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 (Forest Growers) 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 the ability to impose levies on logs.
Part 8 of Schedule 27 to the Primary Industries (Excise) Levies Regulations 1999 sets out details for imposition of the forest growers levy.
Purpose
The purpose of the Primary Industries (Excise) Levies Amendment (Forest Growers) Regulation 2016 (the Regulation) is to amend the statutory levies for forest growers to:
- Replace the category of leviable logs processed from trees felled in a plantation with two new categories, being:
- logs felled in a plantation from exotic softwood trees of the genus Pinus sp.
- logs felled in a plantation from other exotic softwood trees
- To introduce an Emergency Plant Pest Response (EPPR) levy of:
- five cents per cubic metre of the log for logs felled in a plantation from exotic softwood trees of the genus Pinus sp.
- a nil rate for logs felled in a plantation from other exotic softwood trees
The amendments will apply to returns for quarters and financial years that start on or after 1 July 2016.
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 recipient body, Plant Health Australia in this instance.
The Australian Forest Products Association (AFPA) is the national industry body that represents the forest growers industry as 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, industry signatories and Plant Health Australia for the management and funding of emergency responses to plant pest incursions. Emergency Plant Pest Response (EPPR) levies provide a mechanism for industries to meet their financial obligations for nationally cost-shared emergency responses under that agreement if the need arises.
AFPA has requested amendments to the existing levy arrangements to activate (or set to a positive rate) the EPPR forest growers levy for Pinus sp. plantation logs only. The levy raises money to repay the Australian Government for costs paid on behalf of the forest growers industry in relation to the nationally cost-shared emergency response to giant pine scale under the EPPRD. As giant pine scale only affects Pinus Sp. trees, Pinus sp. growers are the primary beneficiaries of the eradication response.
Impact and Effect
The Regulation provides for growers of Pinus sp. plantation trees to pay a levy of 5 cents per cubic metre of the log on logs felled in those plantations. The EPPR levy is used to pay the forest growers industry’s contribution to a nationally cost-shared emergency response to giant pine scale, an insect that affects trees of the genus Pinus Sp.
Consultation
In accordance with the Australian Government Levy Principles and Guidelines, as they relate to the activation of nil-rated emergency response levies for the purpose of funding the industry contribution to an emergency response under the EPPRD, AFPA:
- took reasonable steps to notify forest grower levy payers that it was requesting that the Minister for Agriculture and Water Resources increase the EPPR levy
- held a formal objection period from 4 December 2015 to 15 January 2016.
AFPA also consulted with the processors, who are the collection point for the levy, on the proposed changes to the levy sub-categories. No objections were received.
The Department consulted the Departments of the Prime Minister and Cabinet and the Treasury in preparing the Regulation. The Office of Best Practice Regulation (OBPR) has agreed that a Regulation Impact Statement is not required (OBPR ID 20341).
Details / Operation
Details of the Regulation are set out in the Attachment A.
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 the 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 (Forest Growers)
Regulation 2016
Section 1 – Name of Regulation
This section provides that the name of the Regulation is the Primary Industries (Excise) Levies Amendment (Forest Growers) 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 Levies and Charges Collection Act 1991.
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 repeals paragraph 8.6(2) of Schedule 27 and provides two EPPR levy rates for logs felled in a plantation, specifying a levy rate of five cents per cubic metre of the log for logs from exotic softwood trees of the genus Pinus sp., and a nil rate for any other kind of exotic softwood plantation logs.
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 (Forest Growers) 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 (Forest Growers) Regulation 2016 (the Regulation) is to amend the statutory levies for forest growers to:
- Replace the category of leviable logs processed from trees felled in a plantation with two new categories, being:
- logs felled in a plantation from exotic softwood trees of the genus Pinus sp.
- logs felled in a plantation from other exotic softwood trees
- To introduce an Emergency Plant Pest Response (EPPR) levy of:
- five cents per cubic metre of the log for logs felled in a plantation from exotic softwood trees of the genus Pinus sp.
- a nil rate for logs felled in a plantation from other exotic softwood trees
The amendments will apply to returns for quarters and financial years that start on or after 1 July 2016.
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