EXPLANATORY STATEMENT
STATUTORY RULES 1983 NO. 248
Issued by the Authority of the Minister for Primary Industry
DAIRYING INDUSTRY RESEARCH AND PROMOTION LEVY REGULATIONS (AMENDMENT)
Section 6 of the Dairying Industry Research and Promotion Levy Act 1972 imposes a levy on the production and sale of whole milk produced and sold in Australia. Section 10 of that Act imposes a levy on the production and sale of butter fat produced from whole milk which has been produced in Australia where the producer of the butter fat is also the producer of the whole milk and the butter fat is sold by that producer.
There are three separate elements of levy on whole milk and butter fat, the proceeds of which are used to finance research in relation to dairy products, to provide funds for use by the Australian Dairy Corporation in promoting the sale and consumption of dairy products on the domestic market and to pay the operational and administrative costs of the Australian Dairy Corporation.
Section 7 of the Act provides for a separate rate of levy per 100 litres of whole milk to be prescribed for each of the above purposes, subject to maxima specified for each rate. Section 11 of the Act makes similar provision per 100 kilograms
of butter fat. In particular, paragraphs 7(b) and 11(b), as amended by the Dairying Industry Research and Promotion Levy Amendment Act 1983, provide that the rates of levy which may be prescribed for the purposes of those paragraphs (i.e. domestic promotional expenditure) may not exceed, in the case of paragraph 7(b), 24 cents per 100 litres of whole milk and, in the case of paragraph 11(b), $6.00 per 100 kilograms of butter fat.
Section 13 of the Act provides, inter alia, that the Governor-General may make regulations for the purposes of:
(a) prescribing a rate per 100 litres of whole milk for the purposes of paragraph 7(b); and
(b) prescribing a rate per 100 kilograms of butter fat for the purposes of paragraph 11(b).
Sub-section 13(3) of the Act requires the Governor-General to take into consideration any recommendations made by the Australian Dairy Corporation to the Minister with respect to the rates of levy which should be prescribed for the purposes of paragraphs 7(b) or 11(b). Before the Australian Dairy Corporation makes any recommendations for these purposes it is required to consult with the Australian Dairy Farmers’ Federation.
The Australian Dairy Corporation has, after consultation with the Australian Dairy Farmers’ Federation, recommended an increase in the rate of levy to apply under paragraph 7(b) of the Act to 19 cents per 100 litres of milk and a consequent increase in the rate of levy to apply under paragraph 11(b) of the Act to $4.75 per 100 kilograms of butter fat. The current rates are 12 cents and $3.00 respectively.
The purpose of the Regulations is, therefore, to introduce, from 1 November 1983, an operative rate of levy of
(a) 19 cents per 100 litres of whole milk for the purposes of paragraph 7(b) of the Dairying Industry Research and Promotion Levy Act 1972; and
(b) $4.75 per 100 kilograms of butter fat for the purposes of paragraph 11(b) of the Dairying Industry Research and Promotion Levy Act 1972.
Overview
The Dairying Industry Research and Promotion Levy Regulations (Amendment) 1983 was enacted to address the need for updating the rates of levy imposed on the production and sale of whole milk and butter fat in Australia. This amendment was introduced in response to recommendations from the Australian Dairy Corporation, which, after consulting with the Australian Dairy Farmers’ Federation, proposed higher rates to support increased funding for domestic promotional activities and research in the dairy industry. The Dairying Industry Research and Promotion Levy Act 1972 originally established these levies, with the proceeds intended to finance research, domestic promotion, and operational costs of the Australian Dairy Corporation. The regulations aim to implement these new rates, effective from 1 November 1983, to ensure adequate funding for the specified purposes while considering the operational needs and market dynamics of the dairy industry.
Scope and Application
The Dairying Industry Research and Promotion Levy Regulations (Amendment) apply to the production and sale of whole milk and butter fat within Australia, specifically targeting dairy producers and sellers who are engaged in the production of whole milk and the subsequent production of butter fat from that milk. The Act impacts all entities involved in the dairy industry, including farmers, processors, and distributors, by imposing a levy on their production and sale activities. This levy is designed to generate funds for research into dairy products, domestic promotion efforts by the Australian Dairy Corporation, and the operational costs of the Corporation itself. Geographically, the Act applies across the entire Commonwealth of Australia, ensuring a uniform approach to levy imposition and fund allocation. The rates prescribed by the regulations are not to exceed specified maxima, ensuring that the financial burden on the industry remains within manageable limits. The regulations are subject to periodic review and adjustment based on recommendations from the Australian Dairy Corporation, which must consult with the Australian Dairy Farmers’ Federation before making any proposals. This ensures that the regulatory framework remains responsive to industry needs and market conditions.
Key Provisions
The primary operative sections of the Dairying Industry Research and Promotion Levy Regulations (Amendment) concern the amendment of the rates at which levies are imposed on whole milk and butter fat. Section 6 of the Act imposes a levy on the production and sale of whole milk produced and sold in Australia, and Section 10 imposes a levy on the production and sale of butter fat produced from whole milk under specific circumstances. These levies are meant to fund research into dairy products, promote the sale and consumption of dairy products domestically, and cover the operational and administrative costs of the Australian Dairy Corporation. The amendment, as per the Regulations, specifically adjusts the rate for domestic promotional expenditure, increasing it to 19 cents per 100 litres of whole milk and $4.75 per 100 kilograms of butter fat.
The regulations impose obligations on the parties involved, most notably the Australian Dairy Corporation and the Australian Dairy Farmers’ Federation. The Australian Dairy Corporation is mandated to consult with the Australian Dairy Farmers’ Federation before making recommendations to the Minister regarding the rates of levy. Once recommendations are made, the Governor-General, taking these recommendations into account, must make regulations to prescribe the rate of levy per 100 litres of whole milk and per 100 kilograms of butter fat. These regulations are intended to ensure that the new rates, set at 19 cents per 100 litres of whole milk and $4.75 per 100 kilograms of butter fat, are implemented from 1 November 1983.
The legislation does not explicitly detail offences, penalties, or specific consequences for non-compliance with these new rates. However, it is reasonable to infer that non-compliance could result in legal repercussions as the regulations are designed to ensure the accurate collection of levies for specified purposes. The absence of specific penalties in the provided text suggests that general legal mechanisms for enforcement would apply, potentially including fines or legal action for non-compliance with prescribed rates as stipulated by the Act.
The new rates were determined after the Australian Dairy Corporation consulted with the Australian Dairy Farmers’ Federation, aligning with the procedural requirements set out in the Act. This consultation process ensures that the rates are considered and recommended based on current industry insights and needs, thereby maintaining a balance between the needs of the dairy industry and the objectives of the levy. The new rates, effective from 1 November 1983, reflect an adjustment in the financial contributions required from producers to support the objectives outlined in the Act.