Dairy Produce Levy Regulations (Amendment)

Overview

The Dairy Produce Levy Regulations (Amendment) 1998 No. 216, issued by the Authority of the Minister for Primary Industries and Energy, amends the existing Dairy Produce Levy Regulations to adjust the prescribed rates of the promotion and manufacturing milk levies, effective from 1 July 1998. This amendment is made under the authority of the Dairy Produce Levy (No. 1) Act 1986, which established the framework for imposing various dairy industry levies on milk produced in Australia, including the promotion and manufacturing milk levies. The promotion levy, primarily funded by producers, supports the Australian Dairy Corporation's initiatives to expand export markets and promote Australian dairy products domestically. In contrast, the manufacturing milk levy, paid by manufacturers, is used to finance the Commonwealth's Domestic Market Support Scheme, which supports producers of manufacturing milk through an inter-sectoral transfer from market milk producers and consumers of dairy products. The policy objective of these amendments is to align the levy rates with the evolving needs of the dairy industry and to ensure the effective administration of the levies as stipulated in the Act.

Scope and Application

The Dairy Produce Levy (No. 1) Act 1986 applies to milk produced in Australia, imposing various industry-specific levies on both producers and manufacturers. These include the market milk levy, manufacturing milk levy, research levy, Corporation levy, promotion levy, and Australian Animal Health Council levy. Except for the manufacturing milk levy, all levies are paid by the producer, while the manufacturing milk levy is paid by the manufacturer on milk used in dairy product manufacturing. These levies are calculated based on the milk's fat and protein content. The funds collected from these levies serve various purposes, such as supporting domestic and international marketing programs, promoting Australian dairy products, and financing the Commonwealth's Domestic Market Support Scheme. The Act operates in conjunction with other related legislation and extends its application through the Dairy Produce Levy Regulations, which are subject to amendment by the Governor-General on the recommendation of various industry bodies and subject to prescribed rates. The Dairy Produce Levy Regulations (Amendment) 1998 No. 216 amends the rates of the promotion and manufacturing milk levies from 1 July 1998.

Key Provisions

The main operative sections of the Dairy Produce Levy Regulations (Amendment) 1998 No. 216 (the Regulations) include Regulation 3, which specifies the rates for the manufacturing milk levy, and Regulation 4, which sets out the rates for the promotion levy. Regulation 3 defines the manufacturing milk levy according to the definition in the Dairy Produce Levy (No. 1) Act 1986 (the Act) and sets the milk fat and protein rates at 31.070 cents per kilogram and 74.007 cents per kilogram, respectively. Regulation 4 defines the promotion levy as per the definition in the Act and prescribes the milk fat and protein rates for the promotion levy at 1.4525 and 3.5405 cents per kilogram, respectively. These regulations came into effect on 1 July 1998. The Act imposes specific obligations and requirements on the parties it governs. Under section 14(1) of the Act, the Governor-General must consider any recommendations made by the Australian Dairy Industry Council (ADIC) or the Australian Dairy Farmers' Federation (ADFF) before setting the rates for market milk, Corporation, promotion, and research levies. For the manufacturing milk levy, the Governor-General must take into account any report from the Executive Director of the Australian Bureau of Agricultural and Resource Economics (ABARE). These considerations ensure that the levy rates are set with input from relevant industry stakeholders. Any breach of the requirements under the Act and the Regulations could result in civil or criminal consequences. While the specific penalties are not detailed in the explanatory statement, breaches of similar legislation often result in fines or other penalties as prescribed by the relevant Acts. The precise penalties would depend on the nature and severity of the breach, and the relevant authorities would determine these in accordance with the governing legislation. In summary, the Regulations amend the rates for the manufacturing milk and promotion levies, effective from 1 July 1998, and are closely tied to the Act. The obligations under the Act require the Governor-General to consider industry recommendations and reports when setting levy rates. Any breaches of the Act or Regulations could lead to penalties, which would be determined according to the relevant provisions of the Acts.