EXPLANATORY STATEMENT
STATUTORY RULES 1987 No. 108
Issued by the Authority of the Minister for Primary Industry
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 Governor-General to make regulations for the purposes of financing aspects of the new dairy industry arrangements which are implemented under the Dairy Produce Act 1986.
The Act finances the arrangement by imposing four levies on the milk fat content of relevant dairy produce (whole milk and whole milk products). The four milk fat levies and the purpose of each are:
• the market support levy - to provide the moneys for market support payments on exported dairy produce under the Dairy Produce Act 1986
• the Corporation levy - to cover the administrative costs of the Australian Dairy Corporation which is established by the Dairy Produce Act 1986
• the promotion levy - to fund Corporation activity in promoting dairy products
• the research levy - to fund dairy industry research.
The purpose of the Regulations is to set the operative rate of the market support levy imposed by the Dairy Produce Levy (No 1) Act 1986.
The Regulations set the market support levy at 40 cents per kilogram of milk fat to apply from 1 July 1987. The remaining levy rates were left unchanged.
The rate was set after the Governor-General had taken into consideration a recommendation with respect to the market support levy rate made to the Minister by the Australian Dairy Corporation in accordance with subsection 14(2) of the Act for the purposes of subsection 7(1) (ie the rate of market support levy). The rate increase is necessary to provide the Corporation with sufficient funds to make the market support payments anticipated for 1987-88.
The levy rate is below the permitted maximum rate laid down in section 7 of the Act.