EXPLANATORY STATEMENT
STATUTORY RULES 1988 NO. 215
Issued by the Authority of the Minister for Primary Industries and Energy.
BARLEY RESEARCH LEVY ACT 1980
BARLEY RESEARCH LEVY REGULATIONS (AMENDMENT)
Section 5 of the Barley Research Act 1980 (the Act) imposes a levy on barley delivered by the grower to another person other than for storage on behalf of the grower.
Section 6 of the Act provides that the rate of levy shall not exceed 75 cents per tonne.
Subsection 9(1) of the Act provides that the Governor-General may make regulations, not inconsistent with the Act, prescribing all matters required or permitted by the Act to be prescribed or necessary or convenient to the prescribed for carrying out or giving effect to the Act.
Subsection 9(3) of the Act provides that before making regulations for the purposes of Section 6 the Governor-General shall take into consideration any relevant recommendation made by the growers’ organisation, the Grains Council of Australia (GCA).
The currently prescribed rate of levy operative since 1 November 1985 is 35 cents per tonne. The GCA has presented a submission to the Minister requesting that the rate of levy be increased by 10 cents to 45 cents per tonne commencing for the 1988-89 season.
The industry’s request to increase the levy accords with the Government’s objective of encouraging rural industries to increase their contribution for research to 0.5% of the industry’s gross value of production (GVP). The increase in the prescribed rate of levy represents an increase from 0.21% to 0.26% of the industry’s estimated GVP for 1988-89.
Section 7 of the Rural Industries Research Act 1985 (the Research Act) provides that barley levy money be paid into the Barley Research Trust Fund and subsection 9(2) of the Research Act provides that the Barley Research Committee in each mainland State may approve the payment of money out of that Trust Fund for the purposes of research and development activities in respect of the barley industry.
The Commonwealth Government contributes matching amounts to cover research expenditure recommended by the Barley Research Council and approved by the Minister.
In any one financial year the Commonwealth contribution is limited to 0.5% of the GVP. Estimated Commonwealth expenditure for 1988-89 is $1.739 million. Increased funding to meet estimated Commonwealth matching obligations in 1988-89 resulting from the proposed increased levy was announced in May 1988 following the Industry Development Review.
The proposed Barley Research Levy Regulations (Amendment) to increase the rate of levy to 45 cents per tonne is to apply from 1 September 1988.
Overview
The Barley Research Levy Act 1980 was enacted to address the need for dedicated funding to support research and development activities in the barley industry. The Act established a levy on barley growers, which is intended to finance research initiatives that benefit the industry as a whole. The Barley Research Levy Regulations (Amendment) 2004, issued under the authority of the Minister for Primary Industries and Energy, seek to adjust the rate of this levy to better align with the industry's capacity to contribute to research efforts. The policy objective behind these amendments is to increase the industry's contribution towards research, aiming to reach 0.5% of the industry's gross value of production, as recommended by the Grains Council of Australia. The current proposal, which increases the levy from 35 cents to 45 cents per tonne, is designed to support the government's matching contributions to the Barley Research Trust Fund, facilitating enhanced research activities and development projects within the barley industry.
Scope and Application
The Barley Research Levy Act 1980 applies to growers who deliver barley to another person for purposes other than storage on the grower's behalf, and it imposes a financial levy on such transactions to fund barley research. The Act operates within the Commonwealth of Australia and is administered under the authority of the Minister for Primary Industries and Energy. The current rate of the levy is 35 cents per tonne, but the Barley Research Levy Regulations (Amendment) propose to increase this rate to 45 cents per tonne, effective from 1 September 1988. The increase in the levy is intended to align with the government's objective of having rural industries contribute 0.5% of their gross value of production (GVP) towards research. This amendment follows a recommendation by the Grains Council of Australia, which the Governor-General must consider before making regulations under Section 9 of the Act. The funds collected from the levy are deposited into the Barley Research Trust Fund, from which the Barley Research Committee in each mainland state can approve payments for barley industry research and development activities. Additionally, the Commonwealth Government matches these contributions, with a cap of 0.5% of the GVP per financial year.
Key Provisions
The Barley Research Levy Act 1980 outlines the imposition of a levy on barley delivered by growers to any other person, except for storage on behalf of the grower (Section 5). The levy is capped at a maximum of 75 cents per tonne, as specified in Section 6. The Governor-General has the authority to make regulations under Section 9(1) of the Act, provided they are consistent with the Act's requirements and necessary for its implementation. Furthermore, Section 9(3) mandates that the Governor-General must consider any relevant recommendations from the Grains Council of Australia (GCA) before setting the levy rate. Currently, the levy stands at 35 cents per tonne, a rate that has been in effect since 1 November 1985.
The Barley Research Levy Regulations (Amendment) impose obligations on growers and those who receive barley from growers. Growers are required to comply with the levy, which is a financial contribution towards research and development in the barley industry. The amendment proposes to increase the levy rate to 45 cents per tonne, starting from the 1988-89 season, in alignment with the government's goal of increasing the industry's research contribution to 0.5% of the industry’s gross value of production (GVP). Those receiving barley must facilitate the collection of this levy, ensuring that the appropriate amount is paid into the Barley Research Trust Fund.
Breach of the provisions of the Barley Research Levy Act 1980 could lead to various consequences. The Act does not explicitly outline specific offences, penalties, or civil/criminal consequences for non-compliance. However, failure to remit the correct amount of levy could result in administrative actions, fines, or other penalties under relevant Australian laws. The Barley Research Trust Fund is established to manage the collected levies, and the Barley Research Committee in each mainland State is authorised to approve the expenditure of these funds for research and development activities within the barley industry. The Commonwealth Government also contributes matching funds for research, which are subject to annual limits and are currently set at 0.5% of the GVP.