Primary Industries (Excise) Levies Amendment (Exemptions and Other Matters) Regulations 2025

EXPLANATORY STATEMENT

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

Primary Industries (Excise) Levies Act 2024

Primary Industries (Excise) Levies Amendment (Exemptions and Other Matters) Regulations 2025

Legislative Authority

The Primary Industries (Excise) Levies Act 2024 (the Act) authorises the imposition of primary industries levies that are duties of excise within the meaning of section 55 of the Constitution. Section 27 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.

Part 2 of the Act authorises the regulations to impose a levy in relation to one or more products that are the produce of a primary industry in the circumstances prescribed by the regulations. The Act authorises the regulations to provide for an exemption from a levy imposed under Part 2 (section 9) and for working out the rate of the levy (section 16).

Purpose

The purpose of the Primary Industries (Excise) Levies Amendment (Exemptions and Other Matters) Regulations 2025 (the Regulations) is to make technical and other minor amendments to provisions of the Primary Industries (Excise) Levies Regulations 2024 (the Levies Regulations) to include certain exemptions and clarify other matters to ensure the provisions operate as intended.

In particular, the Regulations make technical amendments to the Levies Regulations to:

• clarify the imposition of the game animal processing levy and macropod processing levy;
• make a technical adjustment to an exemption from the cattle transaction levy, and provide for new exemptions from the dairy produce levy, the forest growers levy and ginger levy to ensure those levies operate as intended;
• clarify the way of working out the rate of the deer slaughter levy and macropod processing levy; and
• provide an example of a term used in certain livestock transaction and slaughter levies, provide for legislative notes to give examples or to explain the interaction between levies, and make other technical or typographical adjustments.

Background

The agricultural levy and charge system, known as the agricultural levy system, is a long-standing partnership between industry and the Australian Government to facilitate industry investment in strategic activities. Levies and charges are generally payable by farmers, producers, processors and exporters.

Amounts equal to the collected levy and charge are generally disbursed under the Primary Industries Levies and Charges Disbursement Act 2024 by the Commonwealth to recipient bodies and other entities to support activities the levies and charges are imposed to fund. This includes research and development, marketing, biosecurity activities, biosecurity responses, and National Residue Survey testing.

Subsection 7(3) of the Act provides that before the Governor-General may make regulations for the purposes of subsection 7(1) imposing a levy in relation to one or more products that are the produce of a primary industry, the Minister must be satisfied that the imposition of the levy would result in one or more of the types of expenditure on matters or activities specified in subsection 7(3). Any levy imposed is a duty of excise, which includes a tax on the production, manufacture, sale and distribution of goods.

To the extent the amendments to levies imposed by the Levies Regulations could be made for the purposes of subsection 7(1) of the Act, the imposition of those levies results in one or more of the types of expenditure on matters or activities required by subsection 7(3) of that Act.

Paragraph 27(2)(c) of the Act provides that before regulations are made setting or amending the rate of a levy, the Minister must be satisfied that appropriate consultation has been undertaken with bodies and persons involved in the industry in relation to the levy and any recommendations made by those bodies or persons about the rate have been considered. The Minister was satisfied that this requirement was met in relation to the Regulations that amend the way of working out the rate of the cattle transaction levy (item 1 of Schedule 1), deer slaughter levy (items 6 and 7 of Schedule 1), and macropod processing levy (item 11 of Schedule 1).

Impact and Effect

The amendments will benefit industry and levy payers by clarifying the operation of the Levies Regulations in line with the intended policy and industry practice and by providing improved certainty for levy payers, other stakeholders and the Department of Agriculture, Fisheries and Forestry in understanding and administering the legislation.

Consultation

Industry representative bodies who represent persons affected by the amendments were consulted during development of the measures in the Regulations. The industry representative bodies consulted represent levy payers in the dairy, livestock, sugarcane, forestry, horticulture, and wild game industries who could be affected by the proposed changes.

Industry bodies were either supportive of or did not raise concerns about the measures relevant to their industry.

Details/ Operation

The Regulations are a legislative instrument for the purposes of the Legislation Act 2003. The Regulations commence on 1 July 2025.

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 with Human Rights is set out in Attachment B.

ATTACHMENT A

Details of the Primary Industries (Excise) Levies Amendment (Exemptions and Other Matters) Regulations 2025

Section 1—Name

This section provides that the name of the instrument is the Primary Industries (Excise) Levies Amendment (Exemptions and Other Matters) Regulations 2025 (the Regulations).

Section 2—Commencement

This section provides that the Regulations commence on 1 July 2025.

Section 3—Authority

This section provides that the Regulations are made under the Primary Industries (Excise) Levies Act 2024 (the Act).

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 (Excise) Levies Regulations 2024

Item 1 – Section 5 (paragraph (b) of the definition of lot-fed cattle)

This item omits the words “are likely to be used” from the beginning of paragraph (b) of the definition of lot-fed cattle in section 5 of the Primary Industries (Excise) Levies Regulations 2024 (the Levies Regulations), and substitutes “are so fed for the purpose of being later used”.

The amendment provides that cattle that are fed in a feedlot and are so fed for the purpose of later being used in the production of grain-fed beef products are lot-fed cattle.

The purpose of the amendment is to make the definition more certain.

Item 2 – Section 5 (before the note at the end of the definition of proprietor)

This item adds a new note before the existing note at the end of the definition of proprietor in section 5 of the Levies Regulations. The note provides “Note 1: An example of an abattoir is a place where mobile abattoir activities are carried on.”

The purpose of the amendment is to explain the types of places that can be an abattoir for the purposes of the Levies Regulations.

Item 3 – Section 5 (note to the definition of proprietor)

This item omits the word “Note” from before the existing note at the end of the definition of proprietor in section 5 of the Levies Regulations, and substitutes “Note 2”.

The amendment is consequential to the amendment that is made by Item 2 to add a new note at the end of that definition.

Item 4 – Section 5 (note to the definition of proprietor)

This item omits the words “other premises” from the existing note at the end of the definition of proprietor in section 5 of the Levies Regulations, and substitutes “premises, other than an abattoir,”.

The purpose of the amendment to the note is to clarify that the examples in that note are of types of premises other than an abattoir.

Item 5 – Subclause 9-7(9) of Schedule 1

This item omits “subclause 9-6(3) or (4)” from subclause 9-7(9) of Schedule 1 to the Levies Regulations and substitutes “subclause 9-6(4)”.

Clause 9-6 of Schedule 1 to the Levies Regulations provides that cattle transaction levy is imposed in different circumstances provided in subclauses 9-6(1)-(4) of that Schedule. Clause 9-7 of Schedule 1 provides for exemptions from levy imposed by one or more subclauses in clause 9-6.

The purpose of this amendment is to clarify that the exemption from levy prescribed in subclause 9-7(9) of Schedule 1 only applies to levy that would otherwise be imposed by subclause 9-6(4) of Schedule 1.

Item 6 – Clause 10-3 of Schedule 1 (table item 1, column headed “Rate of levy”)

This item inserts the words “by the proprietor of the abattoir” after “is determined” in item 1 of the table in clause 10-3 of Schedule 1 to the Levies Regulations, which provides for working out the rate of the deer slaughter levy.

The amendment clarifies that the deer slaughter levy rate prescribed in item 1 of the table would apply if the hot carcase weight of a deer carcase is determined by the proprietor of the abattoir.

The deer slaughter levy is imposed on the slaughter in Australia at an abattoir of deer for human consumption in or outside Australia. The table in clause 10-3 of Schedule 1 provides for three different ways of working out the rate of the levy, depending on whether the hot carcase weight is determined, the cold carcase weight is instead determined, or in any other case.

The purpose of the amendment is to clarify that item 1 of the table in clause 10-3 of Schedule 1 applies when the proprietor of the abattoir determines the hot carcase weight of the deer carcase.

Item 7 – Clause 10-3 of Schedule 1 (table item 2, column headed “Rate of levy”)

This item omits the words “is determined and the hot carcase weight has not been determined” from item 2 of the table in clause 10-3 of Schedule 1 to the Levies Regulations, which provides for working out the rate of the deer slaughter levy, and substitutes “is determined by the proprietor of the abattoir but the hot carcase weight is not determined by that proprietor”.

The amendment clarifies that the deer slaughter levy rate prescribed in item 2 of the table applies if the cold carcase weight of a deer carcase is determined by the proprietor of the abattoir (and the hot carcase weight of that carcase is not determined by that proprietor).

The purpose of the amendment is to clarify that item 2 of the table in clause 10-3 of Schedule 1 applies when the proprietor of the abattoir determines the cold carcase weight of the deer carcase and does not determine the hot carcase weight.

Item 8 – Clause 16-2 of Schedule 1

This item repeals clause 16-2 of Schedule 1 to the Levies Regulations, and substitutes:

“16-2 Exemptions from the levy

Levy previously imposed

1.      Levy is not imposed by clause 16-1 on particular whole milk if levy under that clause has previously been imposed on the milk.

Whole milk sold or processed after export

1.      Levy is not imposed by clause 16-1 on whole milk that is sold or processed after being exported from Australia.”.

The amendment provides that the dairy produce levy is not imposed under Division 16 of Schedule 1 on whole milk that is sold or processed after the whole milk has been exported from Australia. The amendment retains the existing exemption from the levy that applies if the levy has already been imposed on the milk.

The purpose of the amendment is to ensure that the dairy produce levy operates as intended.

Item 9 – Paragraph 21-1(1)(b) of Schedule 1

This item inserts the word “processed” after the word “are” in paragraph 21-1(1)(b) of Schedule 1.

The amendment provides that a levy is imposed on the processing at a processing establishment in Australia of game animals that were killed in their habitat by a shot from a firearm and are processed for human consumption in or outside Australia.

The purpose of the amendment is to clarify that the game animals processing levy is imposed on the processing of game animals when the game animals are processed for human consumption.

Item 10 – Paragraph 22-1(1)(b) of Schedule 1

This item inserts the word “processed” after the word “are” in paragraph 22-1(1)(b) of Schedule 1.

The amendment provides that a levy is imposed on the processing at a processing establishment in Australia of macropods that were killed in their habitat by a shot from a firearm and are processed for human or animal consumption in or outside Australia.

The purpose of the amendment is to clarify that the macropod processing levy is imposed on the processing of macropods when the macropods are processed for human or animal consumption.

Item 11 – Clause 22-3 of Schedule 1 (table item 1, column headed “Rate of levy”, paragraph (a))

This item omits the words “for any macropods” from paragraph (a) of item 1 of the table in clause 22-3 of Schedule 1, and substitutes “for macropods that are kangaroos or any other macropods”.

Item 1 of the table in clause 22-3 of Schedule 1 provides that the rate of the macropod processing levy for macropods that are processed for human consumption is the sum of the components in paragraph (a) and (b) of that item.

The amendment provides that paragraph (a) of item 1 of the table in clause 22-3 applies to macropods that are kangaroos or any other macropods. The purpose of the amendment is to make clear which macropods come within that paragraph and clarify how to work out the prescribed rate of the macropods processing levy for macropods that are processed for human consumption.

Item 12 – Subclause 29-1(2) of Schedule 2

This item omits “paragraph (1)(a)”, in subclause 29-1(2) of Schedule 2, and substitutes “this Division”.

The amendment provides that, for the purposes of Division 29 of Schedule 2, sugarcane is taken to be sold to a processor when the first payment for the sugarcane is made, whether the payment represents the whole, or a part, of the purchase price for the sugarcane.

The purpose of the amendment is to clarify that sugarcane is taken to be sold when that first payment is made throughout the Division, not only for the purposes of paragraph 29-1(1)(a), which provides for the imposition of the sugarcane levy in the sale case. This change aligns the provision with the approach taken in similar provisions in other Divisions in the Levies Regulations that clarify when a product is taken to be purchased for the purposes of the relevant Division: see clause 5-10 of Division 1; clause 36-5 of Schedule 2; clause 62-4 of Schedule 2; and clause 73-4 of Schedule 2.

Item 13 – Subclauses 31-2(4) and (5) of Schedule 2

This item repeals subclauses 31-2(4) and (5) of Schedule 2 to the Levies Regulations, and substitutes:

“Logs sold or processed after export

(4) Levy is not imposed by clause 31-1 on logs that are sold or processed after being exported from Australia.

Threshold exemption

(5) Levy is not imposed by clause 31-1 on logs that are produced from trees, where the logs are:

(a) sold in a financial year by the person who owns the logs immediately after the trees are felled; or

(b) processed in a financial year for a commercial purpose by or for the person who owns the logs immediately after the trees are felled;

if the sum of the following is less than 20,000 m3:

(c) the total quantity of logs so sold by that person in that year;

(d) the total quantity of logs processed for a commercial purpose by or for that person in that year.

(6) Subclause (5) does not apply to logs covered by subclause (1), (2), (3) or (4).”.

The amendment inserts a new subclause 31-2(4) of Schedule 2 that provides that the forest growers levy is not imposed under Division 31 of Schedule 2 on logs that are sold or processed after the logs have been exported from Australia. The amendment also:

• re-inserts existing subclauses 31-2(4) and (5) of Schedule 2, which relate to a threshold exemption from the forest growers levy, as subclauses 31-2(5) and (6) of Schedule 2 to retain the existing structure of the clause; and
• adds a reference to new subclause 31-2(4) of Schedule 2 in subclause (6).

Clause 31-1 of Schedule 2 imposes a levy on logs that are produced from trees felled in Australia if the logs are sold by the person who owns the logs immediately after the trees are felled or are processed for a commercial purpose by or for that person.

The threshold exemption that, under the amendment, is provided in subclause 31-2(5) of Schedule 2 exempts from levy logs that, in a financial year, are:

• sold by the person who owns the logs immediately after the trees are felled; or
• processed for a commercial purpose by or for that person;

if the total quantity of logs sold by that person, together with the total quantity of logs processed for a commercial purpose by or for that person, in the financial year is less than 20,000m3.

New subclause 31-2(6) clarifies that the threshold exemption in new subclause 31-2(5) does not apply to logs that have been the subject of an exemption under subclauses 31-2(1), (2), (3) or, additionally because of the amendment, subclause (4).

The effect of subclause 31-2(6) is that the logs that are exempt from levy under subclauses 31-2(1), (2), (3) or (4) are not counted towards the 20,000m3 levy threshold. This ensures that the threshold exemption only applies to logs on which a levy could otherwise be imposed.

The purpose of the amendment is to ensure that the forest growers levy operates as intended.

Item 14 – Clause 36-3 of Schedule 2 (note)

This item inserts the word “kilograms” after “370,000” in the note following clause 36-3 of Schedule 2.

The note following clause 36-3 of Schedule 2 refers to a person who produces or purchases mushroom spawn “in excess of the 370,000 threshold in subclause 36-2(1)”. Subclause 36-2(1) provides that “Levy is not imposed on mushroom spawn that is produced or purchased by a person in a financial year to the extent that the mushroom spawn is in excess of 370,000 kilograms of mushroom spawn” of specified kinds.

The purpose of the amendment is to correct the omission of the “kilograms” unit measurement in the note.

Item 15 – Clause 46-2 of Schedule 2

This item repeals the clause and substitutes:

“46-2 Exemptions from the levy

Levy is not imposed on ginger that:

1.  is sold by retail sale; or
2.  is sold after being exported from Australia.”

The amendment provides that the ginger levy is not imposed under Division 46 of Schedule 2 on ginger that is sold after the ginger has been exported from Australia.

The purpose of the amendment is to ensure that the ginger levy operates as intended.

Item 16 – At the end of subclause 50-1(2) of Schedule 2

This item adds a new note at the end of subclause 50-1(2) of Schedule 2 to the Levies Regulations. The new note provides that, “Division 64 imposes levy on vegetables. That Division includes vegetables in the family Cucurbitaceae, such as pumpkin and cucumber”.

Division 50 of Schedule 2 provides for the imposition of the melon levy. Subclause 50-1(2) of Schedule 2 provides that melon means a fruit of any species or varieties listed by reference to their scientific names. The limited species and varieties listed are each in the family Cucurbitaceae.

The purpose of the amendment is to explain that the vegetable levy imposed by Division 64 includes vegetables in the family Cucurbitaceae, such as pumpkin and cucumber. This note is consequential to the note in item 19.

Item 17 – At the end of subclause 53-1(2) of Schedule 2

This item adds a new note at the end of subclause 53-1(2) of Schedule 2 to the Levies Regulations. The new note provides that, “Division 64 imposes levy on vegetables (including shallots)”.

Division 53 of Schedule 2 provides for the imposition of the onion levy. Subclause 53-1(2) of Schedule 2 provides that “Onion means a bulb of the species Allium cepa, but does not include shallots (Allium cepa var. aggregatum)”.

The purpose of the amendment is to explain that the vegetable levy in Division 64 of Schedule 2 applies to shallots.

Item 18 – Subclause 64-1(3) of Schedule 2 (note)

This item omits the word “Note” from before the existing note at the end of subclause 64-1(3) of Schedule 2 to the Levies Regulations, and substitutes “Note 1”.

The amendment is consequential to the amendment made by item 20 to add a new note at the end of that subclause.

Item 19 – Subclause 64-1(3) of Schedule 2 (note)

This item omits “However, other species of varieties of melon, such as pumpkin and cucumber, may be covered by subclause (1) of this clause.” from the existing note at the end of subclause 64-1(3) of Schedule 2 to the Levies Regulations, and substitutes “However, subclause (1) of this clause applies to vegetables in the family Cucurbitaceae, such as pumpkin and cucumber.”.

The purpose of the amendment is to make clear that while Division 64 of Schedule 2 does not apply to melons as defined in subclause 50-1(2), the vegetable levy in Division 64 of Schedule 2 does apply to vegetables in the family Cucurbitaceae, such as pumpkin and cucumber.

Item 20 – At the end of subclause 64-1(3) of Schedule 2 (after the note)

This item adds a new Note 2 at the end of subclause 64-1(3) of Schedule 2 to the Levies Regulations (after the note). New Note 2 provides that, “Division 53 imposes levy on onions, Division 58 imposes levy on potatoes and Division 63 imposes levy on sweet potatoes.”.

Subclause 64-1(1) of Schedule 2 provides for the imposition of levy on vegetables. Subclause 64-1(3) of Schedule 2 provides that subclause (1) does not apply to onions (paragraph (d)), potatoes (paragraph (f)) or sweet potatoes (paragraph (h)).

The purpose of the amendment is to make clear that while the vegetable levy imposed by Division 64 of Schedule 2 does not impose levy on onions, potatoes and sweet potatoes, other Divisions of Schedule 2 – (Division 53—Onions; Division 58—Potatoes; and Division 63—Sweet potatoes) impose levy on those products.

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 (Exemptions and Other Matters) Regulations 2025

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 (Exemptions and Other Matters) Regulations 2025 (the Regulations) is to make technical and other minor amendments to provisions of the Primary Industries (Excise) Levies Regulations 2024 (the Levies Regulations) to include certain exemptions and clarify other matters to ensure the provisions operate as intended.

In particular, the Regulations make technical amendments to the Levies Regulations to:

• clarify the imposition of the game animal processing levy and macropod processing levy;
• make a technical adjustment to an exemption from the cattle transaction levy, and provide for new exemptions from the dairy produce levy, the forest growers levy and ginger levy to ensure those levies operate as intended;
• clarify the way of working out the rate of the deer slaughter levy and macropod processing levy; and
• clarify the definition of a term used in some exemption and rate provisions of the cattle transaction levy, provide for legislative notes to give examples or to explain the interaction between levies, and make other technical or typographical adjustments.

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.

The Hon Julie Collins MP

Minister for Agriculture, Fisheries and Forestry