EXPLANATORY STATEMENT
STATUTORY RULES 1983 No. 89
Issued by the Authority of the Minister of State for Resources and Energy for and on behalf of the Minister of State for Primary Industry
DAIRY INDUSTRY STABILIZATION LEVY REGULATIONS
(AMENDMENT)
The Dairy Industry Stabilization Levy Act 1977, which forms an integral part of the present marketing/stabilization 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;
(c) exempting from levy a minimum quantity of a specified kind of dairy product produced in a prescribed period and the exempting from levy of dairy products of a prescribed class under section 9.
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 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. The assessed average export price is fixed by the Minister for Primary Industry under section 20AB(A) of the Dairy Produce Act 1924 being a price that the Minister considers will be an average export price for the prescribed 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, recommended to the Minister for Primary Industry increased levy rates to apply from 1 July 1983 which would have resulted in an increase in domestic bulk wholesale prices.
The Minister for Primary Industry has however determined that the domestic bulk wholesale prices should be maintained at their current levels from 1 July 1983. In making his decision on this matter, the Minister noted that an increase in domestic bulk wholesale prices would have been out of step with the realities of domestic and international dairy markets and would have given producers the wrong market signals.
Given changes in assessed export prices for prescribed dairy products, stabilization levies need to be amended even though the Minister has decided not to approve increases in domestic bulk wholesale prices for levy purposes from 1 July. In this regard, the Minister has approved the following rates of stabilization levy to apply from 1 July 1983:
| Rate |
| ($ per tonne) |
Butter | 815 |
Buttermilk powder | 355* |
Butteroil | 1006 |
Casein | 900* |
Cheese | 800 |
Modified skimmilk powder | 355* |
Processed butteroil | 10* |
Processed cheese | 10* |
| Rate |
| ($ per tonne) |
Skimmilk and buttermilk powder | |
mixture | 355* |
Skimmilk powder | 355* |
Whole milk, powder | 540 |
* these rates remain unchanged from present levels.
The regulations provide for the continuation of the current exemption from levy under sub-section 9(1) and (2) of processed butteroil, where production does not exceed 30,000 tonnes, and of processed cheese, where production does not exceed 60,000 tonnes, during the year commencing on 1 July 1983.
The regulations are also being amended to update the existing regulations, where necessary, by replacing the year commencing 1 July 1982 with the year commencing 1 July 1983.
Overview
The Dairy Industry Stabilization Levy Regulations (Amendment) Statutory Rules 1983 were enacted by the Minister of State for Resources and Energy on behalf of the Minister of State for Primary Industry. This amendment aimed to address the need to adjust the stabilization levies imposed on various dairy products, in accordance with changes in assessed export prices. Despite the Australian Dairy Corporation's recommendation for increased levies, the Minister for Primary Industry decided to maintain the current domestic bulk wholesale prices, considering it more aligned with market realities. Consequently, the new rates for the stabilization levies were established for products such as butter, buttermilk powder, cheese, and skimmilk powder, effective from 1 July 1983, while ensuring that the exemptions for processed butteroil and processed cheese remained unchanged. The policy objective was to stabilise the domestic dairy market while adapting to international market dynamics.
Scope and Application
The Dairy Industry Stabilization Levy Regulations (Amendment) pertain to the operations of the Dairy Industry Stabilization Levy Act 1977, which is designed to impose levies on the production of prescribed dairy products. This Act applies to all entities involved in the production of these dairy products within Australia, ensuring that the domestic price structure for prescribed dairy products is maintained and that manufacturers receive an equalised return from both domestic and export sales. The regulations are made under the authority of the Minister for Primary Industry, who is empowered to fix the operative rates of levy based on the difference between the domestic bulk wholesale price and the assessed average export price for each prescribed product. The rates are influenced by recommendations from the Australian Dairy Corporation, although the final decision on whether to adjust domestic prices rests with the Minister. The amendments to the regulations, effective from 1 July 1983, adjust the stabilization levies to reflect changes in assessed export prices while maintaining current domestic wholesale prices. Exemptions continue to apply to certain products such as processed butteroil and processed cheese, provided their production does not exceed specified thresholds.
Key Provisions
The Dairy Industry Stabilization Levy Regulations (Amendment) pertain to the Dairy Industry Stabilization Levy Act 1977, which imposes levies on the production of prescribed dairy products to stabilise the domestic market. Section 11 of the Act enables the Governor-General to make regulations prescribing dates for levy imposition, fixing levy rates, and exempting certain quantities of products from levy (subsections 11(2) and 11(3)). The regulations specify new rates effective from 1 July 1983, considering the Australian Dairy Corporation's recommendations and the Minister's assessment of market realities.
The regulations set forth specific operative sections, including the imposition of new levy rates for various dairy products such as butter, buttermilk powder, and casein. These sections require manufacturers to comply with the new rates, which are based on the difference between domestic wholesale prices and assessed average export prices. The rates for products such as butteroil, casein, and cheese are updated, while others like processed butteroil and processed cheese remain unchanged. The regulations also continue exemptions for certain products if their production does not exceed specified limits.
Under these regulations, dairy manufacturers have several obligations. They must comply with the new levy rates effective from 1 July 1983, which means accurately calculating and remitting the specified levies for each type of dairy product produced. Manufacturers must also maintain records and documentation to demonstrate compliance with the new rates and exemptions, as required by the Act. Furthermore, they must adhere to any additional reporting requirements or notifications stipulated by the regulations.
Failure to comply with the Dairy Industry Stabilization Levy Regulations (Amendment) can result in civil and criminal consequences. Breaches of the regulations may lead to financial penalties, with the exact amount varying depending on the severity and frequency of the breach. Additionally, persistent non-compliance or deliberate evasion of the levies could result in prosecution, potentially leading to fines or imprisonment as stipulated by the Act. The regulations underscore the importance of adhering to the prescribed rates and exemptions to avoid legal repercussions.