EXPLANATORY STATEMENT
Select Legislative Instrument 2008 No. 84
Issued by Authority of the Minister for Agriculture, Fisheries and Forestry
Primary Industries (Excise) Levies Act 1999
Primary Industries (Excise) Levies Amendment Regulations 2008 (No. 1)
Statutory Basis
Section 8 of the Primary Industries (Excise) Levies Act 1999 (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.
Schedule 3 to the Act imposes levies in relation to cattle transactions. Funds corresponding with the amounts of revenue raised under the Schedule are appropriated for Meat & Livestock Australia Ltd (MLA) for marketing and research activities, Australian Animal Health Council Ltd to ensure that Australia’s national animal health system delivers competitive advantage for Australia’s livestock, and National Residue Survey for recovery of costs incurred in monitoring and testing residues and contaminants in food production.
Purpose of the Regulations
The purpose of the regulations is to decrease the marketing component of the excise levy from $4.08 to $3.41 and to increase the research component of the excise levy from $0.50 to $1.17 per head for lot-fed cattle. The regulations do not alter the existing overall excise levy rate of $5.00 for each transaction per head for adult cattle.
The Regulations are a legislative instrument for the purposes of the Legislative Instruments Act 2003.
Background to the Regulations
The Australian Lot Feeders’ Association (ALFA) is the lot-fed cattle industry’s peak body and it requested changes to the levy mix for lot-fed cattle to achieve a more balanced marketing / research and development reserves for the next 18 months. ALFA recommends the lot-fed levy allocations on behalf of industry following annual re-assessment of its MLA-managed programs. In order to prevent these programs being driven or constrained by pre-determined allocations, ALFA reallocates the lot-fed cattle transaction levy on an “as needs basis”.
Details of the Regulations are provided in the Attachment.
ATTACHMENT
Details of the Primary Industries (Excise) Levies Amendment
Regulations 2008 (No. 1)
Schedule – Amendments
Item [1] – Schedule 3A, subclause 4 (1)
Item [1] amends Schedule 3A, subclause 4 (1) of the Excise Regulations to decrease the marketing component of the excise levy from $4.08 per head to $3.41 per head for lot-fed cattle.
Item [2] – Schedule 3A, subclause 4 (2)
Item [2] amends Schedule 3A, subclause 4 (2) of the Excise Regulations to increase the research component of the excise levy from 50 cents per head to $1.17 per head for lot-fed cattle.
Overview
The Primary Industries (Excise) Levies Amendment Regulations 2008 (No. 1) were enacted to modify the distribution of excise levies collected from cattle transactions. This regulation was issued under the authority of the Minister for Agriculture, Fisheries and Forestry and is based on section 8 of the Primary Industries (Excise) Levies Act 1999. The primary objective of these regulations was to adjust the allocation of funds between marketing and research components of the excise levy for lot-fed cattle, responding to a request from the Australian Lot Feeders’ Association (ALFA). ALFA, as the peak industry body for lot-fed cattle, recommended the reallocation to better balance marketing and research and development reserves, reflecting the industry’s needs over the next 18 months. The regulations aim to decrease the marketing component of the excise levy from $4.08 to $3.41 per head for lot-fed cattle while increasing the research component from $0.50 to $1.17 per head. These changes were implemented without altering the overall excise levy rate of $5.00 per transaction per head for adult cattle.
Scope and Application
The Primary Industries (Excise) Levies Amendment Regulations 2008 (No. 1) apply to cattle transactions across Australia, aligning with the geographic reach of the Primary Industries (Excise) Levies Act 1999. Specifically, these regulations adjust the levies imposed on lot-fed cattle, thereby impacting the industry responsible for lot-fed cattle transactions. The levies are appropriated to Meat & Livestock Australia Ltd for marketing activities, the Australian Animal Health Council Ltd to support national animal health initiatives, and the National Residue Survey to fund residue and contaminant testing in food production. The regulations do not alter the overall excise levy rate of $5.00 per head for each transaction for adult cattle but modify the distribution of this levy between marketing and research components, reflecting a reallocation based on industry needs as recommended by the Australian Lot Feeders’ Association. Subordinate instruments may further extend or restrict the application of these regulations as necessary.
Key Provisions
The Primary Industries (Excise) Levies Amendment Regulations 2008 (No. 1) amend Schedule 3A of the Primary Industries (Excise) Levies Regulations 1999 to modify the distribution of levies collected from cattle transactions. Specifically, these regulations decrease the marketing component of the excise levy for lot-fed cattle from $4.08 per head to $3.41 per head and increase the research component from 50 cents per head to $1.17 per head. This change does not affect the overall excise levy rate, which remains at $5.00 per head for each transaction involving adult cattle (Schedule 3A, subclause 4 (1) and (2)).
The regulations impose obligations on entities involved in cattle transactions, requiring them to adjust the levies they collect according to the new rates specified in the amendment. These obligations extend to ensuring that the funds collected are appropriately allocated to Meat & Livestock Australia Ltd, Australian Animal Health Council Ltd, and National Residue Survey, as outlined in Schedule 3 of the Primary Industries (Excise) Levies Act 1999. The changes are intended to better balance the funding for marketing activities and research and development efforts within the industry.
There are no explicit provisions in these regulations detailing offences, penalties, or civil or criminal consequences for non-compliance. However, failure to comply with the amended levies could potentially result in legal ramifications under the Primary Industries (Excise) Levies Act 1999. The Act itself could provide for penalties, which might include fines or other enforcement actions, depending on the severity and intent of the non-compliance. It is essential for entities governed by these regulations to adhere to the specified levy rates to avoid any legal repercussions.