EXPLANATORY STATEMENT
STATUTORY RULES 1989 NO. 247
Issued by the Authority of the Minister for Resources
GRAIN LEGUMES LEVY ACT 1985
GRAIN LEGUMES RESEARCH LEVY REGULATIONS (AMENDMENT)
Section 6 of the Grain Legumes Levy Act 1985 (the Act) imposes a levy on leviable grain legumes either delivered by the grower to another person other than for storage on behalf of the grower or processed by the grower.
Section 7 of the Act provides that the rate of levy shall not exceed $2.60 per tonne.
Section 10 of the Act provides that the Governor-General may make regulations, not inconsistent with the Act, prescribing 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.
Subsection 10(2) of the Act provides that before making regulations for the purposes of section 7 the Governor-General
shall take into consideration any relevant recommendation made to the Minister by the growers’ organization, the Grains Council of Australia (GCA).
The currently prescribed rate of levy operative since 1 October 1988 is $1.00 per tonne. The GCA has presented a submission to the Minister requesting that the rate of levy be increased by 25 cents to $1.25 per tonne commencing for the 1989-90 season.
The industry’s request to increase the levy 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 increase in the prescribed rate of levy represents an increase from 0.36% to 0.45% of the industry’s estimated GVP for 1989-90.
Section 7 of the Rural Industries Research Act 1985 (the Research Act) provides that grain legumes levy money be paid into the Grain Legumes Research Trust Fund and subsection 9(1) of the Research Act provides that the Grain Legumes Research Council may approve the payment of money out of that Trust Fund for the purposes of research and development activities in respect of the grain legumes industry.
The Commonwealth Government contributes matching amounts to cover research expenditure recommended by the Grain Legumes Research Council and approved by the Minister.
In any one financial year the Commonwealth contribution is limited to 0.5% GVP. Estimated Commonwealth expenditure for 1989-90 is $1.232 million. Increased funding to meet estimated Commonwealth matching obligations in 1989-90 resulting from the proposed increased levy is provided for in the 1989-90 Budget.
The proposed Grain Legumes Research Levy Regulations to increase the rate of levy to $1.25 per tonne is to apply from 1 October 1989.
Overview
The Grain Legumes Research Levy Regulations (Amendment) 1989, issued under the authority of the Minister for Resources, amends the Grain Legumes Research Levy Regulations 1985. The primary objective of the Grain Legumes Levy Act 1985 is to impose a levy on leviable grain legumes, with the funds collected being directed towards research and development activities in the grain legumes industry. The Act was enacted to address the need for increased funding in the grain legumes sector to support research initiatives. The Grain Legumes Research Levy Regulations (Amendment) 1989 responds to a recommendation from the Grains Council of Australia to increase the rate of the levy from $1.00 to $1.25 per tonne, effective from 1 October 1989. This amendment aligns with the Government's policy objective of encouraging rural industries to increase their contribution to research, aiming to reach 0.5% of the industry's Gross Value of Production. The increase in the levy rate is expected to contribute to meeting the Commonwealth's matching obligations for research expenditure.
Scope and Application
The Grain Legumes Research Levy Regulations (Amendment) 1989 amends the Grain Legumes Research Levy Regulations to adjust the rate of levy imposed on grain legumes under the Grain Legumes Levy Act 1985. The Act applies to all leviable grain legumes that are delivered by a grower to another person, excluding transactions for storage on behalf of the grower, or processed by the grower. The amended regulations specifically target the grain legumes industry within Australia, ensuring that the increased levy rate will be applicable across all states and territories under the Commonwealth jurisdiction. The increase in the levy rate, from $1.00 to $1.25 per tonne, is intended to align with the government's goal of enhancing the industry's contribution towards research and development activities, thus supporting the growth and sustainability of the grain legumes sector. These regulations will come into effect from 1 October 1989, following consideration of recommendations from the Grains Council of Australia and the Minister's approval.
Key Provisions
The Grain Legumes Research Levy Regulations (Amendment) concern the Grain Legumes Levy Act 1985 (the Act) and primarily involve changes to the rate of the levy imposed on grain legumes. According to section 6 of the Act, the levy applies to grain legumes delivered by growers to another person (not for storage) or processed by the grower. The Act specifies that the levy rate should not exceed $2.60 per tonne, as stated in section 7. The regulation-making power under section 10 allows the Governor-General to set rules necessary for implementing the Act, with subsection 10(2) requiring consideration of recommendations from the Grains Council of Australia (GCA) before setting the levy rate.
The proposed amendment to the regulations seeks to increase the levy rate from the current $1.00 per tonne to $1.25 per tonne, effective from 1 October 1989. This change aligns with the government's objective of increasing the industry's contribution towards research, raising the contribution from 0.36% to 0.45% of the industry’s Gross Value of Production (GVP) for the 1989-90 season. Section 7 of the Rural Industries Research Act 1985 ensures that the collected levy funds are deposited into the Grain Legumes Research Trust Fund, from which the Grain Legumes Research Council can approve payments for research and development activities.
Entities and parties governed by the Act, such as growers delivering grain legumes to entities other than for storage or processing, are required to comply with the levy. This includes ensuring the levy is paid at the prescribed rate, which has been increased to $1.25 per tonne starting from the 1989-90 season. The Commonwealth Government, under the Rural Industries Research Act, commits to matching the funds collected from the levy, up to a maximum of 0.5% of the industry’s GVP in any financial year. The increased levy rate necessitates an adjusted budget to meet the Commonwealth's matching obligations, which have been accounted for in the 1989-90 Budget.
Failure to comply with the levy requirements under the Act could result in various consequences. While the specific penalties for non-compliance are not detailed in the provided text, breaches of similar legislative requirements typically incur fines or other penalties as stipulated by related Acts. The increased levy aims to bolster research funding, and non-compliance could undermine this objective, potentially leading to scrutiny or enforcement actions by relevant authorities.