EXPLANATORY STATEMENT
STATUTORY RULES 1989 NO. 248
Issued by the Authority of the Minister for Resources
OILSEEDS LEVY ACT 1977
OILSEEDS LEVY REGULATIONS (AMENDMENT)
Section 5 of the Oilseeds Levy Act 1977 (the Act) imposes a levy on oilseeds delivered by the grower to another person other than for storage on behalf of the grower or processed by the grower.
Section 6 of the Act provides that the rate of levy shall not exceed $2.00 per tonne.
Subsection 9(1) of the Act provides that the Governor-General may make regulations, not inconsistent with the Act, prescribing all matters required or permitted by the Act to be prescribed or necessary or convenient to be prescribed for carrying out or giving effect to the Act.
Subsection 9(2) of the Act provides that before making regulations for the purposes of section 6 the Governor-General shall take into consideration any relevant recommendation made
to the Minister by the growers’ organization, the Grains Council of Australia (GCA).
The currently prescribed rate of levy operative since 1 October 1986 is $1.35 per tonne. The GCA has presented a submission to the Minister requesting that the rate of levy be increased to $1.55 per tonne commencing for the 1989-90 season.
The industry’s request to increase the levy accords with the Government’s objective of encouraging rural industries to increase their contribution for research to 0.5% of the industry’s Gross Value of Production (GVP). The increase in the prescribed rate of levy represents an increase from 0.41% to 0.47% of the industry’s estimated GVP for 1989-90.
Section 7 of the Rural Industries Research Act 1985 (the Research Act) provides that oilseeds levy money be paid into the Oilseeds Research Trust Fund and subsection 9(1) of the Research Act provides that the Oilseeds Research Council may approve the payment of money out of that Trust Fund for the purposes of research and development activities in respect of the oilseeds industry.
The Commonwealth Government contributes matching amounts to cover research expenditure recommended by the Oilseeds Research Council and approved by the Minister.
In any one financial year the Commonwealth contribution is limited to 0.5% of the GVP. Estimated Commonwealth expenditure for 1989-90 is $0.7 million. Increased funding to meet estimated Commonwealth matching obligations in 1989-90 resulting from the proposed increased levy is provided for in the 1989-90 Budget.
The proposed Oilseeds Levy Regulations to increase the rate of levy to $1.55 per tonne is to apply from 1 October 1989.
Overview
The Oilseeds Levy Regulations (Amendment) Statutory Rules 1989 No. 248, issued under the authority of the Minister for Resources, amends the Oilseeds Levy Regulations 1977 to increase the rate of levy on oilseeds from $1.35 to $1.55 per tonne, effective from 1 October 1989. This adjustment was introduced to align with the Government’s policy objective of increasing the oilseeds industry's contribution towards research, aiming for a total contribution of 0.5% of the industry's Gross Value of Production (GVP). The proposed amendment responds to a submission from the Grains Council of Australia, recommending the levy increase to support research and development activities in the oilseeds industry. This measure is consistent with the Rural Industries Research Act 1985, which mandates the use of levy funds for oilseeds research and development, with the Commonwealth matching industry contributions up to a limit of 0.5% of GVP.
Scope and Application
The Oilseeds Levy Regulations (Amendment) Statutory Rules 1989 No. 248 pertains to the Oilseeds Levy Act 1977 and applies to the oilseeds industry, specifically to growers who deliver oilseeds to another person for purposes other than storage or processing on behalf of the grower. The regulations are applicable on a Commonwealth level, with the proposed changes in the levy rate affecting transactions across the oilseeds sector nationwide. The Act aims to increase the levy on oilseeds to contribute more towards research and development within the industry, aligning with the government’s objective of boosting rural industry contributions to research. The amendment proposes an increase in the levy rate from $1.35 to $1.55 per tonne, effective from 1 October 1989, with the additional funds directed towards the Oilseeds Research Trust Fund as stipulated in the Rural Industries Research Act 1985. The regulations must be made by the Governor-General, taking into account any recommendations from the Grains Council of Australia, and any subordinate instruments or regulations extend or restrict the application of the Act accordingly.
Key Provisions
Section 5 of the Oilseeds Levy Act 1977 (the Act) establishes that a levy must be imposed on oilseeds when they are delivered by the grower to another person, except in cases where the delivery is for storage on behalf of the grower or for processing by the grower themselves. This levy is a fundamental requirement of the Act, intended to capture a portion of the value generated from oilseed transactions to support research and development within the oilseeds industry. Section 6 further specifies that the rate of this levy must not exceed $2.00 per tonne. These sections form the core of the legislative framework governing the imposition of the levy on oilseeds.
The Act imposes specific obligations on parties involved in the oilseeds industry. Primarily, growers are required to ensure that any delivery of oilseeds to another party triggers the imposition of the levy, unless exempted under the conditions outlined in Section 5. Additionally, the Act mandates that the Governor-General, in consultation with the Grains Council of Australia (GCA), may prescribe the rate of levy. The current rate, as set out in the regulations, is $1.35 per tonne, effective since 1 October 1986. However, a new rate of $1.55 per tonne has been proposed to take effect from 1 October 1989, reflecting a broader policy to encourage the industry to contribute more significantly to research activities.
Breaching the provisions of the Oilseeds Levy Act 1977 may result in significant legal consequences. While the Act does not explicitly detail specific offences, penalties, or consequences for non-compliance, any failure to correctly apply or remit the levy as required by the Act could potentially be construed as an infringement of statutory obligations. The penalties for such breaches are not explicitly stated in the provided text, but they could encompass fines, legal action, or other remedial measures that courts or regulatory authorities deem appropriate. The Act’s purpose is to ensure that the oilseeds industry adequately funds research and development activities, which are critical for its sustainable growth and innovation.