Primary Industries (Customs) Charges Amendment (Macadamia Nuts) Regulations 2018

Administered by Department of Agriculture

Legislation au F2018L00268 Regulations Not in force Legislative Instrument

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EXPLANATORY STATEMENT

 

 

Issued by Authority of the Minister for Agriculture and Water Resources

 

Primary Industries (Customs) Charges Act 1999

 

Primary Industries (Customs) Charges Amendment (Macadamia Nuts) Regulations 2018

 

 

The Primary Industries (Customs) Charges Act 1999 (the Act) provides for the ability to impose charges on a range of horticultural products, including macadamia nuts.

 

Section 8 of the Act provides that the Governor-General may make regulations prescribing matters required or permitted by that Act or that are necessary or convenient to be prescribed for carrying out or giving effect to that Act.

 

Subclause 13(2) of Schedule 14 of the Act provides that if there is a single body that is a designated body in relation to a particular product, then, before the Governor‑General makes a regulation in relation to the product, the Minister must take into consideration any relevant recommendation made to the Minister by the body.

 

The Primary Industries (Customs) Charges Regulations 2000 (the Principal Regulations) imposes the Emergency Plant Pest Response (EPPR) charge on macadamia nuts exported from Australia and sets the rate of the EPPR charge.

 

The Primary Industries (Customs) Charges Amendment (Macadamia Nuts) Regulations 2018 (the Regulations) increased the EPPR charge on macadamia nuts from nil to 0.2 cents per kilogram of dried kernels of macadamia nut.

 

This is because the Australian Macadamia Society (the AMS) wrote to the Minister on 30 June 2017 seeking to activate the EPPR charge on macadamia nuts. The funds raised from this charge will be used to repay the Australian Government for costs paid on behalf of the AMS in relation to the response plan for the eradication of varroa mite from Queensland. It is expected that the AMS’ contribution to the eradication response will be no more than $30,160, in total.

 

Charges are introduced, administered and collected by the Australian Government, usually at the request of industry. The Department of Agriculture and Water Resources (the department) collects the charge and disburses the funds to the relevant recipient body, in this instance Plant Health Australia (PHA). The AMS is a member of PHA, representing macadamia nuts.

 

The EPPR charge on macadamia nuts will be 0.2 cents per kilogram of dried kernels of macadamia nut. 

 

The charge rates were calculated to ensure that the industry’s liability to the Australian Government is repaid within two years based on estimated production. Due to varying annual production, it is difficult to predict the exact timeframe for completion of repayment. Therefore, the EPPR charges are being implemented without a specified end date. However, the AMS intends to request that the Minister reset the EPPR charges to nil once repayment is complete.

 

The charge increases are a small enough percentage of the overall charge applied to macadamia nut kernels (including R&D, marketing and national residue survey charges), such that the overall charge increase is very unlikely to influence the price of macadamia products.

 

Consistent with the Australian Government Levy Principles and Guidelines for the activation of an emergency response charge, the AMS notified levy payers of the request to activate the EPPR charge on macadamia nuts.

 

The AMS held an objection period from 28 July 2017 to 28 August 2017. One objection was received from a group of four levy payers. The group considered that the AMS had not sought formal levy payer approval and had not met the AMS Constitution’s requirements for the imposition of a “special levy.”

 

The objection was resolved after AMS wrote to the objecting party on 25 August 2017, explaining that formal levy payer approval for the activation of the EPPR levy in the case of an emergency response affecting macadamias had been obtained at the time the levy was introduced at a nil rate in 2005, and that the EPPR levy is a statutory levy, rather than a special levy under the AMS Constitution.

 

Details of the Regulations are set out in Attachment.

 

The Regulations is compatible with the 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 Attachment B.

 

The Regulations is a legislative instrument for the purposes of the Legislation Act 2003.

 

Attachment A

 

Details of the Primary Industries (Customs) Charges Amendment (Macadamia Nuts) Regulations 2018

 

Section 1 – Name of Regulations

 

This section provides that the name of the Regulations is the Primary Industries (Customs) Charges Amendment (Macadamia Nuts) Regulations 2018.

 

Section 2 – Commencement

 

This section provides for the Regulations to commence on 1 April 2018.

 

Section 3 – Authority

 

This section provides that the Regulations are made under the Primary Industries (Customs) Charges Act 1999.

 

Section 4 – Schedule

 

This section provides for the Primary Industries (Customs) Charges Regulations 2000 to be amended as set out in Schedule 1.

 

Schedule 1 – Amendments

 

Item 1 amends subclause10.6(2) of Schedule 10 to provide that the EPPR charge on macadamia nuts is 0.2 cents per kilogram of dried kernels of macadamia nut.

 

 

 

 

 

 

 


Attachment B

 

Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

 

Primary Industries (Customs) Charges Amendment (Macadamia Nuts) Regulation 2018

 

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

The purpose of the Primary Industries (Excise) Levies Amendment (Macadamia Nuts) Regulations 2018 (the Regulations) is to increase the Emergency Plant Pest Response (EPPR) charge on macadamia nuts from nil to 0.2 cents per kilogram of dried kernels of macadamia nut.

 

The Regulations commence on 1 April 2018.

 

Human rights implications

These Regulations do not engage any of the applicable rights or freedoms.

 

Conclusion

 

The measures in the Regulations are 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 as the Regulations do not engage any human rights issues.

 

 

The Hon. David Littleproud MP

Minister for Agriculture and Water Resources

 

Overview

The Primary Industries (Customs) Charges Amendment (Macadamia Nuts) Regulations 2018 were enacted to address the need for additional funding for the eradication of varroa mite from Queensland, a significant threat to the macadamia industry. The problem this legislation aimed to solve was the shortfall in funds needed to cover the Australian Government's expenses in managing the emergency plant pest response. The Regulations were introduced by the Australian Government in response to a request from the Australian Macadamia Society (AMS) to activate the Emergency Plant Pest Response (EPPR) charge on macadamia nuts, which was initially set at nil. The policy objective was to ensure the Australian Government was reimbursed for costs incurred in the eradication efforts, with the AMS contributing up to $30,160 through the increased EPPR charge of 0.2 cents per kilogram of dried kernels of macadamia nut. The enactment of these Regulations was authorised under the Primary Industries (Customs) Charges Act 1999, which empowers the Governor-General to make regulations necessary for implementing the Act, including setting charges on various agricultural products. The increased charge was introduced without a specified end date, contingent on the completion of the repayment process once the AMS's contribution is fulfilled. This approach was designed to be financially manageable for the industry, with the expectation that the overall charge increase would have minimal impact on the price of macadamia products. The Regulations also ensured compliance with the Australian Government Levy Principles and Guidelines for emergency response charges, including the notification of levy payers and resolution of any objections received.

Scope and Application

The Primary Industries (Customs) Charges Act 1999 applies to the imposition of charges on a range of horticultural products, including macadamia nuts. The Act provides a framework for the Australian Government to introduce, administer, and collect charges at the request of industry, with the funds being disbursed to relevant recipient bodies such as Plant Health Australia. The Act's application extends to the Commonwealth level and applies to entities involved in the export of macadamia nuts from Australia. The Primary Industries (Customs) Charges Amendment (Macadamia Nuts) Regulations 2018 specifically target macadamia nuts by increasing the Emergency Plant Pest Response (EPPR) charge from nil to 0.2 cents per kilogram of dried kernels of macadamia nut. This charge is implemented to repay the Australian Government for costs associated with the eradication of varroa mite from Queensland. The charge is collected and managed by the Department of Agriculture and Water Resources, with disbursement to Plant Health Australia. The Regulations were made under the authority of the Primary Industries (Customs) Charges Act 1999 and commenced on 1 April 2018. The Regulations do not specify an end date for the charge, but the Australian Macadamia Society intends to request its reset to nil upon completion of the repayment. The charge is designed to ensure that the industry's liability is repaid within two years based on estimated production, and it is unlikely to significantly influence the price of macadamia products due to its small percentage relative to other charges applied.

Key Provisions

The Primary Industries (Customs) Charges Amendment (Macadamia Nuts) Regulations 2018 (Regulations) introduce a charge on macadamia nuts exported from Australia to help repay the Australian Government for costs related to the eradication of the varroa mite in Queensland. This charge, referred to as the Emergency Plant Pest Response (EPPR) charge, was previously nil and is now set at 0.2 cents per kilogram of dried kernels of macadamia nut (Schedule 1, Item 1). This amendment to the Primary Industries (Customs) Charges Regulations 2000 (Principal Regulations) was necessitated by a recommendation from the Australian Macadamia Society (AMS), which sought to activate the EPPR charge. The Australian Government collects the charge and disburses the funds to Plant Health Australia (PHA), with the AMS representing macadamia nuts within PHA. Under the Regulations, several obligations are imposed on parties involved in the macadamia nut export industry. The charge must be paid by exporters of macadamia nuts, and the funds collected will be used specifically for the varroa mite eradication efforts. The AMS, as a representative body, has a duty to ensure that the charge is levied correctly and that the funds are used for their intended purpose. Additionally, the Australian Government, through the Department of Agriculture and Water Resources, has the responsibility to administer the charge and ensure the proper disbursement of funds to PHA. Breach of the provisions outlined in the Regulations could result in legal consequences. While the explanatory statement does not specify particular offences or penalties, non-compliance with customs charges and failure to remit the EPPR charge could lead to civil or criminal penalties under the Primary Industries (Customs) Charges Act 1999. Generally, under the Act, failure to pay applicable charges can lead to fines and other penalties, which could vary depending on the circumstances and the extent of the non-compliance. The specific penalties would be determined based on the provisions of the Customs Act 1901 and related legislation, which might include fines and, in severe cases, criminal prosecution.

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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.