EXPLANATORY STATEMENT
STATUTORY RULES 1985 No. 152
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 the 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 (ADC) in promoting the sale and consumption of dairy products on the domestic market and to pay the operational and administrative costs of the ADC.
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 a maximum specified for each rate of 1.2 cents per 100 litres for research finance, 24 cents per 100 litres for domestic promotion of dairy products by the ADC and 6 cents per 100 litres for operational and administrative costs of the ADC. Section 11 of the Act makes similar provision per 100 kilograms of butter fat with in a maximum of 30 cents per 100 kilograms for research finance, $6.00 per 100 kilograms for domestic promotion of dairy products by the ADC and $1.50 per 100 kilograms for operational and administrative costs of the ADC.
The maximum rates of levy on wholemilk and butter fat which may be prescribed for the purposes of domestic promotional expenditure are provided by sub-sections 7(b) and 11(b) of the Act.
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 ADC 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 ADC makes any recommendations for these purposes it is required to consult with the Australian Dairy Farmers’ Federation.
The ADC has, after consultation with the Australian Dairy Farmers’ Federation, recommended to the Minister a decrease in the rate of levy to apply under paragraph 7(b) of the Act to 18 cents per 100 litres of milk and a consequent decrease in the rate of levy to apply under paragraph 11(b) of the Act to $4.50 per 100 kilograms of butter fat. The current rates are 19 cents and $4.75 respectively. The Minister agrees with the rate of levy proposed.
The purpose of the Regulations is, therefore, to introduce, from 1 July 1985, an operative rate of levy of
(a) 18 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) $4.50 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) 1985 was enacted by the Parliament of Australia to modify the rates of the levy imposed under the Dairying Industry Research and Promotion Levy Act 1972. This Act originally introduced a levy on the production and sale of whole milk and butter fat to fund research into dairy products, domestic promotion of dairy products by the Australian Dairy Corporation (ADC), and the operational and administrative costs of the ADC. The amendment in 1985 was aimed at addressing the need to adjust the levy rates to better reflect current economic conditions and the needs of the industry. The Minister for Primary Industry, in consultation with the ADC and the Australian Dairy Farmers’ Federation, proposed a decrease in the levy rates to support industry efficiency and promote continued growth in the sector. The amendment sets a new rate of 18 cents per 100 litres of whole milk for research and domestic promotion purposes, and $4.50 per 100 kilograms of butter fat, effective from 1 July 1985.
Scope and Application
The Dairying Industry Research and Promotion Levy Regulations (Amendment) applies to persons and entities involved in the production and sale of whole milk and butter fat derived from whole milk in Australia. The Act imposes a levy on the production and sale of these dairy products, which is earmarked for funding research into dairy products, supporting domestic promotion of dairy products by the Australian Dairy Corporation (ADC), and covering the operational and administrative costs of the ADC. The geographic scope of the Act is national, applying to all producers and sellers of whole milk and butter fat throughout Australia. The Act allows for the Governor-General to make regulations prescribing the rate of levy, which in this instance, has been amended to 18 cents per 100 litres of whole milk and $4.50 per 100 kilograms of butter fat, effective from 1 July 1985. These changes were recommended by the ADC following consultation with the Australian Dairy Farmers' Federation and approved by the Minister.
Key Provisions
The key operative sections of the Dairying Industry Research and Promotion Levy Regulations (Amendment) (C2004L01754) amend the rates of levy imposed under the Dairying Industry Research and Promotion Levy Act 1972. Section 13 of the Act, which allows the Governor-General to make regulations prescribing the rates of levy for whole milk and butter fat, is particularly significant. The amendments set forth in the Regulations reduce the rate of levy for whole milk to 18 cents per 100 litres and for butter fat to $4.50 per 100 kilograms, effective from 1 July 1985. These rates apply specifically to the domestic promotional expenditure as outlined in sections 7(b) and 11(b) of the Act.
The obligations imposed by these Regulations on parties governed by the Act include adherence to the new rates of levy. Producers and sellers of whole milk and butter fat must comply with the amended rates, which are now set at 18 cents per 100 litres for whole milk and $4.50 per 100 kilograms for butter fat. These rates are to be applied from the commencement date of 1 July 1985. The Australian Dairy Corporation (ADC) is also obligated to consult with the Australian Dairy Farmers’ Federation before making recommendations to the Minister regarding the rates of levy, as required by the Act.
The Act and Regulations do not explicitly state specific offences or penalties for non-compliance with the prescribed rates of levy. However, non-compliance with statutory requirements generally can lead to civil or administrative consequences, such as fines or other penalties as may be applicable under relevant legislation. It is also important to note that failure to adhere to these rates could result in scrutiny or enforcement actions by the regulatory authorities responsible for overseeing the implementation of the Act.