Dairy Produce (Termination of Dairy Adjustment Levy) Declaration 2009

Overview

The Dairy Produce (Termination of Dairy Adjustment Levy) Declaration 2009 was enacted to formally terminate the Dairy Adjustment Levy, which had been applied at a rate of 11 cents per litre on retail sales of drinking milk. This legislation was introduced to address the completion of the Dairy Industry Adjustment Program, for which the levy had initially been established under sub-clause 94(1) of Schedule 2 of the Dairy Produce Act 1986. The primary policy objective was to remove the levy once the program had been successfully completed, which was marked by the final scheduled payment to dairy farmers in April 2008. The decision to terminate the levy was made following extensive consultation with key stakeholders, including Dairy Australia Limited and dairy processors, who were integral to the implementation and oversight of the levy. The Office of Best Practice Regulation confirmed that a Regulation Impact Statement and Business Cost Calculator Report were not necessary for this declaration.

Scope and Application

The Dairy Produce (Termination of Dairy Adjustment Levy) Declaration 2009 applies to the termination of the Dairy Adjustment Levy, which is levied at a rate of 11 cents per litre on retail sales of drinking milk. This Act operates within the Commonwealth jurisdiction and is specifically concerned with the dairy industry, including milk retailers, dairy processors, and Dairy Australia Limited, the dairy industry services body and trustee of the Dairy Structural Adjustment Fund. The declaration terminates the levy, which was introduced in 2000 to fund the Dairy Industry Adjustment Program and was intended to be removed once the program was completed. Extensive consultation with Dairy Australia Limited and dairy processors occurred prior to the declaration, ensuring industry stakeholders were informed about the removal of the levy. Once registered on the Federal Register of Legislative Instruments, the levy will cease to apply seven days later, as stipulated by the declaration. The Act does not specify any exclusions, exemptions, or thresholds beyond the cessation of the levy. The authority to terminate the levy is extended through this declaration, effectively closing the authority established under the Dairy Produce Act 1986.

Key Provisions

The Dairy Produce (Termination of Dairy Adjustment Levy) Declaration 2009, under sub-clause 94(1) of Schedule 2 of the Dairy Produce Act 1986, sets out the terms for the termination of the Dairy Adjustment Levy. This levy, which was 11 cents per litre on retail sales of drinking milk, was introduced in 2000 to fund the Dairy Industry Adjustment Program. The declaration specifies that the levy will be terminated on the seventh day after the instrument is registered on the Federal Register of Legislative Instruments. This effectively marks the end of the levy, which was initially intended to support the Adjustment Program until its completion. The Act imposes specific obligations on parties involved in the dairy industry. Dairy processors, who are responsible for forwarding the levy to the Levies Revenue Service on behalf of milk retailers, must ensure that the levy is no longer applied to retail sales of drinking milk once the termination date is reached. Dairy Australia Limited, as the dairy industry services body and trustee of the Dairy Structural Adjustment Fund, also has the responsibility of managing the fund and ensuring that the termination of the levy is correctly implemented. These obligations are critical to ensure a smooth transition and compliance with the new legislative requirements. In terms of consequences for non-compliance, the Act does not explicitly state specific penalties or offences related to the failure to terminate the levy correctly. However, any breach of the legislative provisions could potentially lead to legal action by the Commonwealth or the affected parties. The exact consequences would depend on the specific circumstances and the interpretation of the court or regulatory body overseeing the matter. The declaration, however, is based on the Office of Best Practice Regulation's advice that a Regulation Impact Statement and Business Cost Calculator Report are not required, indicating a streamlined approach to closing the authority without additional regulatory burdens. The declaration's focus on the timely and effective termination of the Dairy Adjustment Levy is aimed at ensuring that the dairy industry can move forward without the financial burden of the levy. The consultation with stakeholders such as Dairy Australia Limited and dairy processors underscores the collaborative approach taken to ensure the successful implementation of the termination. The final scheduled quarterly payment to dairy farmers under the Adjustment Program in April 2008 marked the completion of the program's objectives, and the subsequent termination of the levy aligns with the legislative requirement to remove the levy once the program has concluded.