Cattle Transaction Levy Regulations (Amendment) 1994 No. 123
EXPLANATORY STATEMENT STATUTORY RULES 1994 No. 123
Issued by the authority of the Minister for Primary Industries and Energy
CATTLE TRANSACTION LEVY ACT 1990
CATTLE TRANSACTION LEVY REGULATIONS (AMENDMENT)
The Cattle Transaction Levy Act 1990 (the Act) provides that the Governor-General may make regulations, not inconsistent with the Act, prescribing matters for the purposes of the Act.
The Act imposes a levy on the sale of cattle and bobby calves and their delivery to a processor other than by reason of sale. The levy consists of three components, which raise funds for the following purposes:
(a) financing of the Australian Meat and Live-stock Corporation (AMLC);
(b) financing of the Meat Research Corporation (MRC); and
(c) financing of bovine disease eradication.
Subsections 8(4) and 8(6) of the Act provide that the two Corporations may not make recommendations to the Minister in relation to the rates of levy unless a motion to endorse a recommendation has been put before the annual general meeting of the appropriate Corporation and has been carried. Additionally, the Act requires the Corporations to provide, in writing, details of the voting on the motion to the Minister.
The purpose of the regulations is to implement recommendations from the AMLC and MRC to reduce their respective levy components because of higher than expected collections from the levy since its introduction on 1 February 1991. The effect of the AMLC levy reductions is to reduce the Corporation's level of reserves, while the MRC levy reductions are aimed at returning to the industry past over-collections from this period.
The AMLC put a motion before its annual general meeting on 25 November 1993 proposing decreases in the operative rates of the AMLC components of the Cattle Transaction Levy, the Beef Production Levy and the Cattle Export Charge from 1 July 1994. This motion was passed and the AMLC has notified the Minister for Primary Industries and Energy, in writing, of details of the voting on this motion, as required by the Act.
The MRC similarly put a motion before its annual general meeting on 24 November 1993 proposing decreases in the operative rates of the MRC components of the Cattle
Transaction Levy, the Beef Production Levy and the Cattle Export Charge from 1 July 1994. This motion was also passed and the MRC has notified the Minister for Primary Industries and Energy, in writing, of details of the voting on this motion, as required by the Act.
The relevant operative rates of levy for cattle and bobby calves and the prescribed maximum rates are as follows:
(per head) | Rates from | Rates from | Prescribed |
| 1 July 1993 | 1 July 1994 | Maximum rates |
Cattle | | | |
AMLC | $2.58 | $2.16 | $6.00 |
MRC | $0.78 | $0.72 | $2.00 |
Disease Eradication | $0.46 | $0.46 | $4.00 |
Total | $3.82 | $3.34 | |
Bobby calves | | | |
AMLC | $0.57 | $0.48 | $1.40 |
MRC | $0.17 | $0.16 | $0.40 |
Disease Eradication | $0.00 | $0.00 | $0.20 |
Total | $0.74 | $0.64 | |
Overview
The Cattle Transaction Levy Regulations (Amendment) 1994 No. 123, issued under the authority of the Minister for Primary Industries and Energy, amends the Cattle Transaction Levy Regulations 1990. This legislative amendment responds to the need for adjusting the rates of the levy imposed on the sale and delivery of cattle and bobby calves, as enacted by the Cattle Transaction Levy Act 1990. The Act, enacted by the Parliament of Australia, establishes a levy to fund the Australian Meat and Livestock Corporation, the Meat Research Corporation, and bovine disease eradication efforts. The purpose of the 1994 amendment is to implement recommendations by the Australian Meat and Livestock Corporation and the Meat Research Corporation to decrease their respective levy components due to higher than expected collections since the levy's inception in February 1991. These reductions aim to adjust the Corporations' reserves and return past over-collections to the industry. Both Corporations passed motions at their annual general meetings to reduce the operative rates of the levy components, and have provided the Minister with written details of the voting, in compliance with the Act.
Scope and Application
The Cattle Transaction Levy Regulations (Amendment) 1994 No. 123, issued under the authority of the Minister for Primary Industries and Energy, amends the Cattle Transaction Levy Regulations 1990. This amendment follows the passage of motions by the Australian Meat and Livestock Corporation and the Meat Research Corporation at their respective annual general meetings, proposing reductions in their components of the Cattle Transaction Levy. The Act itself applies to the sale of cattle and bobby calves and their delivery to a processor other than by reason of sale, affecting entities and individuals involved in the cattle industry across Australia. The levy components raised through this Act are designated for the financing of the Australian Meat and Livestock Corporation, the Meat Research Corporation, and bovine disease eradication, with specific rates set out in the regulations. The amendment reduces the operative rates of these levies from 1 July 1994, as per the motions passed and notified to the Minister in accordance with the requirements of the Act.
Key Provisions
The Cattle Transaction Levy Regulations (Amendment) 1994 No. 123 amends the Cattle Transaction Levy Regulations to implement changes in the rates of the levy on the sale of cattle and bobby calves, effective from 1 July 1994. The amendments are based on recommendations from the Australian Meat and Livestock Corporation (AMLC) and the Meat Research Corporation (MRC) to adjust the rates due to higher than expected collections from the levy since its introduction in 1991 (section 8(4) and (6)). These changes aim to balance the Corporations’ reserves and correct past over-collections.
Under the amended regulations, the levy rates for cattle and bobby calves are reduced, as follows: for cattle, the AMLC component decreases from $2.58 to $2.16 per head, the MRC component decreases from $0.78 to $0.72 per head, and the disease eradication component remains at $0.46 per head. For bobby calves, the AMLC component decreases from $0.57 to $0.48 per head, the MRC component decreases from $0.17 to $0.16 per head, and the disease eradication component remains at $0.00 per head. These rates are set against prescribed maximum rates of $6.00 for cattle and $1.40 for bobby calves for the AMLC, $2.00 for cattle and $0.40 for bobby calves for the MRC, and $4.00 for cattle and $0.20 for bobby calves for disease eradication.
Entities and individuals governed by the Cattle Transaction Levy Act 1990 must comply with these reduced rates when they engage in transactions involving the sale or delivery of cattle or bobby calves. This includes reporting the correct levy amounts and ensuring that all transactions are properly documented to reflect the amended rates. The Corporations are also required to follow specific procedures in making recommendations to the Minister for Primary Industries and Energy regarding the levy rates. These procedures include passing a motion at their annual general meetings and providing written details of the voting results to the Minister, as stipulated by the Act.
Failure to comply with the amended regulations may result in legal consequences. While the specific offences and penalties are not detailed in the explanatory statement, it is known that breaches of regulations under the Cattle Transaction Levy Act 1990 can lead to civil or criminal penalties. The precise nature of these penalties would typically be outlined in the Act itself or in related legislation, but they could potentially include fines or other sanctions for non-compliance. It is therefore crucial for all parties involved in cattle transactions to adhere to the new rates and comply with the regulatory requirements.