Primary Industries (Excise) Levies Amendment (Avocados) Regulations 2017

Administered by Department of Agriculture

Legislation au F2017L00155 Regulations Not in force Legislative Instrument

Legislation content

EXPLANATORY STATEMENT

 

 

Issued by Authority of the Deputy Prime Minister and Minister for Agriculture and Water Resources

 

Primary Industries (Excise) Levies Act 1999

 

Primary Industries (Excise) Levies Amendment (Avocados) Regulations 2017

 

 

 

Legislative Authority

Section 8 of the Primary Industries (Excise) Levies Act 1999 (the Excise Levies Act) provides that the Governor-General may make regulations prescribing matters required or permitted by that Act to be prescribed for carrying out or giving effect to that Act. The Act provides for the ability to impose levies on avocados.

 

Part 4 of Schedule 15 to the Primary Industries (Excise) Levies Regulations 1999 sets out details for imposition of the avocado levy.

 

Purpose

The purpose of the Primary Industries (Excise) Levies Amendment (Avocados) Regulations 2017 (the Regulations) is to amend the avocado levy to establish a Plant Health Australia (PHA) levy on fresh avocados, set at 0.1 of a cent per kilogram, and reduce the existing avocado research and development (R&D) levy rate to 2.9 cents per kilogram.

 

The Regulations will apply to returns for quarters and financial years that start on or after 1 April 2017.

 

Background

Levies and charges are introduced, administered and collected by the Australian Government, usually at the request of industry. The Department of Agriculture and Water Resources (the department) disburses the levy collected to the relevant recipient body.

 

The peak industry body for avocado growers, Avocado Australia Limited (AAL) has requested to establish a new PHA levy set at 0.1 of a cent per kilogram and reduce the existing avocado R&D levy rate to 2.9 cents per kilogram.

 

The levy will raise funds to meet a number of biosecurity commitments for the avocado industry, as agreed between PHA and AAL, including:

 

  • To enable avocado industry participation in biosecurity management
    • The avocado industry’s costs associated with membership of PHA and participation in PHA and Emergency Plant Pest Response Deed decision making processes are currently covered by AAL. Through the changes proposed, all levy payers would share this cost equitably.
  • To fund essential avocado biosecurity management activities
    • Biosecurity planning for high priority pests
    • Biosecurity response training and education to ensure that AAL has the capacity to respond effectively on behalf of the industry in the event of an incursion
    • Supporting the Avocado Nursery Voluntary Accreditation Scheme
    • Biosecurity risk analysis to allow a clear understanding of the biosecurity risk associated with potential imports of fresh avocados from countries such as Mexico, Chile and Peru.
  • To cover the avocado industry commitment to the Exotic Fruit Flies in the Torres Strait Response Plan.

 

Impact and Effect

The overall rate of the levy on avocados would not alter, remaining at a rate of 7.5 cents per kilogram. The levy would be applied as follows:

  • R&D levy (fresh avocados): 0.1 cents per kilogram (from 3 cents per kilogram)
  • Marketing levy (fresh avocados): 4.5 cents per kilogram (current rate)
  • PHA levy (fresh avocados): 0.1 cents per kilogram (from 0.0 cents per kilogram)
  • Emergency plant pest response levy: nil (current rate).

 

Consultation

Consistent with the Australian Government Levy Principles and Guidelines, the AAL conducted a thorough consultation campaign with all known existing and potential levy payers. This campaign included information being distributed at industry meetings, through mail outs, a media release and on an e-bulletin.

In April 2016, the AAL also undertook an independent ballot of all avocado growers seeking support for the change. Results indicated that:

  1. 606 levy payers were sent the survey directly
  2. 40 per cent of the national production area voted and 96.92 per cent of the votes supported the change (3.08% indicated that they did not support the change)
  3. Those who completed the survey represented 3,005 hectares and those who voted no represented 18 hectares.

In accordance with the Australian Government’s Levy Principles and Guidelines a six week period for prospective levy payers to lodge objection to the levy submission was open from 13 October 2016 to 24 November 2016. No objections were received.

 

The department consulted the Departments of the Prime Minister and Cabinet and Treasury in preparing the Regulations. The Office of Best Practice Regulation has agreed that a regulation impact statement is not required (ID 21620).

 

Details / Operation

Details of the Regulations are set out in the Attachment A.

 

The Regulations is 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 the Attachment B.

 

The Regulations is a legislative instrument for the purposes of the Legislation Act 2003.

Attachment A

 

Details of the Primary Industries (Excise) Levies Amendment (Avocados)

Regulations 2017

 

Section 1 – Name of Regulations

 

This Section provides that the name of the Regulations is the Primary Industries (Excise) Levies Amendment (Avocados) Regulations 2017.

 

Section 2 – Commencement

 

This Section provides for the Regulations to commence on 1 April 2017.  

 

Section 3 – Authority

 

This Section provides that the Regulations is made under the Primary Industries (Excise) Levies Act 1990.

 

Section 4 – Schedule

 

This Section provides for the Primary Industries (Excise) Levies Regulations 1999 to be amended as set out in Schedule 1.

 

Schedule 1 – Amendments

 

Item 1 amends paragraph 4.4(a) of schedule 5 to change the current charge from 3 cent to 2.9 cent.

 

Item 2 amends part 4 of schedule 15 to add:

 

4.7 PHA Levy

(1)   For clause 2 of Schedule 27 to the Excise Levies Act, PHA is imposed on fresh avocados on which levy is imposed by Schedule 15 to the Excise Levies Act.

(2)   For clause 6 of Schedule 27 to the Excise Levies Act, the rate of the levy for fresh avocados is 0.1 cents per kilogram.

(3)   For clause 11 of Schedule 27 to the Excise Levies Act, PHA levy imposed on fresh avocados.

 


 

Attachment B

 

Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

 

Primary Industries (Excise) Levies Amendment (Avocados) Regulations 2017

 

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 (Excise) Levies Amendment (Avocados) Regulations 2017 (the Regulations) is to amend the avocado levy to establish a Plant Health Australia (PHA) levy on fresh avocados, set at 0.1 of a cent per kilogram, and reduce the existing avocado research and development (R&D) levy rate to 2.9 cents per kilogram.

 

Human rights implications

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

 

Conclusion

This Legislative Instrument is compatible with human rights as it does not raise any human rights issues.

 

 

The Hon. Barnaby Joyce MP

Deputy Prime Minister and Minister for Agriculture and Water Resources

 

 

Overview

The Primary Industries (Excise) Levies Amendment (Avocados) Regulations 2017 was introduced to modify the avocado levy system under the Primary Industries (Excise) Levies Act 1999. Enacted by the Australian Government and authorised by Section 8 of the Excise Levies Act, these regulations aim to address the avocado industry's biosecurity needs by establishing a Plant Health Australia (PHA) levy and adjusting the research and development (R&D) levy rate. The new PHA levy of 0.1 cent per kilogram is intended to fund biosecurity management activities, while the reduction of the R&D levy rate to 2.9 cents per kilogram reflects the industry's commitment to biosecurity. The policy objective is to ensure that all levy payers equitably share the costs associated with biosecurity management, thereby enhancing the industry's capacity to respond effectively to plant pest incursions. The regulations were developed following extensive consultation with the avocado industry, represented by Avocado Australia Limited (AAL), which sought to reallocate funds towards biosecurity initiatives. The proposed changes were supported by a majority of the industry, as evidenced by a ballot where 96.92% of votes were in favour. These amendments ensure the overall levy rate on avocados remains unchanged at 7.5 cents per kilogram, with the new PHA levy and adjusted R&D levy rate replacing the previous components. The regulations commenced on 1 April 2017, and the Australian Government's principles and guidelines for levies were adhered to throughout the process.

Scope and Application

The Primary Industries (Excise) Levies Amendment (Avocados) Regulations 2017, made under the Primary Industries (Excise) Levies Act 1999, pertains to the imposition of levies on fresh avocados within Australia. These regulations apply to entities and individuals involved in the avocado industry, specifically targeting growers and producers of fresh avocados, who are subject to the new Plant Health Australia (PHA) levy of 0.1 cents per kilogram and the adjusted research and development (R&D) levy of 2.9 cents per kilogram. The Regulations commenced on 1 April 2017, affecting avocados sold or exported from this date onwards. The scope of these regulations is national, impacting all avocado producers across Australia. However, the Regulations do not specify any exclusions or thresholds, suggesting that all avocado producers are subject to the new levy rates. Additionally, the Act allows for the extension or restriction of application through subordinate instruments, which can provide further specificity or exemptions as needed in future adjustments.

Key Provisions

The Primary Industries (Excise) Levies Amendment (Avocados) Regulations 2017 (the Regulations) amend the avocado levy to establish a Plant Health Australia (PHA) levy on fresh avocados at a rate of 0.1 cent per kilogram, and reduce the existing avocado research and development (R&D) levy rate to 2.9 cents per kilogram (sections 2 and 4). These changes apply to returns for quarters and financial years starting on or after 1 April 2017 (section 2). The Regulations are made under section 8 of the Primary Industries (Excise) Levies Act 1999, which allows the Governor-General to make regulations for carrying out or giving effect to the Act (section 3). The Regulations amend the Primary Industries (Excise) Levies Regulations 1999 to set the new rates for the avocado levy (Schedule 1). The Regulations impose obligations on avocado growers and producers to pay the new avocado levies. Growers and producers must report and pay the levies in accordance with the Excise Levies Act and the amended Regulations. The levies are collected by the Australian Government and disbursed to relevant bodies, such as Plant Health Australia and Avocado Australia Limited. Growers and producers must ensure they are aware of their obligations to report and pay the levies, and comply with the requirements of the Excise Levies Act and the Regulations. Breaches of the Excise Levies Act and the Regulations may result in civil or criminal penalties. Under the Excise Levies Act, a person who contravenes a provision of the Act or the Regulations may be liable to a penalty of up to $22,200 for an individual and $111,000 for a body corporate (section 25). In addition, under section 13.3.H of the Crimes Act 1914, a person who wilfully obstructs an officer of the Australian Taxation Office in the execution of their duties may be liable to a penalty of up to 2 years imprisonment. It is important for growers and producers to be aware of their obligations under the Excise Levies Act and the Regulations, and to ensure they comply with their reporting and payment obligations to avoid potential penalties.

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Taxation Law
Instrument
Regulation
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Definitions & Interpretation
Levy Collection
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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.