EXPLANATORY STATEMENT
Select Legislative Instrument 2010 No. 308
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. 5)
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 12 of the Act imposes a charge in relation to the export of live goats. Funds corresponding with the amounts of revenue raised under the Schedule are appropriated for Meat & Livestock Australia Ltd (MLA) for marketing and research and development (R&D) activities, for Australian Animal Health Council Ltd to ensure that Australia’s national animal health system delivers competitive advantage for Australia’s livestock, and for 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 R&D export charge rate to increase from 10.5 to 16.7 cents a head, with a corresponding reduction in the marketing levy rate from 16.7 to 10.5 cents a head. The total charge of 37.7 cents a head will not change. The total charge also includes 4.5 cents a head for Australian Animal Health Council (trading as Animal Health Australia) and 6 cents a head for the National Residue Survey.
The changed rates between the marketing and R&D components of the charge will enable the goat industry to fund R&D investment programs to address identified development issues. The changes were proposed by the Goat Industry Council of Australia, which is the prescribed body responsible for goat transaction levies, at its annual general meeting in November 2009. Industry-wide consultation included producer groups (an estimated 70 per cent of producers responsible for around 80 per cent of production), processors, goat depots and live exporters. Widespread support for the reapportionment was registered.
Separate industry consultation for the changes to 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 a producer exporting direct. The export charge only applies to a small number of goats sold that fall under this category to remove any levy leakage. 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 11287).
Details of the amending provisions are:
Primary Industries (Customs) Charges Amendment Regulations 2010 (No. 5)
Regulation 1 – Name of Regulations
This regulation provides for the citation of the Regulations.
Regulation 2 – Commencement
This regulation provides for the Regulations to commence on the day after registration.
Regulation 3 – Application
This regulation provides for the amendments made by Schedule 1 to apply in relation to transactions involving goats entered into on and after 1 January 2011.
Regulation 4 – Amendment of Primary Industries (Customs) Charges Regulations 2000
This regulation would provide that the Primary Industries (Customs) Charges Regulations 2000 are amended as set out in Schedule 1.
Schedule 1 – Amendment
Item [1] – Schedule 12, clause 4(1)
omit
16.7 cents
insert
10.5 cents
Item [2] – Schedule 12, clause 4(2)
omit
10.5 cents
insert
16.7 cents
Overview
The Primary Industries (Customs) Charges Amendment Regulations 2010 (No. 5) were introduced to amend the Primary Industries (Customs) Charges Act 1999 and were enacted by the Australian government. The primary purpose of these regulations was to adjust the charge rates for the export of live goats in order to support the goat industry’s research and development (R&D) initiatives. Specifically, the regulations reallocated the charges such that the R&D export charge rate increased from 10.5 to 16.7 cents per head, while the marketing levy rate decreased from 16.7 to 10.5 cents per head. This adjustment was intended to better fund R&D investment programs to address development issues identified by the Goat Industry Council of Australia. The changes were supported by industry-wide consultation and the total charge of 37.7 cents per head remained unchanged, including additional costs for the Australian Animal Health Council and the National Residue Survey. The regulations were registered and came into effect following their publication.
Scope and Application
The Primary Industries (Customs) Charges Amendment Regulations 2010 (No. 5) amend the Primary Industries (Customs) Charges Regulations 2000 to adjust the charge rates applicable to the export of live goats, as outlined in Schedule 12 of the Primary Industries (Customs) Charges Act 1999. These Regulations apply to all transactions involving goats that occur on and after 1 January 2011. The charge, which remains a total of 37.7 cents per head, includes components for Meat & Livestock Australia Ltd, Australian Animal Health Council Ltd, and the National Residue Survey. The changes were proposed by the Goat Industry Council of Australia, with widespread industry support, and are aimed at better aligning the funding of research and development with the needs of the goat industry. The adjustments do not require separate consultation as any changes to the transaction levy automatically apply to the export charge, ensuring the integrity of the charge system.
Key Provisions
The Primary Industries (Customs) Charges Amendment Regulations 2010 (No. 5) (the Regulations) introduce changes to the rates of charges imposed on the export of live goats under Schedule 12 of the Primary Industries (Customs) Charges Act 1999 (the Act). Specifically, Regulation 4 amends the Primary Industries (Customs) Charges Regulations 2000 to change the rates for the marketing levy and the research and development (R&D) export charge (Schedule 1, Item [1] and [2]). The marketing levy rate decreases from 16.7 to 10.5 cents per head, while the R&D export charge rate increases from 10.5 to 16.7 cents per head, maintaining the total charge at 37.7 cents per head.
These Regulations impose certain obligations on parties involved in the export of live goats. Firstly, they require that the new rates be applied to transactions involving goats that occur on and after 1 January 2011 (Regulation 3). This means that any party engaged in the export of live goats from this date must adhere to the revised levy and charge rates specified in the amended Regulations. Additionally, the Regulations ensure that the total charge, which includes the marketing levy, R&D export charge, and charges for the Australian Animal Health Council (trading as Animal Health Australia) and the National Residue Survey, remains consistent at 37.7 cents per head.
There are no specific offences, penalties, or consequences for breach outlined in the Explanatory Statement or the Regulations themselves. However, non-compliance with the requirements to remit the correct charges could potentially lead to legal consequences under the Act or other relevant legislation. The total charge and its allocation among the specified entities remain unchanged, ensuring that the funding for marketing and R&D activities, as well as for animal health and residue monitoring, is maintained as intended. The Regulations reflect the consensus reached through industry consultation and are designed to support the goat industry's development needs.