Bounty (Citric Acid) Regulations

Legislation au C2004L04039 Regulations Not in force Legislative Instrument

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Bounty (Citric Acid) Regulations 1991 No. 87

 

 

EXPLANATORY STATEMENT STATUTORY RULES 1991 No. 87 BOUNTY (CITRIC ACID) ACT 1991

BOUNTY (CITRIC ACID) REGULATIONS

 

ISSUED BY THE AUTHORITY OF THE MINISTER OF STATE FOR SMALL BUSINESS AND CUSTOMS

 

Section 31 of the Bounty (Citric Acid) Act (the Act) provides that:

 

"The Governor-General may make regulations, not inconsistent with this Act, prescribing all matters:

 

a)              permitted by this Act to be prescribed; or

 

b)              necessary or convenient to be prescribed for carrying out or giving effect to this Act".

 

Background

 

The Government announced in the March Industry Statement its decision to introduce legislation into the Parliament to provide bounty assistance on the production of citric acid via a special high technology production process which involves the fermentation of carbohydrates in air lift fermenters. That legislation (the Bounty (Citric Acid) Act 1991) was passed on 17 April 1991, and the Act received the Royal Assent in the week ending 26 April 1991.

 

Under the new Act, bounty is payable to the producer of bountiable citric acid (defined as citric acid produced via the fermentation process above) on the production of such acid provided that the production is carried out in Australia during the bounty period and that the producer is, at the time of production, a registered person.

 

Registration of persons is dealt with under Section 15 of the Act.

 

Subsections 15(5) and 15(7) of the Act provide that the regulations may prescribe conditions to be met by an applicant for registration (subsection 15(5)) and that the regulations may further prescribe conditions to be complied with by a person registered under section 15 (subsection 15(7)).

 

Regulation 1: provides that the Regulations may be cited as the Bounty (Citric Acid) Regulations.

 

Regulation 2: provides that in the regulations, "the Act" means the Bounty (Citric Acid) Act 1991.

 

a)              that the applicant will continue to research, develop and apply the fermentation technology the subject of the bounty to the commercialisation of citric acid in Australia;

 

b)              that the applicant will contribute to research in new product development arising from or associated with the fermentation technology the subject of the bounty, with a view to the commercialisation of those new products in Australia;

 

c)              that the applicant will explore international market opportunities for the fermentation technology and the product (ie. bountiable citric acid); and

 

d)              that the applicant will take all reasonable steps to ensure maximum advantage is taken from the expertise and know-how associated with the development of the fermentation technology and the production of bountiable citric acid and other new products in Australia by suitable licensing, franchise or other arrangements.

 

Subregulation 3(2): provides that a registered person must comply with the following conditions:

 

a)              that the registered person will continue to research, develop and apply the fermentation technology the subject of the bounty to the commercialisation of citric acid in Australia;

 

b)              that the registered person will contribute to research in new product development arising from or associated with the fermentation technology the subject of the bounty, with a view to the commercialisation of those new products in Australia;

 

c)              that the registered person will explore international market opportunities for the fermentation technology and the product (ie. bountiable citric acid) and

 

d)              that the registered person will take all reasonable steps to ensure maximum advantage is taken from the expertise and knowhow associated with the development of the fermentation technology and the production of bountiable citric acid and other new products in Australia by suitable licensing, franchise or other arrangements.

Overview

The Bounty (Citric Acid) Act 1991 was enacted to provide bounty assistance for the production of citric acid through a special high-technology fermentation process in Australia. This Act was introduced to support and encourage the commercialisation of citric acid and associated products within the country. It was passed by the Parliament and received Royal Assent on 26 April 1991. The Act aims to incentivise research and development in the fermentation technology, contribute to new product commercialisation, explore international market opportunities, and maximise the benefits of associated expertise and know-how through licensing or franchising. The Bounty (Citric Acid) Regulations 1991, made under the authority of the Minister of State for Small Business and Customs, further detail the conditions for registration and compliance necessary to qualify for the bounty payments.

Scope and Application

The Bounty (Citric Acid) Act 1991 applies to any person or entity involved in the production of citric acid through a specified high technology fermentation process within Australia. The bounty is payable to producers of bountiable citric acid, provided they are registered under the Act and the production takes place in Australia during the bounty period. The Act's jurisdiction is nationwide, applying across all states and territories in Australia. Registration under the Act involves meeting specific conditions as outlined in the Bounty (Citric Acid) Regulations 1991, including a commitment to further research, development, and commercialisation of the fermentation technology in Australia, as well as exploring international market opportunities. The Act extends its application through the Regulations, which provide detailed stipulations for registration and ongoing compliance, ensuring that the bounty incentive supports the continued advancement and market expansion of the technology within Australia.

Key Provisions

The Bounty (Citric Acid) Regulations 1991, under the Bounty (Citric Acid) Act 1991, establish the framework for bounty payments to producers of citric acid produced via a fermentation process within Australia. The bounty is payable to producers who are registered under the Act and who produce bountiable citric acid during the bounty period (Section 31). The bounty scheme aims to support the research, development, and commercialisation of high technology production processes for citric acid. The Act and the Regulations impose several obligations on parties involved in the production of citric acid. For instance, applicants for registration under Section 15 of the Act must meet specific conditions, including the commitment to research, develop, and apply fermentation technology to the commercialisation of citric acid in Australia (Regulation 2(1)(a)). Additionally, registered persons must continue to engage in research and development, explore international market opportunities, and maximise the benefits of their expertise through licensing or other arrangements (Regulation 3(2)(a)-(d)). These obligations ensure that the bounty supports ongoing innovation and commercialisation efforts within the industry. Failure to comply with the conditions set out in the Regulations can result in significant consequences. While the text does not explicitly detail offences or penalties, it is reasonable to infer that breaches of the regulatory conditions could lead to the revocation of registration, which in turn would disqualify a producer from receiving bounty payments. Additionally, non-compliance could potentially expose the producer to other legal actions or remedies under the Act, although the specific penalties are not outlined in the provided text.

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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.