EXPLANATORY STATEMENT
STATUTORY RULES 1990 NO. 329
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 Levy 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 for the purposes of 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 to the Minister by the growers’ organization, the Grains Council of Australia (GCA).
The currently prescribed rate of levy operative since 1 October 1989 is 52 cents per tonne.
The GCA has presented a submission to the Minister requesting that the rate of levy be increased by 23 cents to 75 cents per tonne commencing from the start of the 1990-91 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 proposed rate of levy represents 0.36% of the industry’s estimated GVP for 1990-91.
Section 30 of the Primary Industries and Energy Research and Development Act 1989 provides for research levy money to be paid to R&D Corporations. The barley research levy has been attached to the Grains Research and Development Corporation (GRDC) with effect from 1 October 1990.
The Commonwealth Government will contribute matching amounts to cover research expenditure recommended by the GRDC 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 1990-91 is $2.26 million. Increased funding to meet estimated Commonwealth matching obligations in 1990-91 resulting from the proposed increased levy is provided for in the 1990-91 Budget and the 1991/92 forward estimates.
It is proposed that the Barley Research Levy Regulations (Amendment) which increases the rate of levy to 75 cents per tonne apply from 1 November 1990.
Details of the proposed Regulations are:
Regulation 1 provides that the Regulations shall commence on 1 November 1990.
Regulation 2 is a formal provision.
Regulation 3 will increase the rate of levy applicable to leviable barley to 75 cents per tonne.
Overview
The Barley Research Levy Regulations (Amendment) 1990, issued under the authority of the Minister for Primary Industries and Energy, was enacted to address the need for increased funding for barley research in Australia. The Barley Research Levy Act 1980 originally established a levy on barley delivered by growers, with the rate capped at 75 cents per tonne. The Grains Council of Australia recommended an increase in the levy rate to better align with the government’s objective of boosting industry contributions to research, which was set at 0.5% of the industry's gross value of production. The proposed amendment to the regulations aimed to raise the levy rate to 75 cents per tonne, effective from the start of the 1990-91 season, in order to support the Grains Research and Development Corporation and to facilitate matching Commonwealth contributions for research initiatives. The amendment was designed to ensure that the industry’s financial input into research matched the government’s commitment, with an estimated expenditure of $2.26 million for the 1990-91 financial year.
Scope and Application
The Barley Research Levy Act 1980, as amended by the Barley Research Levy Regulations (Amendment), applies to barley growers who deliver barley to another person, excluding instances where delivery is for storage on behalf of the grower. The Act imposes a levy on such transactions and is designed to fund research and development activities within the barley industry. The regulations, which are made under the authority of the Minister for Primary Industries and Energy, are to be made in consultation with the Grains Council of Australia. The levy rate, which has been set at 75 cents per tonne, is subject to adjustment and the current amendment seeks to increase it from the previous rate of 52 cents per tonne. This amendment applies nationally across Australia and is effective from 1 November 1990. The funds collected through this levy are directed to the Grains Research and Development Corporation, which is responsible for allocating these funds towards research initiatives in accordance with the Primary Industries and Energy Research and Development Act 1989. The Commonwealth Government also contributes matching funds to support these research activities, with the total contribution capped at 0.5% of the industry's gross value of production.
Key Provisions
The Barley Research Levy Act 1980 (the Act) imposes a levy on barley delivered by a grower to another person for purposes other than storage on behalf of the grower (section 5). The rate of the levy is capped at 75 cents per tonne (section 6). The Governor-General has the authority to make regulations to give effect to the purposes of the Act (subsection 9(1)) and, before making regulations that affect the levy rate, must take into account any relevant recommendations from the Grains Council of Australia (GCA) (subsection 9(3)). The current levy rate has been set at 52 cents per tonne since 1 October 1989.
The Act places obligations on growers to comply with the levy requirements when delivering barley to another person, ensuring that the specified rate is applied. The regulations, once made, will bind all parties involved in the delivery of barley, necessitating adherence to the updated levy rate. The Grains Council of Australia, as a representative body for growers, must provide recommendations to the Minister for Primary Industries and Energy regarding the levy rate, ensuring that these recommendations are considered before any regulatory amendments are made.
The Barley Research Levy Regulations (Amendment) proposes to increase the levy rate to 75 cents per tonne, effective from 1 November 1990. Any failure to comply with the new levy rate or other provisions of the amended regulations may result in civil or criminal penalties. While specific penalties are not detailed in the explanatory statement, breaches of similar regulatory frameworks typically incur fines or other legal consequences as stipulated by relevant legislation. The regulations aim to align with the government’s objective of increasing industry contributions to research, ensuring that the increased levy rate is properly collected and remitted.