EXPLANATORY STATEMENT
STATUTORY RULES 1989 NO 44
Issued by the Authority of the Minister for Primary Industries and Energy.
HORTICULTURAL LEVY ACT 1987
HORTICULTURAL LEVY COLLECTION ACT 1987
HORTICULTURAL LEVY(CITRUS) REGULATIONS (AMENDMENT)
HORTICULTURAL LEVY (APPLE AND PEAR) REGULATIONS (AMENDMENT)
The proposed Regulations will:
(a) increase the operative rate of levy payable for grapefruit (not in bulk) from a total of 1.67 cents per box to 2 cents per box;
(b) enable first purchasers and selling agents of fruit whose annual liability for levy is small, to lodge annual returns of levy rather than monthly returns:
(c) provide that for producers and prescribed purchasers of citrus required to lodge annual returns, the calendar year 1988 means the period commencing 1 August and ending 31 December 1988.
Section 6 of the Horticultural Levy Act 1987, (the Levy Act) imposes a levy on certain horticultural products produced and sold in Australia.
Sections 8 and 9 of the Levy Act provides that regulations may fix rates of levy destined for the Australian Horticultural Corporation (AHC) and the Horticultural Research and Development Corporation (HRDC) in relation to these horticultural products. The present operative rates for grapefruit (not in bulk) are 1.25 cents and 0.42 cents per box respectively or 1.67 cents in total.
Subsections 14(3) and 14(4) of the Levy Act require that before making regulations for the purposes of sections 8 and 9, the Governor-General shall take into consideration any relevant recommendation made to the Minister by the AHC and HRDC respectively. The AHC, on behalf of the HRDC, after consulting with the Australian Citrus Growers’ Federation, has recommended that the operative rates be increased to 1.5 cents and 0.5 cents per box or 2 cents per box in total. The main reason for seeking the change is to facilitate the collection of the levy by reducing the number of decimal places within the rates of levy. The new rates will commence on 1 April 1989.
Regulation 8 of both the Horticultural Levy (Citrus) and Levy (Apple and Pear) Regulations requires selling agents and first purchasers of leviable horticultural products to lodge monthly returns. A considerable number of these returns are for quite small amounts of levy. To reduce the cost of collection it is proposed that agents and purchasers whose annual liability for levy is less than $1,000 (or such other prescribed amount) be given the opportunity to lodge annual returns.
Regulation 9 of the Horticultural Levy (Citrus) Regulations requires certain producers and prescribed producers of citrus to lodge annual returns for each calendar year. As the Regulations came into effect on 1 August 1988 it is proposed to define the 1988 calendar year for these persons as beginning 1 August and ending 31 December 1988.
Overview
The Horticultural Levy (Citrus) Regulations (Amendment) and Horticultural Levy (Apple and Pear) Regulations (Amendment), enacted in 1989, amend the existing Horticultural Levy Act 1987 and its related regulations to address issues related to the collection and administration of levies on horticultural products. This legislation was introduced to enhance the efficiency of levy collection by adjusting the rates and frequency of returns required from certain stakeholders in the horticultural industry. The amendments were proposed following consultations with the Australian Horticultural Corporation (AHC) and the Australian Citrus Growers’ Federation, aiming to simplify the levy rates and reduce administrative burdens on small-scale operators. The amendments seek to streamline the collection process by increasing the total levy rate for grapefruit and allowing certain agents and purchasers to submit annual instead of monthly returns if their annual liability is below a specified threshold.
These regulatory changes were enacted by the authority of the Minister for Primary Industries and Energy, as part of an effort to improve the administration of horticultural levies and ensure that the collection process is both cost-effective and manageable for those involved. The policy objective behind these amendments is to support the efficient functioning of the Australian horticultural sector by facilitating smoother and more economical collection processes, thereby indirectly aiding the overall development and research activities funded through these levies.
Scope and Application
The proposed amendments to the Horticultural Levy (Citrus) Regulations and Horticultural Levy (Apple and Pear) Regulations, made under the Horticultural Levy Act 1987 and the Horticultural Levy Collection Act 1987, apply to producers, selling agents, and first purchasers of specified horticultural products in Australia. The amendments primarily affect those involved in the production, sale, and first purchase of citrus, apples, and pears. The changes involve alterations to the rates of levy payable on these products, modifications to the frequency of returns that selling agents and first purchasers must lodge, and a specific definition of the 1988 calendar year for certain producers and prescribed producers of citrus. These regulations aim to streamline the collection of levies by adjusting the rates and simplifying the reporting process for smaller liabilities. The amendments also consider recommendations from the Australian Horticultural Corporation and the Horticultural Research and Development Corporation, reflecting a collaborative approach to levy management. The changes are set to take effect from 1 April 1989, with specific transitional provisions for the 1988 calendar year.
Key Provisions
The key provisions of the proposed Regulations under the Horticultural Levy Act 1987 (Levy Act) include amendments to the levy rates and the return lodging requirements for certain horticultural products. Firstly, section 6 of the Levy Act imposes a levy on specified horticultural products produced and sold in Australia, and sections 8 and 9 provide the basis for setting the rates of this levy through regulations. The proposed regulations increase the total levy rate for grapefruit (not in bulk) from 1.67 cents per box to 2 cents per box, with individual rates for the Australian Horticultural Corporation and the Horticultural Research and Development Corporation increasing to 1.5 cents and 0.5 cents per box, respectively.
In terms of obligations, the regulations impose specific requirements on selling agents, first purchasers, and certain producers of leviable horticultural products. Regulation 8 mandates that selling agents and first purchasers of these products lodge monthly returns. However, to reduce the administrative burden and cost of collection, the proposed amendments allow those whose annual liability for the levy is less than $1,000 to lodge annual returns instead of monthly ones. Regulation 9 specifies that for producers and prescribed purchasers of citrus, the 1988 calendar year for return lodging purposes will be defined as the period from 1 August to 31 December 1988, given that the regulations came into effect on 1 August 1988.
As for the consequences of non-compliance, the legislation does not explicitly detail offences, penalties, or other legal consequences for breach of these provisions within the provided excerpt. However, it is reasonable to infer that failure to comply with the levy requirements or return lodging obligations could lead to enforcement actions, fines, or other penalties under the broader framework of the Horticultural Levy Act and related regulations. These consequences would likely be in line with the penalties provided for under other sections of the Act and would be determined by the applicable courts or tribunals.