Primary Industries (Excise) Levies Amendment (Deer Velvet) Regulation 2016

Administered by Department of Agriculture

Legislation au F2016L00742 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 (Deer Velvet) Regulation 2016

 

Legislative Authority

Section 8 of the Primary Industries (Excise) Levies Act 1999 (the 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 Levies Act provides for levies to be imposed on the products of primary industries, including on deer velvet (commonly known as deer antler).

Purpose

The purpose of the Primary Industries (Excise) Levies Amendment (Deer Velvet) Regulation 2016 (the Regulation) is to cease the collection of the statutory levy on deer velvet production by:

  • decreasing the rate of levy on deer velvet from one per cent of the sale price to zero per cent of the sale price; and
  • decreasing the rate of levy on deer velvet used in producing other goods from one per cent of the declared value to zero per cent of the declared value.

 

Background

At the request of the deer industry, levies and charges are introduced, administered and collected by the Australian Government. Research and development levies collected from the deer industry are matched by the government and disbursed by the Department of Agriculture and Water Resources (the department) to the Rural Industries Research and Development Corporation (RIRDC) to fund research and development related to deer farming.

 

The industry representative organisation for the deer industry, the Deer Industry Association of Australia Limited (DIAA), lodged a submission on 24 April 2015 with the then Minister for Agriculture requesting to cease the collection of the deer velvet levy and export charge, and the live deer export charge.

 

Impact and Effect

The levy collected from deer velvet production has decreased significantly in recent years and a large proportion was used to cover collection administration costs.

 

Setting the deer velvet levy rate to zero ceases the collection of the levy on deer velvet for domestic sale. The reduction of the levy to zero would benefit industry by reducing the administrative and financial burden imposed by the regulations.

 

Rather than removing the levy in its entirety, setting the levy rate to zero provides the industry with the flexibility to consider activating the levy again under current arrangements (for example, who pays the levy and how the levy is collected) if it wished to in the future.

 

 

Consultation

The DIAA has consulted with deer velvet levy payers on the proposed amendments via a ballot among active industry participants and published advertisements in three major rural newspapers and the deer industry journal. The department has consulted with the Treasury, the Department of Finance and RIRDC on the proposal. The Office of Best Practice Regulation was also consulted in the preparation of the Regulation (ID 20057).

 

 

Details/ Operation

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

 

Other

 

The Regulation 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 Attachment B.

 

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


Attachment A

 

Details of the Primary Industries (Excise) Levies Amendment (Deer Velvet) Regulation 2016

 

Section 1 – Name

 

This section provides that the name of the name of the Regulation is the Primary Industries (Excise) Levies Amendment (Deer Velvet) Regulation 2016.

 

Section 2 – Commencement

 

This section provides for the Regulation to commence on 1 July 2016.

 

Section 3 – Authority

 

This section provides that the Regulation is made under the Primary Industries (Excise) Levies Act 1999.

 

Section 4 – Schedules

 

This section provides that the Regulation 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 (Excise) Levies Regulations 1999

 

Item 1 amends an incorrect cross-reference to paragraph 4(1)(a)  of Schedule 8 to the Primary Industries (Excise) Levies Act 1999.

 

Item 2 reduces the rate of levy on sale of deer velvet from 1% of the percentage of its sale value to 0%.

 

Item 3 reduces the rate of levy on deer velvet used in producing other goods from 1% of its declared value to 0%.

 

 


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 (Deer Velvet) Regulation 2016

 

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 (Deer Velvet) Regulation 2016 is to cease the collection of the statutory levy on deer velvet production by reducing the rate of levy to zero. For deer velvet for sale and deer velvet used to produce other goods, the levy will be reduced from 1% of the declared or sale value to 0% of the value.

 

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 (Deer Velvet) Regulation 2016 was introduced to amend the Primary Industries (Excise) Levies Act 1999. The regulation, enacted by the Governor-General under section 8 of the Levies Act, aims to cease the collection of the statutory levy on deer velvet production. This was achieved by decreasing the rate of levy on deer velvet from one per cent of the sale price to zero per cent of the sale price, and similarly reducing the rate of levy on deer velvet used in producing other goods from one per cent of the declared value to zero per cent of the declared value. The regulation responds to the deer industry's request to alleviate the administrative and financial burden associated with the collection of the levy, which had been diminishing in recent years and was largely used to cover collection administration costs. The policy objective is to provide the industry with the flexibility to consider activating the levy again in the future if desired, without entirely removing it. The regulation was prepared following consultations with the Deer Industry Association of Australia Limited, the Department of Agriculture and Water Resources, the Treasury, and the Department of Finance, among others. The consultation process ensured that the industry's needs and perspectives were considered in the drafting of the regulation. The regulation is compatible with human rights as recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011, as it does not engage any of the applicable rights or freedoms.

Scope and Application

The Primary Industries (Excise) Levies Amendment (Deer Velvet) Regulation 2016 applies to entities within the Australian deer industry, specifically those involved in the production and sale of deer velvet, as well as those who use deer velvet in the production of other goods. The regulation operates under the authority of the Primary Industries (Excise) Levies Act 1999, which is a Commonwealth Act, thereby giving the regulation a national jurisdictional reach. The amendment effectively nullifies the statutory levy on deer velvet production by setting the levy rate to zero, thereby ceasing its collection. This change applies to both the sale of deer velvet and its use in the production of other goods, reducing the levy from one per cent of the sale or declared value to zero per cent. The regulation also includes a correction to an existing cross-reference in the Primary Industries (Excise) Levies Regulations 1999. The regulation commenced on 1 July 2016, and its details are set out in the applicable schedules and items. This legislative instrument does not impose any exclusions, exemptions, or thresholds, and it is compatible with human rights as it does not raise any associated issues.

Key Provisions

The Primary Industries (Excise) Levies Amendment (Deer Velvet) Regulation 2016 (Regulation) makes amendments to the Primary Industries (Excise) Levies Regulations 1999 to cease the collection of the statutory levy on deer velvet production. According to Section 4 of the Regulation, the amendment to the Schedule 1 of the 1999 Regulations involves reducing the rate of levy on deer velvet for sale and used in producing other goods from one per cent of the declared or sale value to zero per cent of the value (Schedule 1, Item 2 and Item 3). The Regulation, which came into effect on 1 July 2016 (Schedule 1, Item 1), is made under the authority of Section 8 of the Primary Industries (Excise) Levies Act 1999 (Levies Act) (Schedule 1, Item 4). The Regulation imposes on the parties involved, primarily the deer industry and the Department of Agriculture and Water Resources, the obligation to comply with the reduced levy rate of zero per cent for deer velvet for sale and used in producing other goods. The deer industry is required to adjust their sales and production processes accordingly, ensuring that the new rate is implemented in all transactions involving deer velvet. The Department of Agriculture and Water Resources must ensure the new levy rate is reflected in all relevant records and administrative processes. The Regulation does not explicitly state any offences or penalties for non-compliance with the reduced levy rate. However, failure to comply with the amended Regulations could potentially lead to enforcement actions under the Levies Act, which may include fines or other legal consequences. It is important for the industry and the Department to ensure full compliance to avoid any potential repercussions.

Legal classification tags

Area of Law
Taxation Law
Instrument
Regulation
Concepts
Definitions & Interpretation
Repeal & Amendment
Compliance Obligations
Catchwords
Rate of Levy

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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.