EXPLANATORY STATEMENT
Statutory Rules 2004 No. 357
Issued by the Authority of the Parliamentary Secretary to the
Minister for Agriculture, Fisheries and Forestry
Subject Primary Industries (Excise) Levies Act 1999
Primary Industries (Excise) Levies Amendment Regulations 2004 (No. 7)
The Primary Industries (Excise) Levies Act 1999 (the Act) authorises the imposition of primary industries levies that are duties of excise. Schedule 26 to the Act makes provision for the imposition of a levy on wine grapes used at a winery in Australia, and provides that the rate of levy is to be determined in accordance with the regulations.
Section 8 of the Act provides that the Governor-General may make regulations prescribing matters required or permitted by the Act to be prescribed, or necessary or convenient to be prescribed for carrying out or giving effect to the Act.
Clause 3 of Schedule 26 to the Primary Industries (Excise) Levies Regulations 1999 (the Principal Regulations) prescribes the research amount of the Wine Grapes Levy. The Wine Grapes Levy is payable by the producer of the wine.
The revenue raised under the research amount of the Wine Grapes Levy provides funds for the operation of the Grape and Wine Research and Development Corporation (GWRDC). The GWRDC is the statutory authority that supports the development of the Australian wine industry. It plans and funds collective research and development programs and then facilitates the dissemination, adoption and commercialisation of the results throughout the wine industry.
The Regulations amend Schedule 26 to the Principal Regulations to increase the research amount of the Wine Grapes Levy.
Sub-clause 9(4) of Schedule 26 to the Act provides that the Winemakers’ Federation of Australia (WFA) as the declared winemakers organisation may make a recommendation to the Minister with respect to regulations to be made defining the research amount of the Wine Grape Levy. Such a recommendation was made to the Minister by the WFA on 6 May 2004.
Sub-clause 9(5) of Schedule 26 to the Act provides that before the Governor-General makes regulations to vary the research amount of the Wine Grapes Levy the Minister must take into consideration any relevant recommendations made to the Minister by the WFA(1).
The Regulations give effect to the recommendations of the WFA that the research amount of the Wine Grapes Levy be increased from 297.6 cents per tonne of grapes crushed to 497.6 cents per tonne of grapes crushed.
The Regulations increase the levy revenue raised by approximately $3.1 million per annum. Under the Primary Industries and Energy Research and Development Act 1989 this additional revenue will attract matching Australian Government payments to fund the operation of the GWRDC.
Details of the Regulations are set out in the Attachment.
The Regulations commence on the date of their notification in the Commonwealth of Australia Gazette.
Attachment
Details Of The Proposed Primary Industries (Excise) Levies Amendment
Regulations 2004 (No. 7)
Regulation 1 provides for the name of the proposed Regulations to be the Primary Industries (Excise) Levies Amendment Regulations 2004 (No. 7).
Regulation 2 provides for the Regulations to commence on the date of their notification in the Commonwealth of Australia Gazette.
Regulation 3 provides that Schedule 1 amends the Primary Industries (Excise) Levies Regulations 1999 (the Principal Regulations).
Schedule 1 Amendments
Item [1] Schedule 26, Clause 3
This item replaces “297.6 cents” with “497.6 cents” for the definition of the research amount of the Wine Grapes Levy.
Overview
The Primary Industries (Excise) Levies Amendment Regulations 2004 (No. 7) were enacted to amend the existing Primary Industries (Excise) Levies Regulations 1999, specifically addressing the rate of the Wine Grapes Levy. The Act was originally enacted in 1999 by the Australian Parliament, aiming to provide a framework for the imposition of excise levies on primary industries, including wine grapes, to fund research and development initiatives. The problem these regulations sought to address was the need for increased funding for the Grape and Wine Research and Development Corporation (GWRDC), which supports the Australian wine industry through collective research and development programs. The policy objective is to enhance the capabilities and competitiveness of the Australian wine industry by ensuring adequate financial resources for research and development activities. The Winemakers’ Federation of Australia had recommended increasing the levy, and these regulations implement that recommendation, raising the levy from 297.6 cents to 497.6 cents per tonne of grapes crushed, thereby increasing the annual revenue by approximately $3.1 million to support the GWRDC.
Scope and Application
The Primary Industries (Excise) Levies Act 1999 applies to the imposition of excise levies in relation to primary industries, particularly focusing on the wine industry within Australia. The Act authorises the imposition of a levy on wine grapes used at a winery, which is payable by the producer of the wine. This levy is a duty of excise and the rate is determined in accordance with regulations. The revenue raised from the Wine Grapes Levy is specifically directed towards funding the operations of the Grape and Wine Research and Development Corporation (GWRDC), which supports the development of the Australian wine industry by planning, funding, and facilitating the dissemination and commercialisation of research and development outcomes. The geographic reach of the Act is nationwide, encompassing all wineries within Australia. The Act provides for the creation of subordinate regulations to specify the details of the levies, including the rate, which is subject to recommendations by the Winemakers' Federation of Australia and the Minister's consideration. The Primary Industries (Excise) Levies Amendment Regulations 2004 (No. 7) provide an example of such subordinate instruments, increasing the research amount of the Wine Grapes Levy to facilitate additional funding for the GWRDC.
Key Provisions
The Primary Industries (Excise) Levies Amendment Regulations 2004 (No. 7) amend the Primary Industries (Excise) Levies Regulations 1999 by increasing the research amount of the Wine Grapes Levy from 297.6 cents to 497.6 cents per tonne of grapes crushed (Regulation 3, Schedule 1, Item [1]). This change in the levy rate is designed to provide additional funding for the Grape and Wine Research and Development Corporation (GWRDC), which is responsible for supporting the development of the Australian wine industry. The increase in the levy is expected to raise approximately $3.1 million per annum, which will attract matching Australian Government payments under the Primary Industries and Energy Research and Development Act 1989 to fund the operations of the GWRDC.
Entities governed by these regulations, specifically wine grape producers, are obligated to pay the increased Wine Grapes Levy as per the new rate defined in the amended regulations (Clause 3, Schedule 26). The Winemakers’ Federation of Australia (WFA) has recommended this increase to the Minister, who must consider such recommendations before making regulations (Sub-clauses 9(4) and 9(5), Schedule 26). This procedural requirement ensures that the interests of winemakers are taken into account when determining the levy amount.
Failure to comply with the provisions of these regulations could result in legal consequences for the entities involved. The Act itself does not explicitly outline specific penalties for non-compliance with the amended regulations, but penalties for non-compliance with excise duties are generally severe. Under the Excise Act 1901, penalties can include fines and imprisonment, with the severity depending on the circumstances of the offence. The increased levy amount and the associated financial obligations place a responsibility on wine grape producers to ensure they adhere to the new regulations to avoid potential legal and financial repercussions.