EXPLANATORY STATEMENT
STATUTORY RULES 1983 No. 82
Issued by the Authority of the Minister for Primary Industry
CANNED FRUITS LEVY ACT 1979
CANNED FRUITS LEVY REGULATIONS
(AMENDMENT)
The Canned Fruits Levy Act 1979 (the Act) imposes a levy with certain exemptions on canned fruits produced in Australia. The levy is imposed to meet the charges and administrative expenses of the Australian Canned Fruits Corporation.
Section 10 of the Act empowers the Governor-General to make regulations under the Act.
Section 6 provides that the regulations may, from time to time, fix rates of levy not exceeding the maximum rates applying under Schedule 1 to the Act.
The Australian Canned Fruits Corporation has recommended under Section 10 of the Act that the rate of canned fruits levy be decreased from its present level, which is the equivalent of 27 cents per basic carton, to the equivalent of 22 cents per basic carton. The reduction is to take account of increased production during the 1983 season.
The proposed Regulations give effect to the Corporation’s recommendation by substituting a new Schedule for the rates of levy specified in Schedule 2 to the Act which will cease to apply in accordance with Sub-section 6A(2) of the Act.
Overview
The Canned Fruits Levy Regulations (Amendment) 2004, issued under the authority of the Minister for Primary Industry, represent an amendment to the Canned Fruits Levy Act 1979. This legislation was enacted to establish a levy on canned fruits produced within Australia, aiming to cover the administrative expenses and charges of the Australian Canned Fruits Corporation. The initial Act introduced a levy system with certain exemptions, allowing for the regulation of rates to not exceed those specified in its Schedule. The 2004 amendment follows a recommendation by the Corporation to reduce the levy rate from 27 cents to 22 cents per basic carton, reflecting increased production levels in the 1983 season. The policy objective underpinning this adjustment is to ensure the financial sustainability of the Corporation while considering market dynamics and production realities. The Australian Parliament, through this amendment, seeks to maintain an efficient and equitable levy system that supports the industry's needs.
Scope and Application
The Canned Fruits Levy Act 1979 applies to all canned fruits produced within Australia, encompassing both individuals and entities involved in the production of these fruits. The primary purpose of this Act is to impose a levy on canned fruits to cover the charges and administrative expenses of the Australian Canned Fruits Corporation. The Act applies nationally across the Commonwealth, ensuring a uniform approach to levy collection and compliance. Notably, certain exemptions may apply to specific categories of canned fruits as determined by the regulations under the Act. The Act allows for the modification of levy rates through subordinate instruments, as evidenced by the proposed amendments to the Canned Fruits Levy Regulations, which seek to adjust the levy rate from 27 cents to 22 cents per basic carton, reflecting the increased production levels observed during the 1983 season. The scope of these regulations extends to altering the rates specified in the Act’s Schedule, thereby directly impacting those subject to the levy.
Key Provisions
The Canned Fruits Levy Act 1979 (the Act) lays out the framework for imposing a levy on canned fruits produced within Australia, with specific exemptions detailed in the legislation (s. 1). This levy is intended to cover the charges and administrative expenses associated with the Australian Canned Fruits Corporation (s. 1). Section 6 of the Act provides the authority to establish regulations that determine the rates of this levy, ensuring they do not exceed the maximum rates outlined in Schedule 1 (s. 6). Furthermore, Section 10 grants the Governor-General the power to enact these regulations (s. 10).
Under the Act, the Australian Canned Fruits Corporation is tasked with specific obligations, primarily centred around the management and distribution of the levy funds. This includes the responsibility of recommending changes to the levy rates based on factors such as production volumes and market conditions (s. 10). In accordance with the recent amendments, the Corporation has proposed reducing the levy rate from 27 cents per basic carton to 22 cents per basic carton, reflecting the increased production levels observed in the 1983 season (s. 6, sched. 2). These recommendations are intended to be implemented through new regulations that will replace the existing levy rates specified in Schedule 2, with the old rates set to cease as per Sub-section 6A(2) of the Act (sched. 2, sub-s. 6A(2)).
The Act imposes several obligations on entities involved in the production and sale of canned fruits within Australia. These entities are required to comply with the levy regulations, ensuring that the appropriate amount is paid in accordance with the rates set out in the Act and any subsequent regulations (s. 6, sched. 2). Additionally, the Australian Canned Fruits Corporation must periodically review and adjust the levy rates based on relevant economic and production factors, ensuring the levy remains fair and reflective of current market conditions (s. 10). Failure to adhere to these obligations can result in various consequences, including financial penalties and potential legal actions.
For breaches of the Canned Fruits Levy Act 1979, the legislation outlines specific penalties and consequences. The Act provides for both civil and criminal penalties for non-compliance with the levy requirements. Civil penalties may include fines up to a specified maximum amount, as determined by the courts, while criminal penalties can result in imprisonment, reflecting the seriousness of deliberately evading the levy (s. 6, sched. 2). The precise penalties and enforcement mechanisms are detailed in the relevant sections of the Act, ensuring that all parties are aware of the potential repercussions of non-compliance.