EXPLANATORY STATEMENT
Select Legislative Instrument 2010 No. 309
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. 8)
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 18 of the Act imposes a transaction levy on the sale of goats. Funds corresponding with the amounts of revenue raised under the Schedule are appropriated for Meat & Livestock Australia Ltd (MLA) for marketing and research and development (R&D) activities, for Australian Animal Health Council Ltd to ensure that Australia’s national animal health system delivers competitive advantage for Australia’s livestock, and for 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 R&D levy rate to increase from 10.5 to 16.7 cents a head, with a corresponding reduction in the marketing levy rate from 16.7 to 10.5 cents a head. The total levy of 37.7 cents a head will not change. The total levy also includes 4.5 cents a head for Australian Animal Health Council (trading as Animal Health Australia) and 6 cents a head for the National Residue Survey.
The changed rates between the marketing and R&D components of the levy will enable the goat industry to fund R&D investment programs to address identified development issues. The changes were proposed by the Goat Industry Council of Australia, which is the prescribed body responsible for goat transaction levies, at its annual general meeting in November 2009. Industry-wide consultation included producer groups (an estimated 70 per cent of producers responsible for around 80 per cent of production), processors, goat depots and live exporters. Widespread support for the reapportionment was registered.
The Office of Best Practice Regulation was consulted in the preparation of these Regulations and a Regulation Impact Statement is not required (reference number ID 11287).
Details of the amending provisions are:
Primary Industries (Excise) Levies Amendment Regulations 2010 (No. 8)
Regulation 1 – Name of Regulations
This regulation would provide for the citation of the Regulations.
Regulation 2 – Commencement
This regulation would provide for the Regulations to commence on the day after registration.
Regulation 3 – Application
This regulation provides for the amendments made by Schedule 1 to apply in relation to transactions involving goats entered into on and after 1 January 2011.
Regulation 4 – Amendment of Primary Industries (Excise) Levies Regulations 1999
This regulation would provide that the Primary Industries (Excise) Levies Regulations 1999 are amended as set out in Schedule 1.
Schedule 1 – Amendment
Item [1] – Schedule 18, Clause 6(a)
omit
16.7 cents
insert
10.5 cents
Item [2] – – Schedule 18, Clause 6(b)
omit
10.5 cents
insert
16.7 cents
Overview
The Primary Industries (Excise) Levies Amendment Regulations 2010 (No. 8) were enacted to address the need for a reallocation of funds within the transaction levy on the sale of goats, as stipulated in the Primary Industries (Excise) Levies Act 1999. These Regulations, issued by the Minister for Agriculture, Fisheries and Forestry, were developed in response to proposals from the Goat Industry Council of Australia and were supported by widespread industry consultation. The primary objective of these Regulations is to increase the research and development levy rate from 10.5 to 16.7 cents per head, while decreasing the marketing levy rate from 16.7 to 10.5 cents per head. This reallocation aims to better support research and development initiatives identified as critical by the goat industry. The total levy of 37.7 cents per head remains unchanged, with additional contributions for the Australian Animal Health Council and the National Residue Survey. The Regulations were prepared with input from the Office of Best Practice Regulation and do not require a Regulation Impact Statement.
Scope and Application
The Primary Industries (Excise) Levies Amendment Regulations 2010 (No. 8) pertain to the transaction levy on the sale of goats as specified under the Primary Industries (Excise) Levies Act 1999. These regulations apply to all transactions involving goats that occur on or after 1 January 2011. The levies collected are designated for Meat & Livestock Australia Ltd for marketing and research and development activities, Australian Animal Health Council Ltd to enhance Australia’s national animal health system, and the National Residue Survey to cover costs associated with monitoring and testing residues and contaminants in food production. The changes in the regulation, which increase the research and development levy rate from 10.5 to 16.7 cents per head while reducing the marketing levy rate from 16.7 to 10.5 cents per head, were proposed by the Goat Industry Council of Australia and were supported by the majority of the industry following extensive consultations. Despite the changes in the component rates, the overall levy remains at 37.7 cents per head, inclusive of additional amounts for Australian Animal Health Council and the National Residue Survey.
Key Provisions
The Primary Industries (Excise) Levies Amendment Regulations 2010 (No. 8) make significant changes to the rates of levies on the sale of goats, as outlined in Schedule 18 of the Primary Industries (Excise) Levies Act 1999 (the Act) (Section 8). Specifically, the amendments adjust the rates of the marketing and research and development (R&D) levies. The marketing levy is reduced from 16.7 to 10.5 cents a head, while the R&D levy increases from 10.5 to 16.7 cents a head. Despite these changes, the total levy remains at 37.7 cents a head, which also includes 4.5 cents a head for the Australian Animal Health Council (trading as Animal Health Australia) and 6 cents a head for the National Residue Survey. These changes aim to better align the funding of R&D with the needs of the goat industry, as proposed by the Goat Industry Council of Australia and supported by key industry stakeholders.
The Regulations impose obligations on parties involved in the sale of goats, including producers, processors, and exporters, to adhere to the revised levy rates. These rates are applicable to transactions entered into on and after 1 January 2011 (Regulation 3). The amendments to the Primary Industries (Excise) Levies Regulations 1999, as set out in Schedule 1, ensure that the correct levies are applied to the transactions involving goats. This involves updating the relevant schedules and clauses to reflect the new rates, as seen in Items [1] and [2] of Schedule 1.
The Act does not explicitly detail specific offences, penalties, or consequences for non-compliance with the levy requirements. However, non-compliance with any legislative requirement can generally lead to civil or criminal penalties under Australian law. For example, under the general provisions of the Commonwealth’s legislation, non-compliance could result in fines or other enforcement actions. The exact penalties would depend on the specific nature of the breach and the provisions of any related laws. It is important for all parties to ensure they are aware of and comply with the amended levy rates to avoid any potential repercussions.