Grape Research Levy Regulations (Amendment)

Overview

The Grape Research Levy Regulations (Amendment) 1991 No. 144, issued under the authority of the Minister for Primary Industries and Energy, amend the existing Grape Research Levy Regulations to increase the operational rate of the levy from 50 cents per tonne of leviable goods to 90 cents per tonne. This amendment was enacted to address the need for increased funding for research within the grape industry, as stipulated in the Grape Research Levy Act 1986. The purpose of this levy is to finance a research scheme aimed at benefiting the grape industry, with administrative and organisational arrangements governed under the Rural Industries Research Act 1985. The amendments reflect recommendations supported by both the Australian Winemakers' Federation Incorporated and the Winegrape Growers' Council of Australia Incorporated, ensuring that the increased levy is aligned with the industry's needs and objectives. The funds collected from this levy are directed to the Grape and Wine Research and Development Corporation, which is matched by the Commonwealth on a dollar-for-dollar basis, up to a specified maximum level.

Scope and Application

The Grape Research Levy Act 1986 applies to Australian grapes and Australian grape juice delivered to processing establishments, such as wineries. The Act imposes a levy on these products to fund a research scheme dedicated to the grape industry. This scheme is administered through the Rural Industries Research Act 1985, which outlines the administrative and organisational arrangements for the research activities. The levy applies across the entire Commonwealth of Australia, encompassing all entities involved in the delivery of Australian grapes and grape juice to processing establishments. The Act allows for the operational rate of the levy to be varied, up to a maximum of $2 per tonne of leviable goods, as specified in subsection 7(2). The amendments outlined in the Grape Research Levy Regulations (Amendment) 1991 No. 144 aim to increase the operational rate of the levy from 50 cents per tonne to 90 cents per tonne. These changes must consider recommendations from relevant representative organisations, such as the Australian Winemakers' Federation Incorporated and the Winegrape Growers' Council of Australia Incorporated, before being implemented by the Governor-General as per subsection 10(2) of the Act. The collected levy is directed to the Grape and Wine Research and Development Corporation (GWRDC), with the Commonwealth matching industry contributions dollar for dollar, up to a limit of 0.5% of the average gross value of grape production for the financial year.

Key Provisions

The main operative sections of the Grape Research Levy Regulations (Amendment) 1991 No. 144 involve the adjustment of the levy rate on Australian grapes and grape juice (sections 7 and 10). Specifically, section 7(2) allows for the variation of the operational rate of the levy, which is to be increased from 50 cents to 90 cents per tonne of leviable goods. This amendment aligns with the purpose of enhancing funding for the research scheme within the grape industry. Section 10(2) requires that any recommendations made by representative organisations, such as the Australian Winemakers' Federation Incorporated and the Winegrape Growers' Council of Australia Incorporated, be considered before any regulations are made regarding the levy rate. These regulations impose specific obligations on parties involved in the grape industry. The most significant obligation is the payment of the amended levy to the Grape and Wine Research and Development Corporation (GWRDC). This levy is mandatory for all parties delivering Australian grapes or grape juice to processing establishments, typically wineries. Furthermore, the Commonwealth's role in matching the industry's expenditure on research on a dollar-for-dollar basis up to a maximum level of 0.5% of the average gross value of grape production for a financial year is also an obligation outlined in these regulations. In terms of breaches and penalties, the explanatory statement does not explicitly detail specific penalties for non-compliance with the amended levy. However, it is implicit that failure to comply with the mandatory levy payment obligations could result in legal consequences. Given the nature of such statutory requirements, penalties could potentially include fines or other civil or criminal sanctions under the relevant Acts, such as the Grape Research Levy Act 1986 or other related legislation. While the exact penalties are not stated, it is reasonable to assume that non-compliance could lead to enforcement actions by the GWRDC or other relevant authorities.