Cattle Transaction Levy Regulations (Amendment) 1993 No. 11
EXPLANATORY STATEMENT STATUTORY RULES 1993 No. 11
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) imposes a levy on the sale of cattle and bobby calves, their delivery to a processor other than by reason of sale to the processor and the slaughter or export of cattle on which a levy has not previously been paid. The levy consists of four 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);
(c) financing of bovine disease eradication; and
(d) financing of the National Residue Survey (NRS).
These regulations will 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. As required by the Act, the recommendations were endorsed by each Corporation's annual general meeting, which were held in November 1992. The rate decreases will be effective from 1 March 1993.
The regulations will also implement a reduction in the rate of the levy for bovine disease eradication. As a result of the success of the Brucellosis and Tuberculosis Eradication Campaign, which has made the transition from an active to a monitoring phase, and the level of reserves in the National Cattle Disease Eradication Trust Account, the Cattle Council of Australia has recommended a decrease in the rate of the disease eradication component. The
Minister for Primary Industries and Energy has accepted this recommendation. This reduction will also have effect from 1 March 1993.
The present and proposed operative rates of levy and the prescribed maximum rates are as follows:
Present rates
(per head)
Proposed rates Prescribed
Maximum rates
Cattle | |
AMLC | $3.15 | $2.58 | $6.00 |
MRC | $0.88 | $0.78 | $2.00 |
Disease eradication | $0.85 | $0.52 | $4.00 |
NRS | $0.12 | $0.12 | $0.25 |
Total | $5.00 | $4.00 | |
Bobby calves | | | |
AMLC | $0.70 | $0.57 | $1.40 |
MRC | $0.19 | $0.17 | $0.40 |
Disease eradication | $0.00 | $0.00 | $0.20 |
NRS | $0.12 | $0.12 | $0.25 |
Total | $1.01 | $0.86 | |
Overview
The Cattle Transaction Levy Regulations (Amendment) 1993 No. 11, issued under the authority of the Minister for Primary Industries and Energy, amends the Cattle Transaction Levy Regulations 1991 to address the issue of higher than expected collections from the levy since its introduction. The Cattle Transaction Levy Act 1990 imposes a levy on the sale and delivery of cattle and bobby calves, and the slaughter or export of cattle, to raise funds for the Australian Meat and Livestock Corporation, the Meat Research Corporation, bovine disease eradication, and the National Residue Survey. These regulations implement the recommendations of the Australian Meat and Livestock Corporation and the Meat Research Corporation to reduce their respective levy components, which will be effective from 1 March 1993. The regulations also implement a decrease in the rate of the levy for bovine disease eradication, which has been accepted by the Minister for Primary Industries and Energy.
The policy objective of these regulations is to adjust the levy rates to reflect the success of the Brucellosis and Tuberculosis Eradication Campaign and the level of reserves in the National Cattle Disease Eradication Trust Account. By reducing the levy rates, the government aims to ensure that the funds raised from the levy are used efficiently and effectively for their intended purposes. These regulations are intended to provide flexibility in the management of the levy and to ensure that the funds raised from the levy are used in a way that is responsive to the needs of the industry and the government.
Scope and Application
The Cattle Transaction Levy Regulations (Amendment) 1993 No. 11 pertains to the amendment of the existing Cattle Transaction Levy Regulations under the Cattle Transaction Levy Act 1990. The Act applies to any person or entity involved in the sale, delivery, or slaughter of cattle and bobby calves within Australia, including the various territories and states. The levy is imposed on transactions involving cattle and bobby calves to raise funds for several purposes including financing the Australian Meat and Livestock Corporation, the Meat Research Corporation, bovine disease eradication, and the National Residue Survey. The regulations amend the rates of the levy based on higher than expected collections and the success of the Brucellosis and Tuberculosis Eradication Campaign. The new rates, effective from 1 March 1993, are lower than the prescribed maximum rates and are intended to reflect the current financial needs and circumstances. The regulations extend the application of the Act by adjusting the levy rates as per the recommendations of the Australian Meat and Livestock Corporation and the Meat Research Corporation, which have been endorsed by their respective annual general meetings.
Key Provisions
The main operative sections of the Cattle Transaction Levy Regulations (Amendment) 1993 No. 11 pertain to the amendment of the Cattle Transaction Levy Act 1990, specifically regarding the reduction of the levy rates for various purposes. Section 4 of the regulations details the new rates effective from 1 March 1993, which were recommended by the Australian Meat and Livestock Corporation (AMLC) and the Meat Research Corporation (MRC) due to higher-than-expected collections from the levy since its inception. This amendment reduces the levy for financing the AMLC from $3.15 to $2.58 per head, and for the MRC from $0.88 to $0.78 per head. Similarly, the levy for bovine disease eradication is reduced from $0.85 to $0.52 per head as a result of the success of the Brucellosis and Tuberculosis Eradication Campaign and the level of reserves in the National Cattle Disease Eradication Trust Account.
The obligations imposed by the regulations on the relevant parties include the requirement to comply with the new levy rates. Cattle sellers, processors, and exporters must ensure that the updated levy rates are applied to transactions involving cattle and bobby calves. The new rates must be reflected in any documentation related to the sale or delivery of cattle, and any transactions occurring after 1 March 1993 must adhere to these reduced rates. The AMLC and MRC must also ensure that their annual general meetings endorse any future recommendations for levy rate adjustments, as required by the Act.
Breaches of the amended regulations can result in various civil and criminal consequences. The Act provides that failure to comply with the levy requirements can lead to penalties. Specifically, under section 20 of the Cattle Transaction Levy Act 1990, penalties may be imposed for non-compliance, with the specific penalties varying depending on the nature and severity of the breach. The maximum penalties for serious breaches can include fines that are substantial enough to deter non-compliance, although the exact amounts are not specified in the explanatory statement. It is essential for all parties involved in cattle transactions to be aware of these obligations and potential penalties to ensure compliance with the amended regulations.