EXPLANATORY STATEMENT
Select Legislative Instrument 2005 No. 92
Issued by the Authority of the Parliamentary Secretary to the Minister for
Agriculture, Fisheries and Forestry
Primary Industries (Excise) Levies Act 1999
Primary Industries (Customs) Charges Act 1999
Primary Industries Levies and Charges Collection Act 1991
Primary Industries (Excise) Levies Amendment Regulations 2005 (No. 2)
Primary Industries (Customs) Charges Amendment Regulations 2005 (No. 1)
Primary Industries Levies and Charges Collection Amendment Regulations 2005 (No. 1)
Section 8 of the Primary Industries (Excise) Levies Act 1999 (the Levies Act), section 8 of the Primary Industries (Customs) Charges Act 1999 (the Charges Act) and section 30 of the Primary Industries Levies and Charges Collection Act 1991 (the Collection Act) provide that the
Governor-General may make regulations prescribing matters required or permitted by those Acts to be prescribed or necessary or convenient to be prescribed for carrying out or giving effect to each Act.
The purpose of the Regulations is to implement a proposal by Apple & Pear Australia Limited (APAL) to:
- increase the fresh apple and pear levies and export charges for marketing and promotion and research and development (R&D) which are payable to Horticulture Australia Limited (HAL);
- decrease the apple levy and export charge which are payable to Plant Health Australia (PHA); and
- change certain aspects of the levy collection mechanism which are of a machinery nature in order to reduce collection costs.
HAL is the relevant industry services body for the administration of the apple and pear industry levy and charge for marketing and R&D. HAL co-ordinates marketing and R&D programs for many horticultural industries. HAL is funded by statutory levies and export charges, voluntary contributions and Australian Government matching funding for eligible R&D expenditure. This matching funding is provided under the Horticultural Marketing and Research and Development Services Act 2000.
PHA is responsible for coordinating national plant health matters. A broad cross section of plant industry bodies together with the Commonwealth Government and all State and Territory Governments are members of PHA. The Plant Health Australia (Plant Industries) Funding Act 2002 provides for the disbursement to PHA of levies and export charges collected from producers. The levy and export charge payable by apple growers to PHA pays for APAL’s annual membership of PHA. Levies and export charges payable to HAL and PHA are collected together. Any excess PHA levy and export charge collected from apple growers above the APAL annual membership fee is forwarded to HAL for expenditure on apple R&D.
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Specifically, the Regulations implement the APAL proposal so that:
- the fresh apple marketing levy/charge component payable to HAL increases from 0.855 of a c/kg to 1.030 c/kg;
- the fresh pear marketing levy/charge component payable to HAL increases from 0.977 of a c/kg to 1.249 c/kg;
- the fresh apple R&D levy/charge component payable to HAL increases from 0.595 of a c/kg to 0.730 of a c/kg;
- the fresh pear R&D levy/charge component payable to HAL increases from 0.603 of a c/kg to 0.775 of a c/kg;
- the apple levy/charge component payable to PHA decreases from 0.020 of a c/kg to 0.010 of a c/kg;
- the minimum annual threshold for paying apple and pear levy/charge increases from $1,000 to $2,000; and
- the levy/charge payments are changed from monthly collections to quarterly collections.
APAL has consulted widely on the changes. A motion to change the apple and pear levies and charges was put to the Annual Levy Payers Meeting in September 2003. Regular communication to all known growers about proposed changes occurred in the period October 2003 to March 2004. Presentations were made in regional meetings in May 2004 where enough support was generated to proceed to put the motions to a ballot at the 24 August 2004 Annual Levy Payers Meeting. Growers unable to attend the meeting were given the opportunity to vote by proxy. At the 24 August 2004 meeting the motions to change the apple levy/charge together with the split between components received majority support from those growers that chose to vote.
Primary Industries (Excise) Levies Regulations 1999
Subclause 4(1) of Schedule 15 to the Levies Act provides that regulations may fix rates of levy for marketing purposes.
Subclause 4(3) of Schedule 15 to the Levies Act provides that regulations may fix rates of levy for R&D purposes.
Subclause 4(4) of Schedule 15 to the Levies Act provides that regulations may fix rates of levy for other purposes.
Subclause 6(4) of Schedule 15 to the Levies Act provides that before the Governor-General makes regulations to fix rates of levy for marketing, the Minister must take into consideration any relevant recommendations made to the Minister by HAL.
Subclause 6(6) of Schedule 15 to the Levies Act provides that before the Governor-General makes regulations to fix rates of levy for R&D, the Minister must take into consideration any relevant recommendations made to the Minister by HAL.
Subclause 6(11) of Schedule 15 to the Levies Act provides that before the Governor-General makes regulations to fix rates of levy for other purposes, the Minister must take into consideration any relevant recommendations made to the Minister by the eligible industry body.
Subclause 6(7) of Schedule 15 to the Levies Act requires HAL to consult with the body that is the eligible industry body for the relevant horticultural product before recommending rates of levy for marketing to the Minister.
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Subclause 6(8) of Schedule 15 to the Levies Act requires HAL to consult with the body that is the eligible industry body for the relevant horticultural product before recommending rates of levy for R&D to the Minister.
Subclause 6(9) of Schedule 15 to the Levies Act requires that a recommendation made by HAL to the Minister be accompanied by a written statement of the views of the industry body consulted in relation to the recommendation.
The Primary Industries (Excise) Levies Regulations 1999 prescribe APAL as the eligible industry body with which HAL must consult in relation to apples and pears. APAL proposed a change in the statutory levy on apples and pears to HAL, and HAL in turn recommended the change to the Minister. The Regulations give effect to the recommendation of HAL, which is consistent with the apple and pear industry's request.
Primary Industries (Customs) Charges Regulations 2000
Subclause 3(3) of Schedule 10 to the Charges Act provides that regulations may fix rates of export charge for marketing purposes.
Subclause 3(5) of Schedule 10 to the Charges Act provides that regulations may fix rates of export charge for R&D purposes.
Subclause 3(10) of Schedule 10 to the Charges Act provides that regulations may fix rates of export charge for other purposes.
Subclause 5(3) of Schedule 10 to the Charges Act provides that before the Governor-General makes regulations to fix rates of export charge for marketing, the Minister must take into consideration any relevant recommendations made to the Minister by HAL.
Subclause 5(5) of Schedule 10 to the Charges Act provides that before the Governor-General makes regulations to fix rates of export charge for R&D, the Minister must take into consideration any relevant recommendations made to the Minister by HAL.
Subclause 5(10) of Schedule 10 to the Charges Act provides that before the Governor-General makes regulations to fix rates of export charge for other purposes, the Minister must take into consideration any relevant recommendations made to the Minister by the eligible industry body.
Subclause 5(6) of Schedule 10 to the Charges Act requires HAL to consult with the body that is the eligible industry body for the relevant horticultural product before recommending rates of export charge for marketing to the Minister.
Subclause 5(7) of Schedule 10 to the Charges Act requires HAL to consult with the body that is the eligible industry body for the relevant horticultural product before recommending rates of export charge for R&D to the Minister.
Subclause 5(8) of Schedule 10 to the Charges Act requires that a recommendation made by HAL to the Minister be accompanied by a written statement of the views of the industry body consulted in relation to the recommendation.
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The Primary Industries (Customs) Charges Regulations 2000 prescribe APAL as the eligible industry body with which HAL must consult in relation to apples and pears. APAL proposed a change in the statutory export charge on apples and pears to HAL, and HAL in turn recommended the change to the Minister. The Regulations give effect to the recommendation of HAL, which is consistent with the apple and pear industry's request.
Primary Industries Levies and Charges Collection Regulations 1991
The Collection Act specifies no conditions that need to be met before the power to make Regulations may be exercised.
Schedule 22 to the Primary Industries Levies and Charges Collection Regulations 1991 sets out the details for payment of levy and export charge, provision of returns by liable persons and other collection matters for various leviable and chargeable horticultural products.
APAL’s objective in increasing the minimum annual threshold for paying levy and in changing from monthly to quarterly collections is to reduce the number of levy/charge returns thereby minimising the collection costs imposed on the industry by the Levies Revenue Service which operates on a cost-recovery basis.
Details of the Regulations are contained in the attachment.
The Regulations are a legislative instrument for the purposes of the Legislative Instruments Act 2003.
The Office of Regulation Review (ORR) was consulted in the preparation of the Regulations. ORR have advised that it is not necessary to prepare a Regulation Impact Statement on this matter (ORR no ID 6622).
The Regulations commence on 1 July 2005, the start date requested by APAL.
0415132A
0415132B
0415132C
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ATTACHMENT
DETAILS OF THE PRIMARY INDUSTRIES (EXCISE) LEVIES AMENDMENT REGULATIONS 2005 (No. 2)
Regulation 1 – Name of Regulations
This Regulation provides for the name of the regulations to be the Primary Industries (Excise) Levies Amendment Regulations 2005 (No. 2).
Regulation 2 – Commencement
This Regulation provides for the commencement date to be 1 July 2005.
Regulation 3 – Amendment of Primary Industries (Excise) Levies Regulations 1999
This regulation provides that Schedule 15, Part 3 of the Primary Industries (Excise) Levies Regulations 1999 (the Principal Regulations) are amended as set out in the Schedule.
Schedule 1 Amendments
Item [1] – paragraph 3.3(a)
Prescribes that the rate of marketing levy on fresh apples destined for Horticulture Australia Limited is increased from 0.855 of a c/kg to 1.030 c/kg.
Item [2] – paragraph 3.3(b)
Prescribes that the rate of marketing levy on fresh pears destined for Horticulture Australia Limited is increased from 0.977 of a c/kg to 1.249 c/kg.
Item [3] – paragraph 3.4(a)
Prescribes that the rate of research and development levy on fresh apples destined for Horticulture Australia Limited is increased from 0.595 of a c/kg to 0.730 of a c/kg.
Item [4] – paragraph 3.4(b)
Prescribes that the rate of research and development levy on fresh pears destined for Horticulture Australia Limited is increased from 0.603 of a c/kg to 0.775 of a c/kg.
Item [5] – paragraph 3.4A(2)
Prescribes that the rate of levy on fresh apples destined for Plant Health Australia is decreased from 0.020 of a c/kg to 0.010 of a c/kg.
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DETAILS OF THE PRIMARY INDUSTRIES (CUSTOMS) CHARGES AMENDMENT REGULATIONS 2005 (No. 1)
Regulation 1 – Name of Regulations
This Regulation provides for the name of the regulations to be the Primary Industries (Customs) Charges Amendment Regulations 2005 (No. 1).
Regulation 2 – Commencement
This Regulation provides for the commencement date to be 1 July 2005.
Regulation 3 – Amendment of Primary Industries (Customs) Charges Amendment Regulations 2000
This regulation provides that Schedule 10, Part 3 of the Primary Industries (Customs) Charges Amendment Regulations 2000 (the Principal Regulations) are amended as set out in the Schedule.
Schedule 1 Amendments
Item [1] – paragraph 3.3(a)
Prescribes that the rate of marketing export charge on fresh apples destined for Horticulture Australia Limited is increased from 0.855 of a c/kg to 1.030 c/kg.
Item [2] – paragraph 3.3(b)
Prescribes that the rate of marketing export charge on fresh pears destined for Horticulture Australia Limited is increased from 0.977 of a c/kg to 1.249 c/kg.
Item [3] – paragraph 3.4(a)
Prescribes that the rate of research and development export charge on fresh apples destined for Horticulture Australia Limited is increased from 0.595 of a c/kg to 0.730 of a c/kg.
Item [4] – paragraph 3.4(b)
Prescribes that the rate of research and development export charge on fresh pears destined for Horticulture Australia Limited is increased from 0.603 of a c/kg to 0.775 of a c/kg.
Item [5] – paragraph 3.4A(2)
Prescribes that the rate of export charge on fresh apples destined for Plant Health Australia is decreased from 0.020 of a c/kg to 0.010 of a c/kg.
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DETAILS OF THE PRIMARY INDUSTRIES LEVIES AND CHARGES COLLECTION AMENDMENT REGULATIONS 2005 (No. 1)
Regulation 1 – Name of Regulations
This Regulation provides for the name of the regulations to be the Primary Industries Levies and Charges Collection Amendment Regulations 2005 (No. 1).
Regulation 2 – Commencement
This Regulation provides for the commencement date to be 1 July 2005.
Regulation 3 – Amendment of Primary Industries Levies and Charges Collection Regulations 1991
This regulation provides that Schedule 22, Part 3 of the Primary Industries Levies and Charges Collection Regulations 1991 (the Principal Regulations) are amended as set out in the Schedule.
Schedule 1 Amendments
Item [1] – clause 3.2(a)
Prescribes that the minimum annual threshold for paying apple and pear levy and export charge is increased from $1,000 to $2,000.
Items [2], [3], [4], [5], [6] and [7] – various clauses
Provides changes to various headings in Schedule 22, Part 3 to reflect that apple and pear levy and export charge payments are changed from monthly collections to quarterly collections.
Items [8] and [9] – various clauses and subclauses
Provides changes to various clauses and subclauses in Schedule 22, Part 3 to reflect that apple and pear levy and export charge payments are changed from monthly collections to quarterly collections.