Primary Industries (Excise) Levies Amendment Regulations 2003 (No. 11) 2003 No. 216
EXPLANATORY STATEMENT
STATUTORY RULES 2003 No. 216
Issued by the Authority of the Parliamentary Secretary to the Minister for Agriculture, Fisheries and Forestry
National Residue Survey (Excise) Levy Act 1998
Primary Industries (Excise) Levies Act 1999
Primary Industries Levies and Charges Collection Act 1991
Primary Industries and Energy Research and Development Act 1989
Primary Industries Levies and Charges (National Residue Survey Levies) Amendment Regulations 2003 (No. 4)
Primary Industries (Excise) Levies Amendment Regulations 2003 (No. 11)
Primary Industries Levies and Charges Collection Amendment Regulations 2003 (No. 7)
Rural Industries Research and Development Corporation Amendment Regulations 2003 (No. 2)
Section 8 of the National Residue Survey (Excise) Levy Act 1998 (the NRS Act), Section 8 of the Primary Industries (Excise) Levies Act 1999 (the Levies Act), Section 30 of the Primary Industries Levies and Charges Collection Act 1991 (the Collection Act) and Section 149 of the Primary Industries and Energy Research and Development Act 1989 (the PIERD Act) provide that the Governor-General may make regulations prescribing matters required or permitted by those Acts to be prescribed or necessary or convenient to be prescribed for carrying out or giving effect to those Acts.
The Australian Ostrich Association (AOA), the peak body representing the ostrich industry in Australia, has proposed that a new research and development (R&D) levy, payable to the Rural Industries Research and Development Corporation (RIRDC), be implemented. In addition, the AOA has requested that the reserve National Residue Survey (NRS) funds for ostriches be reduced through a short-term reduction in the NRS levy rate on ostriches, as excess NRS reserve funds have accumulated in recent years.
The RIRDC is a statutory body that undertakes and coordinates R&D programs for a number of agricultural industries. The NRS implements chemical residue monitoring programs and recovers the costs of the programs from participating industries. These programs form the basis for documentation that enables the Australian Government to certify that raw food products bound for export and domestic consumption are free from significant chemical contamination. Statutory levies are the preferred mechanism by which primary industries choose to meet the cost of compulsory residue-monitoring programs required for access to international and domestic markets. These levies are collected at the same time, and in the same manner, as other statutory levies such as marketing and R&D levies in order to reduce collection costs for industries.
The purpose of the regulations is to establish a new R&D levy on slaughtered ostriches and reduce the existing NRS levy rate, commencing 1 September 2003. The R&D levy rate will reduce to $0.00 after three years and the NRS levy rate will return to the current rate. Thus, the overall levy burden on producers will remain unchanged at $1.25 per head.
Subclause 2(1) of Schedule 27 of the Levies Act provides that regulations may impose a levy on a specified product.
Clause 6 of Schedule 27 of the Levies Act provides that the rate of levy is ascertained in accordance with the regulations.
Subclause 3(2) of Schedule 14 of the NRS Act provides that the rates of NRS levy on ratites other than emus are prescribed by regulation (ostriches are ratites).
There are no conditions under the Levies Act and the NRS Act that need to be met before the power to make these regulations may be exercised. Consultation requirements in clause 14 of Schedule 27 of the Levies Act do not apply in the present case as the Minister has not declared any specified body to be the designated body in relation to the ostrich industry.
Subsection 30(2) of the Collection Act allows the regulations to make provisions relating to the payment of levy. The Collection Act specifies no conditions that need to be met before the power to make regulations may be exercised.
Subsection 5(1) of the PIERD Act provides for regulations to attach levy (including export charge) to a R&D Corporation. Section 40 of the PIERD Act provides for regulations to require a R&D Corporation to keep separate accounting records in relation to the funding of specified classes of R&D activities. The PIERD Act specifies no conditions that need to be met before the power to make regulations may be exercised.
Therefore, in summary, the regulations:
· impose a statutory R&D levy on ostriches;
· set an operative R&D levy at a rate of $1.00 per head for a period of 3 years from 1 September 2003 to 31 August 2006;
· reduce the NRS levy on ostriches from $1.25 to 25 cents per head for the same period;
· reduce the R&D levy rate to $0.00 and restore the NRS levy rate to $1.25 from 1 September 2006;
· set out the details for payment of levy, provision of returns by liable persons, keeping of records and other collection matters; and
· attach the levy to the RIRDC and set out details for accounting records.
The regulations under the Collection Act would, in part, stipulate what records must be kept by processors and that an offence against those provisions is an offence of strict liability. This is consistent with other regulations made under this Act. Strict liability offences are defined in the Criminal Code Act 1995 and refer to an offence that does not require proof of the relevant fault elements (eg intent, knowledge, recklessness, negligence etc).
Details of the regulations are set out in the Attachment.
The Office of Regulation Review (ORR) was consulted in the preparation of the regulations and advised that a Regulation Impact Statement is not required
The regulations commence on 1 September 2003.
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0306479B
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0306479D
ATTACHMENT
PRIMARY INDUSTRIES LEVIES AND CHARGES (NATIONAL RESIDUE SURVEY LEVIES) AMENDMENT REGULATIONS 2003 (No. 4)
Regulation 1 provides for the name of the regulations to be the Primary Industries Levies and Charges (National Residue Survey Levies) Amendment Regulations 2003 (No. 4).
Regulation 2 provides for the commencement date to be (a) 1 September 2003 - regulations 1 to 3 and Schedule 1; and (b) 1 September 2006 - Schedule 2.
Regulation 3 provides that Schedules 1 and 2 amend the Primary Industries Levies and Charges (National Residue Survey Levies) Regulations 1998.
Schedule 1 Amendments commencing on 1 September 2003
Item 1 amends Regulation 228 to reduce the NRS excise levy on ostriches from $1.25 per head to 25 cents per head.
Item 2 substitutes paragraphs 232 (2) (c) to (g) to provide for business details to include ABNs and clarify reporting requirements.
Item 3 substitutes paragraphs 234 (1) (f) and (g) to clarify record keeping requirements.
Schedule 2 Amendment commencing on 1 September 2006
Item 1 amends Regulation 228 to increase the levy from 25 cents per head to $1.25 per head.
PRIMARY INDUSTRIES (EXCISE) LEVIES AMENDMENT REGULATIONS 2003 (No. 11)
Regulation 1 provides for the name of the regulations to be the Primary Industries (Excise) Levies Amendment Regulations 2003 (No. 11).
Regulation 2 provides for the commencement date to be (a) 1 September 2003 - regulations 1 to 3 and Schedule 1; and (b) 1 September 2006 - Schedule 2.
Regulation 3 provides that Schedules 1 and 2 amend the Primary Industries (Excise) Levies Regulations 1999, (the Excise Levies Regulations).
Schedule 1 Amendment commencing on 1 September 2003
Item 1 inserts a new Part 7 about Ratites (ostriches) into Schedule 27 of the Excise Levies Regulations.
Schedule 27, Part 7 Ratites (ostriches)
Clause 7.1 (1) imposes a levy on the slaughter at an abattoir of ostriches intended for human consumption.
Clause 7.1 (2) indicates that the levy imposed by subregulation (1) is not payable in relation to an ostrich whose carcass is, under a law, condemned or rejected by an inspector as being unfit for human consumption.
· Note 1 indicates the levy is not imposed on the slaughter of ostriches, if before the slaughter, the ostriches are condemned or rejected by an inspector as being unfit for human consumption.
· Note 2 indicates the levy in clause 7.1 is attached to the Rural Industries Research and Development Corporation.
· Note 3 indicates where the operative rate of NRS excise levy on ostriches can be found.
Clause 7.2 sets the rate of levy at $1.00 per head.
Clause 7.3 provides that the levy is payable by the producer of the ostriches.
· Note defines producer.
Schedule 2 Amendment commencing on 1 September 2006
Item 1 Schedule 27, clause 7.2 reduces the levy from $1.00 per head to nil.
PRIMARY INDUSTRIES LEVIES AND CHARGES COLLECTION AMENDMENT REGULATIONS 2003 (No. 7)
Regulation 1 provides for the name of the regulations to be the Primary Industries Levies and Charges Collection Amendment Regulations 2003 (No. 7).
Regulation 2 provides for the commencement date to be 1 September 2003.
Regulation 3 provides that Schedule 1 amends the Primary Industries Levies and Charges Collection Regulations 1991 (the Collection Regulations).
Schedule 1 Amendment
Item 1 inserts a new Part 7 about Ratites (ostriches) into Schedule 37 of the Collection Regulations.
Schedule 37, Part 7 Ratites (ostriches)
Clause 7.1 provides that the part applies to ostriches.
· Note indicates where the collection requirements for NRS excise levy on ostriches are set out.
Clause 7.2 defines levy for use in the part.
Clause 7.3 provides that a financial year is a levy year for ostriches.
Clause 7.4 specifies ostriches for the relevant definition of processor.
· Note indicates that the processor is the proprietor of the processing establishment that processes the ostriches or the proprietor of a processing establishment who owned the ostriches.
Clause 7.5 prescribes ostriches for the relevant definition of producer.
· Note indicates that the producer is the person who owns the ostriches at the time of slaughter.
Clause 7.6 specifies ostriches in relation to the liability of processors who are acting as intermediaries.
· Note indicates that processors are liable to pay any levy and late payment penalty on behalf of the producer.
Clause 7.7 prescribes when levy is due for payment by people who lodge a monthly return.
· Note indicates penalties for late payment can be imposed.
Clause 7.8 prescribes that a processor must lodge a return for a month if, in the month, the processor slaughtered ostriches on which levy is payable.
· Note indicates offences may be applicable.
Clause 7.9 prescribes that a return for a month must be lodged within 28 days of the end of the month to which it relates.
· Note indicates offences may be applicable.
Clause 7.10 specifies what information must be included in a monthly return.
· Note indicates offences may be applicable.
Clause 7.11 stipulates what records must be kept by processors and that an offence under this clause is an offence of strict liability.
· Note indicates where definition of strict liability can be found.
RURAL INDUSTRIES RESEARCH AND DEVELOPMENT CORPORATION AMENDMENT REGULATIONS 2003 (No. 2)
Regulation 1 provides for the name of the regulations to be the Rural Industries Research and Development Corporation Amendment Regulations 2003 (No. 2).
Regulation 2 provides for the commencement date to be 1 September 2003.
Regulation 3 provides that Schedule 1 amends the Rural Industries Research and Development Corporation Regulations 2000 (RIRDC Regulations).
Schedule 1 Amendment
Item 1 inserts a new Division 11 about Ostrich levy into Part 2 of the RIRDC Regulations.
Part 2, Division 11 Ratite (ostrich) levy
Regulation 37 defines the ostrich industry as the raising of ostriches, production and processing of ostrich meat, and distribution and sale of ostrich meat and meat products.
Regulation 38 deals with the attachment of ostrich levy to RIRDC via section 5 of the Primary Industries and Energy Research and Development Act 1989.
Regulation 39 provides for certain accounting records to be kept by RIRDC for the funding of R&D activities relating to the ostrich industry.