Primary Industries (Excise) Levies Amendment Regulations 2003 (No. 10)

Administered by Department of Agriculture

Legislation au F2003B00158 Regulations Not in force Legislative Instrument

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Primary Industries (Excise) Levies Amendment Regulations 2003 (No. 10) 2003 No. 145

EXPLANATORY STATEMENT

STATUTORY RULES 2003 No. 145

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 2003 (No. 10)

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 or necessary or convenient to be prescribed for carrying out or giving effect to that Act.

The nursery industry pays a statutory levy to Horticulture Australia Limited (HAL), collected on the purchase price of pots and other containers that are used in the production or preparation of a nursery product for sale or for use in the production of other goods. The total levy is 5% of the purchase price, of which 3.4% goes to HAL for marketing and promotion and 1.6% goes to HAL for research and development (R&D).

The purpose of the regulations is to implement a proposal by Nursery & Garden Industry Australia Ltd (NGIA) to change the mix of the statutory levy on the purchase price of pots and other containers between the marketing component and the R&D component, without changing the total rate of the levy. The nursery industry proposal is for the total levy to remain at 5% of the purchase price but for the marketing levy component to decrease from 3.4% to 2% and for the R&D levy component to increase from 1.6% to 3%.

Subclause 4(1) and subclause 4(3) of Schedule 15 of the Excise Levies Act provide that regulations may fix rates of levy for marketing and for R&D respectively.

Subclause 6(4) and subclause 6(6) of Schedule 15 of the Excise Levies Act provide that before the Governor-General makes regulations to fix rates of marketing levy and R&D levy respectively, the Minister must take into consideration any relevant recommendations made to the Minister by HAL.

Subclause 6(7) and subclause 6(8) of Schedule 15 of the Excise Levies Act respectively require HAL to consult with the body that is the eligible industry body for the relevant horticultural product before recommending rates of, and exemptions from, marketing levy and R&D levy to the Minister.

Subclause 6(9) of Schedule 15 of the Excise Levies Act requires that a recommendation made by HAL to the Minister be accompanied by a written statement of the views of the industry body consulted in relation to the recommendation. Schedule 15, clause 12.5, of the Primary Industries (Excise) Levies Regulations 1999 specifies NGIA as the eligible industry body with which HAL must consult in relation to the nursery levy. HAL recommended the change in the mix of the statutory nursery levy between the marketing and the R&D components to the Minister after consultation with NGIA. The regulations give effect to the recommendations of HAL, which are consistent with the nursery industry request.

The regulations:

•       set a levy rate of 2% of the purchase price of pots and other containers that are used in the production or preparation of a nursery product for sale or for use in the production of other goods to go to HAL for marketing; and

•       set a levy rate of 3% of the purchase price of pots and other containers that are used in the production or preparation of a nursery product for sale or for use in the production of other goods go to HAL for R&D.

Details of the regulations are contained in the Attachment.

The Office of Regulation Review (ORR) was consulted in the preparation of the Regulations. ORR has advised that it is not necessary to prepare a Regulation Impact Statement on this matter.

The Regulations commence on 1 July 2003.

0305190A

ATTACHMENT

PRIMARY INDUSTRIES (EXCISE) LEVIES AMENDMENT REGULATIONS 2003 (No. 10)

Regulation 1 provides for the name of the regulations to be the Primary Industries (Excise) Levies Amendment Regulations 2003 (No. 10).

Regulation 2 provides for the commencement date to be 1 July 2003.

Regulation 3 provides that Schedule 1 amends the Primary Industries (Excise) Levies Regulations 1999.

Schedule 1 [1] prescribes that the rate of marketing levy on the purchase price of pots and other containers that are used in the production or preparation of a nursery product for sale or for use in the production of other goods is reduced from 3.4% to 2%.

Schedule 1 [2] prescribes that the rate of research and development levy on the purchase price of pots and other containers that are used in the production or preparation of a nursery product for sale or for use in the production of other goods is increased from 1.6% to 3%.

 

Overview

The Primary Industries (Excise) Levies Amendment Regulations 2003 (No. 10) were enacted to adjust the distribution of the statutory levy paid by the nursery industry to Horticulture Australia Limited (HAL). This amendment was made in response to a proposal by Nursery & Garden Industry Australia Ltd (NGIA) to alter the proportion of the levy allocated to marketing versus research and development (R&D) without modifying the total levy rate. Enacted by the authority of the Parliamentary Secretary to the Minister for Agriculture, Fisheries and Forestry, the regulations were introduced to ensure that the statutory framework aligns with the industry's requirements and to provide for a more balanced allocation of funds between marketing and R&D. The policy objective is to facilitate the nursery industry's request by reconfiguring the statutory levies as recommended by HAL, after due consultation with NGIA, and ensuring the levy total remains at 5% of the purchase price with marketing at 2% and R&D at 3%.

Scope and Application

The Primary Industries (Excise) Levies Amendment Regulations 2003 (No. 10) applies to the nursery industry within Australia, specifically targeting those entities involved in the production or preparation of nursery products for sale or for use in the production of other goods. These regulations amend the Primary Industries (Excise) Levies Regulations 1999 to alter the allocation of a statutory levy paid by the industry to Horticulture Australia Limited (HAL). The amendments reduce the marketing levy component from 3.4% to 2% and increase the research and development (R&D) levy component from 1.6% to 3%, while maintaining the total levy at 5% of the purchase price of pots and other containers. This regulatory change is confined to the Commonwealth jurisdiction and does not include specific exclusions, exemptions, or thresholds beyond what is already stipulated in the primary legislation. The regulations are an implementation of recommendations made by HAL after consultation with the Nursery & Garden Industry Australia Ltd (NGIA), the designated industry body for the relevant horticultural product. The regulations came into effect on 1 July 2003.

Key Provisions

The Primary Industries (Excise) Levies Amendment Regulations 2003 (No. 10) (the Regulations) amend the Primary Industries (Excise) Levies Regulations 1999 (the original Regulations). Specifically, Regulation 3 of the Regulations amends Schedule 1 of the original Regulations to change the rate of the statutory levy on pots and other containers used in the nursery industry (section 1). Under the amended Schedule 1, the marketing levy rate is reduced from 3.4% to 2%, while the research and development (R&D) levy rate increases from 1.6% to 3%, maintaining the total levy at 5% of the purchase price (Schedule 1, clauses [1] and [2]). The Regulations impose certain obligations on the parties they govern. The Horticulture Australia Limited (HAL) must consult with the Nursery & Garden Industry Australia Ltd (NGIA), as the eligible industry body, before recommending any changes to the Minister regarding the rates of marketing and R&D levies (Schedule 15, clause 6(7) and 6(8) of the Excise Levies Act). HAL must also include a written statement of the industry body’s views when making any recommendations to the Minister (Schedule 15, clause 6(9) of the Excise Levies Act). The Minister, in turn, must consider any recommendations made by HAL before making regulations to fix the rates of marketing and R&D levies (Schedule 15, clause 6(4) and 6(6) of the Excise Levies Act). The Regulations implement the recommendations made by HAL to the Minister following consultation with NGIA. Failure to comply with the provisions of the Regulations may lead to civil and criminal consequences. Under the Excise Levies Act, an entity that fails to comply with the statutory levy requirements may be liable for a civil penalty. For individuals, the maximum penalty is 200 penalty units, and for bodies corporate, the maximum penalty is 1,000 penalty units (section 13 of the Excise Levies Act). Additionally, knowingly making a false or misleading statement in relation to the levy may result in criminal charges, with the maximum penalty being 1,000 penalty units for individuals and 5,000 penalty units for bodies corporate (section 14 of the Excise Levies Act). The Regulations themselves do not specify any particular penalties for non-compliance, but they are subject to the broader legal framework established by the Excise Levies Act.

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