EXPLANATORY STATEMENT
STATUTORY RULES 1987 No. 136
Issued by the Authority of the Minister for Primary Industry
DRIED VINE FRUITS EQUALIZATION LEVY ACT 1978
DRIED VINE FRUITS EQUALIZATION LEVY
REGULATIONS (AMENDMENT)
Sub-section 9(1) of the Dried Vine Fruits Equalization Levy Act 1978 (the Act) empowers the Governor-General to make regulations not inconsistent with that Act, prescribing all matters required or permitted by the Act to be prescribed or necessary or convenient to be prescribed for carrying out or giving effect to the Act. Sub-section 9(3) provides that the Governor-General shall take into consideration any relevant recommendations made by the Australian Dried Fruits Corporation pursuant to sub-section 9(2) with respect to regulations to be made to fix a rate of levy for dried fruit of a specified kind produced during that season.
For the purposes of equalizing export and domestic returns, section 5 of the Act imposes a levy on dried fruit produced in Australia. The levy is applied to specified kinds of dried fruit to be used for human consumption in Australia and the proceeds are later disbursed to producers in the form of an equalization payment over the total amount of fruit of that kind produced in the season.
Sub-section 6(1) of the Act provides that regulations may, at any time during a season, fix a rate of levy in respect of dried fruit of a specified kind produced during that season. Sub-section 6(2) of the Act provides that the rate of equalization levy set by regulations for a specified kind of dried fruit produced in a season shall be a rate agreed to by the Minister after consultation with, and consideration of estimates provided by, the Australian Dried Fruits Corporation. These estimates relate to the average export return, the volumes of fruit produced and the proportions of specified fruit likely to be exported and likely to be used for human consumption in Australia.
The dried vine fruits equalization scheme provides for the equalizing of returns to producers from domestic and export markets. The Dried Vine Fruits Equalization Levy Act 1978 (the Act) imposes a levy upon certain dried vine fruits for the purposes of the equalization scheme. The levy applies only to fruit destined for human consumption on the domestic market and the proceeds are later disbursed to producers in the form of an equalization payment over the total amount of fruit of that kind produced in the season. New rates of levy may be fixed for each season which commences on 1 January.
In June 1985 the Act was amended to provide for a progressive reduction, commencing in 1986, in the maximum level of assistance that can be accorded through equalization payments such that by 1990 the equalized returns at the ex-packer level will be no more than 15 percent above average export returns.
When levy is set for a specified kind of dried vine fruit, the rate is determined to ensure that the equalized returns per tonne are unlikely to exceed the average export return per tonne for that kind of dried vine fruit by more than the percentage prescribed by the Act for that season. The maximum percentages for the 1987 season are 28% for sultanas, 34.1% for currants and 63.3% for raisins.
The Australian Dried Fruits Corporation has estimated for 1987 season sultanas, currants and raisins the average export return, the volume of production and the proportions likely to be exported or used for human consumption in Australia, and on the basis of these, has recommended rates of equalization levy to apply to sultanas, currants and raisins of the 1987 season.
The Minister for Primary Industry has accepted the Corporation’s estimates and recommendations as to the appropriate rates of levy and these Statutory Rules accordingly set the rate of levy for sultanas produced during the 1987 season at $400 per tonne, the rate of levy for currants produced during the 1987 season at $434 per tonne and the rate of levy for raisins produced during the 1987 season at $543.
The rate of levy for sultanas is estimated to provide an equalized return per tonne 10.26% above the expected average export return, for currants the rate of levy is estimated to provide an equalized return 25.50% above the expected average export return and in the case of raisins the rate of levy is estimated to provide an equalized return 16.14% above the expected average export return. These rates are within the ceilings prescribed.
Overview
The Dried Vine Fruits Equalization Levy Act 1978 was enacted to establish a scheme that equalises the returns for dried vine fruit producers from domestic and export markets. The Australian Parliament introduced this Act to address the disparity between returns from domestic sales and export sales of dried vine fruits, aiming to provide a more stable income for producers. The Act imposes a levy on specified kinds of dried vine fruits intended for human consumption in Australia, with the proceeds being disbursed as equalization payments to producers based on the total amount of fruit produced in a given season. The policy objective is to ensure that the returns from domestic sales do not significantly exceed those from export sales, thereby providing a more equitable income for producers. The Australian Dried Fruits Corporation plays a key role in advising the Minister for Primary Industry on the appropriate rates of levy, based on estimates of export returns, production volumes, and the proportions of fruit likely to be exported or consumed domestically.
Scope and Application
The Dried Vine Fruits Equalization Levy Act 1978 applies to the imposition of a levy on specified kinds of dried vine fruits produced in Australia for human consumption. The Act aims to equalize the returns to producers from both domestic and export markets by distributing the proceeds of the levy in the form of an equalization payment across the total amount of fruit produced in the season. The levy is applicable only to dried vine fruits destined for the domestic market, ensuring that the returns from domestic sales do not significantly exceed those from export sales. The Act allows for the fixing of new rates of levy each season, beginning on 1 January, with the rates determined based on recommendations from the Australian Dried Fruits Corporation and approved by the Minister for Primary Industry. The maximum level of assistance through equalization payments has been progressively reduced since 1986, with the objective of ensuring that by 1990 the equalized returns will be no more than 15 percent above average export returns. The application of the Act is confined to the Commonwealth jurisdiction, and its regulations can be amended through subordinate instruments to accommodate changes in market conditions and legislative intent.
Key Provisions
The Dried Vine Fruits Equalization Levy Regulations (Amendment) Statutory Rules 1987 No. 136 are a set of amendments made under the authority of the Minister for Primary Industry to the Dried Vine Fruits Equalization Levy Act 1978 (the Act). These regulations focus on adjusting the rate of levy for dried fruits of specified kinds produced during the 1987 season. The primary sections of the Act that these regulations address are sections 5 and 6, which concern the imposition of a levy on dried fruits and the setting of rates for this levy. Section 5 mandates that a levy be imposed on dried fruits to facilitate the equalization of returns for producers, whereas Section 6 allows for the regulation to set rates of levy based on estimates provided by the Australian Dried Fruits Corporation and agreed upon by the Minister.
Under the Act, the Australian Dried Fruits Corporation plays a crucial role in providing estimates of average export returns, production volumes, and the proportions of fruit likely to be exported or used for domestic consumption. These estimates are instrumental in determining the appropriate rates of equalization levy, ensuring that the equalized returns for producers do not significantly exceed the average export returns. The regulations, taking into account these estimates, set the rates of levy for sultanas, currants, and raisins for the 1987 season. Specifically, the rates are set at $400 per tonne for sultanas, $434 per tonne for currants, and $543 per tonne for raisins. These rates are designed to provide equalized returns that are within the prescribed percentage above the average export return, ensuring the scheme operates within the legislative ceilings.
The obligations under these regulations fall primarily on the producers of dried vine fruits, requiring them to pay the specified levy on their produce. The Australian Dried Fruits Corporation must provide accurate estimates and recommendations to the Minister, who then sets the rates of levy. These rates must be adhered to by producers, who are expected to declare and pay the levy on their dried fruits. The Minister, in turn, must ensure that the rates are set according to the legislative requirements and based on the Corporation’s estimates.
Failure to comply with the requirements of the Act and these regulations can result in legal consequences. While the explanatory statement does not explicitly detail the penalties for non-compliance, it can be inferred that breaches of the Act and regulations could lead to civil or criminal penalties. Typically, under Australian legislation, penalties for non-compliance might include fines or other sanctions as prescribed by the relevant laws. The precise nature and extent of these penalties would be determined by the courts or relevant authorities, based on the specific circumstances of the breach.