Coarse Grains Levy Regulations (Amendment)

Overview

The Coarse Grains Levy Regulations (Amendment) 1993 No. 8 were enacted to address the need for additional research funding in the coarse grains sector. This amendment was made to the Coarse Grains Levy Act 1992 by the authority of the Minister for Primary Industries and Energy. The amendment was introduced in response to a request by the Grains Council of Australia, the growers' organisation, to impose a grain sorghum research levy at the rate of 0.2 per cent of the value of the grain. The policy objective behind this amendment is to facilitate additional research and development activities in the coarse grains sector, ensuring that the sector remains competitive and innovative. The regulations provide for the imposition of this new levy on grain sorghum, which will be subject to the same mechanisms for levy collection and research funding as other leviable coarse grains.

Scope and Application

The Coarse Grains Levy Regulations (Amendment) 1993 No. 8 applies to leviable coarse grain, specifically grain sorghum, produced in Australia and delivered by the producer to another person or processed by the producer. The Act falls within the jurisdiction of the Commonwealth and is an amendment to the Coarse Grains Levy Act 1992. The Act is applicable to the Grains Research and Development Corporation (GRDC), with the Commonwealth Government contributing matching amounts to fund research expenditure recommended by the GRDC and approved by the Minister. The rate of the levy for grain sorghum is set at 0.2 per cent of the value of the grain, with the levy to commence from 1 February 1993. The Grains Council of Australia has agreed to the new levy and the Governor-General must take into consideration any recommendations by the growers' organisation before making regulations for the purposes of sections 3 and 11 of the Act. The Act extends through subordinate instruments, such as the GRDC Regulations, which provide for any other coarse grain prescribed under the Act for the purpose of imposing a research levy to be automatically attached to the GRDC.

Key Provisions

The main operative sections of the Coarse Grains Levy Regulations (Amendment) 1993 No. 8 include Regulation 1, which specifies the commencement date of the regulations on 1 February 1993. Regulation 2 identifies the Coarse Grains Levy Regulations as the regulations that will be amended. Regulation 3 provides a definition for "grain sorghum," while Regulation 4 imposes a research levy on grain sorghum as a leviable coarse grain. Regulation 5 sets the rate of the levy on grain sorghum at 0.2 per cent of the value of the grain. These regulations aim to amend the existing Coarse Grains Levy Regulations to include grain sorghum as a leviable coarse grain subject to a research levy. The obligations imposed on the parties governed by these regulations are primarily focused on compliance with the newly imposed research levy. Producers of grain sorghum must ensure that they are aware of the levy and include it in the value of the grain when delivering it to another person or processing it. The Grains Council of Australia, as the growers' organisation, must also comply with the regulations and ensure that any recommendations it makes to the Governor-General are in line with the provisions of the Act and these regulations. The Grains Research and Development Corporation (GRDC) will be responsible for collecting the levy and administering the research programs funded by the levy money. There are no specific offences, penalties, or civil/criminal consequences outlined in these regulations. However, non-compliance with the Act and the regulations could potentially lead to legal action for failure to pay the levy or for not adhering to the provisions of the Act. The Act itself does not specify maximum penalties for breach, but penalties could be imposed under other relevant legislation, such as the Primary Industries and Energy Research and Development Act 1989, which provides for the payment of research levy money to R&D Corporations. The Commonwealth Government's contribution to funding research expenditure is limited to 0.5 per cent of the gross value of production in any one financial year, and any increased Commonwealth matching expenditure relating to the levy changes will not occur until 1993/94.