EXPLANATORY STATEMENT
Issued by Authority of the Minister for Agriculture and Water Resources
Primary Industries (Excise) Levies Act 1999
Primary Industries (Excise) Levies Amendment (Bananas) Regulations 2019
Legislative Authority
The Primary Industries (Excise) Levies Act 1999 (the Excise Levies Act) authorises the imposition of primary industries levies, which are duties of excise.
Section 8 of the Excise Levies 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 Excise Levies Act.
Parts 2, 3 and 4 of Schedule 27 to the Excise Levies Act provide that Regulations may impose primary industries levies, set the rate of the levies and specify the person liable to pay the levy. Part 27 of Schedule 15 to the Primary Industries (Excise) Levies Regulations 1999 imposes a levy on bananas.
Subclause 14(2) of Schedule 27 to the Excise Levies Act provides that if there is a single body that is a designated body for a particular product, then, before the Governor-General makes a regulation in relation to the product, the Minister must take into consideration any relevant recommendation made to the Minister by the body. The Primary Industries (Excise) Levies (Designated Bodies) Declaration 2013 declares the Australian Banana Growers’ Council Inc (ABGC), the peak industry body for the Australian banana industry, as the designated body for bananas.
Purpose
The purpose of the Primary Industries (Excise) Levies Amendment (Bananas) Regulations 2019 (the Regulations) is to amend the Primary Industries (Excise) Levies Regulations 1999 to decrease the Emergency Plant Pest Response (EPPR) levy for bananas from 0.75 of a cent per kilogram to nil.
Levies are introduced, administered and collected by the Australian Government, usually at the request of industry. The Department of Agriculture and Water Resources (the department) collects the levy and disburses the funds to the relevant levy recipient body.
Background
The ABGC, the peak representative body for the banana industry in Australia, is a signatory to the Emergency Plant Pest Response Deed (EPPRD). The EPPRD is a legally binding agreement between the Australian Government, state and territory governments, Plant Health Australia and industry signatories regarding the management and cost-shared funding of emergency plant pest incursions. Under that deed, the Australian Government may, on request, underwrite an industry’s contribution to an emergency response. EPPR levies may be used to pay for industry contributions to emergency responses under the EPPRD. The EPPR levy on bananas was activated on 1 July 2015 at the industry’s request and has been used to repay the Australian Government for approximately $12 million in costs paid on the industry’s behalf in relation to the 2013 emergency response to banana freckle in the Northern Territory. Successful eradication of banana freckle from the Northern Territory was announced by the Minister on 1 February 2019.
On 23 November 2018, the ABGC wrote to the Minister for Agriculture and Water Resources requesting that the EPPR levy on bananas be decreased to a nil rate.
Impact and Effect
The Regulations will effectively deactivate the levy. Should another emergency response be required in the future the levy can be activated again.
Consultation
Consistent with the Australian Government Levy Principles and Guidelines for the deactivation of an EPPR levy, ABGC notified levy payers of the levy proposal by writing to banana growers, placing notices in its industry ebulletin and Australian Bananas magazine, and providing information to growers at its 21 November 2018 annual general meeting. It also held an objection period from 30 November 2018 to 31 January 2019. No objections to the levy change were received from levy payers.
The Office of Best Practice Regulation has advised that a Regulation Impact Statement is not required for this proposal (ID 24721). The department consulted the Treasury in preparing the Regulations.
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 are a legislative instrument for the purposes of the Legislation Act 2003.
Attachment A
Details of the Primary Industries (Excise) Levies Amendment (Bananas) Regulations 2019
Section 1 – Name
This section provides that the name of the Regulations is the Primary Industries (Excise) Levies Amendment (Bananas) Regulations 2019.
Section 2 – Commencement
This section provides for the Regulations to commence on 1 July 2019.
Section 3 – Authority
This section provides that the Regulations are made under the Primary Industries (Excise) Levies Act 1999.
Section 4 – Schedules
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 subclause 27.7(2) of Schedule 15 to provide that the rate of the EPPR levy on bananas is nil.
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 (Bananas) Regulations 2019
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 (Bananas) Regulations 2019 (the Regulations) is to amend the Primary Industries (Excise) Levies Regulations 1999 to decrease the Emergency Plant Pest Response levy on bananas from 0.75 of a cent per kilogram to nil.
The Regulations commence on 1 July 2019.
Human rights implications
These Regulations do not engage any of the applicable rights or freedoms.
Conclusion
The measures in the Regulations 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 Regulations do not engage any human rights issues.
The Hon. David Littleproud MP
Minister for Agriculture and Water Resources