Dairy Produce Levy Regulations (Amendment)

Overview

The Dairy Produce Levy (No 1) Act 1986 was enacted to provide the necessary legislative framework for the imposition of levies on milk fat content of relevant dairy produce, in order to finance specific aspects of the dairy industry as implemented under the Dairy Produce Act 1986. This legislation was introduced to ensure that there is adequate funding for market support, administrative costs, promotional activities, and research within the dairy industry. The Act was passed by the Parliament of Australia, with the aim of establishing a stable and sustainable funding mechanism for these industry-specific activities. The explanatory statement accompanying the Statutory Rules 1989 No. 134 details amendments to the Dairy Produce Levy Regulations, specifically a reduction in the promotion levy from 4.95 cents per kilogram of milk fat to 4.65 cents per kilogram of milk fat, following recommendations by the Australian Dairy Industry Conference. The amendments to the regulations were made to reflect the discontinuation of the retail services section of the Australian Dairy Corporation's proposed 1989/90 promotion program, as decided by the executive council of the Australian Dairy Industry Conference. This decision led to a reduction in the promotion levy rate, which was set below the maximum rate permitted under section 7 of the Act. The objective of these amendments was to ensure efficient allocation of resources within the dairy industry while maintaining the financial sustainability of market support, administrative, promotional, and research activities.

Scope and Application

The Dairy Produce Levy (No 1) Act 1986 applies to entities involved in the production, handling, or sale of relevant dairy produce, which includes whole milk and whole milk products, within Australia. The Act imposes four specific levies on the milk fat content of such produce to finance various industry-related arrangements. These levies include the market support levy for market support payments on exported dairy produce, the Corporation levy to cover the administrative costs of the Australian Dairy Corporation, the promotion levy to fund promotional activities of the Corporation, and the research levy to support dairy industry research. The Act's jurisdiction is national, with the regulations governing the rates of these levies being set by the Governor-General, following recommendations from the Australian Dairy Industry Conference. Notably, the promotion levy has been reduced from 4.95 cents to 4.65 cents per kilogram of milk fat, reflecting a decision to discontinue a specific retail services section within the Australian Dairy Corporation's proposed promotion program. These regulations are subject to amendment through subordinate instruments, ensuring that the levies remain aligned with industry needs and financial considerations.

Key Provisions

The primary operative sections of the Dairy Produce Levy (No 1) Act 1986 (section 7) set out the levies on the milk fat content of relevant dairy produce to finance various aspects of the dairy industry. The act imposes four levies: the market support levy (section 7(1)(a)), which provides funds for market support payments on exported dairy produce under the Dairy Produce Act 1986; the Corporation levy (section 7(1)(b)), which covers the administrative costs of the Australian Dairy Corporation established by the Dairy Produce Act 1986; the promotion levy (section 7(1)(c)), which funds Corporation activity in promoting dairy products; and the research levy (section 7(1)(d)), which funds dairy industry research. The purpose of the regulations (section 14) is to set the operative rate of each of these levies. The Act imposes specific obligations on the parties and entities it governs. The Governor-General is tasked with making regulations to implement the levies as outlined in section 7 of the Act. This includes setting the rates for the market support levy, the Corporation levy, the promotion levy, and the research levy. The regulations must consider the recommendations made by the executive council of the Australian Dairy Industry Conference in accordance with section 14(3) for the purposes of section 7(3). Additionally, the Act requires that the levy rates must not exceed the permitted maximum rates set out in section 7. Breaches of the provisions under the Dairy Produce Levy (No 1) Act 1986 may result in various civil and criminal consequences. While the specific offences and penalties are not detailed in the text, it is common for legislative breaches to attract fines and other penalties as stipulated under the relevant sections of the primary Act or other related legislation. The maximum penalties for breaches are generally specified within the Act itself or in related regulatory frameworks, though these details are not provided in the text. The Act ensures that the levies are implemented correctly to finance the necessary industry activities, and failure to comply with these provisions may result in legal repercussions.