EXPLANATORY STATEMENT
STATUTORY RULES 1988 No. 252
Issued by the Authority of the Minister for Primary Industries and Energy
HONEY LEVY (NO 2) REGULATIONS (AMENDMENT)
Section 7 of the Honey Lew Act (No 2) 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 used in the manufacture of other goods. The levy has two components. The component referred to in paragraph 5(1)(b) of the Act is, by virtue of the Rural Industries Research Act 1985, designated for research funding.
Under paragraph 5(1)(b) of the Levy Act, the rate of levy for research purposes may be varied, by regulation, from 0.25 cent up to a maximum of 0.5 cent per kilogram of honey. The present prescribed rate is 0.40 cent.
Subsection 5(3) of the Levy Act provides that before making regulations for the purposes of paragraph 5(1)(b) the Governor-General shall take into consideration any recommendation made to the Minister by the Honey Research Council or by the producers’ organisation.
Both the Honey Research Council 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 0.40 cent to 0.45 cent per kilogram of honey.
The recommendation is in accordance with the Government’s objective of encouraging rural industries to increase their contributions for research.
The purpose of the proposed Regulations is to increase the rate of levy, for research purposes, to 0.45 cent per kilogram of honey. The increase is to come into effect from 1 November 1988.
Overview
The Honey Levy (No 2) Regulations (Amendment) Statutory Rules 1988 were enacted to amend the existing levy on honey used in the manufacture of other goods as stipulated in the Honey Levy Act (No 2) 1962. This legislation was introduced to address the need for increased funding for research within the rural industries sector, particularly focusing on honey production. The policy objective behind this amendment is to encourage greater contributions from rural industries for research purposes, thereby supporting the development and innovation within these sectors. The proposed regulations were issued under the authority of the Minister for Primary Industries and Energy, following recommendations from the Honey Research Council and the Federal Council of Australian Apiarists’ Associations, the producers’ organisation, to increase the levy rate for research from 0.40 cent to 0.45 cent per kilogram of honey. This increase was designed to take effect from 1 November 1988.
Scope and Application
The Honey Levy (No 2) Regulations (Amendment) Statutory Rules 1988 (No. 252), issued under the authority of the Minister for Primary Industries and Energy, pertains to the Honey Levy Act (No 2) 1962. This legislation applies to entities involved in the manufacture of goods using honey, imposing a levy that is earmarked for research funding. The regulatory framework under Section 7 of the Levy Act authorises the Governor-General to establish regulations, which in this instance, pertain to the rate of levy for research purposes. Currently, the prescribed rate of 0.40 cent per kilogram of honey is to be increased to 0.45 cent, a decision that follows recommendations from both the Honey Research Council and the Federal Council of Australian Apiarists’ Associations. The increase is designed to align with the government's objective of encouraging increased contributions from rural industries towards research. The amendment to the rate is set to take effect from 1 November 1988, extending the application of the levy across the Commonwealth of Australia.
Key Provisions
The key operative sections of the proposed regulations pertain to the amendment of the Honey Levy (No 2) Regulations 1962. Specifically, section 5(1)(b) of the Honey Levy Act (No 2) 1962 is being amended to increase the rate of levy for research purposes from 0.40 cent to 0.45 cent per kilogram of honey. This change will be effective from 1 November 1988, as stated in the explanatory statement. The amendments are made pursuant to the authority granted under section 7 of the Honey Levy Act, which allows the Governor-General to make regulations for the purposes of implementing the Act.
The proposed amendments impose specific obligations on entities subject to the Honey Levy Act. Primarily, honey manufacturers who use honey in the production of other goods will be required to pay the increased levy rate of 0.45 cent per kilogram of honey. This levy is intended to fund research activities designated under the Rural Industries Research Act 1985. The obligation falls on these manufacturers to ensure that the appropriate levy is collected and remitted to the relevant authorities. Given that the levy is earmarked for research funding, it is also incumbent upon the research bodies or organisations that receive these funds to ensure proper utilisation in accordance with the objectives of the Rural Industries Research Act.
In terms of legal consequences, the proposed regulations do not explicitly detail penalties for non-compliance. However, under the general provisions of the Honey Levy Act, failure to comply with the levy requirements could result in civil or criminal penalties. The specific nature of these penalties would be determined by the courts, but they could include fines and other enforcement actions. It is also worth noting that ongoing non-compliance or wilful evasion of the levy could lead to more severe legal repercussions, including potential prosecution.
Given that the primary focus of these regulations is to adjust the levy rate for research purposes, there are no new offences or specific penalties introduced in the proposed regulations. However, any breaches of the amended regulations, such as failure to remit the correct levy amount, could lead to enforcement actions under the existing legal framework. The maximum penalties would be determined by the courts, taking into account the severity and intent behind the non-compliance. The overarching objective is to ensure that the increased levy is collected and appropriately directed towards research activities in the rural industry sector.