EXPLANATORY STATEMENT
Select Legislative Instrument 2007 No. 283
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 (Customs) Charges Amendment Regulations 2007 (No. 10)
Primary Industries (Excise) Levies Amendment Regulations 2007 (No. 11)
Primary Industries Levies and Charges Collection Amendment
Regulations 2007 (No. 8)
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 Department is responsible for the administration of the levy and charges schemes. Forest and Wood Products Australia Limited (FWPA) is responsible for the coordination of research and development programs for the forestry industry using the funds collected through the levy. Further, FWPA is permitted to undertake marketing and promotion activities to be funded in part by funds raised by the grower’s levy.
There are currently no levies or charges imposed on growers. The purpose of the Regulations is to impose a new levy on forest growers and Managed Investment Scheme managers. The growers levy is set at a rate of 5 cents per cubic metre of log sales for primarily research and development. The change will prevent companies or individuals that do not financially contribute to research, development, marketing or promotion from benefiting from the investment of others. State entity growers are negotiating with FWPA to commit to a voluntary contribution consistent with the amounts that would otherwise be dues under this proposed levy. A contract between the entities and FWPA is necessary as States are exempt from paying levies under the Australian Constitution.
A full consultation process, involving a ballot of each affected industry member was conducted during March and April 2006. Of the 185 growers who exercised a vote in the ballot, 143 voted in favour, indicating strong support for the introduction of the grower’s levy.
Consultation with industry has also resulted in three industry bodies being declared as designated bodies for the purposes of the Levies Act and four bodies for the purposes of the Charges Act. Australian Forest Growers (AFG), Australian Plantation Products and Paper Industry Council (A3P), Australian Timber Importers Federation (ATIF and National Association of Forest Industries (NAFI) are the declared industry bodies and represent growers, manufacturers and importers of forest products. Previously only two industry bodies were declared bodies. Industry felt this did not adequately represent the whole forest industry.
Changes to the Primary Industries (Excise) Levies Amendment Regulations 1999 include insertions in Schedule 10 of the prescribed industry bodies and the addition of a new part to Schedule 27 imposing the new forest grower’s excise levy. Changes to the Primary Industries (Customs) Charges Amendment Regulations 2000 include insertions to Schedule 7 and 8 of prescribed industry bodies. A new part is inserted to Schedule 37 of the Primary Industries Levies and Charges Collection Amendment Regulations 2007 which will deal with the mechanics of the levies collection process.
Schedule 27 of the Levies Act has provided for the implementation of a levy in accordance with the Regulations.
In accordance with the Government’s Regulation Impact Statement (RIS) requirements, the Office of Regulation Review (ORR) was consulted in the preparation of the proposal
Details of the Regulations are set out in Attachment A.
The Regulations are legislative instruments for the purposes of the Legislative Instruments Act 2003.
The Regulations will commence on 1 November 2007.
ATTACHMENT A
DETAILS OF THE PRIMARY INDUSTRIES (EXCISE) LEVIES AMENDMENT REGULATIONS 2007 (No. 11)
Regulation 1 – Name of Regulations
This Regulation provides for the name of the regulations to be the Primary Industries (Excise) Levies Amendment Regulations 2007 (No. 11).
Regulation 2 – Commencement
This Regulation provides for the commencement date to be 1 November 2007.
Regulation 3 – Amendment of Primary Industries (Excise) Levies Regulations 1999
This regulation provides that Schedule 1 amends the Primary Industries (Excise) Levies Regulations 1999 (the Excise Levies Regulations).
Schedule 1 Amendments
Item [1] –inserts a new clause 4 into Schedule 10 of the Excise Levies Regulations to prescribe the AFG, A3P and NAFI as the industry bodies that the Minister must consult with before making recommendations to the Governor-General to amend the Regulations.
Item [2] –inserts a new Part 8 about Forest Growers into Schedule 27 to the Excise Levies Regulations.
Clause 8.1 provides for definitions of “logs”, “mill” and “operator of a mill” for this part.
Clause 8.2 imposes a levy on logs that are produced in Australia and provide for certain exemptions from levy.
Clause 8.3 sets the levy at 5 cents per cubic metre of the log.
Clause 8.4 provides that the levy is payable by the producer of the logs.
∙ Note 1 provides a cross reference to the definition of producer.
∙ Note 2 defines producer.
DETAILS OF THE PRIMARY INDUSTRIES (CUSTOMS) CHARGES AMENDMENT REGULATIONS 2007 (No. 10)
Regulation 1 – Name of Regulations
This Regulation provides for the name of the regulations to be the Primary Industries (Customs) Charges Amendment Regulations 2007 (No. 10).
Regulation 2 – Commencement
This Regulation provides for the commencement date to be 1 November 2007.
Regulation 3 – Amendment of Primary Industries (Customs) Charges Amendment Regulations 2000
This regulation provides that Schedule 1 amends the Primary Industries (Customs) Charges Regulations 2000 (the Customs Charges Regulations).
Schedule 1 Amendments
Item [1] –inserts a new clause 3 into Schedule 7 of the Customs Charges Regulations to prescribe the AFG, A3P and NAFI as the industry bodies that the Minister must consult with before making recommendations to the Governor-General to amend the Regulations.
Item [2] –inserts a new clause 4 into Schedule 8 of the Customs Charges Regulations to prescribe the ATIF as the industry body that the Minister must consult with before making recommendations to the Governor-General to amend the Regulations.
DETAILS OF THE PRIMARY INDUSTRIES LEVIES AND CHARGES COLLECTION AMENDMENT REGULATIONS 2007 (No. 8)
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 2007 (No. 8).
Regulation 2 – Commencement
This Regulation provides for the commencement date to be 1 November 2007.
Regulation 3 – Transitional
This Regulation provides for transitional provisions relating to the definitions of “quarter” and “levy year” to deal with the fact that the commencement date occurs during rather than at the start of a quarter and levy year.
Regulation 4 – Amendment of Primary Industries Levies and Charges Collection Regulations 1991
This regulation provides that Schedule 1 amends the Primary Industries Levies and Charges Collection Regulations 1991 (the Collection Regulations).
Schedule 1 Amendments
Item [1] – substitutes the note at the end of Schedule 15, clause 5, to update the number of the clause reference relating to the producer of logs for the Forest Industries levy.
Item [2] – amends Schedule 37, paragraph 2.12(e), to state that a producer who sells wool in a year under certain circumstances must lodge an annual return for the Wool levy.
Item [3] - inserts a new Part 9 about Forest Growers into Schedule 37 of the Collection Regulations.
Clause 9.1 provides that the part applies to leviable logs.
Clause 9.2 provides definitions for use in the part. The definitions are for “leviable logs”, “levy”, “logs” and “personal details”.
Clause 9.3 provides that a levy year for leviable logs is a financial year.
Clause 9.4 provides that the producer of logs is the person who owns the logs immediately after the trees from which the logs are produced are felled.
∙ Note provides a cross reference to the Collection Act which allows the producer to be prescribed by regulations.
Clause 9.5 prescribes leviable logs for the definition of processor.
∙ Note provides a cross reference to the definition of processor in the Collection Act.
Clause 9.6 prescribes leviable logs for the purpose of paragraph 7(2)(b) of the Collection Act.
∙ Note indicates the legal responsibilities for processors in relation to payment of levy and late payment penalty.
Clause 9.7 states that for people who lodge quarterly returns, levy is due for payment at the same time as a quarterly return is due, which is 28 days after the end of the quarter to which the levy relates.
∙ Note indicates penalties can be imposed under Section 15 of the Collection Act for late payment.
Clause 9.8 prescribes that certain people who deal in leviable logs in a quarter must lodge a return for a quarter, unless that person is granted an exemption from lodging quarterly returns.
∙ Note indicates offences under Section 24 of the Collection Act may be applicable if a return is not submitted.
Clause 9.9 provides that a quarterly return must be lodged within 28 days of the end of the quarter to which it relates.
∙ Note indicates offences under Section 24 of the Collection Act may be applicable.
Clause 9.10 states that for people who lodge annual returns, levy is due for payment at the same time as an annual return is due, which is on 28 August in the following levy year.
Clause 9.11 specifies that certain persons who are liable to pay levy in a levy year but are exempt from lodging quarterly returns must lodge an annual return. People who have applied for and been granted an exemption under this part from lodging quarterly returns and people with an exemption from lodging annual returns for the Forest Industries levy must lodge annual returns under this part.
∙ Note 1 provides a cross reference to the requirement to lodge annual returns for the Forest Industries levy.
∙ Note 2 provides a cross reference to the definition of producer.
∙ Note 3 indicates offences under Section 24 of the Collection Act may be applicable if a return is not submitted.
Clause 9.12 provides that an annual return must be lodged by 28 August in the following levy year.
∙ Note indicates offences under Section 24 of the Collection Act may be applicable.
Clause 9.13 provides that a processor who is liable to pay levy and operates more than one mill at which leviable logs are processed must lodge a single return containing information for each mill.
Clause 9.14 stipulates the information that producers must include in a return.
∙ Note indicates offences under Section 24 of the Collection Act may be applicable if information is not provided.
Clause 9.15 stipulates the information that processors must include in a return.
∙ Note indicates offences under Section 24 of the Collection Act may be applicable if information is not provided.
Clause 9.16 stipulates the information that first purchasers, buying agents and selling agents must include in a return.
∙ Note indicates offences under Section 24 of the Collection Act may be applicable if information is not provided.
Clause 9.17 specifies who may apply to be exempt from the requirement to lodge a quarterly return in a levy year but lodge an annual return instead. The main criterion is that the person has reasonable grounds for believing that the total amount of levy payable in the levy year will be less than $1,000.
∙ Note provides a cross reference to the definition of producer.
Clause 9.18 stipulates the information that must be included in a written application for exemption from the requirement to lodge a quarterly return.
Clause 9.19 sets out that the Secretary must decide within 14 days of receiving an application for an exemption from the requirement to lodge quarterly returns whether to grant or refuse the exemption. The applicant must be given written notice of the decision.
Clause 9.20 sets out the conditions for continuing to exempt a person from lodging a quarterly return. The applicant must be given written notice of the decision.
Clause 9.21 sets out the information that the Secretary must consider when deciding whether to grant or refuse an exemption from the requirement to lodge quarterly returns.
Clause 9.22 stipulates when a quarterly return is to be lodged if exemption is refused or not continued.
∙ Note indicates offences under Section 24 of the Collection Act may be applicable if a return is not submitted.
Clause 9.23 specifies what records must be kept by producers. A penalty of 10 penalty units is provided for breaches of the regulations. Section 4AA of the Crimes Act 1914 provides that a penalty unit equals $110. An offence under this clause is an offence of strict liability.
Clause 9.24 specifies what records must be kept by processors. A penalty of 10 penalty units is provided for breaches of the regulations. An offence under this clause is an offence of strict liability.
Clause 9.25 specifies what records must be kept by first purchasers, buying agents and selling agents. A penalty of 10 penalty units is provided for breaches of the regulations. An offence under this clause is an offence of strict liability.
Clause 9.26 provides that a person may apply to the Administrative Appeals Tribunal for a review of a decision made by the Secretary relating to the refusal to grant or continue an exemption from lodging quarterly returns.