Coarse Grains Levy Regulations (Amendment) 1993 No. 317
EXPLANATORY STATEMENT
STATUTORY RULES 1993 No. 317
Issued by the Authority of the Minister for Resources
Coarse Grains Levy Act 1992
Coarse Grains Levy Regulations (Amendment)
Section 9 of the Coarse Grains Levy Act 1992 (the Act) imposes a research levy on leviable coarse grain produced in Australia and delivered by the producer to another person (other than for storage on behalf of the producer) or processed by the producer.
Section 3 of the Act defines "leviable coarse grain" to include a prescribed kind of coarse grain.
Section 11 of the Act provides that the rate of levy may be prescribed but shall not exceed 5 per cent of the value of the grain.
Subsection 15(1) of the Act provides that the Governor-General may make regulations for the purposes of the Act.
Subsection 15(2) of the Act provides that the Governor-General must take into consideration any recommendations by the growers' organisation before making regulations for the purposes of sections 3 and 11.
The Grains Council of Australia (GCA), the growers' organisation, has requested the imposition research levies on canary seed, maize and millet under the Act, at the rate of 1 per cent of the value of the grain for canary seed, 0.2 per cent of the value of the grain for maize and 1 per cent of the value of the grain for millet.
Section 30 of the Primary, Industries and Energy Research and Development Act 1989 provides for research levy money to be paid to R&D Corporations. Existing coarse grain levies are attached to the Grains Research and Development Corporation (GRDC) and the existing GRDC Regulations 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.
The Commonwealth Government will contribute matching amounts to fund research expenditure recommended by the GRDC and approved by the Minister. The Commonwealth contribution is limited to 0.5 per cent of the gross value of production in any one financial year. Increased Commonwealth matching expenditure relating to the levy changes will not occur until 1994/95.
The GCA has agreed that the new levy should apply from 1 January 1994.
Details of the proposed Regulations are as follows:
Regulation 1 provides that the Regulations would commence on 1 January 1994.
Regulation 2 identifies the Coarse Grains Levy Regulations as the Regulations to be amended.
Regulation 3 defines "grain sorghum, canary seed, maize, and millet".
Regulation 4 provides for research levies to be imposed on grain sorghum, canary seed, maize, and millet as leviable coarse grains.
Regulation 5 provides for the rate of levy applicable to:
- canary seed to be set at 1 per cent of the value of the grain
- maize to be set at 0.2 per cent of the value of the grain
- millet to be set at 1 per cent of the value of the grain.
Overview
The Coarse Grains Levy Regulations (Amendment) 1993 No. 317 were enacted to address the need for additional research funding in the coarse grains sector, particularly for canary seed, maize, and millet. These regulations amended the Coarse Grains Levy Act 1992, which originally imposed a research levy on certain coarse grains produced in Australia. The amendments were introduced in response to recommendations from the Grains Council of Australia, the growers' organisation, to impose research levies on these additional grains at specified rates. The Grains Council of Australia has agreed that these new levies should take effect from 1 January 1994. The Governor-General, exercising authority under the Coarse Grains Levy Act 1992, made these regulations in accordance with the requirements set forth in the Act, including taking into account recommendations from the growers' organisation. The policy objective of these amendments is to ensure that sufficient funds are available for research and development in the coarse grains sector, with the Commonwealth Government contributing matching funds to support these initiatives.
Scope and Application
The Coarse Grains Levy Regulations (Amendment) 1993 No. 317 applies to the imposition of research levies on specific types of coarse grains within Australia. The Act, in conjunction with the Coarse Grains Levy Act 1992, mandates a research levy on leviable coarse grain produced in Australia and delivered or processed by the producer. This levy applies to entities involved in the production and delivery of grain sorghum, canary seed, maize, and millet, and the levies are set at specific rates: 1 per cent for canary seed and millet, and 0.2 per cent for maize. The Act’s jurisdiction extends across Australia, and it is applicable to all producers and processors of these specified grains. The amendments are set to take effect from 1 January 1994, as agreed by the Grains Council of Australia. The research levy money collected under the Act is to be paid to relevant Research and Development Corporations, with any additional contributions from the Commonwealth Government limited to 0.5 per cent of the gross value of production in any one financial year.
Key Provisions
The main operative sections of the Coarse Grains Levy Regulations (Amendment) 1993 (No. 317) are set out in Regulations 1 to 5. Regulation 1 specifies the commencement date of the Regulations as 1 January 1994, while Regulation 2 identifies the Coarse Grains Levy Regulations as those to be amended. Regulation 3 provides definitions for "grain sorghum, canary seed, maize, and millet". Regulation 4 imposes research levies on these types of grains as leviable coarse grains, and Regulation 5 specifies the rates of levy for each type of grain, with canary seed and millet at 1 per cent, and maize at 0.2 per cent of the value of the grain. These amendments are made in accordance with section 15(1) of the Coarse Grains Levy Act 1992, with the Governor-General taking into consideration the recommendations of the Grains Council of Australia (GCA), the growers' organisation, under section 15(2).
The obligations and requirements imposed by the Act and the Regulations include the imposition of research levies on specific types of coarse grain as defined and the setting of rates for these levies. Producers of grain sorghum, canary seed, maize, and millet must ensure that the prescribed research levies are paid when delivering these grains to another person or when processing them. These levies are to be paid in accordance with the rates specified in Regulation 5, and the proceeds are to be paid to the Grains Research and Development Corporation (GRDC) as per section 30 of the Primary, Industries and Energy Research and Development Act 1989. The Commonwealth Government will contribute matching amounts to fund research expenditure recommended by the GRDC and approved by the Minister, but the contribution is capped at 0.5 per cent of the gross value of production in any one financial year.
Breaches of the provisions of the Coarse Grains Levy Act 1992 or the amended Regulations may result in offences and penalties, although specific penalties are not detailed in the explanatory statement. Generally, failure to comply with the Act's requirements to pay the prescribed levies could lead to civil or criminal consequences, with the exact penalties being determined by relevant legislation and the severity of the breach. It is important for producers and other entities governed by the Act to adhere to the requirements to avoid any potential legal repercussions.