Cattle Transaction Levy Regulations 1997 No. 182
EXPLANATORY STATEMENT
STATUTORY RULES 1997 No. 182
Issued by the Authority of the Minister for Primary Industries and Energy
Cattle Transaction Levy Act 1995
Cattle Transaction Levy Regulations
The Cattle Transaction Levy Act 1995 (the Act) provides that the Governor-General may make regulations for the purposes of the Act.
The Act provides for the imposition of a levy on each cattle transaction involving ownership transfer, delivery to a processor for slaughter, or slaughter of cattle or bobby calves, with certain exclusions principally relating to sale of dairy cattle for dairying purposes.
There are six levy components funding the Meat Industry Council; the Meat Research Corporation; the Australian Meat and Live-stock Corporation; the National Cattle Disease Eradication (NCDE) Trust Account; the National Residue Survey (prior to 1 July 1993); and the Australian Animal Health Council (AAHC) respectively. Operative levy rates may be set by regulation within the constraints of maximums specified within the Act.
The regulations decrease the NCDE Trust Account component by 8 cents and increase the AAHC component by 8 cents, implementing Cattle Council of Australia (CCA) recommendations. The rate of the levy to the NCDE Trust Account is reduced to 17 cents from the previous 25 cents and the rate of the levy to the AAHC is increased to 13 cents from the previous 5 cents per transaction provided for in the Act. The variation affects only the components paid to the NCDE Trust Account and the AAHC, and only adult cattle.
The CCA is recognised as the peak industry body representing cattle producers, the principal levy payers. At its Annual General Meeting held on 29/30 April 1997, the CCA resolved to ask the Minister for Primary Industries and Energy to vary these components of the levy.
The purpose of the NCDE Trust Account is to receive the disease eradication component of cattle industry levies collected by the Commonwealth and to make payments associated with the eradication of any disease in cattle that is endemic in Australia.
The reason for the reduction in the NCDE Trust Account is the current 'healthy' level of the trust fund, combined with the winding down of the Brucellosis and Tuberculosis Eradication Campaign and projected low program costs post 1998 of the follow-on program, the Tuberculosis Freedom Assurance Program.
The AAHC was established in January 1996 to be Australia's peak animal health body, providing the point of reference for strategic policy development and national program funding for animal health matters requiring a response at a national level. The Commonwealth, State/Territory Governments collectively, and the national councils of the livestock based industries (including the CCA) each provide funding for the AAHC.
The reason for the increase to the AAHC component is to provide funding specifically for the Bovine National Johne's Disease Control Program. The AAHC has accepted responsibility for the co-ordination and management of this program.
Details of the regulations are:
Regulation 1 provides for a commencement date of 1 July 1997.
Regulation 2 provides for the Cattle Transaction Levy Regulations to be amended by the Cattle Transaction Levy Regulations (Amendment).
Regulation 3 substitutes a new Regulation 4 in the Cattle Transaction Levy Regulations to prescribe a rate of 17 cents (replacing the current rate of 25 cents) for NCDE purposes.
Regulation 4 substitutes a new Regulation 5 in the Cattle Transaction Levy Regulations to prescribe a rate of 13 cents (replacing the current rate of 5 cents) for AHHC purposes. The rate for bobby calves remains at zero cents.
Overview
The Cattle Transaction Levy Regulations 1997 were enacted to implement provisions of the Cattle Transaction Levy Act 1995. The Act itself was introduced to address the need for a structured funding mechanism for various cattle industry initiatives, including disease eradication and animal health programs. This was achieved by imposing a levy on transactions involving the ownership transfer, delivery to a processor for slaughter, or slaughter of cattle or bobby calves, with some exclusions such as the sale of dairy cattle for dairying purposes. The policy objective of the Act was to ensure that the funds raised would support key industry bodies and initiatives essential for the health and productivity of the cattle industry. The regulations were issued by the authority of the Minister for Primary Industries and Energy and primarily aimed to adjust the distribution of levy funds between the National Cattle Disease Eradication Trust Account and the Australian Animal Health Council, in response to the changing needs of the industry as recommended by the Cattle Council of Australia.
Scope and Application
The Cattle Transaction Levy Act 1995 applies to transactions involving cattle or bobby calves, with specific exclusions such as the sale of dairy cattle for dairying purposes. The Act imposes a levy on transactions that include the transfer of ownership, delivery to a processor for slaughter, or the slaughter of cattle. This levy funds various entities such as the Meat Industry Council, Meat Research Corporation, and others. The Act allows the Governor-General to make regulations governing the levy, and these regulations can adjust the rates allocated to specific funds within the constraints set by the Act. The regulations in question, the Cattle Transaction Levy Regulations 1997, amend the levy rates for the National Cattle Disease Eradication Trust Account and the Australian Animal Health Council, reflecting recommendations from the Cattle Council of Australia. These regulations, which came into effect on 1 July 1997, decrease the levy for the NCDE Trust Account and increase it for the AAHC, reflecting the current health status of cattle and the need for specific disease control programs.
Key Provisions
The Cattle Transaction Levy Regulations 1997 (No. 182) govern the implementation of the Cattle Transaction Levy Act 1995, establishing a levy on transactions involving cattle and bobby calves. The levy applies to ownership transfers, deliveries to processors for slaughter, and slaughter, with specific exclusions such as sales of dairy cattle for dairying purposes (Section 4 of the Act). The levy is structured to fund several entities, including the Meat Industry Council, the Meat Research Corporation, the Australian Meat and Livestock Corporation, the National Cattle Disease Eradication (NCDE) Trust Account, and the Australian Animal Health Council (AAHC). Each of these entities plays a role in the management and regulation of the cattle industry, ensuring the health, safety, and productivity of Australia's cattle population.
Under the regulations, there are specific obligations for parties involved in cattle transactions. Those responsible for cattle transactions must ensure that the appropriate levy is calculated and paid in accordance with the set rates. This involves understanding which transactions are subject to the levy and which are exempt, ensuring compliance with the requirements outlined in Section 6 of the Act. The regulations are designed to be straightforward, yet detailed enough to cover all necessary aspects of levy calculation and payment.
Breaches of the regulations, including failure to pay the correct levy or misclassifying a transaction, can lead to significant consequences. While the specific penalties for non-compliance are not detailed in the explanatory statement, it is clear that the regulations are intended to be enforced rigorously. In general, non-compliance with cattle industry regulations can result in fines, legal action, and potential reputational damage for the entities involved. The maximum penalties for such breaches would typically be determined by the specific provisions of the primary Act and any related legislation, but they are likely to be substantial enough to ensure compliance.
These regulations are part of a broader framework aimed at ensuring the sustainability and health of Australia's cattle industry. By adjusting the rates for certain components of the levy, the regulations reflect ongoing industry needs and priorities, such as the winding down of certain disease eradication programs and the need for increased funding for disease control programs. The adjustments are based on recommendations from the Cattle Council of Australia, the peak industry body, and are intended to ensure that the funds are allocated effectively to where they are most needed.