EXPLANATORY STATEMENT
Select Legislative Instrument 2010 No. 284
Issued by the Authority of the Parliamentary Secretary for
Agriculture, Fisheries and Forestry
Primary Industries (Excise) Levies Act 1999
Primary Industries (Excise) Levies Amendment Regulations 2010 (No. 6)
Primary Industries (Customs) Charges Act 1999
Primary Industries (Customs) Charges Amendment Regulations 2010 (No. 4)
Section 8 of the Primary Industries (Excise) Levies Act 1999 (the Levies Act) and section 8 of 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 implement a proposal by the Australian Nashi Growers’ Association (ANGA) to reduce the rate of the Australian Government (Government) statutory excise levy and export charge on nashi growers for the purpose of undertaking research and development (R&D) through Horticulture Australia Limited (HAL).
The statutory R&D levy and export charge on nashi growers was established on 1 January 1990 and since that time has been paid to HAL. The R&D levy is imposed on sales on the fresh domestic and export markets and on product directed to juicing and processing. The current rate of the R&D levy is $1.80 per tonne for juicing nashi; $3.60 per tonne for processing nashi; and 10 cents per tray of other nashi (other than juicing nashi or processing nashi - ie. for domestic or export).
HAL is the relevant industry services body for the administration of horticulture industry levies and charges for marketing and R&D and is the body that manages moneys collected from the R&D levy and charge imposed on nashi growers. HAL co-ordinates marketing and R&D programs for many horticultural industries. HAL is funded by statutory levies and export charges, voluntary contributions and Government matching funding for eligible R&D expenditure. This matching funding is provided under the Horticultural Marketing and Research and Development Services Act 2000.
Under the Regulations the nashi R&D levy and charge rates are to be reduced to zero.
Nashi levy reserves currently held by HAL are sufficient to fund anticipated R&D needs for at least four years (and probably much longer). By setting the rate of the nashi R&D levy and export charge at zero further levy collections would be suspended and the accumulated levy reserves would be drawn down on until they reduce to a more manageable level.
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The nashi R&D levy and charge annually raises around $45,000. As at 30 June 2009 levy reserves held by HAL were $684,180 and interest earned on these funds in 2008-09 was $36,497. While the change to the R&D levy and export charge rates would remove the cost on growers, costs would continue to the Government through its matching on a dollar-for-dollar basis for eligible R&D expenditure funded out of accumulated levy reserves.
Primary Industries (Excise) Levies Regulations 1999
Subclause 4(3) of Schedule 15 to the Levies Act provides that regulations may fix rates of levy for R&D purposes.
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 for Agriculture, Fisheries and Forestry (the Minister) must take into consideration any relevant recommendations made to the Minister by HAL.
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 ANGA as the eligible industry body with which HAL must consult in relation to nashi. HAL recommended the new operative rates of R&D levy to the Minister after consultation with ANGA. The Regulations give effect to the recommendations of HAL, which are consistent with the nashi industry's request.
Primary Industries (Customs) Charges Regulations 2000
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(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(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 ANGA as the eligible industry body with which HAL must consult in relation to nashi. HAL recommended the new operative rates of R&D export charge to the Minister after consultation with ANGA. The Regulations give effect to the recommendations of HAL, which are consistent with the nashi industry's request.
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Industry consultation and an ANGA poll conducted by the Australian Electoral Commission for the change have received a positive response from those growers that chose to participate. The proposal has the express support of the largest nashi grower (who has an estimated 80% share of industry production). No opposition to the proposal has been expressed.
Details of the Regulations are contained in the Attachment.
The Regulations are legislative instruments for the purposes of the Legislative Instruments Act 2003.
The Office of Best Practise Regulation (OBPR) was consulted in the preparation of the Regulations and agreed that a Regulation Impact Statement was not required for this amendment (OBPR Ref. 10923).
The Regulations provide for commencement on the day after the Regulations are registered and for the amendment in Schedule 1 to apply from the first day of the first month after the month in which Regulations commence.
1008088A-1011101Z
1008088B-1011101Z
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ATTACHMENT
DETAILS OF THE PRIMARY INDUSTRIES (EXCISE) LEVIES AMENDMENT REGULATIONS 2010 (No. 6)
Regulation 1 – Name of Regulations
This regulation would provide for the name of the Regulations to be the Primary Industries (Excise) Levies Amendment Regulations 2010 (No. 6).
Regulation 2 – Commencement
This regulation would provide for regulations 1-4 to commence the day after they are registered.
Regulation 3 – Amendment of Primary Industries (Excise) Levies Regulations 1999
This regulation would provide that Schedule 1 amends the Primary Industries (Excise) Levies Regulations 1999 (the Excise Levies Regulations).
Regulation 4 – Application
This regulation would provide that the amendment made by schedule 1 applies from the first day of the first month after they are registered.
Schedule 1 Amendment
Item [1] – would replace clause 11.4 with a new clause.
New clause 11.4 would set the operative rate of research and development levy destined for Horticulture Australia Limited for nashi at nil:
- zero cents per tray for fresh nashi for sale on the domestic market;
- $0.00 per tonne for juicing nashi; and
- $0.00 per tonne of processing nashi.
DETAILS OF THE PRIMARY INDUSTRIES (CUSTOMS) CHARGES AMENDMENT REGULATIONS 2010 (No. 4)
Regulation 1 – Name of Regulations
This Regulation would provide for the name of the Regulations to be the Primary Industries (Customs) Charges Amendment Regulations 2010 (No. 4).
Regulation 2 – Commencement
This regulation would provide for regulations 1-4 to commence the day after they are registered.
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Regulation 3 – Amendment of Primary Industries (Customs) Charges Amendment Regulations 2000
This regulation would provide that Schedule 1 amends the Primary Industries (Customs) Charges Regulations 2000 (the Customs Charges Regulations).
Regulation 4 – Application
This regulation would provide that the amendment made by schedule 1 applies from the first day of the first month after they are registered.
Schedule 1 Amendment
Item [1] – would replace clause 11.4 with a new clause.
New clause 11.4 would set the operative rate of research and development charge destined for Horticulture Australia Limited for nashi at nil:
- zero cents per tray for fresh nashi for sale on the export market.