act to impose levies upon the milk fat content and the protein content of certain dairy produce produced in Australia

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Part I—Preliminary

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1Short title [see Note 1]

This Act may be cited as the Dairy Produce Levy (No. 1) Act 1986.

2Commencement [see Note 1]

The provisions of this Act shall come into operation on the day on which the provisions of Part VI of the Dairy Produce Act 1986 come into operation.

4Interpretation

1. (1)

   In this Act, unless the contrary intention appears:

Australian Bureau of Agricultural and Resource Economics means the organisation established within the Department under that name.

Council means the association by the name of the Australian Dairy Industry Council Inc. that is incorporated under the Associations Incorporation Act 1981 of the State of Victoria.

Federation means the company known as the Australian Dairy Farmers’ Federation Limited that is incorporated under the Corporations Law.

Levies and Charges Collection Act means the Primary Industries Levies and Charges Collection Act 1991.

manufacturer means a person who carries on a business that consists of, or includes, the manufacture of dairy produce.

milk means the lacteal fluid product of the dairy cow.

milk fat means the fatty substance of milk.

month means any of the 12 months of the calendar year.

relevant dairy produce means dairy produce that is:

1. (a)

   whole milk; or

2. (b)

   whole milk products.

whole milk means whole milk produced in Australia.

whole milk product means a product that is produced by modifying, or extracting material from, whole milk, and that consists of, or contains, milk fat.

1. (2)

   For the purposes of this Act, a person who applies any process to relevant dairy produce is taken to use the relevant dairy produce in the manufacture of dairy produce unless:

   1. (a)

      the process consists only of chilling; and

   2. (b)

      the person is the producer of the relevant dairy produce.

2. (3)

   For the purposes of this Act, a person is a prescribed exporter in relation to a financial year if:

   1. (a)

      the person has an export milk fat component or an export protein component, or both, within the meaning of section 7, for a month or months of the year; or

   2. (b)

      during the year, the person has exported dairy produce and:

      1. (i)

         manufacturing milk levy was imposed on relevant dairy produce used, whether by that person or by another person, in the manufacture of the exported dairy produce; and

      2. (ii)

         the export of the dairy produce has not been taken into account for the purposes of subsection 7(2).

3. (4)

   For the purposes of this Act, an export of dairy produce constitutes a relevant export if:

   1. (a)

      the export of the dairy produce has been taken into account for the purposes of subsection 7(2); or

   2. (b)

      both of the following conditions are satisfied:

      1. (i)

         manufacturing milk levy was imposed on relevant dairy produce used, whether by the person who exported the dairy produce or by another person, in the manufacture of the exported dairy produce;

      2. (ii)

         the export of the dairy produce has not been taken into account for the purposes of subsection 7(2).

4. (5)

   For the purposes of this Act, the question whether a body corporate is related to another body corporate is to be determined in the same way as the question whether bodies corporate are related to each other is determined for the purposes of the Corporations Law.

5. (8)

   Unless the contrary intention appears, a word or expression contained in this Act that is not defined for the purposes of this Act but is defined in the Levies and Charges Collection Act for the purposes of that Act has the same meaning in this Act as in the Levies and Charges Collection Act.

Part II—Levies on Dairy Produce

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5Imposition of levies

1. (1)

   Levies are imposed as follows:

   1. (a)

      market milk levy is imposed on relevant dairy produce, supplied by the producer during a month ending before 1 July 2000, in relation to which the producer has received, or is entitled to receive, a payment relating to liquid milk for human consumption in Australia;

   2. (b)

      a levy to be known as the manufacturing milk levy is imposed on relevant dairy produce:

      1. (i)

         delivered to a manufacturer by the producer during a month ending before 1 July 2000; or

      2. (ii)

         produced by a manufacturer and used by the manufacturer, during a month ending before 1 July 2000, in the manufacture of dairy produce;

   other than dairy produce referred to in paragraph (a);

   1. (c)

      a levy to be known as the acquisition offset levy is imposed on the total quantity of dairy produce acquired by a prescribed exporter or, if the prescribed exporter is a body corporate, by a body corporate (other than a prescribed exporter) that is related to the prescribed exporter, during a financial year commencing on or after 1 July 1995, being dairy produce imported into Australia on or after 1 July 1995 and on which levy has not been paid, and is not payable, under section 8 or 9 of the Dairy Produce Levy (No. 2) Act 1986;

   2. (d)

      a levy to be known as the Corporation levy is imposed on relevant dairy produce produced on or after 1 July 1995 and on which a levy is imposed under paragraph (1)(a) or (b);

   3. (e)

      a levy to be known as the promotion levy is imposed on relevant dairy produce produced on or after 1 July 1995 and on which a levy is imposed under paragraph (1)(a) or (b);

   4. (f)

      a levy to be known as the research levy is imposed on relevant dairy produce produced on or after 1 July 1995 and on which a levy is imposed under paragraph (1)(a) or (b);

   5. (g)

      a levy to be known as the Australian Animal Health Council levy is imposed on relevant dairy produce produced on or after 1 July 1997 and on which a levy is imposed under paragraph (1)(a) or (b).

2. (2)

   If a levy is imposed by a paragraph of subsection (1) on particular relevant dairy produce, the paragraph does not have the effect of imposing any further levy on:

   1. (a)

      that relevant dairy produce; or

   2. (b)

      relevant dairy produce produced by modifying, or extracting material from, the first-mentioned relevant dairy produce.

6Amount of market milk levy

The amount of the market milk levy imposed by section 5 on relevant dairy produce in relation to which the producer has received, or is entitled to receive, a payment relating to a month is the total of:

1. (a)

   an amount calculated at the milk fat rate prescribed in relation to that levy for that month on the milk fat content of the relevant dairy produce before it leaves the farm where it was produced; and

2. (b)

   an amount calculated at the protein rate prescribed in relation to that levy for that month on the protein content of the relevant dairy produce before it leaves the farm where it was produced.

7Amount of manufacturing milk levy

1. (1)

   In this section:

milk fat rate, in relation to a month, means the milk fat rate prescribed in relation to the manufacturing milk levy for that month.

protein rate, in relation to a month, means the protein rate prescribed in relation to the manufacturing milk levy for that month.

1. (2)

   The amount of the manufacturing milk levy imposed by section 5 on relevant dairy produce delivered to, or used by, a manufacturer during a month is the total of:

   1. (a)

      an amount calculated at the milk fat rate for the month on the milk fat content of the relevant dairy produce before it was so delivered or used; and

   2. (b)

      an amount calculated at the protein rate for the month on the protein content of the relevant dairy produce before it was so delivered or used;

less the total of:

1. (c)

   the manufacturer’s export milk fat component for the month; and

2. (d)

   the manufacturer’s export protein component for the month.

1. (3)

   A manufacturer’s export milk fat component for a month is the amount calculated at the milk fat rate for the month on the milk fat content of:

   1. (a)

      dairy produce exported by the manufacturer during the month; and

   2. (b)

      dairy produce manufactured by the manufacturer and exported, during the month, by another person.

2. (4)

   A manufacturer’s export protein component for a month is the amount calculated at the protein rate for the month on the protein content of:

   1. (a)

      dairy produce exported by the manufacturer during the month; and

   2. (b)

      dairy produce manufactured by the manufacturer and exported, during the month, by another person.

3. (5)

   If, in relation to a particular manufacturer and a particular month, the total of the amounts referred to in paragraphs (2)(c) and (d) exceeds the total of the amounts referred to in paragraphs (2)(a) and (b), no manufacturing milk levy is payable by the manufacturer in relation to the month.

8Amount of acquisition offset levy

1. (1)

   Subject to subsection (2), the amount of the levy imposed by paragraph 5(1)(c) on dairy produce acquired by a prescribed exporter or, if the prescribed exporter is a body corporate, by a body corporate that is related to the prescribed exporter, during a financial year is calculated as follows:

   1. (a)

      in respect of each quantity of dairy produce acquired:

      1. (i)

         an amount is calculated at the milk fat rate for the month in which the dairy produce was acquired on the milk fat content of the dairy produce when acquired; and

      2. (ii)

         an amount is calculated at the protein rate for the month in which the dairy produce was acquired on the protein content of the dairy produce when acquired;

   2. (b)

      the amount of the levy is an amount equal to the total of the amounts calculated under paragraph (a) in respect of dairy produce acquired during the year.

2. (2)

   If, but for this subsection, the amount of the levy imposed by paragraph 5(1)(c) on dairy produce acquired by a prescribed exporter or, if the prescribed exporter is a body corporate, by a body corporate that is related to the prescribed exporter, during a financial year would exceed the maximum amount, the amount of the levy imposed in respect of that dairy produce is an amount equal to the maximum amount.

3. (3)

   Except in a case to which subsection (4) applies, the maximum amount of the levy imposed by paragraph 5(1)(c) on dairy produce acquired by a prescribed exporter or, if the prescribed exporter is a body corporate, by a body corporate that is related to the prescribed exporter, during a financial year is an amount calculated as follows:

   1. (a)

      in respect of each quantity of dairy produce the subject of a relevant export by the prescribed exporter during the financial year:

      1. (i)

         an amount is calculated at the milk fat rate for the month in which the dairy produce was exported on the milk fat content of the dairy produce; and

      2. (ii)

         an amount is calculated at the protein rate for the month in which the dairy produce was exported on the protein content of the dairy produce;

   2. (b)

      the amounts calculated under paragraph (a) are added together;

   3. (c)

      if levy has been paid, or is payable, by the prescribed exporter under section 8 of the Dairy Produce Levy (No. 2) Act 1986 in respect of the importation, during the financial year, of any dairy produce and the amount so paid or payable is less than the amount arrived at under paragraph (b), the maximum amount is the amount equal to the difference between the amount arrived at under paragraph (b) and the amount of levy paid or payable;

   4. (d)

      if no deduction is made under paragraph (c), the total amount arrived at under paragraph (b) is the maximum amount.

4. (4)

   If:

   1. (a)

      levy has been paid, or is payable, by the prescribed exporter under section 8 of the Dairy Produce Levy (No. 2) Act 1986 in respect of the importation, during the financial year, of any dairy produce; and

   2. (b)

      the amount so paid or payable equals or exceeds the amount arrived at under paragraph (3)(b);

acquisition offset levy is not imposed on the acquisition of the dairy produce by the prescribed exporter or, if the prescribed exporter is a body corporate, by a body corporate related to that prescribed exporter.

1. (5)

   In subsections (1) and (3), a reference to the milk fat rate or the protein rate for a month is a reference to the milk fat rate or the protein rate, as the case may be, prescribed in relation to the manufacturing milk levy for that month.

9Amounts of other levies on relevant dairy produce

1. (1)

   The amount of a levy imposed by paragraph 5(1)(d), (e), (f) or (g) on relevant dairy produce is the total of:

   1. (a)

      an amount calculated at the milk fat rate prescribed in relation to that levy on the milk fat content of the dairy produce; and

   2. (b)

      an amount calculated at the protein rate prescribed in relation to that levy on the protein content of the dairy produce.

2. (2)

   In subsection (1), the milk fat content or the protein content of the relevant dairy produce is:

   1. (a)

      if a levy is imposed on the produce under paragraph 5(1)(a)—that content of the produce before it leaves the farm where it was produced; and

   2. (b)

      if a levy is imposed on the produce under paragraph 5(1)(b)—that content of the produce before it is delivered to or used by the manufacturer.

10Milk fat rate

The milk fat rate prescribed in relation to the levy specified in Column 1 of an item in the following table must not exceed the rate specified in Column 2 of the item.

Item	Column 1	Column 2
1	Market milk levy	15.750 cents per kilogram
2	Manufacturing milk levy	45.000 cents per kilogram
3	Corporation levy	0.875 cents per kilogram
4	Promotion levy	2.800 cents per kilogram
5	Research levy	1.750 cents per kilogram
6	Australian Animal Health Council levy	0.058 cents per kilogram

11Protein rate

The protein rate prescribed in relation to the levy specified in Column 1 of an item in the following table must not exceed the rate specified in Column 2 of the item.

Item	Column 1	Column 2
1	Market milk levy	38.39060 cents per kilogram
2	Manufacturing milk levy	110.00000 cents per kilogram
3	Corporation levy	2.13281 cents per kilogram
4	Promotion levy	6.82500 cents per kilogram
5	Research levy	4.26562 cents per kilogram
6	Australian Animal Health Council levy	0.13850 cents per kilogram

12By whom levies payable

1. (1)

   The market milk levy imposed on relevant dairy produce is payable by the producer of the relevant dairy produce.

2. (2)

   The manufacturing milk levy imposed on relevant dairy produce delivered to, or used by, a manufacturer of dairy produce is payable by the manufacturer.

3. (3)

   The acquisition offset levy imposed on dairy produce acquired by a prescribed exporter or, if the prescribed exporter is a body corporate, by a body corporate that is related to the prescribed exporter, is payable by the prescribed exporter.

4. (4)

   The following levies imposed on relevant dairy produce are payable by the producer of the relevant dairy produce:

   1. (a)

      the Corporation levy;

   2. (b)

      the promotion levy;

   3. (c)

      the research levy;

   4. (d)

      the Australian Animal Health Council levy.

Part IV—Miscellaneous

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14Regulations

1. (1)

   The Governor-General may make regulations, not inconsistent with this Act, prescribing matters:

   1. (a)

      required or permitted by this Act to be prescribed; or

   2. (b)

      necessary or convenient to be prescribed for carrying out or giving effect to this Act.

2. (2)

   Before making regulations prescribing a rate for the purposes of section 6 or 9 (except so far as section 9 relates to paragraph 5(1)(g)), the Governor-General must take into consideration any report relating to the proposed regulations made to the Minister by the executive of the Council.

3. (2A)

   Before making regulations prescribing a rate for the purposes of section 9 (so far as it relates to paragraph 5(1)(g)), the Governor-General must take into consideration any report relating to the proposed regulations made to the Minister by the executive of the Federation.

4. (3)

   Before making regulations prescribing a rate for the purposes of subsection 7(1), the Governor-General must take into consideration any report relating to the proposed regulations made to the Minister by the Executive Director of the Australian Bureau of Agricultural and Resource Economics.

NOTE

1. The Dairy Produce Levy (No. 1) Act 1986 as shown in this reprint comprises Act No. 55, 1986 amended as indicated in the Tables below.

Table of Acts

Act Number and year Date of Assent Date of commencement Application, saving or transitional provisions

  

Dairy Produce Levy (No. 1) Act 1986	55, 1986	24 June 1986	1 July 1986
Dairy Produce Levy (No. 1) Amendment Act 1988	18, 1988	11 May 1988	S. 3: 1 July 1986 Remainder: Royal Assent	—
Dairy Produce Levy (No. 1) Amendment Act 1989	131, 1989	7 Nov 1989	1 Jan 1990 (see s. 2)	—
Primary Industries Levies and Charges Collection (Consequential Provisions) Act 1991	26, 1991	1 Mar 1991	1 July 1991 (see s. 2)	S. 5
Primary Industries Legislation Amendment Act 1991	39, 1991	27 Mar 1991	Ss. 3(1), 4 and Schedule (Part 1): 1 July 1991 Remainder: Royal Assent	—
Dairy Produce Levy (No. 1) Amendment Act 1992	68, 1992	26 June 1992	Ss. 4 and 5: 1 July 1992 Remainder: Royal Assent	—
Dairy Produce Levy (No. 1) Amendment Act 1995	46, 1995	21 June 1995	1 July 1995	—
Dairy Produce Levy (No. 1) Amendment Act 1996	4, 1996	6 June 1996	1 July 1995 (a)	—
Dairy Produce Levy (No. 1) Amendment Act 1997	77, 1997	18 June 1997	Schedule 1 (item 3): (b) Remainder: Royal Assent	—

(a) Section 2 of the Dairy Produce Levy (No. 1) Amendment Act 1996 provides as follows:

1. “2.

   This Act is taken to have commenced on 1 July 1995, immediately after the commencement of the Dairy Produce Levy (No. 1) Amendment Act 1995.”

(b) Subsection 2(3) of the Dairy Produce Levy (No. 1) Amendment Act 1997 provides as follows:

1. “(3)

   If this Act receives the Royal Assent before 1 July 1997, item 3 of Schedule 1 does not commence.”

The Dairy Produce Levy (No. 1) Amendment Act 1997 received the Royal Assent on 18 June 1997.

Table of Amendments

ad. = added or inserted

am. = amended rep. = repealed rs. = repealed and substituted

 

Provision affected	How affected
Title .........................................	am. No. 4, 1996
S. 3 .........................................	rep. No. 26, 1991
S. 4 .........................................	am. No. 131, 1989; No. 26, 1991; No. 46, 1995; No. 77, 1997
Part II ...................................... (ss. 5, 7, 8)	rep. No. 46, 1995
Part II ...................................... (ss. 5-12)	ad. No. 46, 1995
S. 5 .........................................	am. No. 131, 1989; No. 68, 1992
rs. No. 46, 1995
am. No. 4, 1996; No. 77, 1997
S. 6 .........................................	rep. No. 68, 1992
ad. No. 46, 1995
am. No. 4, 1996
S. 7 .........................................	am. No. 131, 1989; No. 68, 1992
rs. No. 46, 1995
am. No. 4, 1996
S. 8 .........................................	rs. No. 46, 1995
S. 9 .........................................	rs. No. 46, 1995
am. No. 4, 1996; No. 77, 1997
Ss. 10-12 .................................	rs. No. 46, 1995
am. No. 77, 1997
Part III ..................................... (ss. 9-11)	rep. No. 46, 1995
S. 9 .........................................	am. No. 18, 1988
rep. No. 46, 1995
S. 10 .......................................	rep. No. 46, 1995
S. 11 .......................................	am. No. 26, 1991
rep. No. 46, 1995
S. 12 .......................................	rep. No. 46, 1995
S. 13 .......................................	rep. No. 26, 1991
S. 14 .......................................	am. No. 131, 1989; No. 39, 1991; No. 46, 1995; No. 77, 1997