EXPLANATORY STATEMENT
STATUTORY RULES 1982 NO. 135
Issued by the Authority of the Minister for Primary Industry
DAIRYING INDUSTRY RESEARCH AND PROMOTION LEVY REGULATIONS (AMENDMENT)
The Dairying Industry Research and Promotion Levy Act 1972, provides for levies to be imposed on all whole milk or butter fat produced in Australia.
Section 13 of the Act provides that the Governor-General may make regulations for the purpose of:
(a) prescribing a rate per 100 litres of whole milk for the purposes of sub-section 7(b); and
(b) prescribing a rate per 100 kilograms of butter fat for the purposes of sub-section 11(b).
Section 13 of the Act also requires the Governor-General to take into consideration any relevant recommendations made by the Australian Dairy Corporation. Before the Australian Dairy Corporation makes any recommendations for this purpose it is required to consult with the Australian Dairy Farmers’ Federation.
The purpose of the levies is to provide finance for the domestic promotional activities of the Australian Dairy Corporation.
A reduction in the total production of milk in Australia together with an increase in costs has made an increase in the levy rates necessary if the Australian Dairy Corporation is to maintain its established promotion programmes.
In accordance with section 13 of the Dairying Industry Research and Promotion Levy Act 1972, the Australian Dairy Corporation has recommended an increase in the rates of levy to apply under sub-section 7(b) and 11(b). The Australian Dairy Corporation has, as required by the legislation, consulted with the Australian Dairy Farmers’ Federation on this matter.
The purpose of the proposed regulation is to apply, from 1 July 1982, the following rates of levy:
12 cents per 100 litres of whole milk
$3.00 per 100 kilograms of butter fat.
The Act, as amended by the Dairying Industry Research and Promotion Levy Amendment Act 1980 (Assented to 17 December 1980), prescribes maximum rates of 12 cents per 100 litres of whole milk and $3.00 per 100 kg of butter fat. Currently the operative rates are 9 cents and $2.25 respectively.
Overview
The Dairying Industry Research and Promotion Levy Regulations (Amendment) Statutory Rules 1982 No. 135, issued under the authority of the Minister for Primary Industry, pertains to the amendment of the existing regulations under the Dairying Industry Research and Promotion Levy Act 1972. The original Act was enacted to impose levies on whole milk and butter fat produced in Australia, with the primary objective of funding the promotional activities of the Australian Dairy Corporation. This legislative framework was introduced to address the need for consistent and reliable funding to support the Corporation's promotional efforts within the dairying sector. The policy objective, as outlined in the explanatory statement, is to ensure that the Australian Dairy Corporation can maintain its established promotion programs despite fluctuations in milk production and associated costs. The proposed amendments, which were recommended by the Australian Dairy Corporation and subsequently endorsed after consultation with the Australian Dairy Farmers’ Federation, aim to increase the levy rates to sustain the Corporation's promotional activities.
Scope and Application
The Dairying Industry Research and Promotion Levy Regulations (Amendment) applies to all entities involved in the production of whole milk and butter fat in Australia. These regulations pertain to the rates of levy that must be paid for these products as per the provisions of the Dairying Industry Research and Promotion Levy Act 1972. The Act is applicable nationally across Australia, as it is a Commonwealth Act. The purpose of these levies is to generate funds for the domestic promotional activities of the Australian Dairy Corporation. The regulation provides for an increase in the levy rates from 9 cents per 100 litres of whole milk and $2.25 per 100 kilograms of butter fat to 12 cents and $3.00 respectively, effective from 1 July 1982. The amendment was made in consideration of the Australian Dairy Corporation's recommendations, which were in turn made after consulting with the Australian Dairy Farmers’ Federation, as required by the Act. The new rates are still within the maximum rates prescribed by the Act, which are 12 cents per 100 litres of whole milk and $3.00 per 100 kilograms of butter fat.
Key Provisions
The main operative sections of the Dairying Industry Research and Promotion Levy Regulations (Amendment) are concerned with updating the rates of the levy imposed on whole milk and butter fat production. Specifically, section 13 of the Dairying Industry Research and Promotion Levy Act 1972 allows the Governor-General to prescribe rates per 100 litres of whole milk and per 100 kilograms of butter fat, and these rates are to be set in the regulations. The amendments propose to increase these rates from 9 cents to 12 cents per 100 litres of whole milk and from $2.25 to $3.00 per 100 kilograms of butter fat, effective from 1 July 1982.
These regulations impose obligations on all parties involved in the production of whole milk and butter fat in Australia. Producers and processors must now comply with the updated levy rates as specified in the regulations. This means they must account for and remit the increased levies to the appropriate authorities. The Australian Dairy Corporation has a responsibility to consult with the Australian Dairy Farmers’ Federation before making recommendations regarding these rates, ensuring that the views and interests of the dairy farmers are considered.
Failure to comply with the new levy rates or the reporting requirements can lead to civil and criminal consequences. The specific offences and penalties are not detailed in the explanatory statement, but under the general principles of Australian administrative law, non-compliance could result in fines, legal action, or other penalties as prescribed by the relevant legislation. The maximum penalties would be aligned with those stipulated in the primary Act and could include financial penalties and, in severe cases, criminal charges for non-compliance with regulatory requirements.