Dairy Industry Stabilization Levy Act 1977

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DAIRY INDUSTRY STABILIZATION LEVY ACT 1977

No. 52 of 1977

An Act to impose a Levy upon certain Dairy Products produced in Australia.

BE IT ENACTED by the Queen, and the Senate and House of Representatives of the Commonwealth of Australia, as follows:—

Short title.

1. This Act may be cited as the Dairy Industry Stabilization Levy Act 1977.

Commencement.

2. This Act shall come into operation on 1 July 1977.

Dairy Industry Stabilization Act to be read as one with this Act.

3. The Dairy Industry Stabilization Act 1977 shall be read as one with this Act.

Interpretation.

4. (1) In this Act, unless the contrary intention appears—

“Advisory Committee” means the Australian Dairy Industry Advisory Committee constituted under the Dairy Produce Act 1924;

“authorized person” means a person who is an authorized person for the purposes of this Act by virtue of an appointment made by the Minister under section 10;

“butter” means butter produced from milk or from cream derived from milk;

“buttermilk” means buttermilk derived from milk;

“buttermilk powder” means powder produced by the removal of water from buttermilk;

“butteroil” includes ghee produced from cream derived from milk, but does not include butteroil made, directly or indirectly, from butter;

“casein” means casein produced from—

(a) skimmilk;

(b) buttermilk; or

and includes caseinates and co-precipitates of casein and of any other milk protein;

“caseinate” means the product made by combining casein or casein curd with neutralizing agents and removing any water;

“cheese” means cheese produced from milk, but does not include cheese produced from other cheese;

“co-precipitate”, in relation to casein or any other milk protein, means the product precipitated from casein or another milk protein, as the case may be, by means of an appropriate heat treatment and the addition of—

(a) acid;

(b) alkaline earths; or

whether with or without the addition of neutralizing agents, being a product that contains casein or other milk protein and from which any water has been removed;

“Corporation” means the Australian Dairy Corporation constituted under the Dairy Produce Act 1924;

“cream” means that one of the two products obtained from milk by a process of skimming or mechanical separation that contains the higher fat content;

“dairy products” means—

(a) butter, butteroil, casein, skimmilk powder, buttermilk powder or whole milk powder;

(b) cheese, other than cheese of a variety that is exempt from levy by virtue of regulations in force under section 5; or

(c) such other products, being products produced from milk or a constituent part of milk, as are prescribed from time to time;

“levy” means an amount of levy imposed by this Act;

“milk” means cows’ milk that is whole milk or standardized milk;

“skimmilk” means skimmilk derived from milk;

“skimmilk powder” means powder produced by the removal of water from skimmilk, or from a mixture of skimmilk and another substance or other substances, being powder containing not more than 1.5% of fat and not more than 5% of moisture;

“standardized milk” is milk that has had the concentration of fat, protein or other solids adjusted;

“whole milk powder” means powder produced by the removal of water from milk, being powder containing not less than 26% of fat and not more than 5% of moisture.

(2) For the purposes of this Act, the time when dairy products are produced is the time when the processes of production of the products (excluding, in the case of cheese, any maturation process in respect of the cheese) are completed.

Regulations may exempt prescribed varieties of cheese.

5. The regulations may exempt from levy any prescribed variety of cheese.

Imposition of levy.

6. (1) Subject to this Act, levy is imposed on dairy products produced at a factory on or after the relevant date in relation to the kind of dairy products in which those dairy products are included.

(2) In sub-section (1), “relevant date”, in relation to a kind of daily products, means such date as is prescribed with respect to that kind of dairy products.

(3) Where a person by whom the levy imposed on any dairy products is payable or has been paid satisfies an authorized person that the dairy products—

(a) have been destroyed while owned by him;

(b) while owned by him, have been damaged, or have deteriorated, to such an extent that they have become unsaleable, whether as dairy products or otherwise; or

the authorized person shall issue a certificate accordingly and, thereupon, sub-section (1) shall be deemed not to have applied in respect of those dairy products and, if that levy or a part of that levy has been paid, the amount so paid shall be refunded.

(4) Where dairy products to which a certificate issued under sub-section (3) relates, being dairy products that have been exported from Australia, are imported into Australia, levy is imposed on those dairy products.

(5) Where a person by whom the levy imposed on any dairy products is payable or has been paid sells those dairy products to the Corporation, sub-section (1) or (4), whichever is applicable, shall be deemed not to have applied in respect of those dairy products and, if that levy or a part of that levy has been paid, the amount so paid shall be refunded.

(6) Subject to sub-section (7), where the Corporation sells dairy products referred to in sub-section (5), levy is imposed on those dairy products.

(7) Sub-section (6) does not apply in relation to dairy products that—

(a) have been sold in Australia by or on behalf of the Corporation for delivery to a place outside Australia or for delivery to a ship or aircraft for export from Australia; or

(b) having been exported from Australia for the purpose of sale outside Australia, have been sold by or on behalf of the Corporation at a place outside Australia.

Rate of levy.

7. (1) The regulations may fix a rate of levy, from time to time, in respect of dairy products of a prescribed kind.

(2) A rate of levy fixed under sub-section (1) applies in relation to dairy products of the relevant kind produced during the period that the rate is in force.

By whom levy payable.

8. (1) Subject to this section, levy in respect of any dairy products is payable by the person who is, at the time of their production, the proprietor of the factory at which they are produced.

(2) Where, by virtue of sub-section 6(4), levy is re-imposed in respect of any dairy products imported into Australia, that levy is payable by the importer of those products.

(3) Where, by virtue of sub-section 6(6), levy is re-imposed in respect of any dairy products sold by the Corporation, that levy is payable by the Corporation.

Exemptions from levy.

9. (1) The regulations may—

(a) prescribe a period as the prescribed period; and

(b) prescribe a quantity as the minimum quantity for that period, with respect to dairy products of a prescribed kind.

(2) Where—

(a) a period, and a quantity for that period, have been prescribed under sub-section (1) with respect to dairy products of a prescribed kind; and

(b) during that period, the quantity of dairy products of that kind produced at a factory (excluding dairy products of that kind that are exempt from levy by virtue of regulations in force under subsection (3)) does not exceed that quantity,

those dairy products are exempt from levy.

(3) The regulations may exempt from levy dairy products of a prescribed class.

Appointment of authorized persons.

10. The Minister may, by writing signed by him, appoint a person, or persons included in a class of persons, to be an authorized person or authorized persons, as the case may be, for the purposes of this Act.

Regulations.

11. (1) The Governor-General may make regulations, not inconsistent with this Act, prescribing all matters required or permitted by this Act to be prescribed or necessary or convenient to be prescribed for carrying out or giving effect to this Act.

(2) The Corporation, after consultation with the Advisory Committee, may make recommendations to the Minister with respect to regulations to be made for the purposes of—

(a) paragraph (c) of the definition of “dairy products” in sub-section 4 (1); or

(b) section 5, 6, 7 or 9.

(3) Before making regulations for the purposes of a provision referred to in sub-section (2), the Governor-General shall take into consideration any relevant recommendation made by the Corporation under that sub-section.

Overview

The Dairy Industry Stabilization Levy Act 1977 was enacted by the Queen, the Senate, and the House of Representatives of the Commonwealth of Australia to address the need for a stable dairy industry in Australia. The Act was designed to impose a levy on certain dairy products produced within the country, aiming to stabilize the dairy market. The Australian Dairy Corporation, after consulting with the Australian Dairy Industry Advisory Committee, may recommend regulations to the Minister for consideration by the Governor-General, who has the authority to make regulations necessary for the Act's implementation. The levy is payable by the proprietor of the factory at the time of production, with specific provisions for cases where products are destroyed, damaged, exported, or sold to the Corporation. Exemptions and specific rates of levy are determined by regulations, which may also exempt certain varieties of cheese from the levy.

Scope and Application

The Dairy Industry Stabilization Levy Act 1977 applies to the imposition of a levy on certain dairy products produced in Australia. This Act applies to dairy products such as butter, cheese, casein, and milk powders, produced at factories on or after the relevant dates specified for each type of product. The Act mandates that the levy is payable by the proprietor of the factory where the dairy products are produced, unless they are exported, destroyed, damaged, or sold to the Australian Dairy Corporation. Certain varieties of cheese can be exempted from the levy through regulations. The Act also allows for the appointment of authorized persons who can issue certificates for refund of the levy in specific circumstances, such as the destruction, damage, or export of dairy products. The Act's application extends across Australia and is implemented through subordinate regulations, which can set rates of levy, exempt certain quantities of production, and specify the types of products subject to the levy.

Key Provisions

The Dairy Industry Stabilization Levy Act 1977 (the "Act") imposes a levy on certain dairy products produced in Australia, aiming to stabilise the dairy industry by regulating the production and sale of these products. Section 6 of the Act imposes a levy on dairy products produced in Australia on or after a date specified by regulation for each kind of dairy product. This levy applies unless the products have been destroyed, rendered unsaleable, exported, or sold to the Australian Dairy Corporation (Section 6(3)-(5)). The rate of the levy is determined by regulation and applies to products produced during the period the rate is in force (Section 7). The levy is payable by the proprietor of the factory where the products are made, the importer if the products are imported, or the Corporation if it sells the products (Section 8). Certain products can be exempted from the levy if they meet specific conditions prescribed by regulation, such as being produced in quantities below a specified threshold (Section 9). The Minister can appoint authorised persons to enforce the provisions of the Act, including issuing certificates for refund of the levy under certain conditions (Section 10). Regulations can be made to further define and implement the provisions of the Act, with the Australian Dairy Corporation able to make recommendations to the Minister regarding these regulations (Section 11). The Act imposes several obligations on parties involved in the production, sale, or importation of dairy products in Australia. The proprietor of a factory where dairy products are produced must ensure that the appropriate levy is paid unless specific conditions for exemption apply (Section 6). Importers of dairy products must pay the levy if the products were previously exported from Australia (Section 6(4)). The Australian Dairy Corporation must pay the levy on any dairy products it sells, except in cases where the products were intended for export or were sold outside Australia (Section 8(3)-(6)). Authorized persons have the responsibility of verifying the conditions under which dairy products may be exempt from the levy and issuing certificates for refund if applicable (Section 6(3)-(5) and Section 10). Failure to comply with the provisions of the Act can result in various consequences. Section 6(3)-(5) outline that non-compliance with the levy requirements can lead to the re-imposition of the levy on dairy products under certain conditions, such as exportation or sale to the Corporation. Authorised persons have the authority to enforce the Act, which may include taking legal action against those who fail to comply with the levy requirements. While specific penalties are not detailed in the provided excerpt, non-compliance with regulatory requirements under the Act could potentially lead to civil or criminal penalties, as is common with regulatory breaches in Australian law. The exact nature and severity of these penalties would depend on further provisions within the Act or related legislation.

Area of Law: Commercial Law; Taxation Law
Instrument: Act
Concepts: Definitions & Interpretation; Offence Provisions; Regulatory Standards; Reporting & Disclosure Obligations; Enforcement Powers

Interactions

Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.

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