EXPLANATORY STATEMENT
STATUTORY RULES 1982 No. 99
Issued by the Authority 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 Minister has approved the levy rates recommended by the Australian Dairy Corporation.
The purpose of the proposed regulations is to impose from 1 May 1982 the following rates of levy:-
| Rate |
| $ per tonne |
Butter | 550 |
Butteroil | 679 |
Casein | 830 |
The rates of levy for buttermilk powder, cheese, modified skimmilk powder, processed butteroil, processed cheese, skimmilk and buttermilk powder mixture, skimmilk powder and whole milk powder are not varied.
The rates of levy recommended provide for an increase in the domestic bulk wholesale prices of $60 per tonne for butter; $74 per tonne for butteroil; and $90 per tonne for casein.
Overview
The Dairy Industry Stabilization Levy Regulations (Amendment) 2004 were enacted to modify the rates of levy for certain dairy products under the Dairy Industry Stabilization Levy Act 1977. This legislation addresses the need for adjusting the financial mechanisms in place to stabilise the domestic dairy market by ensuring that domestic and export prices are balanced to provide fair returns to manufacturers. The amendment was approved by the Minister for Primary Industry and follows recommendations from the Australian Dairy Corporation, which consults with the Australian Dairy Industry Advisory Committee. The policy objective of these regulations is to protect the domestic price structure for prescribed dairy products and to maintain an equalised return for manufacturers from both domestic and export sales. The revised rates are intended to reflect changes in market conditions and to maintain the financial equilibrium within the dairy industry.
Scope and Application
The Dairy Industry Stabilization Levy Regulations (Amendment) Statutory Rules 1982 No. 99 applies to entities involved in the production of prescribed dairy products within Australia. These regulations fall under the purview of the Dairy Industry Stabilization Levy Act 1977, which is a fundamental component of the marketing arrangements for the dairy industry. The Act mandates the imposition of levies on the production of certain dairy products to safeguard the domestic price structure and ensure equitable returns for manufacturers from both domestic and export sales. The specified rates of levy are determined based on the difference between domestic bulk wholesale prices and assessed average export prices for each product. The regulations, which amend the original act, are made under the authority of the Minister for Primary Industry and reflect recommendations from the Australian Dairy Corporation, taking into account the advice of the Australian Dairy Industry Advisory Committee. These amendments introduce increased levy rates for specific dairy products effective from 1 May 1982, while the rates for other prescribed products remain unchanged.
Key Provisions
The primary sections of the Dairy Industry Stabilization Levy Regulations (Amendment) provide for adjustments to the rates of levy imposed on specific dairy products. Section 11(1) allows the Governor-General to make regulations regarding the imposition of these levies, including setting the effective dates and rates. The amendment focuses on increasing the rates for certain dairy products, such as butter, butteroil, and casein, effective from 1 May 1982. The rates for other products, like buttermilk powder, cheese, and skimmilk powder, remain unchanged. The rationale behind these changes is to align with the recommendations made by the Australian Dairy Corporation, as required under Section 11(2) of the Act.
The obligations imposed by these regulations are primarily on dairy product manufacturers and the Australian Dairy Corporation. Manufacturers are required to pay the specified levies on their production of the affected dairy products. The Australian Dairy Corporation has a duty to make recommendations for levy rates, taking into account consultations with the Australian Dairy Industry Advisory Committee. The Minister then reviews and approves these recommendations, ensuring they are implemented through the regulations.
Failure to comply with these regulations can result in significant consequences. Although the explanatory statement does not detail specific offences or penalties, breaches of the Dairy Industry Stabilization Levy Act 1977 generally entail both civil and criminal penalties. Civil penalties may include fines, while criminal penalties could involve imprisonment or substantial fines, depending on the severity and intent of the breach. The exact penalties would be determined by the courts based on the specific circumstances of each case and relevant provisions of the Act.