Primary Industries (Excise) Levies Amendment (Agaricus Mushrooms) Regulations 2018

Overview

The Primary Industries (Excise) Levies Amendment (Agaricus Mushrooms) Regulations 2018 was enacted to reduce the marketing levy on mushrooms from $3.24 to $2.92 per kilogram of mushroom spawn sold, as proposed by the Australian Mushroom Growers’ Association (AMGA) to enhance profitability and sustainability in the industry. The reduction, which represents a decrease of less than 10 per cent, was introduced following a review of the levy arrangements at the end of 2016, and has majority industry support. The policy objective is to maintain research and development investment priorities while reducing costs for mushroom growers. The regulations were made under the authority of the Primary Industries (Excise) Levies Act 1999 and commenced on 1 July 2018. The Australian Government’s Levy Principles and Guidelines were adhered to in this process, and there is no financial impact on the Commonwealth as the marketing levy is not eligible for Australian Government matching funds. The Regulations are also compatible with the human rights and freedoms recognised or declared under Section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

Scope and Application

The Primary Industries (Excise) Levies Amendment (Agaricus Mushrooms) Regulations 2018 applies to all entities involved in the production and sale of mushroom spawn in Australia. These regulations are an amendment to the Primary Industries (Excise) Levies Act 1999, which establishes the framework for excise levies on primary industries. The amendment specifically targets the marketing levy component on mushrooms, reducing it from $3.24 to $2.92 per kilogram of mushroom spawn sold. This reduction aims to support the profitability and sustainability of the mushroom industry by lowering costs while maintaining research and development investments. The regulations are effective from 1 July 2018 and apply nationally across Australia, ensuring uniformity in the application of the reduced levy. The reduction in the marketing levy does not affect the research and development component, which remains at $1.08 per kilogram. The overall levy rate is thus decreased from $4.32 to $4.00 per kilogram of mushroom spawn. The regulations are made under the authority granted in the Primary Industries (Excise) Levies Act 1999 and have been assessed for compatibility with human rights as outlined in the Human Rights (Parliamentary Scrutiny) Act 2011.

Key Provisions

The Primary Industries (Excise) Levies Amendment (Agaricus Mushrooms) Regulations 2018 (the Amendment) introduces a reduction in the marketing levy component on mushrooms, from $3.24 to $2.92 per kilogram of mushroom spawn sold. This change is made under the authority of Section 8 of the Primary Industries (Excise) Levies Act 1999, which allows the Governor-General to make regulations necessary for carrying out or giving effect to the Act (Section 8). Specifically, Subclause 4(1) of Schedule 15 to the Excise Levies Act allows for the fixing of a rate of levy in relation to a class of leviable horticultural products, and this is the mechanism through which the Amendment is enacted. The new rate, $2.92 per kilogram, is intended to assist the mushroom industry in remaining profitable and sustainable by reducing costs, while maintaining the research and development (R&D) investment priorities at the existing rate of $1.08 per kilogram. The Amendment imposes certain obligations on parties and entities governed by the Primary Industries (Excise) Levies Act 1999. These entities, primarily the growers and sellers of mushroom spawn, must now adhere to the new levy rate specified in the Amendment. This adjustment is effective from the date of commencement, 1 July 2018, as outlined in Section 2 of the Amendment. The requirement to comply with the new levy rate is straightforward and involves updating their invoicing and financial reporting processes to reflect the reduced marketing levy. Additionally, the Australian Mushroom Growers’ Association (AMGA) and other industry stakeholders must ensure that the reduced levy does not impact the funding for research and development, which remains at $1.08 per kilogram. In terms of potential breaches and consequences, the Amendment does not explicitly state new offences or penalties for non-compliance with the reduced levy rate. However, non-compliance with any regulations under the Primary Industries (Excise) Levies Act 1999 could result in penalties as stipulated elsewhere in the Act. Typically, such penalties could include fines or other civil or administrative actions. The exact penalties would depend on the specific provisions of the primary Act and any related legislative instruments. The Amendment itself focuses on reducing the levy rate without introducing new punitive measures, indicating an intent to support the industry while maintaining compliance with existing legislative frameworks. The Amendment is also accompanied by a Statement of Compatibility with Human Rights, prepared in accordance with the Human Rights (Parliamentary Scrutiny) Act 2011. This statement confirms that the Legislative Instrument does not engage any of the applicable rights or freedoms and is therefore compatible with human rights. The conclusion is that the Amendment does not raise any human rights issues, ensuring that the legislative change is aligned with broader human rights principles and protections. This compatibility is significant as it reassures stakeholders that the reduction in the marketing levy does not adversely impact any human rights considerations.