Agricultural and Veterinary Chemical Products (Collection of Levy) Amendment Regulations 2000 (No. 1) 2000 No. 91
EXPLANATORY STATEMENT
STATUTORY RULES 2000 No. 91
Issued by the Authority of the Parliamentary Secretary to the Minister for Agriculture, Fisheries and Forestry
Agricultural and Veterinary Chemical Products (Collection of Levy) Act 1994
Agricultural and Veterinary Chemical Products (Collection of Levy) Amendment Regulations 2000 (No. 1)
Section 39 of the Agricultural and Veterinary Chemical Products (Collection of Levy) Act 1994 (the Act) provides that the Governor-General may make regulations for the purposes of the Act.
Section 11 of the Act permits the Regulations to specify the rate of the levy, for a given calendar year, in respect of leviable disposals of agricultural and veterinary chemical products that were registered during the whole or any part of the last 6 months of that calendar year.
Section 12 of the Act permits the Regulations to specify the rate of the levy in respect of leviable disposals of agricultural and veterinary chemical products that were registered during the whole or any part of the first 6 months of a given calendar year but were not registered on 1 July in that calendar year.
Subsection 39 (2) provides that the rate of levy prescribed by the Regulations must not exceed 2%.
The purpose of the Regulations is to amend the Agricultural and Veterinary Chemical Products (Collection of Levy) Regulations (the Principal Regulations), to specify a reduced rate of levy on leviable disposals of agricultural and veterinary chemicals.
The proceeds of the levy are used to fund the National Registration Authority for Agricultural and Veterinary Chemicals (NRA). The Principal Regulations presently specify a levy rate of 0.75 %. Other sources of funds for the NRA are the fees payable upon application for registration of a new active ingredient or a new agricultural or veterinary chemical product, the fees for annual renewal of such products, and a small Budget appropriation as a contribution to the costs of administering the "minor use" program.
The Regulations specify:
* a levy rate of 0.65% for the whole calendar year that began on 1 January 1999 and subsequent years for the purposes of Section 11 of the Act; and
* a levy rate of 0.65% in respect of the first six months of the year that began on 1 January 1999 and subsequent years for the purposes of Section 12 of the Act.
The levy is being reduced because the NRA Board advised that it wished to achieve a revenue neutral budget on an annual basis and believed its revenue and reserves presently exceed the requirements for funds to carry out its statutory functions. The reduction in levy is estimated to reduce the revenue of the NRA to a level consistent with expenditure to carry out its statutory functions.
In respect of the provisions of subsection 48(2) of the Acts Interpretation Act 1901, the Regulations will not disadvantage any person other than the NRA, an authority of the Commonwealth. In this context the Regulations are being made at the request of NRA.
Details of the Regulations are at Attachment A.
The Regulations commence on gazettal.
Attachment A
AGRICULTURAL AND VETERINARY CHEMICAL PRODUCTS (COLLECTION OF LEVY) AMENDMENT REGULATIONS 2000 (No. 1)
Regulation 1 names the Regulations.
Regulation 2 specifies that the Regulations will commence on gazettal.
Regulation 3 provides that the Agricultural and Veterinary Chemical Products (Collection of Levy) Regulations are amended by Schedule 1.
Schedule 1:
* substitutes the Name of Regulations, replacing "Agricultural and Veterinary Chemical Products (Collection of Levy) Regulations" with "Agricultural and Veterinary Chemical Products (Collection of Levy) Regulations 1995";
* specifies the levy rate of 0.65% in respect of the year that began on 1 January 1999 and each succeeding calendar year; and
* specifies the levy rate of 0.65% in respect of the first 6 months of the year that began on 1 January 1999 and each succeeding calendar year.
Overview
The Agricultural and Veterinary Chemical Products (Collection of Levy) Amendment Regulations 2000 (No. 1) were enacted to amend the existing Agricultural and Veterinary Chemical Products (Collection of Levy) Regulations 1995. These regulations were made under the authority of the Parliamentary Secretary to the Minister for Agriculture, Fisheries and Forestry, and they serve to adjust the levy rates imposed on the disposals of agricultural and veterinary chemical products. This adjustment was introduced to address a budgetary need identified by the National Registration Authority for Agricultural and Veterinary Chemicals (NRA). The primary objective of these regulations is to reduce the levy rates in order to align the NRA's revenue with its expenditure requirements, thereby achieving a revenue-neutral budget. The reduced levy rates are set at 0.65% for the entire calendar year and for the first six months of each year, effective from 1 January 1999 onwards. The reduced levy is expected to bring the NRA's income to a level that meets its statutory obligations without overburdening the chemical product distributors.
Scope and Application
The Agricultural and Veterinary Chemical Products (Collection of Levy) Amendment Regulations 2000 (No. 1) pertain to the collection of a levy on the disposal of agricultural and veterinary chemical products. These Regulations amend the Agricultural and Veterinary Chemical Products (Collection of Levy) Regulations 1995, reducing the levy rate for these products. The Act applies to entities involved in the disposal of agricultural and veterinary chemical products that were registered during the relevant periods specified in the Act. The Regulations specify a reduced levy rate of 0.65% for the purposes of the Act. The geographic reach of these Regulations is national, as they are enacted under the authority of the Commonwealth. The levy is intended to fund the National Registration Authority for Agricultural and Veterinary Chemicals (NRA). The Regulations do not disadvantage any person other than the NRA, a Commonwealth authority. The new reduced rates are designed to achieve a revenue neutral budget for the NRA while ensuring sufficient funds to carry out its statutory functions.
Key Provisions
The main operative sections of the Agricultural and Veterinary Chemical Products (Collection of Levy) Amendment Regulations 2000 (No. 1) pertain to the alteration of levy rates for the collection of funds to support the National Registration Authority for Agricultural and Veterinary Chemicals (NRA). Specifically, Section 11 of the Agricultural and Veterinary Chemical Products (Collection of Levy) Act 1994 allows for the regulation to specify the rate of the levy for leviable disposals of products registered in the latter half of the calendar year, while Section 12 permits the regulation to specify the rate of the levy for products registered in the first half of the year but not on 1 July. The regulations introduced a reduced levy rate of 0.65% for the entire calendar year and for the initial six months of each year starting from 1 January 1999. This reduction was in response to advice from the NRA Board that the agency's revenue and reserves exceeded the requirements for its statutory functions.
The obligations imposed by these regulations primarily concern entities responsible for the disposal of agricultural and veterinary chemical products. These entities are required to comply with the specified levy rates as outlined in the regulations. The primary obligation is to remit the levy to the NRA, which is the entity responsible for regulating these products. The levy rates are specifically designed to ensure that the NRA's revenue aligns with its expenditure needs, thereby achieving a revenue-neutral budget on an annual basis.
The regulations do not explicitly detail any specific offences, penalties, or civil/criminal consequences for non-compliance with the specified levy rates. However, non-compliance could potentially lead to financial discrepancies and the inability of the NRA to perform its regulatory functions effectively. Although the regulations themselves do not impose penalties, any failure to remit the correct levy amount could result in administrative or legal consequences under the broader legislative framework governing the NRA and its funding mechanisms. The severity of such consequences would depend on the specific circumstances and the applicable laws governing financial compliance and administrative enforcement.