EXPLANATORY STATEMENT
STATUTORY RULES 1989 NO 244
Issued by the Authority of the Minister for Primary Industries and Energy
DRIED VINE FRUITS EQUALIZATION LEVY ACT 1978
DRIED VINE FRUITS EQUALIZATION LEVY
REGULATIONS (AMENDMENT)
Subsection 9(1) of the Dried Vine Fruits Equalization Levy Act 1978 (the Act) empowers the Governor-General to make regulations, not inconsistent with the Act, prescribing all matters required as or permitted by the Act to be prescribed or necessary to or convenient to be prescribed for carrying out or giving effect to the Act.
Subsection 9(3) provides that the Governor-General shall take into consideration any relevant recommendations made by the Australian Dried Fruits Corporation (the Corporation) pursuant to subsection 9(2) with respect to regulations to be made to fix a rate of levy for dried fruit of a specified kind produced during a season.
Section 5 of the Act imposes a levy on dried fruit produced in Australia for the purposes of equalizing export and domestic returns. This levy is applied to specified kinds of dried fruit used for human consumption in Australia in a season and the proceeds are disbursed at a later date to producers in the form of an equalization payment over the total amount of fruit of that
kind produced in the season.
Subsection 6(1) of the Act provides that the 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. Subsection 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 Corporation. Such 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.
Section 8 of the Act provides for the exemption of specified kinds of dried fruit from levy, after consultation with the Corporation, by notice in the Gazette where the quantity of that fruit does not exceed a specified minimum quantity, or by regulation in other cases.
The Corporation has estimated for 1989 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 such estimates has recommended the rate of equalization levy to apply to sultanas and the exemption of raisins and currants from such levy.
The rate of levy for sultanas is estimated to provide an equalized return per tonne of 16.35 per cent. This rate is within the ceiling of 19.2 per cent as set out under
subsection 6(4) of the Act for sultanas of the 1989 season.
The Corporation has recommended 1989 season currants be exempt from levy on the basis that, of an estimated 1989 season production of 4378 tonnes, there is a minimal export allocation of 168 tonnes. This level of production exceeds the minimum quantity of 4000 tonnes which may be exempted from levy by notice in the Gazette under subsection 8(1) of the Act. The exemption requested must, therefore, be provided by way of regulation under subsection 8(3) of the Act. The 1989 season production raisins did not exceed the minimum quantity set for raisins and this exemption has been provided by notice in the Gazette.
The Minister for Primary Industries and Energy has accepted the Corporation’s estimates and recommendations as to the appropriate rate of levy and exemptions and this statutory regulation accordingly sets the rate of levy for sultanas produced during the 1989 season at $646 per tonne and exempts the 1989 season currants from levy.
Overview
The Dried Vine Fruits Equalization Levy Regulations (Amendment) Statutory Rules 1989 were enacted to amend the Dried Vine Fruits Equalization Levy Act 1978. This legislation was introduced to address the need for equalization of export and domestic returns for dried vine fruits produced in Australia. The regulations are designed to set specific rates of equalization levies for certain kinds of dried fruits and to exempt others from such levies based on production and export estimates. The policy objective of the Act is to ensure a fair distribution of returns among producers by standardising the income derived from both domestic and export markets. The regulations were issued under the authority of the Minister for Primary Industries and Energy, taking into consideration recommendations from the Australian Dried Fruits Corporation.
Scope and Application
The Dried Vine Fruits Equalization Levy Regulations (Amendment) Statutory Rules 1989 pertain to the Dried Vine Fruits Equalization Levy Act 1978, which applies to the imposition of a levy on dried vine fruits produced in Australia. This Act and its amendments govern the rates of levy for specified kinds of dried vine fruits intended for human consumption and their subsequent disbursement as equalization payments to producers. The Act extends to the entire Commonwealth of Australia and applies to all entities and individuals involved in the production and distribution of specified dried fruits, including sultanas, currants, and raisins. The regulations establish the rate of levy, which is intended to equalise the returns from export and domestic markets, and also provide for the exemption of certain kinds of dried fruits from the levy if their production quantities meet specified criteria. The application of the Act and its regulations can be extended or modified through subordinate instruments, such as the amendments noted in these statutory rules, which are issued under the authority of the Minister for Primary Industries and Energy. The amendments for the 1989 season establish a levy rate for sultanas and exempt currants from the levy based on the recommendations of the Australian Dried Fruits Corporation, while raisins are exempted by notice in the Gazette.
Key Provisions
The Dried Vine Fruits Equalization Levy Regulations (Amendment) establish the rate of levy for sultanas produced during the 1989 season, as well as the exemption of currants and raisins from such levy, as recommended by the Australian Dried Fruits Corporation. Under section 6(1) of the Dried Vine Fruits Equalization Levy Act 1978, these regulations have the power to set a rate of levy at any time during a season for a specified kind of dried fruit produced in that season. The rate for sultanas, set at $646 per tonne, has been determined following consultation with the Corporation and consideration of their estimates regarding average export returns, production volumes, and the proportions of fruit likely to be exported or consumed domestically. This rate is within the limit of 19.2 per cent as stipulated in section 6(4) of the Act.
The regulations also implement the Corporation’s recommendation to exempt currants and raisins from the levy. This exemption is based on the estimated 1989 season production quantities and the minimal export allocation for currants, which exceed the minimum quantity that could be exempted by notice in the Gazette as per section 8(1) of the Act. Instead, the currants exemption must be established through regulation under section 8(3). Raisins, whose production did not exceed the minimum quantity, have been exempted by notice in the Gazette. These exemptions are designed to provide relief to producers of fruits that do not meet the threshold for levy or have minimal export potential.
Entities and individuals governed by the Dried Vine Fruits Equalization Levy Act 1978 must comply with the regulations regarding the levy on sultanas and the exemptions for currants and raisins. Producers of sultanas are required to pay the specified levy of $646 per tonne, while producers of currants and raisins are exempt from this levy. These obligations ensure that the proceeds of the levy are accurately collected and subsequently disbursed as equalization payments to all producers of sultanas. The Australian Dried Fruits Corporation is tasked with providing estimates and recommendations to the Minister for Primary Industries and Energy, which form the basis for the regulations under sections 6 and 8 of the Act.
Breaches of the regulations or failure to comply with the obligations under the Dried Vine Fruits Equalization Levy Act 1978 may result in penalties. While the specific penalties are not detailed in the explanatory statement, non-compliance could potentially lead to fines or other legal consequences under the broader legislative framework. The Act and its regulations aim to ensure fair distribution of the proceeds from the levy among producers, and any failure to adhere to the prescribed rates or exemptions could undermine this objective.