Primary Industries (Customs) Charges Amendment Regulation 2012 (No. 1)

Administered by Department of Agriculture

Legislation au F2012L01025 Regulations Not in force Legislative Instrument

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EXPLANATORY STATEMENT

 

Select Legislative Instrument 2012 No. 63

 

Issued by Authority of the Minister for Agriculture, Fisheries and Forestry

Primary Industries (Customs) Charges Act 1999

Primary Industries (Customs) Charges Amendment Regulation 2012 (No. 1)

 

Section 8 of the Primary Industries (Customs) Charges Act 1999 (the Act) provides that the Governor‑General may make regulations prescribing matters required or permitted by the Act to be prescribed for carrying out or giving effect to the Act.

 

Part 2 of Schedule 14 of the Primary Industries (Customs) Charges Act 1999 provides that Regulations may impose a charge on one or more specified products in circumstances ascertained in accordance with the Regulations.

 

The Primary Industries (Customs) Charges Regulations 2000 establish that a charge is imposed on wheat produced in Australia, if that wheat is exported. The producer, defined as the person who exports the product from Australia, is liable to pay the charge. The sole purpose of this charge, the Wheat Export Charge (WEC) is to fund the operations of Wheat Exports Australia (WEA).

 

The Regulation amends Part 5 of Schedule 14 of the Primary Industries (Customs) Charges Regulations 2000 to set the rate of the WEC to zero cents per tonne.

 

The wheat industry’s recent strong export performance and reduced expenditure under the “lighter touch” accreditation scheme means that WEA is earning more revenue than required to meet its operating expenses. WEA is primarily funded from the WEC and so these excess contributions represent an overpayment of levies under the WEC. The amendments ensure that industry is not continuing to pay more than is required for the operating costs of WEA.

 

Legislation to implement the government response to the Productivity Commission review of wheat export marketing arrangements has been introduced into parliament. This legislation abolishes WEA on 31 December 2012, with the wheat export accreditation scheme and the WEC removed on 30 September 2012.

 

Given the strong financial position of WEA, removing the WEC will not limit its operations until it is abolished on 31 December 2012. If the legislation is not passed, or if it is delayed, the WEC will be reinstated at its previous rate of 22 cents per tonne pending preparation of a cost recovery impact statement to determine the most appropriate long-term rate.

 

Clause 13 of Schedule 14 to the Act provides that before the Governor‑General makes Regulations, the Minister must take into consideration any relevant recommendation made by the relevant industry body. Grain Producers Australia is the designated body under the Primary Industries (Customs) Charges (Designated Body) Declaration 2003. It supports these amendments providing that they do not affect its desire to have WEA retained but with different functions and that the WEC can be reimposed quickly if the legislation is not passed.

 

The Office of Best Practice Regulation was consulted in the preparation of the Regulation (ID 13635).

 

Details of the Regulation are provided in the Attachment.

 

The Regulation is a legislative instrument for the purposes of the Legislative Instruments Act 2003.

 

The Regulation commences on 18 May 2012.

ATTACHMENT

Details of the Proposed Primary Industries (Customs) Charges Amendment Regulation 2012 (No. 1)

Section 1 - Name of Regulation

 This Section provides for the title to be the Primary Industries (Customs) Charges Amendment Regulation 2012 (No. 1).

Section 2 - Commencement

This Section provides for the regulation to commence on 18 May 2012.

Section 3 - Amendment of Primary Industries (Customs) Charges Regulations 2000

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

 

Section 4 - Repeal

 

This Section provides that if Schedule 1 to the Wheat Export Marketing Amendment Act 2012 does not commence on 1 October 2012, this Regulation is repealed.

Schedule 1 - Amendment

Item 1 reduces the wheat export charge from 22 cents per tonne to zero cents per tonne.

 

 


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 Regulation 2012 (No. 1)

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 amends Part 5 of Schedule 14 of the Primary Industries (Customs) Charges Regulations 2000 to abolish the Wheat Export Charge imposed on wheat produced in Australia which is exported.

 

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.

 

Minister for Agriculture, Fisheries and Forestry, the Hon. Joseph Ludwig, MP

 

 

Overview

The Primary Industries (Customs) Charges Amendment Regulation 2012 (No. 1) was enacted to address the financial sustainability of Wheat Exports Australia (WEA) by reducing the Wheat Export Charge (WEC) imposed on Australian wheat exports. The regulation, issued under the authority of the Minister for Agriculture, Fisheries and Forestry, aligns with the policy objective to ensure that the wheat industry does not overpay levies beyond what is necessary for WEA's operating expenses. With WEA generating surplus revenue due to strong export performance and reduced costs under a revised accreditation scheme, the regulation sets the WEC to zero cents per tonne. This amendment ensures that the industry is not burdened with unnecessary charges until WEA is abolished on 31 December 2012. The regulation was made in consultation with Grain Producers Australia and in compliance with human rights, as confirmed by the Statement of Compatibility with Human Rights. The regulation commenced on 18 May 2012.

Scope and Application

The Primary Industries (Customs) Charges Amendment Regulation 2012 (No. 1) applies to the Wheat Export Charge (WEC) on wheat produced in Australia that is exported. This charge was originally imposed to fund the operations of Wheat Exports Australia (WEA). The amendment effectively sets the WEC rate to zero cents per tonne, reflecting the surplus revenue WEA has accumulated due to strong export performance and reduced expenditures. The amendment applies to producers of wheat who are exporting the product from Australia, as they are the ones liable for the charge. The regulation extends to the entire Commonwealth of Australia, given its alignment with the Primary Industries (Customs) Charges Act 1999. There are no specific exclusions mentioned in the amendment, although the overarching legislation provides for charges on specified products under certain circumstances. The regulation may be further extended or restricted through subordinate instruments as deemed necessary by the Minister for Agriculture, Fisheries and Forestry, taking into consideration any recommendations from the relevant industry body, Grain Producers Australia.

Key Provisions

The Primary Industries (Customs) Charges Amendment Regulation 2012 (No. 1) (the Regulation) amends the Primary Industries (Customs) Charges Regulations 2000 (the Regulations) by setting the Wheat Export Charge (WEC) to zero cents per tonne (Schedule 1, Item 1). This change responds to the financial performance of Wheat Exports Australia (WEA), which has been generating more revenue than required to cover its operational costs due to a strong export performance and reduced expenditure under the "lighter touch" accreditation scheme. By reducing the WEC to zero, the Regulation ensures that the industry is not overpaying levies beyond what is necessary for WEA’s operations. Under the Act, the Minister is required to consider recommendations from the designated industry body before making regulations (Section 8). In this case, Grain Producers Australia, as the designated body, supports the amendments, provided that WEA is retained with different functions and that the WEC can be reinstated if necessary. The Office of Best Practice Regulation was also consulted during the preparation of this Regulation (ID 13635). The Regulation imposes obligations on producers of wheat exported from Australia to ensure they are aware of and comply with the new charge rate. Previously, these producers were liable to pay a WEC of 22 cents per tonne (Primary Industries (Customs) Charges Regulations 2000). With the amendment, this liability is effectively removed until further legislative changes are made or if the WEC is reinstated. The regulation is designed to align with the financial realities of WEA and prevent overpayments until a more permanent solution is enacted. Should the Wheat Export Marketing Amendment Act 2012 not commence on 1 October 2012, the WEC will be reinstated at its previous rate of 22 cents per tonne. This reinstatement is pending the preparation of a cost recovery impact statement to determine an appropriate long-term rate (Section 4). Failure to comply with these requirements could lead to non-payment of the WEC when it is reinstated, potentially resulting in civil or criminal consequences. The specific penalties for non-compliance are not detailed in the Regulation but would be governed by the primary Act and related legislation. The compatibility statement indicates that the Regulation does not engage any of the applicable rights or freedoms under the Human Rights (Parliamentary Scrutiny) Act 2011, ensuring it is compatible with human rights as it does not raise any human rights issues. This Legislative Instrument is consistent with the legislative framework designed to manage and fund the operations of WEA efficiently.

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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.