EXPLANATORY STATEMENT
STATUTORY RULES 1982 No. 330
Issued by the Authority of the Minister of State for Transport and Construction for and on behalf of the Minister for Primary Industry
DAIRY INDUSTRY STABILIZATION LEVY REGULATIONS (AMENDMENT)
The Dairy Industry Stabilization Levy Act 1977, which forms an integral part of the marketing arrangements for the dairy industry, provides for levies to be imposed on the production of prescribed dairy products.
Section 11 of the Act provides that the Governor-General may make regulations, inter alia, for the purpose of:-
(a) prescribing a date from which levy is to be imposed with respect to each kind of dairy product under sub-section 6(1) and 6(2);
(b) fixing the operative rates of levy for each kind of dairy product under section 7.
Sub-section 11(3), however, requires the Governor-General to take into consideration any relevant recommendations made by the Australian Dairy Corporation, as provided for in sub-section 11(2).
The purpose of the levies is to protect the domestic price structure for prescribed dairy products and through their disbursement to provide each manufacturer with an equalised return from their domestic and export sales of such products.
The rate of levy for each prescribed product is based on the difference between the domestic bulk wholesale price and the assessed average export price for that product.
In accordance with sub-section 11(2) of the Dairy Industry Stabilization Levy Act 1977, the Australian Dairy Corporation, after consultation with the Australian Dairy Industry Advisory Committee, has made a recommendation for increases in levy rates.
The purpose of the proposed regulations is to impose from 1 December 1982, the following rates of levy:-
| Rate ($ per tonne) |
Butter | 665 |
Buttermilk powder | 355 |
Butteroil | 821 |
Casein | 900 |
Cheese | 750 |
Modified skimmilk powder | 355 |
Skimmilk and buttermilk powder mixture | 355 |
Skimmilk powder | 355 |
Wholemilk powder | 590 |
The rates of levy for processed butteroil and processed cheese are not varied from the current rate of $10 per tonne.
The rates of levy recommended provide for an increase in the domestic bulk wholesale price of $115 per tonne for butter; $110 per tonne for cheese; $90 per tonne for wholemilk powder; $55 per tonne for skimmilk powder, modified skimmilk powder, buttermilk powder and mixtures; $142 per tonne for butteroil; and $140 per tonne for casein.
In considering the rates of levy for prescribed dairy products, the Australian Dairy Corporation undertook a review of the current domestic bulk wholesale prices for the respective products. The Corporation’s recommendations were based on a consideration of costs of production, industry returns and market signals.
Overview
The Dairy Industry Stabilization Levy Regulations (Amendment) 2004, issued under the authority of the Minister of State for Transport and Construction on behalf of the Minister for Primary Industry, pertains to amendments in the rates of levy imposed on the production of prescribed dairy products as outlined in the Dairy Industry Stabilization Levy Act 1977. This Act was enacted to ensure the stability of the domestic dairy industry by imposing levies on the production of certain dairy products, thereby protecting the domestic price structure and ensuring equitable returns for manufacturers from both domestic and export sales. The regulations are designed to address fluctuations in the market by adjusting the levy rates in response to changes in domestic bulk wholesale prices and the assessed average export prices of these products. The Australian Dairy Corporation, after consultations with the Australian Dairy Industry Advisory Committee, recommends these amendments to align with the current market conditions, ensuring the stability and fairness of the industry.
Scope and Application
The Dairy Industry Stabilization Levy Regulations (Amendment) Statutory Rules 1982 apply to the dairy industry within Australia, specifically to the production of prescribed dairy products. The Act is administered by the Australian Dairy Corporation and involves the imposition of levies on various dairy products to stabilise domestic prices and ensure equalised returns for manufacturers from both domestic and export sales. The regulations are made under the authority of the Governor-General and include amendments to the rates of levy for products such as butter, cheese, wholemilk powder, and others, as recommended by the Australian Dairy Corporation in consultation with the Australian Dairy Industry Advisory Committee. These levies are calculated based on the difference between domestic and export prices and aim to support the domestic market structure. Notably, the rates for processed butteroil and processed cheese remain unchanged at $10 per tonne. The geographic scope of the regulations is national, applying across all states and territories of Australia, and the amendments are effective from 1 December 1982.
Key Provisions
The Dairy Industry Stabilization Levy Regulations (Amendment) primarily focus on adjusting the levy rates for various dairy products, as permitted under Section 11 of the Dairy Industry Stabilization Levy Act 1977. This amendment will take effect from 1 December 1982, setting new levy rates for different products to better align with current market conditions. The revised rates for each product are calculated based on the difference between domestic bulk wholesale prices and assessed average export prices. For instance, the levy for butter is set at $665 per tonne, while for cheese, it is set at $750 per tonne.
These regulations impose specific obligations on the parties involved, notably the Australian Dairy Corporation, which is tasked with making recommendations on levy rates. Under sub-section 11(2) of the Act, the Corporation must consult with the Australian Dairy Industry Advisory Committee to develop these recommendations. The purpose of these recommendations is to ensure that the domestic price structure for dairy products is protected and that manufacturers receive a fair return from both domestic and export sales.
Failure to comply with the new levy rates set by these regulations could lead to legal repercussions. The Act does not explicitly outline penalties for non-compliance, but breaches of regulations related to dairy product levies can result in fines and legal action. The exact penalties would depend on the specific nature of the breach and the discretion of the courts, but they could potentially include significant financial penalties.
In addition to financial penalties, non-compliance might also result in other civil or administrative consequences, such as the suspension of the party's rights to participate in the dairy industry or other regulatory actions deemed necessary by the relevant authorities. These consequences underscore the importance of adhering to the stipulated levy rates to maintain the integrity of the domestic dairy market.
Given the critical role of these levies in stabilising the dairy industry, compliance with the new regulations is essential for all stakeholders involved. The amendments aim to ensure that the industry remains competitive and that manufacturers are fairly compensated for their products, both domestically and internationally.