Primary Industries (Excise) Levies Amendment Regulations 2008 (No. 5)

Administered by Department of Agriculture

Legislation au F2008L04626 Regulations Not in force Legislative Instrument

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EXPLANATORY STATEMENT

 

Select Legislative Instrument 2008 No. 249

 

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. 5)

 

 

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.

 

The rice research and development (R&D) levy provides a revenue stream for the rice R&D program, which is administered by the Rural Industries Research and Development Corporation (RIRDC). A small component of the R&D levy is directed towards paying the Plant Health Australia (PHA) subscription fee. The rice industry is facing a sixth year of significant drought related production downturns, which have placed financial pressures on the R&D program and on the capacity to meet the annual PHA subscription fees, due to subsequent reductions in levy revenue. 

 

Clause 6 of Schedule 23 to the Act provides that the Minister must not specify a rate of levy unless the rate has been recommended by the relevant rice industry body.  The Ricegrowers’ Association of Australia (RGA) is specified as a rice industry body for this purpose.

 

The Regulations implement changes requested by the RGA, in consultation with the rice industry, to the rate of the rice R&D levy. Over a six week period the RGA consulted broadly within the rice industry on the changes to the rice R&D and PHA levy rates. The RGA is well placed to consult with all participants of the rice industry because of the small geographic spread of growers and the near full grower membership of the RGA.

 

On 1 January 2006 the rice R&D levy rate was increased from $1.97 to $2.97 per tonne for a period of three years, to sustain the rice R&D program throughout the drought. The PHA component of the levy remained at $0.03 per tonne, bringing the total levy to $3.00 per tonne. This followed a request from industry to increase the operative levy rate to ensure adequate funding was maintained for core R&D activities, like plant breeding. The levy was due to revert to the previous rate of $1.97 per tonne for R&D and $0.03 for PHA on 1 January 2009.

 

The purpose of the Regulations is to maintain the increased rate of the rice R&D levy for a further three years to assist the rice industry to continue to meet its financial commitments during the continuing drought. The rice industry has been under financial pressure since 2003 and the industry has not been able to meet its annual PHA subscription for three of the past four years. The Regulations increase the rice PHA levy component to $0.06 to ensure the subscription fees are met. The rice R&D levy rate is set at $2.94 per tonne.

 

The Regulations provide that the rice R&D levy of $2.94 per tonne sunset by
1 January 2012, reverting the rate back to the pre 2006 level of $1.97 per tonne. The Regulations also provide that the PHA component of the levy of $0.06 per tonne would revert to $0.03 per tonne as of 1 January 2012.

 

The Regulations are not intended to broaden the imposition of the current rice levy.

 

The Office of Best Practice Regulation was consulted in the preparation of these Regulations (ID 9934).

 

The Regulations are a legislative instrument for the purposes of the Legislative Instruments Act 2003.

 

The Regulations commence on 1 January 2009.

 

Details of the Regulations are provided in the Attachment.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ATTACHMENT

Details of the Primary Industries (Excise) Levies Amendment Regulations 2008 (No. 5)

Regulation 1 - Name of Regulations

 This regulation provides for the title of the Regulations to be the Primary Industries (Excise) Levies Amendment Regulations 2008 (No. 5).

Regulation 2 - Commencement

 This regulation provides for the Regulations to commence on 1 January 2009.  

Regulation 3 – Amendment of Primary Industries (Excise) Levies Regulations 1999

This regulation provides for the Primary Industries (Excise) Levies Regulations 1999 to be amended as set out in Schedule 1. 

Schedule 1 - Amendment

Item 1 substitutes Schedule 23, Part 1, paragraph 2 (b), specifying the new rate of the rice research and development levy. The rate is $2.94 per tonne of rice, on or after
1 January 2009 and before 1 January 2012. The specified rate of the rice research and development levy will revert to $1.97 per tonne of rice on or after 1 January 2012.

Item 2 omits the words “is 3 cents per tonne of rice” which refers to the rate of the Plant Health Australia component of the levy. The item inserts a new rate for the Plant Health Australia levy. The rate is $0.06 per tonne of rice, on or after 1 January 2009. The specified rate of the Plant Health Australia levy will revert to $0.03 per tonne of rice on or after 1 January 2012.

 

             

 

 

 

 

 

 

Overview

The Primary Industries (Excise) Levies Amendment Regulations 2008 (No. 5) were enacted to address financial pressures faced by the Australian rice industry due to prolonged drought conditions, which had led to reduced production and, consequently, lower revenue from the rice research and development (R&D) levy. The Regulations were made under the authority of the Minister for Agriculture, Fisheries and Forestry and pursuant to the Primary Industries (Excise) Levies Act 1999. The primary policy objective of these Regulations is to sustain the rice R&D program and ensure the industry can meet its financial commitments, including subscription fees for Plant Health Australia (PHA). To achieve this, the Regulations implement changes to the rate of the rice R&D levy, maintaining the higher rate of $2.94 per tonne for an additional three years until 1 January 2012, and increasing the PHA component of the levy to $0.06 per tonne until the same date, after which both rates will revert to their previous levels. This approach aims to provide continued support to the rice industry during a period of significant financial strain.

Scope and Application

The Primary Industries (Excise) Levies Amendment Regulations 2008 (No. 5) applies to rice growers and processors within Australia, who are subject to the rice research and development levy, as outlined in the Primary Industries (Excise) Levies Act 1999. The Act applies to all rice growers and processors across the country, and the levy is intended to provide a revenue stream for the rice R&D program administered by the Rural Industries Research and Development Corporation (RIRDC), as well as to cover the Plant Health Australia (PHA) subscription fee. The Act extends its jurisdictional reach across the Commonwealth of Australia, with regulations being made under the authority of the Minister for Agriculture, Fisheries and Forestry. The Ricegrowers’ Association of Australia (RGA) is recognised as the relevant industry body that can recommend changes to the levy rate. The Regulations themselves do not introduce any new exclusions or exemptions beyond what is already provided for in the Act, and they sunset on 1 January 2012, reverting the levy rates back to their pre-2006 levels. Subordinate instruments may be used to further clarify or implement the provisions of the Act and the Regulations.

Key Provisions

The Primary Industries (Excise) Levies Amendment Regulations 2008 (No. 5) introduce changes to the rice research and development (R&D) levy and the Plant Health Australia (PHA) levy under the Primary Industries (Excise) Levies Act 1999 (the Act). These changes are intended to address the financial pressures faced by the rice industry due to ongoing drought conditions, which have affected production and reduced levy revenue. Regulation 3 amends the Primary Industries (Excise) Levies Regulations 1999 (the original Regulations) to adjust the rates of the levies. Specifically, Schedule 1 of the new Regulations changes the rice R&D levy rate to $2.94 per tonne, effective from 1 January 2009 until 31 December 2011, after which it will revert to $1.97 per tonne (Item 1). Additionally, the PHA levy rate is increased to $0.06 per tonne, effective from 1 January 2009 until 31 December 2011, after which it will revert to $0.03 per tonne (Item 2). These amendments aim to sustain the R&D program and ensure the industry can meet its PHA subscription fees during this period. The Regulations impose specific obligations on the rice industry and the Ricegrowers’ Association of Australia (RGA). The RGA must consult with the industry to recommend changes to the levy rates to the Minister, as required by clause 6 of Schedule 23 of the Act. The industry is responsible for paying the adjusted levies, which contribute to funding the R&D program and the PHA subscription fees. The Minister, in turn, must not specify a levy rate unless it has been recommended by the RGA, ensuring that the industry has a direct say in the rate adjustments. Breach of the provisions outlined in the Regulations may lead to various consequences. While the specific penalties for non-compliance are not detailed in the explanatory statement, the Act and the original Regulations may contain provisions for penalties or other enforcement mechanisms. Typically, failure to comply with excise levies can result in civil or criminal penalties, which may include fines or other financial penalties. Additionally, ongoing non-compliance may lead to administrative actions or legal proceedings against the defaulting party. The exact penalties would be determined based on the specific provisions of the Act and the original Regulations.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.