Primary Industries (Excise) Levies Amendment Regulations 2004 (No. 1)

Primary Industries (Excise) Levies Amendment Regulations 2004 (No. 1) 2004 No. 42

EXPLANATORY STATEMENT

STATUTORY RULES 2004 No. 42

Issued by the Authority of the Parliamentary Secretary to the Minister for Agriculture, Fisheries and Forestry

Primary Industries (Excise) Levies Act 1999
Primary Industries (Customs) Charges Act 1999

Primary Industries (Excise) Levies Amendment Regulations 2004 (No. 1)
Primary Industries (Customs) Charges Amendment Regulations 2004 (No. 2)

Section 8 of both the Primary Industries (Excise) Levies Act 1999 (the Levies Act) and the Primary Industries (Customs) Charges Act 1999 (the Charges 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 each Act.

The purpose of the Regulations is to alter the existing statutory levy and export charge on fresh stone fruit to the following amounts:

•       2.25 cents per standard tray; 4.5 cents per standard box; and $4.50 per tonne; to go to Horticulture Australia Limited (HAL) for marketing; and

•       2.75 cents per standard tray; 5.5 cents per standard box; and $5.50 per tonne; to go to HAL for research and development (R&D).

The Regulations also update the names of two eligible industry bodies for the purposes of both the Levies Act and the Charges Act.

HAL is the relevant industry services body for the administration of the fresh stone fruit industry levy and charge. HAL co-ordinates marketing and R&D programs for many horticultural industries. HAL is funded by statutory levies and export charges, voluntary contributions and Australian Government matching funding for eligible R&D expenditure. This matching funding is provided under the Horticultural Marketing and Research and Development Services Act 2000.

Primary Industries (Excise) Levies Regulations 1999

Subclause 4(1) of Schedule 15 to the Levies Act provides that regulations may fix rates of levy for marketing purposes.

Subclause 4(3) of Schedule 15 to the Levies Act provides that regulations may fix rates of levy for R&D purposes.

Subclause 6(4) of Schedule 15 to the Levies Act provides that before the Governor-General makes regulations to fix rates of levy for marketing, the Minister must take into consideration any relevant recommendations made to the Minister by HAL.

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

Subclause 6(7) of Schedule 15 to the Levies Act requires HAL to consult with the body that is the eligible industry body for the relevant horticultural product before recommending rates of levy for marketing to the Minister.

Subclause 6(8) of Schedule 15 to the Levies Act requires HAL to consult with the body that is the eligible industry body for the relevant horticultural product before recommending rates of levy for R&D to the Minister.

Subclause 6(9) of Schedule 15 to the 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.

The Regulations prescribe Summerfruit Australia Limited (SAL) as the eligible industry body with which HAL must consult in relation to fresh stone fruit. SAL proposed a change in the statutory levy on fresh stone fruit to HAL, and HAL in turn recommended the change to the Minister. The proposed Regulations would give effect to the recommendation of HAL, which is consistent with the fresh stone fruit industry's request.

Primary Industries (Customs) Charges Regulations 2000

Subclause 3(3) of Schedule 10 to the Charges Act provides that regulations may fix rates of export charge for marketing purposes.

Subclause 3(5) of Schedule 10 to the Charges Act provides that regulations may fix rates of export charge for R&D purposes.

Subclause 5(3) of Schedule 10 to the Charges Act provides that before the Governor-General makes regulations to fix rates of export charge for marketing, the Minister must take into consideration any relevant recommendations made to the Minister by HAL.

Subclause 5(5) of Schedule 10 to the Charges Act provides that before the Governor-General makes regulations to fix rates of export charge for R&D, the Minister must take into consideration any relevant recommendations made to the Minister by HAL.

Subclause 5(6) of Schedule 10 to the Charges Act requires HAL to consult with the body that is the eligible industry body for the relevant horticultural product before recommending rates of export charge for marketing to the Minister.

Subclause 5(7) of Schedule 10 to the Charges Act requires HAL to consult with the body that is the eligible industry body for the relevant horticultural product before recommending rates of export charge for R&D to the Minister.

Subclause 5(8) of Schedule 10 to the Charges 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.

The Regulations prescribe Summerfruit Australia Limited (SAL) as the eligible industry body with which HAL must consult in relation to fresh stone fruit. SAL proposed a change in the statutory export charge on fresh stone fruit to HAL, and HAL in turn recommended the change to the Minister.

The Regulations implement the proposal by SAL to change the mix of the statutory levy and export charge on fresh stone fruit between the marketing component and the R&D component, without changing the overall impost. The SAT proposal is for the current levy/ charge, which is apportioned 60% to marketing and 40% to R&D, to be apportioned 45% to marketing and 55% to R&D so that:

•       the marketing levy/charge component becomes 2.25 cents per standard tray (down from 3 cents); 4.5 cents per standard box (down from 6 cents); and $4.50 per tonne (down from $6 per tonne); and;

•       the R&D levy/charge component becomes 2.75 cents per standard tray (up from 2 cents); 5.5 cents per standard box (up from 4 cents); and $5.50 per tonne (up from $4 per tonne).

The total levy and export charge on fresh stone fruit growers would remain unchanged at: 5 cents per standard tray; 10 cents per standard box; and $10 per tonne. The increased R&D levy and export charge component would result in increased dollar for dollar matching by the Australian Government on R&D expenditure under the Horticulture Marketing and Research and Development Services Act 2000.

In addition, the opportunity has been taken in the Regulations to make technical changes to Schedule 15 to the Primary Industries (Excise) Levies Regulations 1999 and Schedule 10 to the Primary Industries (Customs) Charges Regulations 2000 to reflect name changes which have occurred for the following two eligible industry bodies:

•       Australian Avocado Growers' Federation to Avocados Australia Limited (ABN no. 95 810 689 086); and

•       Summerfruit Australia Inc. (ABN no. 95 389 475 289) to Summerfruit Australia Limited (ABN no. 51 105 962 196).

Details of the regulations are contained in the attachment.

The Office of Regulation Review (ORR) was consulted in the preparation of the Regulations. ORR have advised that it is not necessary to prepare a Regulation Impact Statement on this matter (ORR no 5972).

The regulations commence on 1 April 2004.

ATTACHMENT

DETAILS OF THE PRIMARY INDUSTRIES (EXCISE) LEVIES AMENDMENT REGULATIONS 2004 (No. 1)

Regulation 1 provides for the name of the Regulations to be the Primary Industries (Excise) Levies Amendment Regulations 2004 (No. 1).

Regulation 2 provides for the Regulations to commence on 1 April 2004.

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

Schedule 1 Amendments

Item [1] updates the name of an eligible industry body from the Australian Avocado Growers' Federation Inc. to Avocados Australia Limited (ABN no. 95 810 689 086).

Item [2] prescribes new rates of levy for the marketing and research and development components on fresh stone fruit so that:

•       the marketing levy component becomes 2.25 cents per standard tray; 4.5 cents per standard box; and $4.50 per tonne; and

•       the research and development levy component becomes 2.75 cents per standard tray; 5.5 cents per standard box; and $5.50 per tonne.

The notes provide references to where the definitions of bulk stone fruit, standard box and standard tray are located and advise that there is a National Residue Survey levy on fresh stone fruit.

Item [3] updates the name of an eligible industry body from the Summerfruit Australia Inc. (ABN no. 95 389 475 289) to Summerfruit Australia Limited (ABN no. 51 105 962 196).

DETAILS OF THE PRIMARY INDUSTRIES (CUSTOMS) CHARGES AMENDMENT REGULATIONS 2004 (No. 2)

Regulation 1 provides for the name of the Regulations to be the Primary Industries (Customs) Charges Amendment Regulations 2004 (No. 2).

Regulation 2 provides for the Regulations to commence on 1 April 2004.

Regulation 3 provides that Schedule 1 amends the Primary Industries (Customs) Charges Regulations 2000.

Schedule 1 Amendments

Item [1] updates the name of an eligible industry body from the Australian Avocado Growers' Federation Inc. to Avocados Australia Limited (ABN no. 95 810 689 086).

Item [2] prescribes new rates of charge for the marketing and research and development components on fresh store fruit so that:

•       the marketing charge component becomes 2.25 cents per standard tray; 4.5 cents per standard box; and $4.50 per tonne; and

•       the research and development charge component becomes 2.75 cents per standard tray; 5.5 cents per standard box; and $5.50 per tonne.

The notes indicate that charge is not imposed on chargeable horticultural products on which levy has already been paid and provide references to where the definitions of bulk stone fruit, standard box and standard tray are located.

Item [3] updates the name of an eligible industry body from the Summerfruit Australia Inc. (ABN no. 95 389 475 289) to Summerfruit Australia Limited (ABN no. 51 105 962 196).