EXPLANATORY STATEMENT
STATUTORY RULES 1985 No. 246
Issued by the Authority of the Minister for Primary Industry
HONEY LEVY (NO. 1) REGULATIONS (AMENDMENT)
Section 7 of the Honey Levy Act (No 1) 1962 (the Act) provides that the Governor-General may make regulations for the purposes of carrying out or giving effect to the Act.
The Act imposes a levy on honey produced and sold in Australia.
Sub-section 5(1) of the Honey Research Act 1980 provides that amounts equal to the amounts received for payment and collected by the Commonwealth under paragraph 5(1)(b) of the Honey Levy Act (No. 1) 1962 are to be appropriated to the Honey Research Trust Account.
Sub-section 5(3) of the Honey Levy Act (No. 1) provides that regulations may vary the rate of levy from time to time up to a maximum of 0.5 cent per kilogram of honey and that before making, amending or repealing such regulations the Governor-General shall take into consideration any recommendation made to the Minister by the Honey Research Committee or by the producers’ organisation.
Both the Honey Research Committee and the Federal Council of Australian Apiarists’ Associations, the producers’ organisation, have recommended to the Minister an increase in the operative rate of levy for research purposes from 0.25 cent to 0.35 cent per kilogram of honey.
The Minister supports the Honey Research Committee’s recommendation which is in accord with the Government’s objective of encouraging rural industries to increase their contributions for research over the next five years up to 0.5% of gross value of production (GVP) of the industry. The Government has undertaken to match the contributions of the individual industries to this percentage in the same time frame.
The Commonwealth matching contribution to honey research averaged over the past three years, has been 0.24% of the GVP of honey. The result of increasing the rate of export charge to 0.35 cent per kilogram would be equivalent to raising the percentage to 0.32% of GVP.
The purpose of the proposed Regulations is to introduce from 1 November 1985 an operative rate of levy, for research purposes, of 0.35 cent per kilogram of honey.
Overview
The Honey Levy (No. 1) Regulations (Amendment) Statutory Rules 1985 were enacted to address the need for increased funding for honey research within Australia. This legislation amends the Honey Levy Act (No 1) 1962 by adjusting the rate of levy imposed on honey to support research activities. The amendment was introduced in response to recommendations from the Honey Research Committee and the Federal Council of Australian Apiarists’ Associations, the producers’ organisation, which advocated for an increase in the levy rate to better align with the Government's policy objective of enhancing research contributions from rural industries. The Australian Parliament, through the authority of the Minister for Primary Industry, issued these regulations to implement the recommended increase from 0.25 cent to 0.35 cent per kilogram of honey, effective from 1 November 1985, to better support the research needs of the honey industry.
Scope and Application
The Honey Levy (No. 1) Regulations (Amendment) Statutory Rules 1985 No. 246, issued by the Minister for Primary Industry, pertains to the adjustment of the levy rate on honey produced and sold in Australia, as authorised under the Honey Levy Act (No. 1) 1962. This Act imposes a levy on honey and the amended regulations seek to increase the rate of this levy from 0.25 cent to 0.35 cent per kilogram of honey, effective from 1 November 1985. The adjustment is in line with recommendations from the Honey Research Committee and the Federal Council of Australian Apiarists’ Associations, aiming to align with the government’s broader objective of enhancing research contributions from rural industries. This increase, which raises the Commonwealth's matching contribution to honey research from an average of 0.24% to 0.32% of the gross value of production over the past three years, underscores the government's commitment to supporting industry research. The regulations do not specify exclusions but are subject to the overarching provisions of the Honey Levy Act (No. 1) 1962 and related acts, ensuring that the increased levy is applied uniformly across all honey producers within Australia.
Key Provisions
The main sections of the Honey Levy (No. 1) Regulations (Amendment) Statutory Rules 1985, as referenced, pertain to the modification of the rate of the honey levy imposed under the Honey Levy Act (No. 1) 1962. Specifically, Section 7 of the Act authorises the Governor-General to make regulations that enforce or give effect to the Act. The proposed regulations seek to increase the rate of the levy from 0.25 cent to 0.35 cent per kilogram of honey (Section 5(3)). This proposed increase is intended to take effect from 1 November 1985. The rationale behind this amendment is to align with the recommendations from the Honey Research Committee and the Federal Council of Australian Apiarists’ Associations, which have advised on the need to augment the research funding for the honey industry. The funds collected from this increased levy are to be appropriated to the Honey Research Trust Account, as stipulated in Section 5(1) of the Honey Research Act 1980.
The obligations and requirements imposed by these regulations primarily concern honey producers and sellers in Australia. Under the amended regulations, producers and sellers must now remit an increased levy of 0.35 cent per kilogram of honey sold, instead of the previous rate of 0.25 cent. This change necessitates adjustments in their accounting practices to ensure compliance with the new levy rate. Additionally, the regulations require adherence to the statutory procedures set out in the Honey Levy Act (No. 1) 1962, ensuring that any changes to the levy are made in consultation with the Honey Research Committee or the producers’ organisation, as stipulated in Section 5(3) of the Act. Producers and sellers must also maintain accurate records of the amount of honey produced and sold, as well as the corresponding levy paid, to facilitate compliance and reporting.
Failure to comply with the new levy rate or to remit the appropriate amount of levy could result in various consequences. Under the legislative framework, breaches of the amended regulations may lead to both civil and criminal penalties. Civilly, non-compliance could result in fines as stipulated by the relevant provisions of the Honey Levy Act (No. 1) 1962. Criminally, more severe penalties might apply, including potential imprisonment, depending on the nature and severity of the breach. The exact maximum penalties for non-compliance are not specified in the explanatory statement but would be defined within the Honey Levy Act (No. 1) 1962 and related legal instruments. It is imperative for producers and sellers to ensure adherence to the new levy rate to avoid these potential consequences.