EXPLANATORY STATEMENT
STATUTORY RULES 1985 NO. 245
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. The whole milk and butter fat bases are alternative means of applying the levy.
There are separate elements of levy on whole milk and butter fat, the proceeds of which are used respectively to finance research in relation to dairying; to provide funds for use by the Australian Dairy Corporation in promoting the sale and consumption of dairy products on the domestic market; to pay the operational and administrative costs of the Australian Dairy Corporation; and for overseas promotion. The amendment proposed to the regulation is concerned only with the levy for research purposes.
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. Alternatively, Section 11 of the Act makes similar provision
per 100 kilograms of butter fat. Paragraphs 7(a) and 11(a) of the Act provide that the rates of levy which may be prescribed for the purposes of those paragraphs (i.e. financing research) may not exceed, in the case of 7(a), 1.2 cents per 100 litres of whole milk and, in the case of 11(a), 30 cents 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 prescribing a rate per 100 litres of whole milk for the purposes of paragraph 7(a); and prescribing a rate per 100 kilograms of butter fat for the purposes of paragraph 11(a).
Sub-section 13(2) of the Act requires the Governor-General to take into consideration any recommendation made by the Australian Dairy Research Committee to the Minister with respect to the rates of levy which shall be prescribed for the purposes of paragraph 7(a) or 11(a).
The Australian Dairy Research Committee has, with the support of the Australian Dairy Farmers’ Federation, recommended to the Minister an increase in the rate of levy to apply under paragraph 7(a) of the Act to 1.2 cents per 100 litres of milk with a corresponding increase in the rate of levy to apply under paragraph 11(a) of the Act to 30 cents per 100 kilograms of butter fat. The Minister has accepted this
recommendation. The current operative rates are 1 cent and 25 cents respectively.
The increase in the levy accords with the Government’s objective of encouraging rural industries to increase their contribution to research, over the next five years, to 0.5% of the gross value of production of the industry. The Government has undertaken to match the contributions of the individual industries to this percentage level in the same time frame.
The purpose of the proposed regulations is to introduce, from 1 November 1985, an operative rate of levy of
• 1.2 cents per 100 litres of whole milk for the purposes of paragraph 7 (a) of the Dairying Industry Research and Promotion Levy Act 1972; and alternatively
• 30 cents per 100 kilograms of butter fat for the purposes of paragraph 11(a) of the Dairying Industry Research and Promotion Levy Act 1972.