EXPLANATORY STATEMENT
Issued by Authority of the Minister for Agriculture and Water Resources
Plant Health Australia (Plant Industries) Funding Act 2002
Plant Health Australia (Plant Industries) Funding Determination 2015
Legislative Authority
The Plant Health Australia (Plant Industries) Funding Act 2002 (the Act) requires funds raised by Plant Health Australia (PHA) levies and charges to be paid to PHA to discharge a plant industry member’s fundable contribution liability for the year.
In accordance with clause 13 of Schedule 27 to the Primary Industries (Excise) Levies Act 1999, the Minister is able to declare a PHA plant industry member to be the designated body for two or more plant products. The funds raised through the PHA levy or charge on those plant products are used to discharge the plant industry member’s annual membership contribution to PHA.
Where a plant industry member of PHA is the designated body for two or more PHA plant products, subsection 10(3) of the Act requires the Minister to determine for each of the relevant plant products what proportion of the annual membership contribution of the plant industry member relates to each plant product. The Minister must have regard to PHA’s advice in making the determination.
Purpose
Grain Producers Australia Limited (GPA), AUSVEG Limited (AUSVEG) and Wine Grape Growers Australia Incorporated (WGGA) are the designated bodies for 2 or more plant products. The Plant Health Australia (Plant Industries) Funding Determination 2015 (the Determination) determines for each relevant plant product what proportion, in percentage terms, of the 2015-16 annual membership contribution to PHA relates to that plant product.
Background
PHA levies and charges are imposed by the Australian Government at the request of industry. PHA levies and charges are collected by the Department of Agriculture and Water Resources (the department), which pays the funds to PHA in accordance with the Act.
PHA was established in 2000 to facilitate a national approach to ensure Australia’s plant health status through effective partnerships between government and industry on matters such as pest preparedness and prevention, and emergency response and management. PHA’s budget, including its core annual running costs, are subject to agreement by its government and industry members at the PHA Annual General Meeting. PHA’s core annual running costs are shared between its members, with plant industry members liabilities generally met through a PHA levy or charge. The financial contributions of plant industry members to PHA are determined each year in accordance with the procedure set out in the constitution of PHA.
GPA, AUSVEG and WGGA are plant industry members which have been declared by the Minister under the Primary Industries (Excise) Levies (Designated Bodies) Declaration 2013 (including as amended by the Primary Industries (Excise) Levies (Designated Bodies) Amendment Declaration 2015) as the designated bodies for two or more plant products.
Impact and Effect
The Determination determines in percentage terms the annual membership contributions payable to PHA for the relevant PHA plant products for GPA, AUSVEG and WGGA. The Determination does not change the overall PHA levy or charge amounts collected from producers of the relevant PHA plant products.
Subsection 10(2) of the Act requires PHA to advise the Minister what proportion of the annual membership contribution relates to each PHA plant product for each financial year. In providing this advice to the Minister, PHA recalculates the proportions annually based on the gross value of production for each PHA plant product. Proportions are based on the most recent production figures and are developed in consultation with the relevant industry. As the value of the represented industries may change over time relative to each other, the annual recalculation ensures that each industry continues to contribute its fair share to the relevant designated body’s annual membership contribution. This determination has been made consistent with PHA’s advice for 2015-16.
The determination allocates proportion of yearly contributions that commenced on 1 July 2015. There is no change to the PHA levy or charge rates collected from producers of each of the relevant PHA plant products.
Consultation
PHA has advised the proportions for each relevant PHA plant product for 2015-16. Before providing this advice, PHA consulted with GPA, AUSVEG and WGGA (the designated bodies for 13 grain products, 3 vegetable and potato products, and 2 grape products respectively), regarding the proportions of the 2015-16 annual membership contribution for relevant PHA plant products.
The Office of Best Practice Regulation (OBPR) has been consulted (OBPR Reference Number 19592 refers).
The Amendment Declaration is compatible with human rights and freedoms recognised or declared under section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011. A full statement of compatibility is set out in the Attachment.
The Amendment Declaration is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
Details of the Plant Health Australia (Plant Industries) Funding Determination 2015
Section 1 – Name
This section provides that the name of the Determination is the Plant Health Australia (Plant Industries) Funding Determination 2015.
Section 2 – Commencement
This section provides that the Determination commences on 1 January 2016.
Section 3 – Authority
This section provides that the Determination is made under the Plant Health Australia (Plant Industries) Funding Act 2002.
Section 4 – Schedules
This section provides that any instruments specified in a Schedule of the Determination are amended or repealed as described in the Schedule.
Section 5 – Definition
This section provides that the meaning of ‘Act’ as referred to in the Determination is the
Plant Health Australia (Plant Industries) Funding Act 2002.
Section 6 – Determination of proportion of yearly contribution – Grain Producers Australia Limited
This section declares the proportion of the annual membership contribution for GPA for 2015-16 that relates to each relevant PHA plant product. The PHA plant products are listed in column 2, and their corresponding proportions in column 3, of the table shown in subsection 6(2) of the Determination.
Section 7 – Determination of proportion of yearly contribution – AUSVEG Limited
This section declares the proportion of the annual membership contribution for AUSVEG for 2015-16 that relates to each relevant PHA plant product. The PHA plant products are listed in column 2, and their corresponding proportions in column 3, of the table shown in subsection 7(2) of the Determination.
Section 8 – Determination of proportion of yearly contribution – Wine Grape Growers Australia Incorporated
This section declares the proportion of the annual membership contribution for WGGA for 2015-16 that relates to each relevant PHA plant product. The PHA plant products are listed in column 2, and their corresponding proportions in column 3, of the table shown in subsection 8(2) of the Determination.
Schedule 1 – Repeal
This part repeals the Plant Health Australia (Plant Industries) Funding Determination 2014, which is superseded by the Determination.
ATTACHMENT
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Plant Health Australia (Plant Industries) Funding Determination 2015
This Legislative Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
Overview of the Legislative Instrument
This Legislative Instrument determines for each relevant plant product what proportion, in percentage terms, of the 2015-16 annual membership contribution for Plant Health Australia (PHA) relates to that plant product and repeals the Plant Health Australia (Plant Industries) Funding Determination 2014.
This Legislative Instrument will, in effect, enable Grain Producers Australia Limited, AUSVEG Limited and Wine Grape Growers Australia Incorporated to meet their annual membership contribution to PHA using PHA levies and charges.
Human rights implications
This Legislative Instrument does not engage any of the applicable rights or freedoms.
Conclusion
This Legislative Instrument is compatible with human rights as it does not raise any human rights issues.
The Hon. Barnaby Joyce MP
Minister for Agriculture and Water Resources