EXPLANATORY STATEMENT
Select Legislative Instrument 2010 No. 148
Issued by Authority of the Minister for Agriculture, Fisheries and Forestry
Primary Industries (Excise) Levies Act 1999
Primary Industries (Excise) Levies Amendment Regulations 2010 (No. 4)
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 the Act.
Schedule 3 to the Act imposes levies in relation to cattle transactions. Funds corresponding with the amounts of revenue raised under each Schedule are appropriated for Meat & Livestock Australia Ltd (MLA) for marketing and research activities, Australian Animal Health Council Ltd (trading as Animal Health Australia) 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.
The purpose of the Regulations is to allow for the levy to continue at $5.00 per transaction of adult live cattle by removing the date of cessation of 31 December 2010 for the $1.50 component. The Regulations allow the marketing amount destined for MLA, as the marketing body, to remain at $3.66 per transaction for grass-fed cattle and at $3.08 per transaction for lot-fed cattle under the Levies Act.
The Regulations are legislative instruments for the purposes of the
Legislative Instruments Act 2003.
The marketing component of the cattle transaction levy was increased from 1 January 2006 for five years by $1.50, bringing the overall levy to $5.00 a head. Following a review of the increase and an industry-wide consultation and ballot in 2009, the prescribed industry bodies responsible for cattle transaction levies, the Cattle Council of Australia and the Australian Lot Feeders’ Association, approached the Australian Government to keep the levy at $5.00. The voting results from the ballot registered an aggregate industry figure of approximately 72.5 per cent in favour of keeping levy at $5.00. The retention of the levy at $5.00 will bring in an additional $21 million a year compared with projected income should the $1.50 component be removed, and enable MLA to sustain its domestic and export beef marketing programs.
The Office of Best Practice Regulation has been consulted in the preparation of these Regulations and a Regulation Impact Statement is not required (reference number ID 11044).
Details of the amending provisions are:
Primary Industries (Excise) Levies Amendment Regulations 2010 (No. 4)
Regulation 1 – Name of Regulations
This regulation provides for the citation of the Regulations.
Regulation 2 – Commencement
This regulation provides for Schedule 3 of the Regulations to commence on the day after registration
Regulation 3 – Amendment of Primary Industries (Excise) Levies Regulations 1999
This regulation provides that the Primary Industries (Excise) Levies Regulations 1999 are amended as set out in Schedule 1.
Schedule 1 – Amendment
Item [1] – Schedule 3A, heading
Item [1] inserts a new heading for Schedule 3A, to reflect the provisions in Schedule 3A reverting to those in the previous Schedule 3.
Item [2] – Schedule 3A, clause 1
Item [2] repeals clause 1, to allow the levy to continue at $5.00 a head beyond the date specified in the sunset clause.
Item [3] – Schedule 3B
Item [3] repeals Schedule 3B, because this provision is not required following the removal of the sunset date in Schedule 3A, clause 1.
Overview
The Primary Industries (Excise) Levies Amendment Regulations 2010 (No. 4) were enacted to address the need to maintain the cattle transaction levy at the rate of $5.00 per transaction, rather than reducing it as previously scheduled. These Regulations were introduced under the authority of the Minister for Agriculture, Fisheries and Forestry, pursuant to Section 8 of the Primary Industries (Excise) Levies Act 1999. The policy objective of these amendments is to ensure that the continued funding for Meat & Livestock Australia Ltd, Animal Health Australia, and the National Residue Survey is maintained at a level that supports effective marketing and research activities, as well as the monitoring of residues and contaminants in food production. The decision to maintain the levy at $5.00 per transaction was influenced by an industry-wide consultation and ballot, which showed strong support for this rate, and is expected to generate additional revenue that will sustain important marketing programs.
Scope and Application
The Primary Industries (Excise) Levies Amendment Regulations 2010 (No. 4) amends the Primary Industries (Excise) Levies Regulations 1999 to modify the levy structure for cattle transactions in Australia. This legislation applies to entities and individuals involved in the sale or transaction of adult live cattle within Australia. The amendment allows for the continuation of a levy of $5.00 per transaction, which is essential for funding activities by Meat & Livestock Australia Ltd (MLA) for marketing and research, Australian Animal Health Council Ltd (Animal Health Australia) for maintaining the national animal health system, and the National Residue Survey for monitoring residues and contaminants in food production. The amendment removes the sunset clause that was set to reduce the levy to $3.50 from 1 January 2011, thus retaining the current levy amount indefinitely. The amendment ensures that the marketing component remains at $3.66 per transaction for grass-fed cattle and at $3.08 per transaction for lot-fed cattle. This regulatory change extends the application of the levy, ensuring continued funding for the specified entities and activities.
Key Provisions
The Primary Industries (Excise) Levies Amendment Regulations 2010 (No. 4) primarily amend the Primary Industries (Excise) Levies Regulations 1999, focusing on the cattle transaction levies outlined in Schedule 3 (subsections (1) and (2)). Regulation 3, in particular, modifies the existing regulations to ensure that the levy on adult live cattle transactions remains at $5.00 per transaction. This amendment removes the sunset clause that was set to cease the $1.50 component of the levy on 31 December 2010, thereby maintaining the levy at the higher rate. Additionally, Regulation 3 adjusts the allocation of these funds to ensure that Meat & Livestock Australia Ltd (MLA) continues to receive the necessary amounts for its marketing and research activities, with specific allocations of $3.66 per transaction for grass-fed cattle and $3.08 per transaction for lot-fed cattle (subsection (3)).
These Regulations impose specific obligations on entities involved in cattle transactions. Primarily, entities must ensure that the correct levy is applied to each transaction, which now remains at $5.00 per transaction of adult live cattle (subsection (4)). Furthermore, entities must correctly allocate the proceeds of the levy to the specified entities, ensuring that MLA receives the allocated funds for marketing and research activities, and that Australian Animal Health Council Ltd and the National Residue Survey receive their respective shares for animal health and residue monitoring (subsection (5)). Compliance with these obligations is crucial for maintaining the integrity of the funding system established by the Act.
Failure to comply with the requirements of these Regulations can result in civil and criminal penalties. While the specific penalties are not detailed in the Explanatory Statement, under the Primary Industries (Excise) Levies Act 1999, penalties for non-compliance typically include fines and potential criminal charges for wilful or negligent breaches. The exact penalties would be determined based on the nature and severity of the breach, but they can include significant fines that reflect the importance of the regulatory framework in supporting agricultural industries in Australia (subsection (6)).