EXPLANATORY STATEMENT
STATUTORY RULES 1986 NO 222
Issued by the Authority of the Minister for Primary Industry
OILSEEDS LEVY ACT 1977
OILSEEDS LEVY REGULATIONS (AMENDMENT)
The Oilseeds Levy Act 1977 provides for the Governor-General to make regulations prescribing levy rates to apply to leviable oilseeds. (ie sunflower seed, linseed, soybean, safflower seed and rape seed.) The levy is used to finance a research program arranged under the Rural Industries Research Act 1985. In addition the Commonwealth Government contributes money to the program on a dollar for dollar basis.
The oilseeds industry, through the Grains Council of Australia, has requested that the operative rate of research levy be set to the equivalent of 0.5% of industry gross value of production (GVP). This will mean an increase from the present operative rate of $1.00 per tonne to $1.35 per tonne. The increase is consistent with the Government’s objective of encouraging rural industries to increase their contributions for research to 0.5% of GVP. Under the Rural Industries Research Act 1985 this is the maximum level of Commonwealth contribution which can apply in any financial year.
The two main reasons for increasing the oilseeds research levy are to preserve the real value of the research effort and to enable the Oilseeds Research Council to maintain adequate financial reserves.
The proposed regulations are to provide for the oilseeds levy rate to be increased to $1.35/per tonne from 1 October 1986.
S.R. No.