EXPLANATORY STATEMENT
Select Legislative Instrument 2010 No. 147
Issued by Authority of the Minister for Agriculture, Fisheries and Forestry
Primary Industries (Customs) Charges Act 1999
Primary Industries (Customs) Charges Amendment Regulations 2010 (No. 3)
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 or necessary or convenient to be prescribed for carrying out or giving effect to the Act.
Schedule 3 to the Act imposes charges in relation to the export of adult live cattle. Funds corresponding with the amounts of revenue raised under the Schedule are appropriated for Meat & Livestock Australia Ltd (MLA) for marketing and research activities, Australian Animal Health Council Ltd (trading as Animal Health Australia) to ensure that Australia’s national animal health system delivers competitive advantage for Australia’s livestock, and National Residue Survey for recovery of costs incurred in monitoring and testing residues and contaminants in food production.
The purpose of the Regulations is to allow for the charge on the export of adult live cattle to continue at $5.00 a head by removing the date of cessation of 31 December 2010 for the $1.50 component. The Regulations allow the marketing amount destined for MLA, as the marketing body, to remain at $3.66 a head for live export cattle.
The Regulations are legislative instruments for the purposes of the
Legislative Instruments Act 2003.
The $5.00 export charge was imposed for five years when the marketing component was increased from 1 January 2006 for five years by $1.50. However, following a review of the increase and an industry-wide consultation and ballot in 2009, the prescribed industry bodies responsible for cattle transaction levies, the Cattle Council of Australia and Australian Lot Feeders’ Association, approached the Australian Government to keep the levy at $5.00. The voting results from the ballot registered an aggregate industry figure of approximately
72.5 per cent in favour of keeping levy at $5.00.
Separate industry consultation for the export charge is not required. The export charge operates where there has been no domestic sale of cattle where the levy would be payable; such as producer exporting direct. Any change to the transaction levy automatically applies to the export charge.
The Office of Best Practice Regulation has been consulted in the preparation of these Regulations and a Regulation Impact Statement is not required (reference number ID 11044).
Details of the amending provisions are:
Primary Industries (Customs) Charges Amendment Regulations 2010 (No. 3)
Regulation 1 – Name of Regulations
This regulation provides for the citation of the Regulations.
Regulation 2 – Commencement
This regulation provides for Schedule 3 of the Regulations to commence on the day after registration.
Regulation 3 – Amendment of Primary Industries (Customs) Charges Regulations 2000
This regulation provides that the Primary Industries (Customs) Charges Regulations 2000 are amended as set out in Schedule 1.
Schedule 1 – Amendment
Item [1] – Schedule 3A, heading
Item [1] inserts a new heading for Schedule 3A, to reflect the provisions in Schedule 3A reverting to those in the previous Schedule 3.
Item [2] – Schedule 3A, clause 1
Item [2] repeals clause 1, to allow the levy to continue at $5.00 a head beyond the date specified in the sunset clause.
Item [3] – Schedule 3B
Item [3] repeals Schedule 3B, because this provision is not required following the removal of the sunset date in Schedule 3A, clause 1.
Overview
The Primary Industries (Customs) Charges Amendment Regulations 2010 (No. 3) were enacted to address the need for continued funding and operational support for Australia’s livestock industry, specifically concerning the export of adult live cattle. This legislation was introduced by the Australian Government through the Minister for Agriculture, Fisheries and Forestry, as authorised by the Primary Industries (Customs) Charges Act 1999. The primary objective of these Regulations is to maintain the current charge of $5.00 per head on the export of adult live cattle by extending the cessation date for the $1.50 component, which had been set to expire on 31 December 2010. This amendment ensures the continuity of funds for Meat & Livestock Australia Ltd for marketing and research activities, and for Animal Health Australia to maintain Australia’s national animal health system, as well as covering costs for the National Residue Survey. The decision to extend the levy was based on industry consultation and a ballot in 2009, which showed a strong preference for maintaining the charge at $5.00 per head.
Scope and Application
The Primary Industries (Customs) Charges Amendment Regulations 2010 (No. 3) apply to entities involved in the export of adult live cattle from Australia, particularly focusing on the charges prescribed under the Primary Industries (Customs) Charges Act 1999. These regulations are designed to maintain the $5.00 per head export charge on live cattle exports, which was established to support marketing and research activities by Meat & Livestock Australia Ltd, and to fund animal health initiatives through the Australian Animal Health Council Ltd, and the National Residue Survey. This charge is applicable nationally across Australia, ensuring a uniform approach to funding these critical industries. The regulations also extend to the allocation of these charges, with $3.66 per head directed towards MLA for marketing purposes. Notably, these regulations remove the cessation date for the $1.50 component of the levy, effectively allowing the continued imposition of the $5.00 charge indefinitely. The regulations are legislative instruments under the Legislative Instruments Act 2003, and they incorporate feedback from industry bodies such as the Cattle Council of Australia and the Australian Lot Feeders’ Association, which collectively support the continued levy. These amendments ensure that the funds raised continue to support the specified activities, thereby maintaining the regulatory framework for the export of live cattle.
Key Provisions
The Primary Industries (Customs) Charges Amendment Regulations 2010 (No. 3) amend the Primary Industries (Customs) Charges Regulations 2000. Specifically, Regulation 3 amends Schedule 3 of the 2000 Regulations by inserting a new heading for Schedule 3A (Item [1]) and repealing clause 1 of Schedule 3A (Item [2]). These amendments allow the levy on the export of adult live cattle to continue at $5.00 per head beyond the previous sunset date of 31 December 2010 for the $1.50 component. Additionally, Schedule 3B is repealed (Item [3]) as it is no longer required following the removal of the sunset date in Schedule 3A, clause 1. The levy of $5.00 per head was initially imposed for five years from 1 January 2006, with an increase of $1.50 during this period.
These Regulations impose obligations on those involved in the export of adult live cattle, particularly those who are subject to the export charge. The primary obligation is the payment of the $5.00 per head charge on the export of adult live cattle. This obligation applies to any exporter who is not able to sell cattle domestically, thus avoiding the domestic transaction levy. The charge is automatically applied to exports and must be paid in accordance with the regulations set forth in the Primary Industries (Customs) Charges Act 1999.
The Regulations also stipulate how the funds raised from the export charge are to be appropriated. Specifically, the funds are to be allocated to Meat & Livestock Australia Ltd (MLA) for marketing and research activities, the Australian Animal Health Council Ltd (trading as Animal Health Australia) to support Australia’s national animal health system, and the National Residue Survey to cover the costs of monitoring and testing residues and contaminants in food production. These allocations are intended to benefit the broader agricultural sector by supporting vital services and research initiatives.
In terms of consequences for non-compliance, the Act does not explicitly detail penalties for failure to pay the export charge. However, under the broader legislative framework of the Customs Act 1901, penalties for non-compliance with customs-related charges can be severe. This may include fines and potential criminal charges, depending on the nature and extent of the breach. The maximum penalties can vary widely but can include substantial fines and imprisonment for serious offences. It is essential for entities involved in the export of adult live cattle to adhere to the payment obligations under these Regulations to avoid any potential legal repercussions.