EXPLANATORY STATEMENT
STATUTORY RULES 1989 NO 42
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 AKC, 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 Act 1987 was enacted to impose a levy on certain horticultural products produced and sold in Australia. The Act was introduced to address the need for funding the Australian Horticultural Corporation and the Horticultural Research and Development Corporation. The proposed regulations under this Act, specifically the Horticultural Levy (Citrus) Regulations (Amendment) and the Horticultural Levy (Apple and Pear) Regulations (Amendment), were developed to adjust the levy rates and collection procedures. The policy objective of these regulations is to streamline the collection process and reduce administrative burdens by increasing the operative rate of levy for grapefruit and allowing smaller levies to be lodged annually instead of monthly. These amendments were made following recommendations from the Australian Horticultural Corporation and the Horticultural Research and Development Corporation, with the aim of facilitating easier levy collection and reducing the complexity of decimal rates.
Scope and Application
The Horticultural Levy Act 1987 applies to the producers, selling agents, and first purchasers of specified horticultural products in Australia. It imposes a levy on these products, which is collected and allocated to the Australian Horticultural Corporation and the Horticultural Research and Development Corporation for designated purposes. The Act mandates that the Governor-General, when making regulations to set the rates of levy, consider recommendations from the relevant corporations and industry associations. The regulations, including the Horticultural Levy (Citrus) Regulations and the Horticultural Levy (Apple and Pear) Regulations, determine the specific rates of levy for different products and may also establish procedures for lodging returns. The proposed amendments to these regulations aim to streamline the collection process by adjusting the levy rates and allowing smaller entities to submit annual instead of monthly returns, provided their annual levy liability is below a certain threshold. These amendments are designed to enhance efficiency while ensuring that the necessary funds are collected to support the designated corporations.
Key Provisions
The key provisions of the proposed regulations are outlined under the Horticultural Levy Act 1987, with specific amendments to the Horticultural Levy (Citrus) Regulations and Horticultural Levy (Apple and Pear) Regulations. Firstly, Section 6 of the Act establishes a levy on certain horticultural products, and sections 8 and 9 allow for the setting of these rates through regulations. The amendment proposed under section (a) increases the rate of the levy for grapefruit from 1.67 cents per box to 2 cents per box, effective from 1 April 1989. This change is intended to simplify the collection process by reducing the number of decimal places in the levy rate.
The obligations under these regulations include the requirement for first purchasers and selling agents to lodge either monthly or annual returns, depending on their annual liability for the levy. Regulation 8 provides that those with a small annual liability (less than $1,000) may lodge annual returns instead of monthly ones to reduce administrative burden and costs. For producers and prescribed purchasers of citrus, Regulation 9 stipulates that the calendar year for lodging annual returns will commence from 1 August and end on 31 December 1988, aligning the period with the date the regulations came into effect.
Breach of these regulations can result in civil or criminal consequences. While the specific penalties are not detailed in the text, under Australian law, non-compliance with statutory regulations can lead to fines or other penalties as prescribed by the relevant Act. The Horticultural Levy Act 1987 might include provisions for penalties for non-compliance, which could include fines or legal action, depending on the severity and intent of the breach. The exact penalties would typically be outlined in the main Act or in related legislation governing enforcement and compliance.