Cotton Research Levy Regulations (Amendment)

Overview

The Cotton Research Levy Regulations (Amendment) 1991 No. 402, issued under the authority of the Minister for Primary Industries and Energy, amends the Cotton Research Levy Regulations made pursuant to the Cotton Levy Act 1982. This legislative amendment responds to a recommendation from the Australian Cotton Growers Research Association (ACGRA) to adjust the levy rate to reflect the updated standard weight of a cotton bale, thereby enhancing administrative efficiency. The purpose of the amendment is to increase the rate of the cotton levy from $1.50 per 225 kilograms to $1.75 per 227 kilograms, effective from 1 January 1992. This increase aligns with the government's objective of encouraging the cotton industry to bolster its research contributions, targeting a minimum of 0.5% of the industry's Gross Value of Production (GVP), and ensures the continued support of current research expenditure levels. The amendments ensure that the increased levy rate will be consistent with the Commonwealth's commitment to matching funds for research, as stipulated in the Primary Industries and Energy Research and Development Act 1989.

Scope and Application

The Cotton Research Levy Regulations (Amendment) 1991 No. 402 pertains to the Cotton Levy Act 1982, which imposes a levy on cotton produced in Australia. This Act applies to all cotton growers within Australia, encompassing individuals and entities involved in the production of cotton. The amendment specifically alters the rate of the levy, as prescribed in Section 5(2) of the Act, from $1.50 to $1.75 per 227 kilograms to align with the updated standard weight of a bale of raw cotton, enhancing administrative efficiency. The amendment is effective from 1 January 1992, and the increased levy rate reflects the Australian Cotton Growers Research Association's recommendation, facilitating an increase in funding towards research activities. The Cotton Research and Development Corporation (CRDC) is responsible for administering the funds collected from this levy, which are allocated for research and development activities in the cotton industry as per Section 30 and 33(1) of the Primary Industries and Energy Research and Development Act 1989. The amendments are designed to meet the Commonwealth Government's objective of increasing industry contributions to research, aligning with the industry's Gross Value of Production.

Key Provisions

The main operative sections of the Cotton Research Levy Regulations (Amendment) 1991 No. 402 include the rate of levy on cotton, which is to be amended as per the new regulations. Specifically, Section 5(2) of the Cotton Levy Act 1982 imposes a levy on cotton produced in Australia, with the current rate being $1.50 per 225 kilograms. The amendment proposes increasing this rate to $1.75 per 227 kilograms, reflecting a recent change in the standard weight of a bale of raw cotton (Section 5, Regulation 3). These regulations are to take effect from 1 January 1992 (Regulation 1). The obligations and requirements imposed by the Act on the parties or entities it governs include the imposition of the levy on cotton producers, who must pay the increased rate of $1.75 per 227 kilograms as stipulated in the regulations (Section 5, Regulation 3). The Australian Cotton Growers Research Association (ACGRA) must make recommendations to the Minister regarding the rate of levy, which the Governor-General must consider before making regulations (Section 6(2) of the Cotton Levy Act 1982). The Commonwealth Government is also required to contribute matching amounts to cover research expenditure recommended by the Cotton Research and Development Corporation (CRDC) and approved by the Minister, with an estimated Commonwealth expenditure for 1991/92 of $2.25 million (Section 30 and Section 33(1) of the Primary Industries and Energy Research and Development Act 1989). The Cotton Research Levy Regulations (Amendment) 1991 No. 402 provides for civil and criminal consequences for breach of the Act's provisions. Although the explanatory statement does not specify particular offences or penalties, breaches of the regulations could lead to non-compliance with the levy requirements, potentially resulting in legal action against the defaulting parties. The specific penalties for non-compliance are not detailed in the explanatory statement, but under Australian law, penalties for breaches of statutory regulations can include fines, imprisonment, or both, depending on the severity and nature of the breach. The maximum penalties would be determined by the relevant legislation governing the enforcement of the regulations.