EXPLANATORY STATEMENT
STATUTORY RULES 1990 NO. 336
Issued by the authority of the Minister for Primary Industries and Energy.
DRIED FRUITS LEVY ACT 1971
DRIED FRUITS LEVY REGULATIONS (AMENDMENT)
Section 5 of the Dried Fruits Levy Act 1971 (the Act) imposes a levy on dried fruits of a season received for packing.
Section 6 of the Act provides that
(1) The rate of the levy shall not exceed
(a) in the case of dried vine fruits - $10.00 per tonne: or
(b) in the case of dried tree fruits - $30.00 per tonne.
(2) Subject to the last preceding subsection, the regulations may fix an amount per tonne as the rate of the levy in respect of a specified kind of dried fruits.
(3) Before making any regulations for the purposes of the last preceding subsection, the Governor-General shall take into consideration any relevant recommendation, with respect to a rate of levy, made to the Minister by the Dried Fruits Research Council (the Council).
Amendment of section 6 of the Act, which increased the maximum rate of levy on dried vine fruits, was effected by the Dried Fruits Levy Amendment Act 1990 which received Royal Assent on 18 October 1990.
Section 8 of the Act provides that the Governor-General may make regulations for the purposes of section 6 of the Act.
The Council has recommended to the Minister that the levy rates for the 1990 season be increased for dried vine fruits to $5.75 per tonne, for dried tree fruits other than dried plums to $13.25 per tonne and for dried plums to $12.00 per tonne.
This is the second of a three-year rolling program of annual increases to the industry’s operative levy rates intended to raise the industry’s contributions to research to a level of 0.5 per cent of its gross value of production (GVP) by 1992.
The Commonwealth Government matches contributions by industry for research expenditure recommended by the Council and approved by the Minister up to a maximum of 0.5 percent of the industry’s GVP in any one financial year. Estimated Commonwealth expenditure for 1990/91 is $517,000. Funding to meet the estimated Commonwealth matching obligations in 1990/91 resulting from the proposed levy increases has been approved by the Government in the context of the 1990/91 Budget.
The Australian Dried Fruits Association, the organisation representing dried fruit producers, has been consulted and supports the recommended levy rates.
The Minister for Primary Industries and Energy has accepted the Council’s recommendations as to the increases in the levies and the statutory regulation accordingly sets the rate of levy for 1990 at $5.75, $13.25 and $12.00 for dried vine fruits, dried fruits (except plums) and dried plums respectively.
Overview
The Dried Fruits Levy Act 1971 was enacted by the Commonwealth Parliament to impose a levy on dried fruits received for packing, thereby providing funding for research into the dried fruits industry. The Act established a maximum levy rate of $10.00 per tonne for dried vine fruits and $30.00 per tonne for dried tree fruits, with the ability to adjust these rates through regulation. The Act was amended in 1990 to allow for an increased levy to better support research efforts, aligning with the policy objective of raising industry contributions to research to 0.5 per cent of the gross value of production by 1992. The Dried Fruits Research Council, which makes recommendations to the Minister for Primary Industries and Energy, has proposed a phased increase in levy rates, which have been accepted and are set out in the Dried Fruits Levy Regulations (Amendment). This amendment aims to ensure the industry's contributions to research match the Commonwealth Government's matching funds, supporting a total research expenditure of up to 0.5 per cent of the industry's gross value of production in any financial year.
Scope and Application
The Dried Fruits Levy Act 1971 applies to dried fruits of a season received for packing, thereby imposing a levy on such commodities. The Act primarily targets entities involved in the production and processing of dried fruits, including producers and packers, within the industry. The levy is intended to support research efforts recommended by the Dried Fruits Research Council, with the Commonwealth Government matching industry contributions up to a specified percentage of the industry's gross value of production. The Act's jurisdictional reach is national, applying across Australia as a Commonwealth Act. Exclusions or exemptions are not explicitly stated within the provided excerpt, though the application of the levy is limited to specified kinds of dried fruits as determined by the regulations. The Act allows for adjustments to the levy rates through subordinate instruments, such as the regulations made under section 8, which must be made with consideration of recommendations from the Dried Fruits Research Council and approval by the Governor-General. These regulations serve to implement the Council's recommendations and set the specific rates for each type of dried fruit, as evidenced by the amendments made in the Dried Fruits Levy Regulations (Amendment).
Key Provisions
The Dried Fruits Levy Act 1971 (section 5) mandates a levy on dried fruits of a particular season that are received for packing. This levy is a financial contribution required from the industry to support research and development activities. The levy rates are set out in section 6 of the Act, with the maximum rates specified as $10.00 per tonne for dried vine fruits and $30.00 per tonne for dried tree fruits. However, the regulations may establish a different rate per tonne for a particular kind of dried fruit, subject to the maximum rates. Any changes to these rates must be made by the Governor-General, taking into consideration any recommendations from the Dried Fruits Research Council. The Council's recommendations are pivotal in determining the rates, as they are intended to increase industry contributions to research up to a target of 0.5 percent of the industry's gross value of production by 1992.
The obligations imposed by the Act on parties, particularly the industry, involve the payment of the specified levy on their dried fruits received for packing. The industry must ensure that they comply with the rates set out in the regulations and remit the appropriate amounts. The Dried Fruits Research Council plays a critical role by providing recommendations to the Minister, who then has the authority to set the levy rates through statutory regulations. Additionally, the Commonwealth Government has an obligation to match industry contributions for research expenditure, up to a maximum of 0.5 percent of the industry's gross value of production in any financial year. This matching arrangement underscores the collaborative effort between the industry and the government to fund research initiatives.
Failure to comply with the levy requirements as stipulated in the Act and the regulations could result in various consequences. While the Act does not explicitly detail offences or penalties, breaches of similar legislative frameworks often carry civil and criminal penalties. For instance, non-payment or underpayment of levies can result in fines, and in severe cases, legal action may be pursued against defaulting parties. The precise penalties can vary, but they are typically commensurate with the seriousness and frequency of the breach. It is essential for industry participants to adhere to the prescribed levy rates to avoid any potential legal repercussions.