Agricultural and Veterinary Chemical Products (Collection of Levy) Amendment Regulations 2005 (No. 1)

Administered by Department of Agriculture

Legislation au F2005L01414 Regulations Not in force Legislative Instrument

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EXPLANATORY STATEMENT

 

Select Legislative Instrument 2005 No. 106

 

Issued by 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 2005 (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 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.

 

The Act was amended by the Agricultural and Veterinary Chemicals Legislation Amendment (Levy and Fees) Act 2005 (the Amending Act).  The Amending Act, among other things, amends the Act to provide that from 1 July 2005:

  • levy in respect of leviable disposals of a chemical product is payable on a financial year rather than a calendar year basis; and
  • a tiered rate of levy may be prescribed by the regulations by prescribing different rates of levy for different volumes of leviable disposals of a chemical product that take place during a financial year.

 

The regulations consequentially amend the Agricultural and Veterinary Chemical Products (Collection of Levy) Regulations 1995 and prescribe the rates of levy for the purpose of subsection 12C(1) of the Act.

 

The Australian Government Department of Agriculture, Fisheries and Forestry (the Department) released the Final Cost Recovery Impact Statement on the Proposed Cost Recovery Framework for the National Registration Scheme for Agricultural and Veterinary Chemicals (the CRIS) in March 2005.  The Regulations amend the Agricultural and Veterinary Chemicals Products (Collection of Levy) Regulations 1995 to give effect to the levy arrangements proposed in the CRIS.  The details of the consultation that was undertaken in relation to the proposed cost recovery framework are set out in the CRIS.  A copy of the CRIS is available on the Department’s website.

 

Details of the regulations are in the Attachment.

 

The regulations commence on 1 July 2005.

 


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

 

   Authority:  Section 39 of the Agricultural and

Veterinary Chemical Products

(Collection of Levy) Act 1994

Attachment

 

DETAILS OF THE AGRICULTURAL AND VETERINARY CHEMICAL PRODUCTS (COLLECTION OF LEVY) AMENDMENT REGULATIONS 2005 (No. 1)

 

Regulation 1

 

Regulation 1 provides for the name of the Regulations to be the Agricultural and Veterinary Chemical Products (Collection of Levy) Amendment Regulations 2005 (No. 1).

 

Regulation 2

 

Regulation 2 provides for the Regulations to commence on 1 July 2005.

 

Regulation 3

 

Regulation 3 provides that Schedule 1 amends the Agricultural and Veterinary Chemical Products (Collection of Levy) Regulations 1995 (the Principal Regulations).

 

SCHEDULE 1 – Amendments

 

Item [1] Subparagraphs 4(b)(ii) and 5(b)(ii)

 

Paragraphs 4(b) and 5(b) of the Principal Regulations prescribe the rate of levy for the purposes of subsections 11(1) and 12(1) of the Agricultural and Veterinary Chemical Products (Collection of Levy) Act 1994 (the Act) respectively.  Subparagraphs 4(b)(ii) and 5(b)(ii) provide that the rate prescribed is prescribed for each succeeding calendar year following 1 January 1999.  Amendments to sections 11 and 12 of the Act mean that from the calendar year beginning 1 January 2004 levy payable under the Act will not be calculated using the formula in those sections.  Consistent with the amendments to the Act, this item amends subparagraphs 4(b)(ii) and 5(b)(ii) to provide that the rate prescribed for subsections 11(1) and 12(1) of the Act is only prescribed up until the calendar year beginning on 1 January 2003.

 

Item [2] Paragraphs 6(1)(b) and (2)(b)

 

Levy that is payable under sections 8 and 9 of the Act in respect of leviable disposals of a particular chemical product during a particular calendar year is not to exceed the rates prescribed in subregulations 6(1) and 6(2).  Amendments to the Act mean that the cap on levy payable for the first 6 months of the calendar year beginning on 1 January 2004, and for the financial year beginning on 1 July 2004, will be specified in subsections 12(4) and 12A(2) of the Act respectively.  From 1 July 2005 there will no longer be a cap on levy payable under the Act.  This means that from 1 January 2004 it will no longer be necessary to prescribe an amount in subregulations 6(1) and 6(2) of the Principal Regulations.  Item 2 provides that the amounts prescribed in subregulations 6(1) and 6(2) are prescribed up until the calendar year that began on 1 January 2003.


Item [3] After regulation 6

 

New subsection 12C(1) of the Act provides that the rate of levy that is payable under section 12B in respect of disposals during the 2005-2006 and later financial years is the percentage amount prescribed by the regulations.  New subsection 12C(2) of the Act provides that the regulations may prescribe different rates of levy for different volumes of leviable disposals that take place during a financial year.

 

Item 3 inserts a new regulation 6A that prescribes different rates of levy for different volumes of leviable disposals that take place during the 2005-2006 financial year and each succeeding financial year.  The rates prescribed establish a tiered levy structure as follows:

 

(a) for chemical products in respect of which the value of leviable disposals is an amount up to $1 million, the rate of levy is 0.90%;

 

(b) for chemical products in respect of which the value of leviable disposals is an amount over $1 million and up to $5 million the rates of levy are:

 

(i)                 0.90% on the first $1 million of leviable disposals; and

(ii)               0.55% on the leviable disposals over $1 million;

 

(c) for chemical products in respect of which the value of leviable disposals is an amount over $5million the rates of levy are:

 

(i) 0.90% on the first $1 million of leviable disposals; and

(ii)               0.55% on the leviable disposals over $1 million and up to $5 million; and

(iii)            0.40% on the leviable disposals over $5 million.

 

Example

 

For a chemical product for which the value of leviable disposals is  $6 million the amount of levy to be paid would be the sum of:

 

(i)                 0.90% of $1 million ($9,000);

(ii)               0.55% of $4 million ($22,000); and

(iii)            0.40% of $1 million ($4,000);

 

that is $35,000.

Overview

The Agricultural and Veterinary Chemical Products (Collection of Levy) Amendment Regulations 2005 (No. 1) were introduced to amend the Agricultural and Veterinary Chemical Products (Collection of Levy) Regulations 1995, as required by section 39 of the Agricultural and Veterinary Chemical Products (Collection of Levy) Act 1994. These regulations were enacted by the Australian Government in response to amendments made by the Agricultural and Veterinary Chemicals Legislation Amendment (Levy and Fees) Act 2005, which sought to change the basis of levy from a calendar year to a financial year and to allow for a tiered rate of levy based on different volumes of chemical disposals. The regulations were issued by the Parliamentary Secretary to the Minister for Agriculture, Fisheries and Forestry and came into effect on 1 July 2005. The primary objective of these regulations is to implement the levy arrangements proposed in the Final Cost Recovery Impact Statement on the Proposed Cost Recovery Framework for the National Registration Scheme for Agricultural and Veterinary Chemicals, which was released by the Department of Agriculture, Fisheries and Forestry in March 2005. The regulations reflect the removal of the levy cap and the introduction of a tiered levy structure, aligning the regulatory framework with the new legislative provisions.

Scope and Application

The Agricultural and Veterinary Chemical Products (Collection of Levy) Amendment Regulations 2005 (No. 1) applies to the collection of a levy on leviable disposals of chemical products as outlined in the Agricultural and Veterinary Chemical Products (Collection of Levy) Act 1994. These regulations amend the Agricultural and Veterinary Chemical Products (Collection of Levy) Regulations 1995 to incorporate changes resulting from the Agricultural and Veterinary Chemicals Legislation Amendment (Levy and Fees) Act 2005. They apply to entities involved in the disposal of agricultural and veterinary chemical products within Australia, including manufacturers, importers, and suppliers of such products. The regulations also affect the financial year basis for levy calculation and introduce a tiered rate of levy based on the volume of leviable disposals. The new tiered structure provides different rates for varying volumes of disposals, starting from 1 July 2005. The scope of these regulations extends to all financial years from 2005-2006 onwards, and they are applicable nationally across Australia. The regulations also provide for the rates of levy to be prescribed through subordinate instruments.

Key Provisions

The Agricultural and Veterinary Chemical Products (Collection of Levy) Amendment Regulations 2005 (No. 1) amend the Agricultural and Veterinary Chemical Products (Collection of Levy) Regulations 1995 to implement changes to the levy system for chemicals as required by the Amending Act. Regulation 1 names the Regulations as the Agricultural and Veterinary Chemical Products (Collection of Levy) Amendment Regulations 2005 (No. 1) and Regulation 2 specifies that the Regulations commence on 1 July 2005. Regulation 3 amends the Principal Regulations, and Schedule 1 details these amendments. The changes in Schedule 1 ensure that the Principal Regulations align with the new levy arrangements introduced by the Amending Act, including the shift from a calendar year to a financial year basis for levy calculation and the introduction of a tiered levy structure for different volumes of chemical disposals. Under the amended regulations, parties or entities governed by the Act must comply with the new levy rates and structures. They must calculate the levy based on the financial year rather than the calendar year, and apply the tiered rates specified in the regulations for different volumes of chemical disposals. These changes mean that entities must adjust their financial records and reporting to reflect the new levy arrangements. For example, they must ensure that any leviable disposals made during the financial year 2005-2006 are taxed according to the tiered rates prescribed in regulation 6A. The regulations also establish consequences for non-compliance. While the explanatory statement does not specify particular offences or penalties, it is reasonable to infer that failure to comply with the amended regulations could result in civil or administrative penalties under the Act. This could include fines or other financial penalties, as well as potential reputational damage or business disruptions. The precise penalties would be determined in accordance with the general provisions of the Agricultural and Veterinary Chemical Products (Collection of Levy) Act 1994, which might include financial penalties for non-compliance.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.