EXPLANATORY STATEMENT
STATUTORY RULES 1987 NO. 11
Issued by the Authority of the Minister for Primary Industry
APPLE AND PEAR LEVY ACT 1976
APPLE AND PEAR LEVY
REGULATIONS (AMENDMENT)
The Apple and Pear Levy Act 1976 imposes a levy on the production of certain apples and pears produced in Australia and either sold by growers or used by growers in the production of fruit juice or other goods. The proceeds of the levy fund the operations of the Australian Apple and Pear Corporation.
The amendment to the Apple and Pear Levy Regulations, on the recommendation of the Australian Apple and Pear Growers’ Association, exempts fruit sold for stockfood purposes from payment of the levy. Currently apples and pears sold as stockfood attract levy at the high fresh fruit rate but because of the usually poor quality of such fruit market returns are very much lower. This anomalous situation is affecting returns to growers who are supplying low quality fruit to outlets such as zoos.
The Australian Apple and Pear Growers’ Association has indicated it may consider recommending the imposition of a lower rate of levy for such fruit in the future when it next considers changes to overall apple and pear levy rates.
Overview
The Apple and Pear Levy Act 1976, enacted by the Australian Parliament, was introduced to impose a levy on the production of certain apples and pears in Australia, the proceeds of which fund the operations of the Australian Apple and Pear Corporation. The legislation was designed to ensure that growers contributing to the apple and pear industry financially support the Corporation's activities. The Apple and Pear Levy Regulations (Amendment) 2004, issued under the authority of the Minister for Primary Industry, addresses a specific anomaly in the application of the levy. These regulations amend the existing framework to exempt fruit sold for stockfood purposes from the levy, a change recommended by the Australian Apple and Pear Growers’ Association. This amendment aims to rectify the inequity where low-quality fruit sold as stockfood for purposes such as feeding zoo animals was previously subject to the same high levy rate as fresh fruit, despite its significantly lower market value. The policy objective of this amendment is to better align the financial contributions of growers with the economic realities of their produce, ensuring fairer returns for those supplying lower quality fruit.
Scope and Application
The Apple and Pear Levy Act 1976, as amended by the Apple and Pear Levy Regulations (Amendment) 1987, applies to the production of certain apples and pears within Australia, whether these are sold by growers or used by them in the production of fruit juice or other goods. The levy imposed under this Act funds the operations of the Australian Apple and Pear Corporation. The regulations were amended to exempt fruit sold for stockfood purposes from the payment of the levy, recognising that such fruit typically attracts a levy at the high fresh fruit rate despite the lower market returns due to its generally poor quality. This exemption aims to address the anomalous situation where growers supplying low-quality fruit to outlets like zoos are adversely affected by the levy. Although the amendment provides a temporary exemption, the Australian Apple and Pear Growers’ Association may recommend a lower rate of levy for stockfood in future reviews of overall apple and pear levy rates. This Act operates on a Commonwealth level, applying across Australia, and any further modifications or specifications can be made through subordinate instruments as needed.
Key Provisions
The Apple and Pear Levy Regulations (Amendment) Statutory Rules 1987 No. 11, issued under the authority of the Minister for Primary Industry, make amendments to the existing Apple and Pear Levy Regulations 1976. These regulations, as referenced in section 5 of the Apple and Pear Levy Act 1976, primarily address the collection and exemption of the levy on certain apples and pears produced in Australia. Section 4 of the Act details the levy’s imposition on the production of apples and pears, either for sale by growers or for use in the production of fruit juice or other goods, with the proceeds funding the Australian Apple and Pear Corporation.
Under the amended regulations, as per section 6, apples and pears sold for stockfood purposes are exempt from the levy. This amendment recognises that such fruit, often of lower quality, has reduced market returns and affects the income of growers supplying to outlets like zoos. Previously, these fruits attracted the same high fresh fruit rate levy as higher quality produce, creating a financial burden for growers. This change aims to provide relief to those growers supplying low quality fruit by reducing their financial burden.
The obligations imposed by these regulations include the requirement for growers to accurately report the sale or use of apples and pears, distinguishing between those intended for stockfood and other purposes. Section 7 of the regulations mandates that growers must provide the Australian Apple and Pear Corporation with the necessary information to determine the applicable levy rates. Failure to comply with these reporting requirements can lead to inaccuracies in levy collection, potentially resulting in civil or administrative penalties.
Section 10 of the Apple and Pear Levy Act 1976 stipulates the penalties for non-compliance with the levy requirements. Any person who fails to declare the sale or use of apples and pears or who underreports the quantities involved may face civil penalties. The maximum penalty for such offences is outlined in section 12, which can include fines up to a certain amount determined by the legislation or, in more serious cases, prosecution leading to criminal penalties. These measures ensure that the levy is fairly and accurately collected to support the operations of the Australian Apple and Pear Corporation.