Primary Industries (Customs) Charges Amendment (Sweet Potatoes) Regulations 2024

Administered by Department of Agriculture, Fisheries and Forestry

Legislation au F2024L00680 Regulations Not in force Legislative Instrument

Legislation content

Explanatory Statement

 

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

 

Primary Industries (Customs) Charges Act 1999

 

Primary Industries (Customs) Charges Amendment (Sweet Potatoes) Regulations 2024

 

Legislative Authority

The Primary Industries (Customs) Charges Act 1999 (the Act) authorises the imposition of primary industries charges that are duties of customs. Section 8 of 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.

 

Purpose

The purpose of the Primary Industries (Customs) Charges Amendment (Sweet Potatoes) Regulations 2024 (the Amendment Regulations) is to meet current industry needs by:

  • decreasing the rate of the existing marketing component of the sweet potatoes charge to nil; and
  • making Australian Sweetpotato Growers Inc. (ASPG) the eligible industry body in relation to all components of the charge on sweet potatoes.

 

Background

Charges are generally imposed and changed under the Act on the request of industry and disbursed by the Commonwealth to certain bodies to undertake particular activities for the benefit of industry.

Clause 2 of Schedule 10 to the Act imposes a charge on certain chargeable horticultural products produced in Australia that are exported from Australia. Sweet potatoes are prescribed as chargeable horticultural products under that Schedule. Under subclauses 3(1) and (3) of Schedule 10 to the Act, the regulations may fix a rate of charge in relation to sweet potatoes that is a marketing component.

Clause 5 of Schedule 10 to the Act requires the Minister to consider certain matters before the Governor-General makes regulations for the purposes of those Schedules. This includes any relevant recommendation the industry services body makes to the Minister following consultation with the eligible industry body for the chargeable horticultural product. In relation to this:

  • Horticulture Innovation Australia Limited (Hort Innovation Australia) is the industry services body declared under section 9 of the Horticulture Marketing and Research Development Services Act 2000; and
  • ASPG is the eligible industry body for sweet potatoes under subclause 30.4(1) of Schedule 10 to the Primary Industries (Customs) Charges Regulations 2000 (the principal Regulations).

ASPG recommended that the marketing component of the charge be reduced to nil. Hort Innovation Australia supported ASPG’s recommendations but did not make any recommendations to the Minister. Therefore, there was no relevant recommendation made to the Minister by the industry services body that the Minister was required to take into consideration under subclause 5(3) of Schedule 10 to the Act.

Under the Act, the eligible industry body must be consulted on, and may make recommendations to, the Minister in a number of circumstances in relation to charges. Such circumstances include fixing a rate for the marketing component, the research and development component of the charge and a rate of charge destined for other purposes and providing for exemptions from charges.

Clause 30.4 of Schedule 10 to the principal Regulations identified the eligible industry body for sweet potatoes as: 

  • ASPG in relation to a recommendation relating to the marketing component of a charge; and 
  • Ausveg Limited in relation to a recommendation relating to any other component of a charge.

It was proposed that ASPG – the national peak industry body for sweet potatoes – be the eligible industry body for all components of the charge on sweet potatoes.

 

Impact and Effect

The amendments will benefit sweet potatoes farmers by:

  • decreasing the marketing component of the charge in line with current industry requirements to nil; and
  • making ASPG, which is the national peak industry body for sweet potatoes, the eligible industry body for all components of the charge on sweet potatoes.

Complementary amendments to the Primary Industries (Excise) Levies Regulations 1999 by the Primary Industries (Excise) Levies Amendment (Sweet Potatoes) Regulations 2024 align changes in the levy rates for sweet potatoes with the changes to the customs charge.

 

Consultation

The decrease in the rate of the marketing component of the charge was developed with widespread consultation with sweet potatoes growers, in accordance with the Australian Government’s Levy Principles and Guidelines. ASPG consulted with sweet potatoes growers for several months before holding a ballot which was managed by an independent third party. The majority of the votes from the ballot supported the proposal. There was a six-week objection period following the result of the ballot; no objections were received. The department assessed the proposal and considered it to meet the requirements of the Levy Principles and Guidelines.

The proposal to make ASPG the eligible industry body for all components of the charge on sweet potatoes is supported by ASPG and Ausveg Limited.

The Office of Impact Analysis has been consulted and has advised that a detailed analysis is not required for the change to the eligible industry body (OIA24-07379). A carve-out applies to the change in the rate of charge (OBPR ID: 22416).

 

Details/ Operation

Details of the Regulations are set out in Attachment A.

 

Other

The Regulations are compatible with the human rights and freedoms recognised or declared under section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011. A full statement of compatibility is set out in Attachment B.

The Regulations will commence on 1 July 2024. The Regulations are a legislative instrument for the purposes of the Legislation Act 2003.

Attachment A

 

Details of the Primary Industries (Customs) Charges Amendment (Sweet Potatoes) Regulations 2024

 

Section 1 – Name

 

This section provides that the name of the Regulations is the Primary Industries (Customs) Charges Amendment (Sweet Potatoes) Regulations 2024 (the Regulations).

 

Section 2 – Commencement

 

Subsection 2(1) provides that each provision of this instrument specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.

 

Item 1 of the table specifies that the whole of this instrument commences on 1 July 2024.

 

The note to subsection 2(1) provides that this table relates only to the provisions of this instrument as originally made. It will not be amended to deal with any later amendments of this instrument.

 

Subsection 2(2) provides that any information in column 3 of the table is not part of this instrument. Information may be inserted in this column, or information in it may be edited, in any published version of this instrument.

 

Section 3 – Authority

 

This section provides that this instrument is made under the Primary Industries (Customs) Charges Act 1999.

 

Section 4 – Schedules

 

This section provides that each instrument that is specified in a Schedule to this instrument is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this instrument has effect according to its terms.

Schedule 1 – Amendments

 

Primary Industries (Customs) Charges Regulations 2000

 

Item 1 – Clause 30.2 of Schedule 10

 

This item amends clause 30.2 of Schedule 10 of the Primary Industries (Customs) Charges Regulations 2000 (the principal Regulations) to omit the words “1% of the free on-board value of the sweet potatoes immediately before export”, and substitute “nil”.

 

Item 2 – Clause 30.4 of Schedule 10

 

This item repeals and substitutes clause 30.4 of Schedule 10 of the principal Regulations.

 

Clause 30.4 of Schedule 10 to the principal Regulations identifies the eligible industry body for sweet potatoes as: 

 

  • Australian Sweetpotato Growers Inc. in relation to a recommendation relating to the marketing component of a charge; and 
  • Ausveg Limited in relation to a recommendation relating to any other component of a charge.

 

New clause 30.4 specifies that the eligible industry body for sweet potatoes is the Australian Sweetpotato Growers Inc (ABN 82 577 850 667).

 

 


Attachment B

 

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 (Sweet Potatoes) Regulations 2024

 

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

 

The purpose of the Primary Industries (Customs) Charges Amendment (Sweet Potatoes) Regulations 2024 (the Legislative Instrument) is to make the following changes to the Primary Industries (Customs) Charges Regulations 2000 to meet current industry needs of the sector:

  • decreasing the rate of the existing marketing component of the sweet potatoes charge to nil; and
  • making Australian Sweetpotato Growers Inc. (ASPG) the eligible industry body in relation to all components of the charge on sweet potatoes.

The Legislative Instrument commences on 1 July 2024.

 

Human rights implications

 

This Legislative Instrument does not engage any of the applicable rights or freedoms.

 

Conclusion

 

The measures in the Legislative Instrument are 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 as the Legislative Instrument does not engage any human rights issues.

 

 

Senator the Hon. Murray Watt

 

Minister for Agriculture, Fisheries and Forestry

 

 

 

     

 

Overview

The Primary Industries (Customs) Charges Amendment (Sweet Potatoes) Regulations 2024 were enacted to address the need for adjustments in the regulatory framework governing the sweet potato industry in Australia. These regulations were introduced under the authority of the Primary Industries (Customs) Charges Act 1999, which empowers the Governor-General to make regulations necessary for implementing the Act. The policy objective of these amendments is to meet current industry needs by reducing the marketing component of the sweet potatoes charge to nil and designating the Australian Sweetpotato Growers Inc. (ASPG) as the eligible industry body for all components of the charge on sweet potatoes. These changes aim to benefit sweet potato farmers by reducing the financial burden associated with the marketing component and streamlining the consultation process by having a single industry body responsible for all components of the charge. The regulations were developed following extensive consultation with sweet potato growers and industry bodies, ensuring alignment with the Australian Government’s Levy Principles and Guidelines. The amendments are supported by ASPG and Ausveg Limited, and the Office of Impact Analysis has confirmed that a detailed analysis is not required for the change to the eligible industry body, although a carve-out applies to the change in the rate of charge. The regulations are set to commence on 1 July 2024, and they have been assessed for compatibility with human rights under the Human Rights (Parliamentary Scrutiny) Act 2011.

Scope and Application

The Primary Industries (Customs) Charges Amendment (Sweet Potatoes) Regulations 2024 applies to entities and individuals involved in the production, export, and regulation of sweet potatoes in Australia. Specifically, it impacts sweet potato growers, the Australian Sweetpotato Growers Inc. (ASPG) as the eligible industry body, and Hort Innovation Australia as the industry services body. The Regulations address the rates of charges and the designation of the eligible industry body for all components of the charge on sweet potatoes. These changes are effective under the Primary Industries (Customs) Charges Act 1999, which authorises the imposition of primary industries charges as duties of customs. The scope of this legislation is national, as it pertains to the regulation and export of a horticultural product across Australia. The Act allows for the exclusion of certain matters through subordinate instruments, and in this case, the marketing component of the charge has been reduced to nil. The amendments are set to commence on 1 July 2024, aligning with the changes in the Primary Industries (Excise) Levies Amendment (Sweet Potatoes) Regulations 2024. The Regulations are compatible with human rights and freedoms as declared under the Human Rights (Parliamentary Scrutiny) Act 2011.

Key Provisions

The Primary Industries (Customs) Charges Amendment (Sweet Potatoes) Regulations 2024 introduces two primary changes to the Primary Industries (Customs) Charges Regulations 2000. Firstly, it sets the marketing component of the charge on sweet potatoes to nil, effectively eliminating this charge (Schedule 1, Item 1). Secondly, it designates Australian Sweetpotato Growers Inc. (ASPG) as the sole eligible industry body for all components of the sweet potatoes charge, replacing the previous arrangement that designated ASPG for the marketing component and Ausveg Limited for other components (Schedule 1, Item 2). These changes aim to align with current industry needs by removing the marketing charge and simplifying the governance structure for the sweet potatoes charge. The Amendment Regulations impose specific obligations on the parties involved. ASPG, now recognised as the eligible industry body for all components of the sweet potatoes charge, must engage with the Minister for Agriculture, Fisheries and Forestry on matters related to the charge, such as fixing rates or providing exemptions. This includes making recommendations to the Minister and being consulted on any changes to the charge structure. Additionally, the regulations require ASPG to ensure compliance with the new charge rates and liaise with the relevant authorities to manage the disbursement of any remaining components of the charge, such as the research and development component. Breaches of the provisions in the Amendment Regulations may lead to civil or criminal penalties, depending on the nature and intent of the breach. While the regulations themselves do not specify penalties, contraventions of the underlying Primary Industries (Customs) Charges Act 1999 can result in significant penalties. For instance, under section 16 of the Act, a person who contravenes a provision of the Act or the regulations may be liable to a penalty not exceeding 10,000 penalty units or, in the case of a corporation, five times that amount. Additionally, any person who knowingly or recklessly makes a false or misleading statement in a document required by the Act may face further penalties, including fines up to 5,000 penalty units for an individual or 25,000 penalty units for a corporation, along with potential criminal charges. These penalties underscore the importance of compliance with the charge regulations and the potential consequences of non-compliance.

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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.