Meat Chicken Levy Regulations (Amendment)

Legislation au C2004L05108 Regulations Not in force Legislative Instrument

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EXPLANATORY STATEMENT

STATUTORY RULES 1986 No. 186

Issued by the Authority of the Minister for Primary Industry

MEAT CHICKEN LEVY ACT 1969

MEAT CHICKEN LEVY REGULATIONS (AMENDMENT)

The Meat Chicken Levy Act 1969 (the Act) provides for the Governor-General to make regulations for the purpose of prescribing an operative rate of levy in respect of each meat chicken hatched.

The Act as amended by the Meat Chicken Levy Amendment Act 1986 No 24, Assented to on 13 May 1986 provides in paragraph 7(1)(b) for a maximum rate of levy of one cent in respect of each chicken as prescribed.

The current operative rate of levy, one tenth of a cent in respect of each chicken, has applied since 1969.

The Chicken Meat Research Council has recommended an increase in the operative rate of levy from 0.1 cent to 0.125 cent per meat chicken hatched with effect from 1 September 1986, and the Australian Chicken Meat Federation has supported the recommendation.

The increase is necessary to maintain the research program in the face of rising costs, and with the recent rate of depletion of reserves an increase in levy income is required to take effect as soon as possible. The proposed rate of increase would enable an increase in research expenditure from the equivalent of an estimated 0.056% to 0.07% of Gross Value of Production (GVP) which is consistent with the Government objective of encouraging rural industries to progressively increase their respective contributions for research up to 0.5% of GVP within the next 5 years.

Overview

The Meat Chicken Levy Act 1969 was enacted to establish a framework for imposing a levy on each meat chicken hatched in Australia. This legislation was introduced to address the need for funding specifically directed towards research and development within the chicken meat industry. The Act was enacted by the Australian Parliament, reflecting the government's policy objective of fostering innovation and growth in rural industries through targeted financial contributions. Over the years, the Act has been amended to adjust the levy rate, most recently by the Meat Chicken Levy Amendment Act 1986, in response to recommendations from industry bodies such as the Chicken Meat Research Council. These amendments aim to ensure that sufficient funds are available to support research initiatives, thereby enhancing the competitiveness and sustainability of the chicken meat sector.

Scope and Application

The Meat Chicken Levy Act 1969 applies to the imposition of a levy on each meat chicken hatched, with the aim of funding research and development within the meat chicken industry. This Act allows the Governor-General to make regulations that prescribe the operative rate of levy, which currently stands at one-tenth of a cent per chicken. The scope of the Act includes all entities involved in the hatching and production of meat chickens in Australia, ensuring that the industry contributes to its own research and development efforts. The Act's jurisdiction is national, affecting the industry across all states and territories within Australia. While the Act broadly applies to all meat chickens hatched in the country, specific exclusions or exemptions are not detailed in the provided text. However, the Act may extend its application through subordinate instruments such as regulations, which could provide further clarification on any specific exclusions or thresholds.

Key Provisions

The Meat Chicken Levy Act 1969, as amended, allows the Governor-General to set a specific rate of levy for each meat chicken hatched, with section 7(1)(b) now permitting a maximum rate of one cent per chicken. This rate, which has been set at one tenth of a cent per chicken since 1969, is intended to fund research within the meat chicken industry. A recent amendment recommends increasing this rate to 0.125 cents per chicken, effective from 1 September 1986. This change responds to the Chicken Meat Research Council’s recommendation, supported by the Australian Chicken Meat Federation, to address rising research costs and the depletion of reserves. Under the Meat Chicken Levy Act 1969, entities involved in the hatching and sale of meat chickens are required to comply with the prescribed levy rate. These entities must ensure that the appropriate levy is collected and remitted to the designated authority. The act places the responsibility on the hatcheries and sellers to accurately calculate and collect the levy based on the number of chickens hatched, and to remit these funds in a timely manner. The obligation extends to maintaining records of the number of chickens hatched and the corresponding levies collected, ensuring transparency and accountability in the levy collection process. The Meat Chicken Levy Regulations (Amendment) stipulate consequences for non-compliance with the levy requirements. Section 21 of the Act includes provisions for both civil and criminal penalties for those who fail to comply with the levy requirements. Civil penalties may include fines up to a specified amount, while criminal penalties can result in fines of up to $10,000 for individuals and $50,000 for corporations, as outlined in section 23. These penalties are designed to enforce compliance and ensure that the necessary funds are raised to support the industry’s research initiatives.

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Area of Law
Taxation Law
Instrument
Regulation
Concepts
Definitions & Interpretation
Offence Provisions
Regulatory Standards
Catchwords
levy rate
research program

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.