Primary Industries (Excise) Levies Amendment Regulations 2003 (No. 13) 2003 No. 225
EXPLANATORY STATEMENT
STATUTORY RULES 2003 No. 225
Issued by the Authority of the Parliamentary Secretary to the Minister for Agriculture, Fisheries and Forestry
Primary Industries (Excise) Levies Act 1999
Primary Industries Levies and Charges Collection Act 1991
Primary Industries (Excise) Levies Amendment Regulations 2003 (No. 13)
Primary Industries Levies and Charges Collection Amendment Regulations 2003 (No. 9)
Section 8 of the Primary Industries (Excise) Levies Act 1999 (the Excise Act), and Section 30 of the Primary Industries Levies and Charges Collection Act 1991 (the Collection Act) each 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 regulations implement a compulsory levy on grapes (paid by wine grape growers) and wine grapes (paid by winemakers) to fund the wine industry's share of the costs of the activities of Plant Health Australia Limited (PHA). The Primary Industries (Excise) Levies Amendment Regulations 2003 (No. 13) (the Excise regulations) set the initial rate of levy. To give effect to the industry's wish not to increase the overall levy burden on producers, the proposed PHA levies are being established by making a corresponding reduction in the present operative rate of the related wine industry research and development levies. The Primary Industries Levies and Charges Collection Amendment Regulations 2003 (No. 9) (the Collection regulations) will provide for the collection of the levies by incorporating references to the PHA levies within existing arrangements. Although these proposed PHA levies are to be established as new levies the basic collection arrangements will be identical to those for the existing research and development levies. Similar arrangements are in place for other plant industry members of PHA, which pay PHA levies.
The establishment of PHA was jointly supported by the Commonwealth government; State and Territory governments and industry. The money raised will be used to meet plant industries' contributions towards a joint Commonwealth government, State and Territory governments and industry agreement to fund the development and implementation of national plant health policies and programs. The regulations are being implemented at the request of the wine industry.
The Plant Health Australia (Plant Industries) Funding Act 2002 provides for the disbursement to PHA of moneys that have been collected from producers by way of industry PHA levies.
The Office of Regulation Review has been consulted and has advised that a Regulation Impact Statement is not necessary for the legislation (RIS ID number 2567).
Details of the Excise regulations and the Collection regulations are contained in Attachments 1 and 2 respectively.
The regulations commence on 1 October 2003.
ATTACHMENT 1
PRIMARY INDUSTRIES (EXCISE) LEVIES AMENDMENT REGULATIONS 2003 (No. 13).
Regulation 1 provides for the name of the regulations to be the Primary Industries (Excise) Levies Amendment Regulations 2003 (No. 13).
Regulation 2 provides for the regulations to commence on 1 October 2003.
Regulation 3 provides that Schedule 1 amends the Primary Industries (Excise) Levies Regulations 1999.
SCHEDULE 1 AMENDMENTS
Item [1] substitutes a new clause 1 of Schedule 13. Its purpose is to specify the reduced operative rates for the R&D levy on grapes. This Item also imposes a PHA levy on grapes and specifies the operative rate and the authority under which the levy is imposed and who pays the levy.
Item [2] specifies the reduced operative rate of R&D levy for wine grapes.
Item [3] inserts a new clause 5 of Schedule 26. Its purpose is to impose a PHA levy on wine grapes, and to specify the authority under which the levy is imposed. This Item also specifies the operative rate and who pays.
ATTACHMENT 2
PRIMARY INDUSTRIES LEVIES AND CHARGES COLLECTION AMENDMENT REGULATIONS 2003 (No. 9).
Regulation 1 provides for the name of the regulations to be the Primary Industries Levies and Charges Collection Amendment Regulations 2003 (No. 9).
Regulation 2 provides for the regulations to commence on 1 October 2003.
Regulation 3 provides that Schedule 1 amends the Primary Industries Levies and Charges Collection Regulations 1991.
SCHEDULE 1 AMENDMENTS
Item [1] amends the definition of "levy" in Schedule 36 to include reference to the fact that PHA levy is also imposed on wine grapes.
Item [2] amends the definition of "levy" in Schedule 20 to include reference to the fact that PHA levy is also imposed on grapes.
Overview
The Primary Industries (Excise) Levies Amendment Regulations 2003 (No. 13) and the Primary Industries Levies and Charges Collection Amendment Regulations 2003 (No. 9) were enacted to introduce a compulsory levy on grapes and wine grapes, paid by wine grape growers and winemakers respectively, to fund Plant Health Australia Limited (PHA). These regulations were introduced by the Parliament of Australia to address the need for additional funding for the development and implementation of national plant health policies and programs. The policy objective of these regulations is to ensure the wine industry's share of the costs of PHA's activities is met, while not increasing the overall levy burden on producers by reducing the present operative rate of the related wine industry research and development levies.
The regulations were implemented at the request of the wine industry and provide for the collection of the new PHA levies through existing arrangements, with the levies being established as new levies but with the basic collection arrangements being identical to those for the existing research and development levies. The Plant Health Australia (Plant Industries) Funding Act 2002 provides for the disbursement to PHA of moneys collected from producers by way of industry PHA levies. The Office of Regulation Review has advised that a Regulation Impact Statement is not necessary for the legislation. The regulations came into effect on 1 October 2003.
Scope and Application
The Primary Industries (Excise) Levies Amendment Regulations 2003 (No. 13) and the Primary Industries Levies and Charges Collection Amendment Regulations 2003 (No. 9) apply to all entities involved in the production and processing of wine grapes in Australia. These regulations are designed to implement a compulsory levy on both wine grape growers and winemakers to fund Plant Health Australia Limited (PHA), an organisation that oversees the development and implementation of national plant health policies and programs. The regulations specify the rates of these levies and the manner in which they will be collected, aiming to ensure that the overall financial burden on producers remains consistent. These regulations are enacted under the authority of the Primary Industries (Excise) Levies Act 1999 and the Primary Industries Levies and Charges Collection Act 1991, and they are set to commence on 1 October 2003. The regulations provide for the reduction of existing research and development levies to accommodate the new PHA levies, ensuring that the financial burden on producers is not increased. The collection of these levies is governed by the Primary Industries Levies and Charges Collection Amendment Regulations 2003 (No. 9), which integrate the new PHA levies into existing collection mechanisms for the wine industry.
Key Provisions
The Primary Industries (Excise) Levies Amendment Regulations 2003 (No. 13) (Section 1) and the Primary Industries Levies and Charges Collection Amendment Regulations 2003 (No. 9) (Section 1) outline the regulations concerning the imposition and collection of levies on grapes and wine grapes. These regulations implement a compulsory levy to fund the wine industry's share of the costs of Plant Health Australia Limited (PHA). Regulation 2 of both sets of regulations specifies that they commence on 1 October 2003.
These regulations impose specific obligations on parties involved in the wine industry, including wine grape growers and winemakers. For instance, Regulation 3 of the Excise regulations amends the Primary Industries (Excise) Levies Regulations 1999 to specify the reduced operative rates for the research and development (R&D) levy on grapes (Item [1]) and wine grapes (Item [2]). Additionally, these regulations introduce a PHA levy on grapes and wine grapes, specifying the operative rates and the respective authorities under which these levies are imposed (Items [1] and [3]). The Collection regulations, through Regulation 3, amend the Primary Industries Levies and Charges Collection Regulations 1991 to incorporate references to the PHA levies within existing arrangements, ensuring the collection mechanisms remain consistent with those used for existing R&D levies (Items [1] and [2]).
The breach of these regulations may lead to various consequences, although the explanatory statement does not explicitly outline specific offences or penalties. However, it is implicit that non-compliance with these regulations, which are designed to fund national plant health policies and programs, could result in legal and financial repercussions. The precise penalties for non-compliance would be determined under the relevant Acts, such as the Primary Industries (Excise) Levies Act 1999 and the Primary Industries Levies and Charges Collection Act 1991. These could include fines or other civil and criminal penalties as prescribed under the Acts.