Coarse Grains Levy Regulations (Amendment) 1998 No. 28
EXPLANATORY STATEMENT
STATUTORY RULES 1998 NO. 28
Issued by the Authority of the Minister for Primary Industries and Energy
Coarse Grains Levy Act 1992
Coarse Grains Levy Regulations (Amendment)
The Coarse Grains Levy Act 1992 (the Act) provides for the imposition of levies on certain coarse grains to fund research. Levies revenue, together with matching Commonwealth contributions, is administered by the Grains Research and Development Corporation (GRDC) to fund research programs of benefit to the grains industry, or to the rural sector and/or the wider community.
The Grains Council of Australia (GCA) has recommended to the Minister for Primary Industries and Energy that the rate of the research and development levy for grain sorghum should be increased from 0.7% of the value of the grain to 1% of the value of the grain.
The proposed increase in levy rate, together with Commonwealth contributions, should redress the current imbalance between income and sorghum program expenditures by the GRDC, and generate additional income to allow new research initiatives.
The Regulations effect that increase from 1 April 1998.
Subsection 11(2) of the Act provides that where a coarse grain has been prescribed as a "leviable coarse grain", the rate of levy for that grain is such a rate (not higher than 5% of the value of the grain) as is prescribed from time to time.
Regulation 3A of Coarse Grains Levy Regulations prescribes grain sorghum as a leviable coarse grain while Regulation 6 prescribes that the rate of levy to be imposed on grain sorghum.
For the purposes of imposition of levy under the Act, the value of grain is prescribed by Regulation 5 of the Primary Industries Levies and Charges Collection (Coarse Grains) Regulations and defines the sales value to be net of handling, storage, transport and f.o.b. costs.
Details of the Regulations are set out below:
Regulation 1 provides for the Coarse Grains Levy Regulations (Amendment) to commence on 1 April 1998.
Regulation 2 provides for the Coarse Grains Levy Regulations to be amended.
Regulation 3 increases the rate of levy for grain sorghum from 0.7% to 1% of the value of the grain.
Overview
The Coarse Grains Levy Regulations (Amendment) 1998 No. 28, issued under the authority of the Minister for Primary Industries and Energy, amends the Coarse Grains Levy Regulations 1992. This amendment was enacted to address the need for increased funding for research and development in the grains industry, specifically for grain sorghum. The Coarse Grains Levy Act 1992 established a framework for imposing levies on certain coarse grains to fund research, with the Grains Research and Development Corporation (GRDC) administering the funds. The Grains Council of Australia recommended increasing the research and development levy for grain sorghum from 0.7% to 1% of the grain's value to help balance the income and expenditures for sorghum programs by the GRDC and to allow for new research initiatives. The policy objective is to ensure adequate funding for research that benefits the grains industry and the broader rural and community sectors.
Scope and Application
The Coarse Grains Levy Regulations (Amendment) 1998 No. 28EXPLANATORY STATEMENTSTATUTORY RULES 1998 No. 28 applies to entities within the grains industry that are subject to the Coarse Grains Levy Act 1992, specifically focusing on the imposition of levies on grain sorghum to fund research. The Act is administered nationally by the Grains Research and Development Corporation (GRDC), which uses the collected levies, together with Commonwealth contributions, to finance research programs that benefit the grains industry, rural sector, and wider community. The amendment to the Regulations, which increase the levy rate on grain sorghum from 0.7% to 1% of the grain's value, was recommended by the Grains Council of Australia (GCA) and is designed to address the financial imbalance in sorghum program expenditures and to fund new research initiatives. The increased levy rate is effective from 1 April 1998, and the value of the grain for levy purposes is defined by the Primary Industries Levies and Charges Collection (Coarse Grains) Regulations, net of handling, storage, transport, and f.o.b. costs. The application of the Act is restricted to the leviable coarse grains prescribed under the Act and the Regulations, with the rate not exceeding 5% of the grain's value.
Key Provisions
The main operative sections of the Coarse Grains Levy Regulations (Amendment) 1998 No. 28 pertain to the amendment and commencement of the regulations. Regulation 1 specifies that the amendments to the Coarse Grains Levy Regulations will take effect from 1 April 1998. Regulation 2 facilitates the amendment of the existing regulations, while Regulation 3 directly increases the rate of the levy for grain sorghum from 0.7% to 1% of the grain's value. Regulation 3A designates grain sorghum as a leviable coarse grain, and Regulation 6 stipulates the prescribed rate of levy for grain sorghum. Regulation 5 defines the value of the grain for levy purposes, excluding certain costs such as handling, storage, transport, and f.o.b. costs.
These regulations impose obligations on grain sorghum producers and other relevant parties to comply with the amended levy rate. The Grains Research and Development Corporation (GRDC) is mandated to collect the increased levy as per the new rate. The funds collected are intended to address the imbalance between the income and expenditures for sorghum research programs and to support new research initiatives. The Grains Council of Australia (GCA) has recommended this increase to the Minister for Primary Industries and Energy, indicating that it will help generate additional income necessary for these purposes.
The legislation does not explicitly outline specific offences or penalties for non-compliance within the explanatory statement provided. However, general obligations under the Coarse Grains Levy Act 1992 likely include compliance with the prescribed levy rates and timely payment of the levies. Failure to comply with these obligations could result in administrative or legal consequences, such as fines or other penalties as stipulated by the relevant Acts or regulations. The exact penalties would depend on the specific legislative framework governing levy collection and compliance.