Dairy Produce Levy Regulations (Amendment)

Overview

The Dairy Produce Levy Regulations (Amendment) 1992 No. 173, issued under the authority of the Minister for Primary Industries and Energy, amends the existing regulations established under the Dairy Produce Levy (No. 1) Act 1986. This Act was enacted to provide a structured means of financing various aspects of the dairy industry, specifically through the imposition of five distinct levies based on the milk fat content of relevant dairy produce. These levies support market activities, administration, promotion, research, and exotic animal disease control within the industry. The primary focus of the amendment is to increase the promotion levy from 4.65 cents to 5.15 cents per kilogram of milk fat, aimed at bolstering funds for export marketing and market development as outlined in the post-June 1992 marketing plan. This adjustment was recommended by the Executive of the Australian Dairy Industry Council and was made within the bounds of the permitted maximum rate specified by the Act.

Scope and Application

The Dairy Produce Levy (No. 1) Act 1986 applies to entities and persons involved in the production and sale of dairy products in Australia, specifically targeting the milk fat content of whole milk and whole milk products. This legislation is enacted at the Commonwealth level, thereby ensuring a unified approach across the country in regulating and financing aspects of the dairy industry. The Act facilitates the imposition of various levies, which are integral to supporting the market, managing administrative costs, promoting dairy products, conducting research, and controlling exotic animal diseases within the dairy industry. The Act's scope is further extended through subordinate regulations, such as the Dairy Produce Levy Regulations (Amendment) 1992, which adjust the rates of specific levies. Notably, the amendment in question increases the promotion levy from 4.65 cents to 5.15 cents per kilogram of milk fat, reflecting a strategic decision to bolster export marketing and market development efforts as outlined in the post-June 1992 marketing plan. This regulatory framework ensures that the dairy industry remains well-supported and adequately funded to meet its operational and promotional needs.

Key Provisions

The key provisions of the Dairy Produce Levy Regulations (Amendment) 1992 No. 173 revolve around adjustments to the rates of specific levies imposed under the Dairy Produce Levy (No. 1) Act 1986 (subsection 14(3)). The primary change involves the increase of the promotion levy, which is intended to fund the activities of the Australian Dairy Corporation in promoting dairy products. The promotion levy rate is being raised from 4.65 cents per kilogram of milk fat to 5.15 cents per kilogram of milk fat, as outlined in the regulations. This amendment aims to provide additional financial support for export marketing and market development efforts, aligning with the marketing plan objectives post-June 1992. The obligations imposed by these regulations on the parties involved, particularly those in the dairy industry, include compliance with the newly set levy rates. Industry participants must ensure that the appropriate levies are calculated and paid based on the milk fat content of their dairy produce. This includes updating their accounting and reporting mechanisms to reflect the increased levy rate for promotion activities. The Australian Dairy Corporation, which benefits from the promotion levy, must utilise the additional funds as intended for export marketing and market development initiatives. Non-compliance with the requirements stipulated in these regulations can result in various legal and financial consequences. Although the specific penalties are not detailed in the explanatory statement, breaches of the Dairy Produce Levy (No. 1) Act 1986 generally attract penalties as prescribed by the Act or other relevant legislation. These penalties can include fines and other civil or criminal sanctions, depending on the severity and nature of the breach. The levy rate set forth in the amendment remains below the maximum permitted rate, ensuring that the increase is within the legal limits established by the Act.