Primary Industries (Excise) Levies Amendment Regulations 2002 (No. 2) 2002 No. 55
EXPLANATORY STATEMENT
STATUTORY RULES 2002 No. 55
Issued by the Authority of the Parliamentary Secretary to the Minister for Agriculture, Fisheries and Forestry
Primary Industries (Excise) Levies Act 1999
Primary Industries (Excise) Levies Amendment Regulations 2002 (No. 2)
Section 8 of the Primary Industries (Excise) Levies Act 1999 (the Excise Act) provides that the Governor-General may make regulations prescribing matters required or permitted by that Act to be prescribed or necessary or convenient to be prescribed for carrying out or giving effect to that Act.
Clause 6 of Schedule 24 of the Excise Act provides that, before making regulations for the purposes of this section, the Minister shall take into consideration any relevant recommendation arising out of consultations between the Minister and the sugar industry organisations.
The sugar industry organisations are prescribed in Schedule 24 to the Primary Industries (Excise) Levies Regulations 1999 as the Australian Cane Growers Council Ltd, the Australian Sugar Milling Council Pty Ltd and the Australian Cane Farmers Association Ltd.
Clause 3 of Schedule 24 of the Excise Act imposes a levy on sugar cane produced in Australia and accepted at a sugar mill for processing. Clause 4 of Schedule 24 of the Excise Act provides that the rate of levy may be changed by regulations but shall not exceed $0.15 per tonne.
Section 30 of the Primary Industries and Energy Research and Development Act 1989 provides for research levy money to be paid to Research and Development Corporations. The sugar cane research levy has been attached to the Sugar Research and Development Corporation (SRDC) since 1 October 1990.
The Commonwealth Government contributes matching amounts, which combined with the industry contributions under the Excise Act, cover research expenditure recommended by the SRDC and approved by the Minister. In any one financial year the Commonwealth contribution is limited to 0.5 per cent of the gross value of production (GVP). Estimated Commonwealth expenditure for 2002/03 is $4.3 million.
The sugar industry organisations have requested an increase in the sugar cane levy rate from $0.12 per tonne to $0.14 per tonne for the 2002/03 season. The Amendment Regulations impose a new rate of 14 cents per tonne consistent with the sugar industry organisations' recommendation. The new rate will apply from 1 April 2002 to ensure that it applies to the entire 2002 harvest.
The operative levy rate was reduced from $0.15 per tonne to $0.12 per tonne for the 2001 season because of the significant reduction in sugar industry incomes at that time as a result of a combination of reduced production, primarily because of adverse weather and rust problems, and low world prices. The request to increase the operative levy rate reflects an expected increase in the production of cane from 32 million tonnes in 2001/02 to over 38 million tonnes in 2002/03.
The additional revenue generated by the increased industry contributions will provide a timely boost for SRDC resources which have been affected by the recent industry downturn. In particular, it will significantly increase the scope of the SRDC to fund new project proposals in 2002/03.
Details of the Primary Industries (Excise) Levies Amendment Regulations 2002 (No. 2) are at Attachment 1.
The regulations commence on 1 April 2002.
ATTACHMENT 1
Regulation 1 provides that the Regulations be known as the Primary Industries (Excise) Levies Amendment Regulations 2002 (No. 2).
Regulation 2 provides that the Regulations commence on 1 April 2002.
Regulation 3 provides for the Primary Industries Excise Levies Regulations 1999 to be amended as set out in Schedule 1.
Schedule 1
Clause 1 sets the operative rate of levy applicable to leviable sugar cane at $0.14 per tonne. This represents an increase of 2 cents per tonne.
Overview
The Primary Industries (Excise) Levies Amendment Regulations 2002 (No. 2), enacted in 2002, were introduced to address the need for an increase in the sugar cane levy rate to support the Sugar Research and Development Corporation (SRDC). This regulation was formulated under the authority of the Parliamentary Secretary to the Minister for Agriculture, Fisheries and Forestry, pursuant to Section 8 of the Primary Industries (Excise) Levies Act 1999. The policy objective behind these amendments was to adjust the sugar cane levy rate in response to anticipated improvements in sugar cane production and to provide additional funding for research and development activities in the sugar industry. The regulation increased the sugar cane levy rate from $0.12 per tonne to $0.14 per tonne, effective from 1 April 2002, reflecting the industry's recovery from a downturn and supporting the SRDC's initiatives to enhance research and development in the sugar industry.
Scope and Application
The Primary Industries (Excise) Levies Amendment Regulations 2002 (No. 2) amends the Primary Industries Excise Levies Regulations 1999 to adjust the excise levy on sugar cane produced in Australia. The Regulations apply to all producers and processors of sugar cane in Australia, with the levy imposed on sugar cane as it is accepted at a sugar mill for processing. The amendments are made in accordance with Section 8 of the Primary Industries (Excise) Levies Act 1999, which allows for the Governor-General to make regulations necessary for the operation of the Act. These Regulations were developed following consultations with sugar industry organisations, including the Australian Cane Growers Council Ltd, the Australian Sugar Milling Council Pty Ltd, and the Australian Cane Farmers Association Ltd, as required by Clause 6 of Schedule 24 of the Excise Act. The increased levy rate, effective from 1 April 2002, aims to boost the resources of the Sugar Research and Development Corporation, which will see a higher industry contribution to research and development initiatives. The new rate of 14 cents per tonne reflects anticipated increases in sugar cane production and is designed to support the industry during a period of recovery from financial challenges experienced in the previous season.
Key Provisions
The Primary Industries (Excise) Levies Amendment Regulations 2002 (No. 2) amend the Primary Industries (Excise) Levies Regulations 1999 to increase the levy rate on sugar cane from $0.12 per tonne to $0.14 per tonne. This adjustment is outlined in Regulation 3 of the Amendment Regulations and is effective from 1 April 2002 (Reg. 2). This increase is a direct response to recommendations from sugar industry organisations, which sought higher contributions to support research and development initiatives managed by the Sugar Research and Development Corporation (SRDC). The new rate is designed to align with the expected rise in sugar cane production for the 2002/03 season, providing additional funds necessary for the SRDC's activities.
The regulations impose specific obligations on the parties involved in the sugar industry. Producers of sugar cane must now account for the increased levy in their financial reporting and ensure that the appropriate amount is remitted to the relevant authorities. Additionally, sugar mills are obligated to collect the levy from producers and remit it to the government, in accordance with the updated rate. The regulations also stipulate that the revenue generated from this levy will be used to fund research and development projects, as per the provisions in the Primary Industries and Energy Research and Development Act 1989 (Section 30). The Commonwealth Government's contribution, which matches the industry contributions up to a certain limit, further ensures that the SRDC has sufficient resources to undertake its mandated activities.
Non-compliance with the provisions of these regulations could lead to various consequences. While the explanatory statement does not explicitly outline specific offences, breaches of similar regulatory frameworks typically result in penalties that could include fines or legal action. For instance, failure to remit the correct amount of levy could be considered an offence under the Excise Act, potentially leading to financial penalties. Additionally, any entity that does not adhere to the reporting and remittance obligations may face enforcement actions, which could include legal proceedings to compel compliance. The precise penalties would depend on the nature and severity of the breach, but they could include fines or other administrative sanctions.