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.
Overview
The Dairying Industry Research and Promotion Levy Regulations (Amendment) 1985, enacted by the Australian Parliament, aims to amend the rates of the levy imposed on the production and sale of whole milk and butter fat under the Dairying Industry Research and Promotion Levy Act 1972. This legislative amendment was introduced to address the need for increased funding for research within the dairy industry, aligning with the government's objective of enhancing the industry's contribution to research. The amendment seeks to raise the levy rates to support the Australian Dairy Corporation in its research activities and domestic promotion efforts, while also considering the operational and administrative costs of the Corporation, and for overseas promotion. The proposed increase in the levy rates from 1 cent to 1.2 cents per 100 litres of whole milk and from 25 cents to 30 cents per 100 kilograms of butter fat, was recommended by the Australian Dairy Research Committee and accepted by the Minister, reflecting a commitment to boost industry contributions to research.
Scope and Application
The Dairying Industry Research and Promotion Levy Regulations (Amendment) pertains to the application of the Dairying Industry Research and Promotion Levy Act 1972, which imposes a levy on the production and sale of whole milk and butter fat produced and sold in Australia. This Act applies to all persons and entities involved in the dairy industry, including producers, processors, and sellers of whole milk and butter fat. The levy is used to fund research in relation to dairying, to support the activities of the Australian Dairy Corporation in promoting domestic and international sales of dairy products, to cover the operational and administrative costs of the Australian Dairy Corporation, and to finance overseas promotion. The rates of levy are prescribed per 100 litres of whole milk and per 100 kilograms of butter fat, with a cap of 1.2 cents for whole milk and 30 cents for butter fat as recommended by the Australian Dairy Research Committee and endorsed by the Minister. The amendment, effective from 1 November 1985, adjusts these rates to reflect the government's goal of increasing industry contributions to research. The Act’s jurisdiction spans across Australia, with the levy applying nationally. The regulations may be further extended or restricted by subordinate instruments made by the Governor-General.
Key Provisions
The Dairying Industry Research and Promotion Levy Regulations (Amendment) (C2004L01755) modifies the rates of levy imposed by the Dairying Industry Research and Promotion Levy Act 1972. Specifically, section 7(a) and section 11(a) of the Act, which pertain to levies on whole milk and butter fat respectively, are amended to increase the rates from 1 cent per 100 litres of whole milk and 25 cents per 100 kilograms of butter fat to 1.2 cents per 100 litres of whole milk and 30 cents per 100 kilograms of butter fat. These changes are effective from 1 November 1985. The levy rates are prescribed under section 13 of the Act, with the Governor-General required to consider recommendations from the Australian Dairy Research Committee and the Minister for Primary Industry before setting the rates.
Under the amended regulations, producers and sellers of whole milk and butter fat in Australia are obligated to pay the revised levies. The proceeds from these levies are earmarked for specific purposes including research into dairying, promoting the sale and consumption of dairy products domestically, covering the operational and administrative costs of the Australian Dairy Corporation, and funding overseas promotion. The new rates ensure that the industry contributes an increasing share of its gross value of production towards research over the next five years, aligning with the government's policy to encourage such contributions.
Failure to comply with the requirements to pay the amended levies may result in civil or criminal consequences. The Act does not explicitly state the penalties for non-compliance, but typically, non-payment of levies in Australia can lead to fines and other legal actions. The severity of the penalties can vary depending on the specific provisions of the Act and the discretion of the courts. The amendments aim to enhance the funding available for research and promotion activities, which are vital for the growth and sustainability of the dairy industry in Australia.