Coarse Grains Levy Regulations (Amendment)

Overview

The Coarse Grains Levy Regulations (Amendment) 1996 No. 61, issued by the Authority of the Minister for Primary Industries and Energy, amends the existing Coarse Grains Levy Regulations to address an identified need for increased funding in research and development for grain sorghum. Enacted under the authority of the Coarse Grains Levy Act 1992, the Act was originally introduced to impose levies on specific coarse grains, with the revenue generated, alongside Commonwealth contributions, funding research programs administered by the Grains Research and Development Corporation (GRDC). The amendment follows a recommendation from the Grains Council of Australia (GCA) that the rate of the research and development levy for grain sorghum be increased, reflecting the need for enhanced research efforts in this area. This change is intended to better support the grain sorghum industry by ensuring sufficient funding for research initiatives that can drive improvements and advancements in the sector.

Scope and Application

The Coarse Grains Levy Regulations (Amendment) 1996 pertains to the amendment of the Coarse Grains Levy Regulations established under the Coarse Grains Levy Act 1992. This Act applies to the imposition of levies on specific coarse grains, including grain sorghum, to fund research and development initiatives within the grains industry. The levy is imposed on entities engaged in the production, processing, or marketing of these grains, thereby affecting industries involved in coarse grains. The geographic reach of this legislation is national, as it applies across Australia, governed by both state and Commonwealth regulations. The amendments made by these regulations specifically target grain sorghum, increasing its levy rate from 0.2% to 0.7% of the grain's value, effective from 1 July 1996. The levy rate is subject to the Act's stipulation that it cannot exceed 5% of the grain's value. These regulations, as subordinate instruments, extend the application of the Act by altering the levy rates prescribed for grain sorghum, thereby affecting the funding available for research and development in this sector.

Key Provisions

The key provisions of the Coarse Grains Levy Regulations (Amendment) 1996 No. 61 involve amendments to the rates of the research and development levy applied to grain sorghum under the Coarse Grains Levy Act 1992. Specifically, Regulation 3 increases the rate of the levy for grain sorghum from 0.2% to 0.7% of the value of the grain, effective from 1 July 1996. This amendment is in line with Section 11(2) of the Act, which allows for the prescription of levy rates not exceeding 5% of the value of the grain for any prescribed coarse grain. Regulation 1 sets the commencement date of these amendments as 1 July 1996, while Regulation 2 formally amends the existing Coarse Grains Levy Regulations. Under the amended regulations, the primary obligation on entities involved in the production and handling of grain sorghum is to pay the increased levy rate of 0.7% of the value of the grain. This levy is to be collected and remitted to the Grains Research and Development Corporation (GRDC), which administers the research programs funded by these levies. The GRDC is responsible for ensuring that the funds collected are used to support research activities aligned with the interests of the grain sorghum industry. Failure to comply with the new levy requirements can result in significant consequences. Although the specific offences and penalties are not detailed in the explanatory statement, the Coarse Grains Levy Act 1992 would generally outline the legal ramifications for non-compliance. Typically, this could include civil penalties for failure to remit the correct levy amount or criminal penalties for deliberate non-compliance or fraud. The exact penalties would be stipulated in the primary Act and could vary depending on the severity and intent of the breach. The amendments ensure that the funds collected are sufficient to support the recommended research activities, thereby maintaining the integrity and effectiveness of the research programs funded by the levies.