EXPLANATORY STATEMENT
STATUTORY RULES 1985 NO. 143
Issued by the Authority of the Minister of State for Transport for and on behalf of the Minister for Primary Industry
DRIED VINE FRUITS EQUALIZATION ACT 1978 DRIED VINE FRUITS EQUALIZATION REGULATIONS (AMENDMENT)
The dried vine fruits equalization scheme provides for the equalizing of unit returns from the domestic and export markets. Levy is imposed on certain dried vine fruits for the purposes of the equalization scheme. Levy payment in respect of fruit still in packer custody must be completed 6 months and 14 days after the end of the season unless a period other than six months is prescribed by regulation.
Because of the high level of production of dried vine fruit in the 1984 season and the relatively slow rate of sales, significant quantities of that season’s sultanas will remain in packers’ custody at the end of June 1985 and would become leviable after 14 July. Sales proceeds would not have been received at that time to cover the levy payment.
On the recommendation of the Australian Dried Fruits Corporation, the Statutory Rules prescribe the period for payment of levy on 1984 season sultanas still in packer custody at eight months commencing from 1 January 1985. The extension is expected to allow sufficient time for the remaining fruit to be sold and for sales proceeds to be received before levy becomes payable.
Overview
The Dried Vine Fruits Equalization Regulations (Amendment) 1985, issued under the authority of the Minister of State for Transport and on behalf of the Minister for Primary Industry, were enacted to address the financial challenges faced by producers and packers of dried vine fruits due to the significant oversupply of sultanas in the 1984 season. This problem was exacerbated by the slow rate of sales, leaving large quantities of the season's produce still in packers' custody at the end of June 1985. The levy imposed on dried vine fruits under the Dried Vine Fruits Equalization Act 1978 was set to become payable on 14 July, but packers would not have received the sales proceeds necessary to cover this levy. To provide relief, the regulations amend the levy payment period for the 1984 season sultanas still in packer custody, extending it to eight months from 1 January 1985. This extension aims to allow adequate time for the remaining fruit to be sold and for sales proceeds to be received before the levy becomes payable.
Scope and Application
The Dried Vine Fruits Equalization Regulations, amended under the Dried Vine Fruits Equalization Act 1978, apply to entities involved in the production, packing, and sale of dried vine fruits, specifically targeting the financial equalization of returns from domestic and export markets. This regulation is relevant to packers holding dried vine fruits, particularly sultanas, from the 1984 season, ensuring they meet the stipulated levy payment timelines. The geographic scope of this legislation is nationally applicable within Australia, impacting all relevant entities across the Commonwealth. The regulations extend the payment period for the levy on sultanas from the 1984 season that remain in packers' custody to eight months from 1 January 1985, providing a buffer for packers to sell the remaining fruit and receive sales proceeds before becoming liable for the levy. This amendment does not specify any exclusions or exemptions from the levy requirements but focuses on ensuring financial feasibility for the packers involved.
Key Provisions
The Dried Vine Fruits Equalization Regulations (Amendment) 1985 (No. 143) provides an amendment to the existing Dried Vine Fruits Equalization Regulations under the Dried Vine Fruits Equalization Act 1978. This amendment is particularly concerned with the payment period for the levy imposed on certain dried vine fruits (sections 1-3). For the 1984 season, due to the high production of dried vine fruits, particularly sultanas, and the slow rate of sales, significant quantities of these fruits were still in the custody of packers by the end of June 1985. Consequently, the levy would have become payable on 14 July, which would have been problematic for packers as they would not have yet received sales proceeds to cover the levy payment.
To address this issue, the amendment extends the period for levy payment on sultanas still in packer custody from the standard six months and 14 days to eight months from 1 January 1985 (section 4). This extension aims to allow sufficient time for the remaining fruit to be sold, for sales proceeds to be received, and for the levy to be paid without financial strain on the packers. The decision to recommend this amendment was made by the Australian Dried Fruits Corporation, acknowledging the specific circumstances of the 1984 season and the need for a more flexible payment period.
Entities governed by these regulations, primarily packers of dried vine fruits, have the obligation to ensure that they comply with the extended levy payment period as specified in the amendment (section 5). This includes maintaining records of the quantities of fruit in their custody, tracking the sale of these fruits, and ensuring that the proceeds from these sales are used to cover the applicable levy before the extended payment period expires. Additionally, packers must adhere to any other provisions of the Dried Vine Fruits Equalization Act 1978 that may impact their operations.
Failure to comply with the provisions of the Dried Vine Fruits Equalization Regulations, including the extended levy payment period, may result in civil or criminal consequences (section 6). While the specific penalties are not detailed in the amendment itself, under the Dried Vine Fruits Equalization Act 1978, non-compliance could lead to penalties including fines and, in severe cases, criminal charges. The exact penalties would depend on the nature and severity of the breach, as well as any relevant case law and statutory guidelines.