EXPLANATORY STATEMENT
STATUTORY RULES 1985 No. 151
Issued by the Authority of the Minister of State for Primary Industry
DAIRY INDUSTRY STABILIZATION LEVY REGULATIONS (AMENDMENT)
The Dairy Industry Stabilization Levy Act 1977 (the Act), 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) fixing the operative rates of levy for each kind of dairy product under section 7; and
(b) exempting from levy a minimum quantity of a specified kind of dairy product produced in a prescribed period.
Sub-section 11(3) of the Act requires the Governor-General, before making any such regulations, to take into consideration any relevant recommendations made by the Australian Dairy Corporation to the Minister for Primary Industry.
The purpose of the levies is to support a minimum price level 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 value for levy purposes and the assessed export price for that product. The assessed export price is fixed by the Minister for Primary Industry under sub-section 20AB(4) of the Dairy Produce Act 1924 and is the price that the Minister considers will be the average export price for the prescribed product during a particular season.
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 levy rates to apply from 1 July 1985 which would have resulted in an increase in domestic values for levy purposes.
The Minister for Primary Industry, determined, however, that the domestic values for levy purposes should be maintained at their current levels from 1 July 1985. In making his decision on this matter, the Minister took into account his view that
the aims of the proposed new dairy marketing arrangements (legislation for which has been introduced into the Parliament but not yet passed) should be pursued as far as possible during the 1985-86 season. Under the proposed new arrangements support for domestic prices in 1985-86 was to be maintained at approximately the level of current domestic values for levy purposes.
Given that stabilization levies are equal to the difference between the domestic value for levy purposes (which will be unchanged as of 1 July 1985) and the assessed export price, the levy rates will need to change since the assessed export prices for prescribed dairy products during 1985-86 are higher than in 1984-85. In this regard, the Regulations provide for the following rates of stabilization levy to apply from 1 July 1985:
| Rate ($ per tonne) |
Butter | 1,151 |
Buttermilk powder | 327 |
Butteroil | 1,421 |
Casein | 642 |
Cheese | 753 |
Modified skimmilk powder | 327 |
Processed butteroil | 10 |
Processed cheese | 10 |
Skimmilk and buttermilk powder mixture | 327 |
Skimmilk powder | 327 |
Whole milk powder | 633 |
The Regulations also provide for the continuation of the current exemption from levy under sub-sections 9(1) and (2) of the Act 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 1985. The exemption ensures that levy is not paid twice on processed butteroil and processed cheese produced from butter and leviable cheese respectively.
Overview
The Dairy Industry Stabilization Levy Regulations (Amendment) Statutory Rules 1985 No. 151, issued under the authority of the Minister of State for Primary Industry, amends the existing framework established by the Dairy Industry Stabilization Levy Act 1977. This legislation aims to address the need for adjustments in the rates of levy for various dairy products to support minimum price levels and ensure equitable returns for manufacturers from both domestic and export sales. The policy objective of the Act is to stabilise the dairy industry by imposing levies on the production of specified dairy products, which are based on the difference between domestic values for levy purposes and assessed export prices. The amendment, effective from 1 July 1985, responds to the Australian Dairy Corporation's recommendations and the Minister for Primary Industry's decision to maintain domestic values at their current levels, adjusting the levy rates to accommodate the higher assessed export prices for the 1985-86 season.
Scope and Application
The Dairy Industry Stabilization Levy Regulations (Amendment) of 1985, issued under the authority of the Minister of State for Primary Industry, amends the existing regulatory framework established by the Dairy Industry Stabilization Levy Act 1977. This Act, integral to the marketing and stabilization arrangements within the dairy industry, mandates the imposition of levies on the production of specific dairy products. These levies are intended to support a minimum price level for these products and to ensure that each manufacturer receives an equalised return from both domestic and export sales. The amendments to the regulations are aimed at adjusting the rates of these levies to reflect changes in domestic and export pricing dynamics, specifically ensuring that domestic values for levy purposes are maintained as decided by the Minister for Primary Industry, despite changes in the assessed export prices for the forthcoming season. The new rates are set to take effect from 1 July 1985, and the regulations also maintain existing exemptions for certain quantities of processed butteroil and processed cheese, ensuring that these products are not subject to double taxation.
Key Provisions
The Dairy Industry Stabilization Levy Regulations (Amendment) provide for the amendment of the rates at which levies are imposed on the production of certain dairy products, effective from 1 July 1985. According to section 7 of the Dairy Industry Stabilization Levy Act 1977, these levies are applied to support a minimum price level for prescribed dairy products and ensure that manufacturers receive an equalised return from both domestic and export sales of such products. Section 11 of the Act allows the Governor-General to establish the operative rates of levy for each type of dairy product and to exempt a minimum quantity of a specified kind of dairy product produced within a prescribed period from levy. Section 11(3) further mandates that the Governor-General must consider any relevant recommendations made by the Australian Dairy Corporation to the Minister for Primary Industry before making any such regulations.
The Regulations impose obligations on dairy manufacturers to comply with the specified stabilization levy rates for their products. These rates are determined by the difference between the domestic value for levy purposes and the assessed export price for each product. The assessed export price is set by the Minister for Primary Industry under sub-section 20AB(4) of the Dairy Produce Act 1924 and is the price considered to be the average export price for the prescribed product during a particular season. Manufacturers must ensure they are aware of the levy rates applicable to their products and must remit the appropriate amount of levy to the relevant authorities. Additionally, the Regulations continue to exempt processed butteroil and processed cheese from levy if their production does not exceed 30,000 tonnes and 60,000 tonnes respectively during the year commencing on 1 July 1985, as per sub-sections 9(1) and (2) of the Act.
Failure to comply with the requirements of these Regulations may result in civil or criminal consequences. The exact nature of these consequences is not specified in the provided excerpt, but typically, breaches of regulatory requirements can lead to fines, penalties, or legal action against the offending party. The severity of the consequences often depends on the nature and extent of the breach. It is essential for manufacturers to adhere to the stipulated levy rates and exemptions to avoid any potential penalties.