Dairy Produce Levy Regulations (Amendment) 1997 No. 165
EXPLANATORY STATEMENT
STATUTORY RULES 1997 No. 165
Issued by the Authority of the Minister for Primary Industries and Energy
Dairy Produce Levy (No. 1) Act 1986
Dairy Produce Levy Regulations (Amendment)
The Dairy Produce Levy (No. 1) Act 1986 (the Act) provides for the imposition of dairy industry levies on milk produced in Australia. These levies are the market milk levy, the manufacturing milk levy, the research levy, the Corporation levy, the promotion levy and the Australian Animal Health Council levy. All levies, except for the manufacturing milk levy, are paid by the producer. The manufacturing milk levy is paid by the manufacturer m milk used in the manufacture of dairy products. Levies are paid on the milk fat and protein content of the milk.
Funds collected from the research levy are used to finance the research and development activities administered by the Dairy Research and Development Corporation (DRDC). The Australian Animal Health Council levy is used to cover the dairy industry's membership costs to the Australian Animal Health Council (AAHC), a tripartite body of the Commonwealth, State/Territory Governments and nine livestock peak industry organisations established in 1996 to improve and maintain Australia's animal health standards.
The manufacturing milk levy is used to finance the Domestic Market Support Scheme for the dairy industry. Support for producers of manufacturing milk is generated through an inter-sectoral transfer from market milk producers via the market milk levy and through a transfer from domestic consumers of dairy products via the manufacturing milk levy. Manufacturers recoup the levy by raising the price to domestic consumers or through a rebate on milk that is exported. The levy is adjusted annually to generate receipts equal to the consumer transfer which would have been provided under the 1992 Dairy Plan (ceased in 1995), subject to legislated maximum levels which are reducing annually.
The Act works in conjunction with the Dairy Produce Act 1986, the Dairy Produce Levy (No. 2) Act 1986 , the Primary Industries and Charges Collection Act 1991 and the Australian Animal Health Council (Live-stock Industries) Funding Act 1996.
Subsection 14 (1) of the Act provides for the Governor-General to make regulations that set the prescribed rates of dairy industry levies.
Subsection 14 (2) of the Act requires that the Governor-General, before making regulations prescribing the appropriate market milk, Corporation, promotion and research levy rates, must consider any recommendation on the setting of those rates made to the Minister by the Executive of the Australian Dairy Industry Council (ADIC).
Subsection 14 (2A) of the Act requires that the Governor-General, before making regulations prescribing the appropriate Australian Animal Health Council levy rate, must consider any recommendation on the setting of those rates made to the Minister by the Executive of the Australian Dairy Farmers' Federation (ADFF).
Subsection 14 (3) of the Act requires that the Governor-General, before making regulations prescribing the manufacturing milk levy rates, take into consideration any report relating to the proposed regulations made to the Minister by the Executive Director of the Australian Bureau of Agricultural and Resource Economics (ABARE).
The Regulation amends the Dairy Produce Levy Regulations so as to set the prescribed rate of the Australian Animal Health Council levy and vary the prescribed rates of the research and manufacturing milk levies, from 1 July 1997.
Details of the regulations are as follows:
Regulation 1 provides for these regulations to commence on 1 July 1997.
Regulation 2 provides for the Dairy Produce Levy Regulations to be amended in accordance with these regulations.
Regulation 3 defines the Australian Animal Health Council levy as being the definition contained in the Dairy Produce Levy (No. 1) Act 1986.
Regulation 4 prescribes that the milk fat and protein rates of manufacturing milk levy to apply from 1 July 1997 is 31.435 cents per kilogram and 75.657 cents per kilogram respectively.
Regulation 5 prescribes the milk fat and protein rates, to apply from 1 July 1997, for the dairy industry levies referred to in paragraphs 9(1)(a) and 9(1)(b) of the Dairy Produce Levy (No. 1) Act 1986 and, in so doing, corrects the previous Regulation which referred to 9(a) and 9(b). The rates for the Corporation and promotion levies are unchanged. The regulation prescribes that the milk fat and protein rate of research levy is 1.015 and 2.474 cents per kilogram respectively and that the milk fat and protein rate of the Australian Animal Health Council levy are set at 0.0223 and 0.0543 cents per kilogram respectively.
The regulations commenced on 1 July 1997.