EXPLANATORY STATEMENT
STATUTORY RULES 1989 No. 226
Issued by the Authority of the Minister for Primary Industries and Energy
HONEY LEVY (NO 1) REGULATIONS (AMENDMENT)
Section 7 of the Honey Levy Act (No 1) 1962 (the Levy Act) provides that the Governor-General may make regulations for the purposes of carrying out or giving effect to the Levy Act.
The Levy Act imposes a levy on Honey produced or sold in Australia. The levy has two components. The component referred to in paragraph 5(1)(a) of the Act is, by virtue of the Honev Marketing Act 1988, designated for funding of the Australian Honey Board (AHB).
Under paragraph 5(1) (a) of the Act, the rate of levy for AHB purposes may be varied, by regulation, from 1.80 cents up to a maximum of 5.0 cents per kilogram of honey. The present prescribed rate is 2.20 cents.
Paragraph 5(2) of the Levy Act provides that before making regulations for the purposes of paragraph 5(1)(a) the Governor-General shall take into consideration any recommendation made to the Minister by the Board.
The Board is required under paragraph 5(2A) to consult with the producers’ organisation (Federal Council of Australian Apiarists’ Associations - FCAAA) and packers’ organisation (Honey Packers Association of Australia - HPAA) before making a recommendation and the producers’ organisation must agree to a new rate being prescribed. Subsection 5(2B) restricts the AHB to recommending a rate no higher than that agreed to by the producers’ organisation.
FCAAA has agreed to proposals by the AHB for an increase in the rate of levy for Board funding from 2.20 to 2.75 cents per kilogram of honey.
The purpose of the proposed Regulations is to increase the rate of levy, for AHB funding, to 2.75 cents per kilogram of honey. The increase is to come into effect from 1 September 1989.
Overview
The Honey Levy (No 1) Regulations (Amendment) Statutory Rules 1989 were enacted to amend the existing Honey Levy (No 1) Regulations 1962, specifically addressing the rate of levy for funding the Australian Honey Board (AHB). These regulations were introduced to respond to a gap in the funding mechanisms for the AHB, which needed to be updated to reflect current economic conditions and operational costs. The enacting body was the Governor-General, exercising authority under the Honey Levy Act (No 1) 1962. The policy objective of these amendments is to adjust the levy rate to ensure adequate funding for the AHB while considering the recommendations from relevant industry stakeholders, including the Federal Council of Australian Apiarists’ Associations and the Honey Packers Association of Australia. The new rate, set at 2.75 cents per kilogram of honey, was agreed upon by the producers’ organisation and is intended to take effect from 1 September 1989.
Scope and Application
The Honey Levy (No 1) Regulations (Amendment) Statutory Rules 1989 pertain to the Honey Levy Act (No 1) 1962, specifically targeting the imposition of a levy on honey produced or sold within Australia. This Act applies to all entities involved in the production and sale of honey across the country, thereby establishing a uniform regulatory framework for the honey industry. The scope of the Act encompasses the collection of funds for the Australian Honey Board (AHB) through the levy, with the current rate set at 2.20 cents per kilogram of honey, which can be adjusted within a range from 1.80 to 5.0 cents per kilogram. The amendment proposed in these regulations seeks to increase the levy rate to 2.75 cents per kilogram, effective from 1 September 1989, pending the approval of the Governor-General and the agreement of relevant producer and packer associations. The regulatory process involves recommendations by the AHB, subject to consultation with the Federal Council of Australian Apiarists’ Associations and the Honey Packers Association of Australia, and any subsequent approval by the Minister.
Key Provisions
The main operative sections of the Honey Levy (No 1) Regulations (Amendment) provide for changes to the rate of the levy imposed on honey produced or sold in Australia, as outlined in section 5(1)(a) of the Honey Levy Act (No 1) 1962. Currently, the levy is set at 2.20 cents per kilogram of honey for the purposes of funding the Australian Honey Board (AHB). The proposed amendment, which is to be effected by the regulations, increases this rate to 2.75 cents per kilogram. This amendment follows recommendations made by the AHB and consultations with the Federal Council of Australian Apiarists’ Associations (FCAAA) and the Honey Packers Association of Australia (HPAA), as stipulated in section 5(2A) of the Levy Act.
The obligations and requirements imposed by these regulations on the parties governed by the Act primarily involve compliance with the newly set levy rate. Producers and sellers of honey within Australia must adhere to this amended rate when calculating and paying their levies. The AHB, which is responsible for collecting and managing the levy funds, must implement the new rate and ensure that the increased revenue is appropriately allocated for its designated purposes. The FCAAA and HPAA must also continue their consultations to ensure that any changes to the levy rate are agreed upon by all relevant parties, as outlined in section 5(2A) of the Levy Act.
The legislation does not explicitly state any offences, penalties, or consequences for breach of these regulations. However, failure to comply with the amended levy rate could potentially lead to legal repercussions under the broader framework of the Honey Levy Act and any associated administrative guidelines. While specific penalties are not detailed in the explanatory statement, non-compliance with statutory obligations generally could result in enforcement actions, fines, or other legal consequences as prescribed under relevant legislation.