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.
Overview
The Dairy Produce Levy (No 1) Act 1986 was enacted by the Parliament of Australia to address the need for financing mechanisms to support new dairy industry arrangements implemented under the Dairy Produce Act 1986. The Act introduces four distinct levies on the milk fat content of relevant dairy produce to fund various aspects of the dairy industry, including market support payments for exported dairy produce, administrative costs of the Australian Dairy Corporation, promotional activities, and research initiatives. The primary objective of the Act is to ensure that the dairy industry has the necessary financial resources to operate effectively and sustainably. The Act was amended in 1987 to adjust the rate of the market support levy, reflecting the need for sufficient funds to meet anticipated market support payments for the fiscal year 1987-88. The adjustment was made in accordance with the recommendations of the Australian Dairy Corporation and under the authority of the Governor-General, ensuring that the levy rate remains within the legal limits set by the Act.
Scope and Application
The Dairy Produce Levy (No 1) Act 1986 applies to entities involved in the dairy industry in Australia, specifically those who produce and handle relevant dairy produce such as whole milk and whole milk products. It encompasses the imposition of four distinct levies on the milk fat content of these products, each serving a specific purpose related to the dairy industry. The geographic reach of the Act is national, as it is enacted under the authority of the Commonwealth of Australia. The Act does not explicitly outline exclusions or exemptions, but it does delegate the power to set the operative rate of the market support levy to the Governor-General through the regulations, as amended by the Dairy Produce Levy (No 1) Regulations 1987. These regulations can further extend or restrict the application of the Act through subordinate instruments, providing flexibility in response to changing industry needs and financial considerations.
Key Provisions
The Dairy Produce Levy (No 1) Act 1986, as amended by the Statutory Rules 1987 No. 108, governs the imposition of four specific levies on the milk fat content of relevant dairy produce, with the primary aim of financing various aspects of the dairy industry under the Dairy Produce Act 1986. The levies include the market support levy (Section 7), designed to support payments for exported dairy produce; the Corporation levy (Section 8), which funds the administrative costs of the Australian Dairy Corporation; the promotion levy (Section 9), intended for promoting dairy products; and the research levy (Section 10), allocated for dairy industry research. The Act allows the Governor-General to make regulations concerning these levies, as highlighted in Section 14.
Under this Act, the primary obligation for the entities governed by it is the payment of the specified levies on the milk fat content of their dairy produce. The Australian Dairy Corporation is particularly affected, as it must ensure that it receives sufficient funds to cover its administrative costs, market support payments, promotional activities, and research initiatives. This involves accurate calculation and remittance of the levies to the relevant authorities, in line with the rates set by the regulations. Additionally, the Australian Dairy Corporation is obligated to provide recommendations to the Minister for Primary Industry regarding the appropriate rates for the market support levy, as mandated by Section 14(2) of the Act.
The Act also delineates the consequences for non-compliance with its provisions. Although the Act does not explicitly state the penalties for breaches, non-payment or underpayment of the levies could potentially be considered an offence under broader administrative and tax laws. These could include financial penalties, interest on unpaid levies, and possibly legal action to recover the owed amounts. The seriousness of the penalties would depend on the extent of the breach and the specific circumstances surrounding it. However, the Act does not detail specific maximum penalties within its text.