Dairying Industry Research and Promotion Levy Regulations (Amendment)

Overview

The Dairying Industry Research and Promotion Levy Regulations (Amendment) Statutory Rules 1982 were enacted to address the financial needs of the Australian Dairy Research Committee's ongoing research programs. This legislation, stemming from the Dairying Industry Research and Promotion Levy Act 1972, was designed to facilitate the imposition of levies on whole milk and butter fat produced within Australia. As the production of milk has decreased while the research program has expanded and costs have risen, there was a necessity to increase the levy rates to ensure sufficient funding. These amendments were proposed in line with the recommendations of the Australian Dairy Research Committee and, in a consultative approach, were also discussed with the Australian Dairy Farmers’ Federation. The Australian Dairy Research Committee recommended to the Minister for Primary Industry an increase in the levy rates, in accordance with section 13 of the Act. This recommendation led to the proposed regulation, effective from 1 July 1982, setting the levy rates at 1 cent per 100 litres of whole milk and 25 cents per 100 kilograms of butter fat. These rates are below the maximum prescribed by the Act, which stands at 1.2 cents per 100 litres of whole milk and 30 cents per 100 kilograms of butter fat, and above the current rates of 0.8 cent and 20 cents respectively. The primary policy objective behind these amendments was to secure adequate financial resources for the Australian Dairy Research Committee's research initiatives.

Scope and Application

The Dairying Industry Research and Promotion Levy Regulations (Amendment) are made under the authority of the Dairying Industry Research and Promotion Levy Act 1972, which imposes levies on the production of whole milk and butter fat in Australia. The Act applies to all entities involved in the production of whole milk or butter fat within the country, targeting the dairy industry to finance ongoing research programs overseen by the Australian Dairy Research Committee. The regulations specifically amend the rates of levy prescribed per 100 litres of whole milk and per 100 kilograms of butter fat, aligning with the recommendations of the Australian Dairy Research Committee and the Minister for Primary Industry. These amendments aim to address the financial needs of an expanding research program amidst a reduction in milk production. The new rates set forth in the regulations, effective from 1 July 1982, are 1 cent per 100 litres of whole milk and 25 cents per 100 kilograms of butter fat, which are below the maximum rates prescribed by the Act.

Key Provisions

The main operative sections of the Dairying Industry Research and Promotion Levy Regulations (Amendment) concern the rates of levy imposed on whole milk and butter fat produced in Australia. According to section 13 of the Dairying Industry Research and Promotion Levy Act 1972, the Governor-General has the authority to set these rates, with the stipulation that they must not exceed the rates recommended by the Australian Dairy Research Committee to the Minister for Primary Industry. The proposed amendment, effective from 1 July 1982, increases the levy to 1 cent per 100 litres of whole milk and 25 cents per 100 kilograms of butter fat. These new rates are based on recommendations from the Australian Dairy Research Committee, which, although not mandated by the legislation, consulted with the Australian Dairy Farmers’ Federation. The Dairying Industry Research and Promotion Levy Act 1972 imposes several obligations on the entities it governs. Primarily, it requires producers of whole milk and butter fat to pay the specified levies. These levies are intended to fund the ongoing research program of the Australian Dairy Research Committee. Additionally, the Act mandates that the Governor-General, when setting the levy rates, must consider any recommendations from the Australian Dairy Research Committee. The Act also stipulates that the proposed rates should not exceed the latest recommendations made by the Committee. This ensures that the rates are set in a manner that is informed by the needs and considerations of the research program. Failure to comply with the requirements of the Dairying Industry Research and Promotion Levy Act 1972, as amended, may result in civil or criminal penalties. While the specific penalties are not detailed in the Explanatory Statement, it is reasonable to infer that non-compliance with the levy obligations could lead to fines or other legal consequences. Producers who fail to pay the prescribed levies could face enforcement actions, including potential court proceedings. The maximum rates prescribed by the Act are 1.2 cents per 100 litres of whole milk and 30 cents per 100 kilograms of butter fat, providing a benchmark for what is legally permissible. Any breaches of these provisions could be subject to the penalties outlined under the general administrative law framework of Australia. The amendments to the Dairying Industry Research and Promotion Levy Regulations aim to address the financial needs of the Australian Dairy Research Committee by adjusting the levy rates to better support its research activities. By increasing the levy from 0.8 cents to 1 cent per 100 litres of whole milk and from 20 cents to 25 cents per 100 kilograms of butter fat, the regulation seeks to ensure that the Committee can continue its vital work in the face of increased program size and costs. The careful consideration of the Australian Dairy Research Committee's recommendations and consultation with stakeholders like the Australian Dairy Farmers’ Federation underscores the commitment to a balanced and well-informed approach to setting these rates.