Dairy Produce Levy Regulations (Amendment) 1996 No. 127
EXPLANATORY STATEMENT
STATUTORY RULES 1996 No. 127
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 and the promotion levy. All levies, except for the manufacturing milk levy, are paid by the producer. The manufacturing milk levy is paid by the manufacturer on milk used in the manufacture of dairy products. The rates of the levies are determined on the milk fat and protein content of the milk.
The purpose of the proposed Regulations is to alter the operational rates of the manufacturing and research levies from 1 July 1996.
The manufacturing milk levy is used to finance the domestic market support scheme for the dairy industry. Support for manufacturing milk producers is obtained through an intersectoral transfer from market milk producers via the market milk levy and through a financial transfer from domestic consumers via the levy paid by manufacturers. Manufacturers can recoup the levy through the price to domestic consumers or through an export rebate. This levy is adjusted annually to generate receipts equal to the consumer transfer which would have been provided under the 1992 Dairy Plan (which ceased on 30 June 1995), subject to legislated maximum levels that are reducing annually. The research levy is used to fund the activities of the Dairy Research and Development Corporation (DRDC).
The Act works in conjunction with the Dairy Produce Act 1986, the Dairy Produce Levy (No. 2) Act 1986 and the Primary Industries Levies and Charges Collection Act 1991.
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 provides for the Australian Dairy Industry Council (ADIC) to make recommendations on the appropriate rates for the market milk levy, the Corporation levy, the promotion levy and the research levy.
Subsection 14 (3) of the Act provides for the Executive Director of the Australian Bureau of Agricultural and Resource Economics (ABARE) to make a report relating to an appropriate rate for the manufacturing milk levy.
These amendments to the rates of research and manufacturing milk levies to apply from 1 July 1996 are based on recommendations received from the ADIC and the Executive Director of ABARE respectively.
Details of the regulations are set out below:
Regulation 1 provides for these regulations to commence on 1 July 1996.
Regulation 2 provides for the Dairy Produce Levy Regulations to be amended in accordance with these regulations.
Regulation 3 prescribes that the milk fat and protein rates of the manufacturing milk levy to apply from 1 July 1996 are 32.857 cents per kilogram and 77.919 cents per kilogram respectively.
Regulation 4 prescribes that the milk fat and protein rates of the research levy to apply from 1 July 1996 are 0.805 cents per kilogram and 1.9621 cents per kilogram respectively.
Overview
The Dairy Produce Levy (No. 1) Act 1986 was enacted to provide for the imposition of various levies on milk produced in Australia, with the aim of supporting the dairy industry through funding research, development, and market support. The Act was introduced to address the need for a structured financial mechanism to support the dairy industry, ensuring it could meet market demands and invest in necessary research and development. The enacting body is the Parliament of Australia, and the policy objective outlined in the Act is to facilitate the financial sustainability and growth of the dairy industry through systematic levy imposition and allocation. These levies include the market milk levy, manufacturing milk levy, research levy, Corporation levy, and promotion levy, each serving distinct purposes within the industry. The Act operates in conjunction with other related legislation such as the Dairy Produce Act 1986, the Dairy Produce Levy (No. 2) Act 1986, and the Primary Industries Levies and Charges Collection Act 1991.
Scope and Application
The Dairy Produce Levy (No. 1) Act 1986 applies to entities and individuals involved in the production and manufacturing of milk in Australia. The Act specifically targets milk producers who are responsible for paying the market milk, research, Corporation, and promotion levies, except for the manufacturing milk levy, which is paid by manufacturers of dairy products. The Act also applies to manufacturers who use milk in their production processes and thus must pay the manufacturing milk levy. The Act's regulatory scope is further extended by its interaction with the Dairy Produce Act 1986, the Dairy Produce Levy (No. 2) Act 1986, and the Primary Industries Levies and Charges Collection Act 1991. These related acts help to frame the overall legislative environment governing dairy levies in Australia. The Act operates on a national level, impacting all entities engaged in milk production and manufacturing across the Commonwealth of Australia. There are no explicit exclusions or exemptions mentioned within the scope of the Act, implying a broad application across the relevant industries. The Act's regulatory framework is supplemented by subordinate instruments such as regulations made under section 14, which detail the prescribed rates for the various levies, as well as recommendations from the Australian Dairy Industry Council and reports from the Australian Bureau of Agricultural and Resource Economics.
Key Provisions
The primary operative sections of the Dairy Produce Levy Regulations (Amendment) 1996 No. 127 are Regulations 3 and 4, which prescribe the updated rates for the manufacturing milk levy and the research levy effective from 1 July 1996. Regulation 3 specifies the new rates for the manufacturing milk levy at 32.857 cents per kilogram for milk fat and 77.919 cents per kilogram for milk protein. Regulation 4 sets the new rates for the research levy at 0.805 cents per kilogram for milk fat and 1.9621 cents per kilogram for milk protein. These rates are determined based on the milk fat and protein content and reflect the amendments made to support the domestic market and fund research activities.
The Dairy Produce Levy (No. 1) Act 1986 imposes specific obligations on the parties involved, particularly the producers and manufacturers of dairy products. Producers are required to pay the market milk levy, the research levy, the Corporation levy, and the promotion levy, except for the manufacturing milk levy, which is the responsibility of the manufacturer. Manufacturers must pay the manufacturing milk levy on milk used in the production of dairy products. These levies are integral to funding various aspects of the dairy industry, including market support and research initiatives. The Act also mandates that the Australian Dairy Industry Council (ADIC) and the Executive Director of the Australian Bureau of Agricultural and Resource Economics (ABARE) provide recommendations and reports on the appropriate rates for these levies.
Breaching the obligations set forth by the Dairy Produce Levy (No. 1) Act 1986 can result in various civil and criminal consequences. While the specific penalties for non-compliance are not detailed within the provided explanatory statement, the Act likely includes provisions for fines or other penalties for failure to pay the required levies. Such breaches may also lead to legal actions taken by the relevant authorities to enforce compliance. It is essential for producers and manufacturers to adhere to the prescribed rates and payment obligations to avoid potential legal repercussions and to ensure the continued funding of industry support and research activities.