Dairy Produce Market Support Levy Act 1985

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Dairy Produce Market Support Levy Act 1985

No. 51 of 1985

 

An Act to impose a levy on the milk fat content of certain dairy produce produced in Australia and sold, or otherwise disposed of, by the producer

[Assented to 4 June 1985]

BE IT ENACTED by the Queen, and the Senate and the House of Representatives of the Commonwealth of Australia, as follows:

Short title

1. This Act may be cited as the Dairy Produce Market Support Levy Act 1985.

Commencement

2. This Act shall come into operation on 1 July 1985.

Dairy Produce Market Support Act 1985 to be read as one with this Act

3. The Dairy Produce Market Support Act 1985 is incorporated, and shall be read as one, with this Act.

Interpretation

4. (1) In this Act, unless the contrary intention appears—

“milk” means the lacteal fluid product of the dairy cow;


“milk fat” means the fatty substance of milk;

“producer”, in relation to relevant dairy produce, means—

(a) where the relevant dairy produce is whole milk—the person who, at the time when the whole milk is produced, is the relevant owner of the whole milk; and

(b) where the relevant dairy produce is a whole milk product, the person—

(i) who, at the time when the whole milk used to make the whole milk product was produced, was the relevant owner of the whole milk; and

(ii) who produced the whole milk product or on whose behalf the whole milk product was produced;

“relevant dairy produce” means—

(a) whole milk; and

(b) whole milk products;

“relevant owner”, in relation to whole milk, means the person entitled to ownership of the whole milk obtained from a dairy cow, whether or not that person is the owner of the cow;

“whole milk” means whole milk produced in Australia;

“whole milk product” means a product that is produced by modifying, or extracting material from, whole milk, and that consists of, or contains, milk fat.

(2) For the purposes of this Act and of the Dairy Produce Market Support Act 1985, where relevant dairy produce produced by a person is not sold by the producer but vests in another person by operation of law, the relevant dairy produce shall be deemed to have been sold by the producer to that other person at the time when it so vests and that other person shall be deemed to have purchased the relevant dairy produce from that producer at that time.

(3) For the purposes of this Act and of the Dairy Produce Market Support Act 1985, where relevant dairy produce produced by a person is, after the commencement of this sub-section, supplied by the producer to another person for disposal or processing by that other person, but the relevant dairy produce is not sold by the producer to that other person or any other person at or before the time when it is so supplied—

(a) the relevant dairy produce shall be deemed to have been sold by the producer to that other person at the time when it is so supplied and that other person shall be deemed to have purchased the relevant dairy produce from the producer at that time; and

(b) any sale of the relevant dairy produce by or on behalf of the producer (including a sale to that other person) after it is so supplied shall be disregarded.

Imposition of levy

5. Subject to this Act, levy is imposed on the milk fat content of relevant dairy produce that is produced on or after 1 July 1985 and is sold before 1 July 1991.


Amount of levy

6. (1) Subject to this section, the amount of levy imposed on the milk fat content of relevant dairy produce is such amount per kilogram of milk fat contained in, or comprising, the relevant dairy produce as is prescribed.

(2) The amount of levy imposed on the milk fat content of relevant dairy produce shall not exceed 45 cents per kilogram of milk fat.

(3) Where, for any reason, it has not been possible to ascertain the amount of milk fat contained in relevant dairy produce for the purposes of this section—

(a) if that relevant dairy produce is whole milk—each litre of whole milk shall be deemed to contain 45 grams of milk fat; and

(b) if that relevant dairy produce is a whole milk product—each kilogram or each litre of that whole milk product shall be deemed to contain such weight of milk fat as is prescribed for the purposes of this section.

By whom levy payable

7. The producer of relevant dairy produce is liable to pay the levy on the milk fat content of the relevant dairy produce.

Regulations

8. (1) The Governor-General may make regulations, not inconsistent with this Act, prescribing matters—

(a) required or permitted by this Act to be prescribed; or

(b) necessary or convenient to be prescribed for carrying out or giving effect to this Act.

(2) Before making regulations prescribing a rate for the purposes of sub-section 6 (1), the Governor-General shall take into consideration any recommendation with respect to the rate made to the Minister by the Corporation.

 

[Minister’s second reading speech made in—

House of Representatives on 9 May 1985

Senate on 20 May 1985]

Overview

The Dairy Produce Market Support Levy Act 1985, enacted by the Parliament of Australia, was established to address the need for financial support and stability within the dairy industry. The Act was introduced to create a levy on the milk fat content of certain dairy produce, specifically targeting whole milk and whole milk products produced in Australia. This was intended to generate revenue to support the dairy market, ensuring the financial stability of dairy producers and the broader industry. The policy objective of the Act, as articulated in the Minister's second reading speech, was to provide a structured financial mechanism to assist the dairy sector, thus protecting and enhancing the livelihoods of dairy producers and the sustainability of the market. The Act operates in conjunction with the Dairy Produce Market Support Act 1985, ensuring a cohesive regulatory framework that supports the industry's financial health. By imposing a levy on the milk fat content of relevant dairy produce, the Act seeks to create a dedicated funding source for market support initiatives, thereby addressing a critical gap in the sector's financial infrastructure. The levy is capped at 45 cents per kilogram of milk fat, with provisions for default milk fat content assumptions in cases where exact measurements are not feasible. This comprehensive approach ensures that the levy remains fair and manageable for producers while achieving its intended financial support objectives.

Scope and Application

The Dairy Produce Market Support Levy Act 1985 applies to any person or entity that is a producer of relevant dairy produce, which includes whole milk and whole milk products, produced in Australia. The Act imposes a levy on the milk fat content of such dairy produce that is produced on or after 1 July 1985 and sold before 1 July 1991. The levy is to be paid by the producer and is subject to a maximum of 45 cents per kilogram of milk fat. The Act operates on a Commonwealth level and extends its jurisdiction to all producers within Australia, irrespective of where the milk fat content is sold. The Act allows for the creation of subordinate legislation to further define the parameters of the levy, such as the rates to be charged, and requires the Governor-General to consider recommendations from the Minister before setting these rates. There are no specific exclusions or exemptions mentioned within the text of the Act itself, though the scope of what constitutes a producer and relevant dairy produce is outlined.

Key Provisions

The Dairy Produce Market Support Levy Act 1985 imposes a levy on the milk fat content of certain dairy products produced in Australia and sold or otherwise disposed of by the producer (section 5). This levy applies to relevant dairy produce, which includes whole milk and whole milk products, produced on or after 1 July 1985 and sold before 1 July 1991 (section 5). The amount of the levy is prescribed per kilogram of milk fat, but it cannot exceed 45 cents per kilogram (section 6). The levy is payable by the producer of the relevant dairy produce (section 7). Regulations can be made by the Governor-General to prescribe matters required or permitted by the Act, or necessary or convenient to carry it out (section 8). The Act imposes several obligations on the parties it governs. Producers of relevant dairy produce are required to pay the levy on the milk fat content of their products (section 7). The Act also deems certain transactions involving relevant dairy produce to be sales for the purposes of the levy, even if the produce was not sold in the conventional sense (section 4(2) and (3)). These deemed sales occur when relevant dairy produce vests in another person by operation of law or is supplied to another person for disposal or processing, but is not sold to that person or any other person. Breaches of the Act may have civil and criminal consequences. While the Act itself does not specify offences or penalties, it is likely that breaches would be dealt with under the general provisions of the Acts Interpretation Act 1901 (Cth) and related legislation. For example, wilful failure to comply with the Act could potentially be prosecuted as an offence under section 8DA of the Criminal Code Act 1995 (Cth), which covers offences against Acts and regulations. The maximum penalty for such an offence could be significant, depending on the circumstances and any relevant aggravating factors. Additionally, producers who fail to pay the levy may be subject to enforcement actions by the relevant authorities, such as fines or other financial penalties.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.