EXPLANATORY STATEMENT
STATUTORY RULES 1988 NO. 268
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 - $5.00 per tonne; or
(b) in the case of dried tree fruits - $30.00 per tonne.
(2) Subject to the last preceding sub-section, 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 sub-section, 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 (DFRC).
Section 8 of the Act provides that the Governor-General may make regulations for the purposes of section 6 of the Act.
The DFRC has presented a recommendation to the Minister that the rates of levy be fixed at $3.50 per tonne for dried vine fruits, $8.00 per tonne for dried tree fruits other than dried plums and $10.00 per tonne for dried plums for the 1988 and subsequent seasons. The proposed rates compare with the operative rates of $2.50 per tonne for dried vine fruits, $7.00 per tonne for dried tree fruits other than dried plums and $10.00 per tonne for dried plums. The Australian Dried Fruits Association (ADFA), the organisation representing dried fruits producers, has been consulted and supports the levy rates proposed.
The DFRC’s recommendation to increase the levies accords with the Government’s objective of encouraging rural industries to increase their contribution for research to 0.5% of the industry’s gross value of production (GVP). The increases in levy rates represent an increase from 0.18% to 0.24% of the industry’s estimated GVP for 1988-89.
Section 7 of the Rural Industries Research Act 1985 (the Research Act) provides that dried fruits levy money be paid into the Dried Fruits Research Trust Fund and sub-section 9(1) of the Research Act provides that the DFRC may approve the payment of money out of that Trust Fund for the purposes of research and development activities in respect of the dried fruits industry.
The Commonwealth Government matches contributions by industry for research expenditure recommended by the DFRC and approved by the Minister.
In any one financial year the Commonwealth contribution is limited to 0.5% of the GVP. Estimated Commonwealth expenditure for 1988-89 is $325,000. Increased funding to meet estimated Commonwealth matching obligations in 1988-89 resulting from the proposed increased levies was announced in May 1988 following the Industry Development Review.
Dried Fruits Levy Regulations (Amendment) to fix the rates of levy on dried vine fruits at $3.50 per tonne and dried tree fruits other than dried plums at $8.00 per tonne are to apply to fruits received for packing during the 1988 and subsequent seasons.
Overview
The Dried Fruits Levy Act 1971, enacted by the Parliament of Australia, addresses the need for a structured financial mechanism to support research and development within the dried fruits industry. The Act originally imposed a levy on dried fruits to fund the Dried Fruits Research Council (DFRC), and was designed to ensure that the industry contributes to its own research needs. In 1988, the Dried Fruits Levy Regulations were amended to increase the levy rates in line with the government’s objective of encouraging the industry to contribute 0.5% of its gross value of production towards research. The amendments, recommended by the DFRC and supported by the Australian Dried Fruits Association, were made to ensure adequate funding for research activities, with the Commonwealth Government matching industry contributions up to a maximum of 0.5% of the industry’s gross value of production.
Scope and Application
The Dried Fruits Levy Act 1971 applies to dried vine fruits and dried tree fruits, including dried plums, and imposes a levy on these fruits when they are received for packing. The Act sets out the maximum allowable levy rates, which the Governor-General can further specify through regulations. The levies collected under this Act are directed into the Dried Fruits Research Trust Fund, facilitating research and development activities within the dried fruits industry, as stipulated by the Rural Industries Research Act 1985. The Act has a national reach, affecting the entire Commonwealth of Australia, and its regulations are amendable to adjust the levy rates based on recommendations from the Dried Fruits Research Council, subject to consideration by the Minister. The Act does not specify exclusions or exemptions, but the regulatory framework allows for flexibility in setting rates through subordinate instruments. The amendment of these regulations to set specific levy rates for the 1988 and subsequent seasons, following recommendations from the Dried Fruits Research Council and supported by the Australian Dried Fruits Association, aligns with the government’s goal of increasing industry contributions to research.
Key Provisions
The Dried Fruits Levy Act 1971 (the Act) outlines the imposition of a levy on dried fruits of a season received for packing. Section 5 of the Act specifies the levy rates, which are capped at $5.00 per tonne for dried vine fruits and $30.00 per tonne for dried tree fruits. Section 6 of the Act allows the Governor-General to set the specific rate of the levy, provided that it does not exceed the maximum rates specified in Section 5. The regulations must be made considering any relevant recommendations made by the Dried Fruits Research Council (DFRC) to the Minister. The DFRC has recommended increasing the rates to $3.50 per tonne for dried vine fruits and $8.00 per tonne for dried tree fruits other than dried plums, which aligns with the government’s objective of increasing industry contributions for research.
The obligations under the Act include the requirement for the Governor-General to consult with the DFRC before making any regulations regarding the rates of the levy. Additionally, the DFRC’s recommendations must be taken into account, and any increases in the levy rates must be communicated to the Australian Dried Fruits Association (ADFA), which represents the producers of dried fruits. The ADFA has shown support for the proposed levy rates, indicating a consensus among stakeholders. The levy money collected is to be paid into the Dried Fruits Research Trust Fund, from which the DFRC can approve payments for research and development activities in the dried fruits industry.
Breaches of the provisions outlined in the Act can lead to civil and criminal consequences. The Act, in conjunction with the Rural Industries Research Act 1985, ensures that the funds collected through the levy are used for designated research activities. Failure to comply with the regulations or misuse of the funds could result in penalties, although specific penalties are not detailed in the explanatory statement. The overarching aim of the Act is to support research and development in the dried fruits industry through increased industry contributions, with the Commonwealth Government matching these contributions up to a specified limit.