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 (Laying Chickens) 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 laying chickens.
Part 2 of Schedule 16 to the Primary Industries (Excise) Levies Regulations 1999 sets out details for imposition of the laying chickens special purpose charge – Emergency Animal Disease Response levy.
Purpose
The purpose of the Primary Industries (Excise) Levies Amendment (Laying Chickens) Regulations 2017 (the Regulations) is to decrease the Emergency Animal Disease Response (EADR) levy on laying chickens from 1.4 cents per day old chick to nil.
The Regulation will apply to returns for quarters and financial years that start on or after 1 July 2017.
Background
In March 2017, the peak industry body for the Australian egg industry, the Australian Egg Corporation Limited (AECL), requested a decrease to the EADR levy on laying chickens from 1.4 cents per day old chick to nil.
The levy was activated (set to a positive rate) on 1 April 2015, following three eradication responses to outbreaks of Avian Influenza. The egg industry share of response costs in each case was underwritten by the Australian Government. This liability (a total of $363,914.07) was repaid to the government via the levy. The final repayment was made on 11 January 2017.
The department has assessed AECL’s request and considers that it meets the Australian Government Levy Principles and Guidelines for the deactivation of a positive rated EADR levy. The expected implementation date for this levy amendment is 1 July 2017.
Impact and Effect
The amendments will result in the total levy decreasing from 15.57 cents per one-day-old chick to 14.17 cents for levy-paying egg farmers and hatcheries. AECL advised levy payers of the request to deactivate the levy and held an objection period from 22 February 2017 to 21 March 2017. No objections were received.
Consultation
Consistent with the Australian Government Levy Principles and Guidelines, the AECL provided notification to all known and existing and potential levy payers of the request to deactivate the levy. This was done by writing to all known hatcheries and levy payers where a postal address or email address was known. The AECL also published notices in its fortnightly e-newsletter EggCorp EggsPress and on the websites of AECL and Egg Farmers of Australia.
On 19 January 2017, AECL wrote to the Minister for Agriculture and Water Resources requesting that the EADR levy be reset to nil. The letter provided details of how levy payers have been notified of the proposed amendments to the levy, why industry request the levy is reset to nil, details of the industry objection period and its start date.
The industry objection period for the levy deactivation was from 22 February 2017 to
21 March 2017, with no objections received.
The Office of Best Practice Regulation (OBPR) was consulted and advised that a regulation impact statement was not required (OBPR ID: 22130)
Details / Operation
Details of the Regulations are set out in the Attachment A.
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 the 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 (Laying Chickens)
Regulations 2017
Section 1 – Name of Regulation
This Section provides that the name of the Regulations is the Primary Industries (Excise) Levies Amendment (Laying Chickens) Regulations 2017.
Section 2 – Commencement
This Section provides for the Regulations to commence on 1 July 2017. The amendments will apply to returns for quarters and financial years that start on or after 1 July 2017.
Section 3 – Authority
This Section provides that the Regulations are 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] would amend subclause 2(2) of Schedule 16 to omit ‘1.4 cents per day-old chick’ and substitute ‘nil’.
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 (Laying Chickens) 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 (Laying Chickens) Regulations 2017 (the Regulations) is to omit 1.4 cents per day old chick and substitute ‘nil.’
The Regulation will apply to returns for quarters and financial years that start on or after 1 July 2017.
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