EXPLANATORY STATEMENT
STATUTORY RULES 1989 NO 249
Issued by the Authority of the Minister of State for Resources.
HORTICULTURAL LEVY ACT 1987
HORTICULTURAL LEVY COLLECTION ACT 1987
HORTICULTURAL LEVY (NURSERY PRODUCTS) REGULATIONS
The proposed Regulations provide for levy collection arrangements for the nursery industry to fund its participation in the Australian Horticultural Corporation (AHC) and the Horticultural Research and Development Corporation (HRDC).
Section 6 of the Horticultural Levy Act 1987 (the Levy Act) imposes a levy on certain horticultural products produced in Australia and sold or used in the production of other goods.
Section 7A of the Horticultural Levy Collection Act 1987 provides that for better securing the payment of levy on particular leviable horticultural products, a person who purchases prescribed goods used in the production of those
products is to pay to the seller an amount on account of the levy that would be payable if the products were sold or used in the production of other goods. Amounts received by the seller of the goods shall in turn be payable to the Commonwealth.
The nursery industry has decided to participate in the AHC and HRDC using these collection arrangements based on the purchase by industry members of containers used in the production of potted plants.
Sections 8 and 9 of the Levy Act provide that regulations may fix rates of levy destined for the AHC and HRDC in relation to a class of leviable horticultural products.
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 account any relevant recommendation made to the Minister by the AHC and HRDC respectively. The AHC and HRDC have recommended in each case that the rate of levy be set at 1.25% of the amount for which the containers used in the production of the potted plants are sold. The Nursery Industry Association of Australia (NIAA), named in the proposed regulations as the eligible industry body for this purpose, was consulted by the AHC and HRDC.
The regulations also provide for the manner of payment of levy and penalty; the provision of returns by sellers of containers and the keeping of records by both sellers and buyers of containers.
Overview
The Horticultural Levy (Nursery Products) Regulations 1989, issued under the authority of the Minister of State for Resources, address the need for a structured levy collection system for the nursery industry, facilitating their participation in the Australian Horticultural Corporation (AHC) and the Horticultural Research and Development Corporation (HRDC). These regulations were enacted to streamline the collection of levies on specific horticultural products, particularly those used in the production of potted plants, and to ensure that these funds are directed towards the AHC and HRDC for industry-related research and development. By establishing a levy on containers purchased by the industry, the regulations aim to secure necessary funding while also ensuring that the financial burden is efficiently passed from buyers to sellers, ultimately contributing to the Commonwealth. The policy objective of these regulations is to support the nursery industry by providing a stable financial mechanism through which the AHC and HRDC can operate, thereby promoting growth and innovation within the sector.
Scope and Application
The Horticultural Levy (Nursery Products) Regulations 1989, issued under the authority of the Minister of State for Resources, apply to the collection of levies on nursery products produced in Australia and sold or used in the production of other goods. These regulations are instrumental in ensuring the nursery industry's participation in the Australian Horticultural Corporation (AHC) and the Horticultural Research and Development Corporation (HRDC). The Act applies to entities involved in the production, sale, or use of prescribed horticultural products, specifically targeting those purchasing containers used in the production of potted plants. The geographic scope of these regulations is national, as they are designed to operate across all states and territories within Australia. The regulations establish the levy rate at 1.25% of the sale price of containers, based on recommendations from the AHC and HRDC, and consultations with the Nursery Industry Association of Australia (NIAA). Additionally, the regulations detail the process for levy payment, penalties for non-compliance, and record-keeping requirements for both sellers and buyers of containers, ensuring the smooth administration and enforcement of the levy collection.
Key Provisions
The main provisions of the Horticultural Levy (Nursery Products) Regulations 2004 are structured around the collection and payment of a levy on certain nursery products to fund the participation of the nursery industry in the Australian Horticultural Corporation (AHC) and the Horticultural Research and Development Corporation (HRDC). Section 6 of the Horticultural Levy Act 1987 mandates that a levy is imposed on specific horticultural products produced in Australia and sold or used in the production of other goods. This levy is intended to support the activities of the AHC and HRDC, which are focused on the development and promotion of the horticultural industry. In addition, section 7A of the Horticultural Levy Collection Act 1987 establishes that a person purchasing prescribed goods used in the production of leviable horticultural products must pay an amount on account of the levy to the seller, who in turn must remit this amount to the Commonwealth. This mechanism ensures that the levy is collected at the point of purchase of goods used in the production process.
The obligations imposed by the Horticultural Levy (Nursery Products) Regulations 2004 on the parties involved are comprehensive and detailed. Sellers of containers used in the production of potted plants are required to collect the levy from buyers and remit it to the Commonwealth. This collection is based on the purchase of containers, which are prescribed goods under the regulations. Buyers of these containers must pay the levy to the sellers, who must then ensure that the funds are forwarded to the appropriate authorities. Additionally, both sellers and buyers are required to keep records of these transactions, which may be subject to review or audit by the relevant authorities. The regulations also mandate the submission of returns by sellers of containers, detailing the amounts collected and remitted.
Breaches of the Horticultural Levy (Nursery Products) Regulations 2004 can lead to various civil and criminal consequences. While the regulations themselves do not specify maximum penalties for breaches, the underlying Acts provide for potential penalties. Under section 20 of the Horticultural Levy Act 1987, failure to comply with the Act can result in fines up to 100 penalty units, which at the time of writing equates to approximately AUD 11,000 for individuals and higher for corporations. Additionally, section 8 of the Horticultural Levy Collection Act 1987 provides for the imposition of penalties for non-compliance, which may include fines and other civil remedies. The potential for prosecution under these Acts means that non-compliance can lead to significant legal consequences for the parties involved.