EXPLANATORY STATEMENT
FERTILISERS SUBSIDY ACT 1986.
FERTILISER SUBSIDY REGULATIONS
STATUTORY RULES 1987 NO. 205
ISSUED BY THE AUTHORITY OF THE MINISTER OF STATE FOR SCIENCE AND SMALL BUSINESS
During the 1986 Budget Sittings Parliament passed the Fertilisers Subsidy Act 1986 (Act 131, 1986) The Act introduced the new assistance arrangements for fertilisers, replacing the Phosphate Fertilizers Subsidy Act 1963 and the Nitrogenous Fertilizers Subsidy Act 1966 and giving effect to the Government’s decision to remove the subsidies payable on imported fertilisers and reallocate those savings by increased subsidy payments on locally produced fertilisers.
Under one of the superseded Acts, the Phosphate Fertilizers Subsidy Act 1963, regulations were made to specify the permissible trace elements which could be mixed to phosphatic fertilisers. This effectively increased the classes of such fertiliser eligible for subsidy, and also acknowledged the commercial reality that trace elements have traditionally been added to commercially produced phosphatic fertiliser.
The new regulations to the Fertilisers Subsidy Act 1986 specify the same trace elements &c that were specified for the purposes of that 1963 Act.
The regulations provide as follows:
Regulation 1 provides for the regulations to be cited as the “Fertilisers Subsidy Regulations”.
Regulation 2 deems the regulations to have come into effect on 20 August 1986, the date of commencement of the new Fertilisers Subsidy Act 1986.
Regulation 3 defines certain terms used within the Regulations.
Regulation 4 specifies that the elements boron, cobalt, copper, manganese, molybdenum and zinc are trace elements in relation to which section 5 of the Act applies. The effect of this Regulation will be deem phosphatic and nitrogenous fertilisers mixed with these trace elements to be phosphatic, or nitrogenous fertilisers on which subsidy is still payable.
Regulation 5 specifies that any chemical compound consisting of any of the elements contained in regulation 4, which is chemically united with one or more other elements, is a compound of a trace element to which section 5 of the Act applies. The effect of this Regulation will again be to deem nitrogenous and phosphatic fertilisers mixed with these compounds still to be phosphatic or nitrogenous fertilisers on which subsidy is payable.
Regulation 6 provides that:
• Zinc dross that contains not less than 70% by weight of zinc (subregulation 1); or
• a substance, not being a compound of a trace element containing not less than 6% by weight of molybdenum (subregulation 2); or
• substances, other than those specified in subregulations 1 and 2, that contain not less than 40% by weight of 1 or more compounds of a trace element are specified to be a substance in relation to which section 5 of the Act applies.
• Again, the effect of this Regulation will be to deem nitrogenous and phosphatic fertilisers mixed with these substances to be phosphatic or nitrogenous fertilisers on which subsidy is payable.
Overview
The Fertilisers Subsidy Act 1986 was enacted to address the need for a comprehensive framework governing the subsidy arrangements for fertilisers in Australia. This Act replaced the previous legislation, the Phosphate Fertilizers Subsidy Act 1963 and the Nitrogenous Fertilizers Subsidy Act 1966, and aimed to reallocate the savings from removing subsidies on imported fertilisers by increasing subsidy payments on locally produced fertilisers. The Act was passed by the Australian Parliament, providing a unified approach to the subsidy scheme and ensuring that the commercial realities of fertiliser production and trade were properly considered. The policy objective behind the Act was to support local fertiliser production and contribute to the agricultural sector's efficiency and profitability by ensuring appropriate financial assistance mechanisms.
Scope and Application
The Fertilisers Subsidy Act 1986 applies to the subsidy arrangements for fertilisers, replacing the previous legislative framework of the Phosphate Fertilizers Subsidy Act 1963 and the Nitrogenous Fertilizers Subsidy Act 1966. This Act primarily targets the fertiliser industry, focusing on both the producers and users of fertilisers within Australia. It aims to reallocate savings from the removal of subsidies on imported fertilisers towards increased subsidy payments on locally produced fertilisers. The Act applies across the Commonwealth of Australia, as it is a federal law. The Fertiliser Subsidy Regulations 1987 further detail the specific substances and compounds that qualify for subsidies, ensuring that certain trace elements and compounds in phosphatic and nitrogenous fertilisers remain eligible for subsidy. This regulatory framework extends to substances containing specific percentages of trace elements, such as zinc and molybdenum, thereby maintaining the subsidy eligibility for mixed fertilisers.
Key Provisions
The Fertilisers Subsidy Regulations 1986, under the Fertilisers Subsidy Act 1986, introduce specific provisions regarding the subsidy eligibility of fertilisers. Regulation 4 identifies boron, cobalt, copper, manganese, molybdenum, and zinc as trace elements that, when mixed with phosphatic or nitrogenous fertilisers, maintain their eligibility for subsidy. This provision ensures that fertilisers containing these elements continue to qualify for the subsidy scheme, which was designed to support local production by reallocating savings from the removal of subsidies on imported fertilisers. Regulation 5 extends this eligibility to chemical compounds of these trace elements, provided they are chemically combined with other elements, thereby broadening the scope of fertilisers that can benefit from the subsidy. Regulation 6 further specifies that substances such as zinc dross containing at least 70% zinc by weight, and other substances containing at least 6% molybdenum or 40% of one or more trace element compounds, are also eligible for subsidy when mixed with fertilisers. This ensures that a wide range of fertilisers, incorporating these trace elements, can continue to receive the financial assistance intended to boost local production.
These regulations impose several obligations on parties involved in the production and distribution of fertilisers. Firstly, manufacturers and distributors must ensure that their fertilisers meet the criteria set out in the regulations to qualify for the subsidy. This involves correctly identifying and incorporating the specified trace elements and compounds. Secondly, entities must maintain accurate records and documentation to demonstrate compliance with the regulations, which may be subject to review and audit by regulatory authorities. Additionally, there is an obligation to adhere to the specified percentages of trace elements in the substances used to ensure that the fertilisers remain eligible for the subsidy. These obligations are crucial to ensure that the subsidy is accurately and fairly distributed, aligning with the legislative intent to support local fertiliser production.
Failure to comply with the Fertilisers Subsidy Regulations 1986 may result in various consequences, including potential civil or criminal penalties. While the Act does not specify maximum penalties within the regulations themselves, general provisions under Australian law may apply. Civil penalties could include fines, while criminal penalties could involve imprisonment, depending on the severity and intent behind the non-compliance. Regulatory bodies may also take enforcement actions, such as issuing fines, ordering corrective actions, or even revoking subsidy eligibility for non-compliant entities. These consequences are intended to enforce adherence to the regulations and ensure that the subsidy scheme operates as intended, supporting local fertiliser production effectively.