Primary Industries (Excise) Levies Amendment (Macadamia Nuts) Regulations 2018

Administered by Department of Agriculture

Legislation au F2018L00270 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 (Macadamia Nuts) Regulations 2018

 

 

The Primary Industries (Excise) Levies Act 1999 (the Act) provides for the ability to impose levies on a range of horticultural products, including macadamia nuts.

 

Section 8 of the 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 or that are necessary or convenient to be prescribed for carrying out or giving effect to that Act.

 

Subclause 14(2) of Schedule 27 of the Act provides that if there is a single body that is a designated body in relation to 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 Regulations 1999 (the Principal Regulations) imposes the Emergency Plant Pest Response (EPPR) levy on macadamia nuts sold domestically in Australia and sets the rate of the EPPR levy.

 

The Primary Industries (Excise) Levies Amendment (Macadamia Nuts) Regulations 2018 (the Regulations) increased the rate of the EPPR levy on macadamia nuts from nil to 0.2 cents per kilogram of dried kernels of macadamia nut.

 

This is because the Australian Macadamia Society (the AMS) wrote to the Minister on 30 June 2017 seeking to activate the EPPR levy on macadamia nuts. The funds raised from this levy will be used to repay the Australian Government for costs paid on behalf of the AMS in relation to the response plan for the eradication of varroa mite from Queensland. It is expected that the AMS’ contribution to the eradication response will be no more than $30,160, in total.

 

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 recipient body, in this instance Plant Health Australia (PHA). The AMS is a member of PHA, representing macadamia nuts.

 

The EPPR levy on macadamia nuts will be 0.2 cents per kilogram of dried kernels of macadamia nut. 

 

The levy rate was calculated to ensure that the industry’s liability to the Australian Government is repaid within two years based on estimated production. Due to varying annual production, it is difficult to predict the exact timeframe for completion of repayment. Therefore, the EPPR levies are being implemented without a specified end date. However, the AMS intends to request that the Minister reset the EPPR levies to nil once repayment is complete.

 

The levy increases are a small enough percentage of the overall levy applied to macadamia nut kernels (including R&D, marketing and national residue survey levies) that it is very unlikely to influence the price of macadamia products.

 

Consistent with the Australian Government Levy Principles and Guidelines for the activation of an emergency response levy, the AMS notified levy payers of the request to activate the EPPR levy on macadamia nuts.

 

The AMS held an objection period from 28 July 2017 to 28 August 2017. One objection was received from a group of four levy payers. The group considered that the AMS had not sought formal levy payer approval and had not met the AMS Constitution’s requirements for the imposition of a “special levy.”

 

The objection was resolved after AMS wrote to the objecting party on 25 August 2017, explaining that formal levy payer approval for the activation of the EPPR levy in the case of an emergency response affecting macadamias had been obtained at the time the levy was introduced at a nil rate in 2005, and that the EPPR levy is a statutory levy, rather than a special levy under the AMS Constitution.

 

Details of the Regulations are set out in 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 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 (Macadamia Nuts)

Regulations 2018

 

Section 1 – Name of Regulations

 

This section provides that the name of the Regulations is the Primary Industries (Excise) Levies Amendment (Macadamia Nuts) Regulations 2018.

 

Section 2 – Commencement

 

This section provides for the Regulations to commence on 1 April 2018.

 

Section 3 – Authority

 

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

 

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 amends paragraph 10.6(2) of Schedule 15 to provide that the EPPR levy on macadamia nuts is 0.2 cents per kilogram of dried kernels of macadamia nut. 

 

 


 

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 (Macadamia Nuts) Regulations 2018

 

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 (Macadamia Nuts) Regulations 2018 (the Regulations) is to increase the Emergency Plant Pest Response (EPPR) levy on macadamia nuts from nil to 0.2 cents per kilogram of dried kernels of macadamia nut.

 

The Regulations commence on 1 April 2018.

 

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

 

Overview

The Primary Industries (Excise) Levies Amendment (Macadamia Nuts) Regulations 2018 were enacted to amend the existing Primary Industries (Excise) Levies Act 1999, addressing the need to impose an Emergency Plant Pest Response (EPPR) levy on macadamia nuts sold domestically in Australia. These regulations were introduced by the Australian Government, with the Department of Agriculture and Water Resources responsible for collecting the levy and disbursing the funds to the relevant recipient body, Plant Health Australia (PHA). The policy objective behind these amendments is to ensure that the Australian Government is reimbursed for costs incurred in relation to the response plan for the eradication of varroa mite from Queensland, with the funds collected from the new levy. The levy rate of 0.2 cents per kilogram of dried kernels of macadamia nut was determined to repay the government within two years, although the exact timeframe for repayment is uncertain due to varying annual production. The regulations are compatible with human rights as declared in the Human Rights (Parliamentary Scrutiny) Act 2011. The Regulations were developed in response to a request from the Australian Macadamia Society (AMS) to activate the EPPR levy on macadamia nuts. The AMS, a member of PHA, sought to ensure that the Australian Government was reimbursed for costs related to the varroa mite eradication response in Queensland. The new levy rate of 0.2 cents per kilogram of dried kernels of macadamia nut was designed to repay the government within two years, with the AMS intending to request that the Minister reset the EPPR levies to nil once repayment is complete. The amendments were made under the authority of the Primary Industries (Excise) Levies Act 1999, with the Regulations commencing on 1 April 2018.

Scope and Application

The Primary Industries (Excise) Levies Amendment (Macadamia Nuts) Regulations 2018 applies to the Australian Government's imposition and collection of the Emergency Plant Pest Response (EPPR) levy on macadamia nuts sold domestically within Australia. The regulations amend the Primary Industries (Excise) Levies Regulations 1999, which previously set the EPPR levy on macadamia nuts at a nil rate. The amendments increase the rate of the EPPR levy to 0.2 cents per kilogram of dried kernels of macadamia nut. The increased levy is intended to fund the Australian Government's costs related to the eradication of the varroa mite from Queensland, with the Australian Macadamia Society (AMS) contributing up to $30,160. The Department of Agriculture and Water Resources collects the levy and disburses the funds to Plant Health Australia, the AMS's representative body. The levy rate was set to ensure the industry repays the Australian Government within two years based on estimated production. The Regulations are made under the Primary Industries (Excise) Levies Act 1999, and they do not specify an end date for the levy but intend to reset it to nil once repayment is complete. The Regulations are compatible with the human rights and freedoms recognised or declared under section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011, as they do not engage any human rights issues.

Key Provisions

The Primary Industries (Excise) Levies Amendment (Macadamia Nuts) Regulations 2018 (the Regulations) primarily amend the Primary Industries (Excise) Levies Regulations 1999 by increasing the Emergency Plant Pest Response (EPPR) levy on macadamia nuts from nil to 0.2 cents per kilogram of dried kernels of macadamia nut. This is to facilitate the repayment of costs incurred by the Australian Government in relation to the response plan for the eradication of varroa mite from Queensland, as requested by the Australian Macadamia Society (AMS). The Regulations are made under the authority of the Primary Industries (Excise) Levies Act 1999 (the Act) and came into effect on 1 April 2018. The Regulations impose specific obligations on the AMS and levy payers. The AMS is required to notify levy payers of the activation of the EPPR levy and must consider any objections received during a specified objection period. The AMS must also ensure that the levy is collected and disbursed to the relevant recipient body, in this case, Plant Health Australia (PHA). Levy payers, who are typically macadamia nut producers, are obligated to pay the EPPR levy on macadamia nuts sold domestically in Australia at the prescribed rate of 0.2 cents per kilogram of dried kernels. These obligations are necessary to ensure the efficient administration and collection of the levy to fund the response plan for varroa mite eradication. Breaching the obligations set out in the Regulations can lead to legal consequences. The Act provides for penalties for non-compliance, although specific penalties are not detailed in the explanatory statement. However, non-payment of the EPPR levy or failure to remit it to the relevant recipient body could result in enforcement actions by the Australian Government. Additionally, levy payers who fail to pay the levy may face financial and administrative penalties, such as fines or legal proceedings, under the provisions of the Act. The Regulations, therefore, establish a framework for compliance and enforcement to ensure that the financial obligations related to the varroa mite eradication response are met.

Legal classification tags

Area of Law
Taxation Law
Instrument
Regulation
Concepts
Definitions & Interpretation
Commencement Provisions
Enforcement Powers

Interactions

Authorises

All Versions

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.