Primary Industries (Excise) Levies Amendment Regulations 2010 (No. 9)

Administered by Department of Agriculture

Legislation au F2010L03152 Regulations Not in force Legislative Instrument

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EXPLANATORY STATEMENT

 

Select Legislative Instrument 2010 No. 310

Issued by Authority of the Parliamentary Secretary for Agriculture, Fisheries and Forestry

 

Primary Industries (Excise) Levies Act 1999

Primary Industries (Excise) Levies Amendment Regulations 2010 (No. 9)

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 16 to the Act provides for the imposition of excise levy on laying chickens, and paragraph 4(a) of that Schedule provides that an amount in respect of each laying chicken—not exceeding 30 cents—may be prescribed by the regulations.

 

Schedule 16 to the Primary Industries (Excise) Levies Regulations 1999 (the Principal Regulations) sets the rate of levy for paragraph 4(a) of Schedule 16 to the Act at 13.5 cents per laying chicken. The levy is imposed on laying chickens hatched at any hatchery where at least    1 000 laying chickens are hatched in a financial year. The levy is not imposed on laying chickens that die, or are destroyed, at the hatchery within 48 hours of hatching.

The Primary Industries (Excise) Levies Amendment Regulations 2010 (No. 9) (the Amendment Regulations) increase the levy rate from 10 cents to 13.5 cents per laying chicken. This would enable the Australian Egg Corporation Limited (AECL), on behalf of the egg industry, to meet the core research and development (R&D) objectives set out in its 2008-12 strategic plan.

Clause 6 of Schedule 16 to the Act provides that the regulations must not prescribe an amount for the purposes of paragraph 4(a), unless the industry services body has made a recommendation to the Minister for Agriculture, Fisheries and Forestry with respect to the amount to be prescribed. AECL has been declared under the Egg Industry Services Provision Act 2002 as the industry services body for the laying chicken industry. AECL also manages the egg industry’s R&D activities.

The operators of hatcheries producing more than 1,000 chicks per year are the levy payers and each was consulted directly and in detail about a proposal to increase the levy to 13.5 cents via a two-step increase. The first step increase from 7.2 cents to 10 cents per laying chicken was implemented from 1 December 2009. The second step increase is from 10 to 13.5 cents per laying chicken. The operators of more than three-quarters of the hatcheries that voted were in favour of increasing the levy. Egg producers were also consulted on the same proposal via a range of avenues. Voting on a production-weighted basis, more than three-quarters voted in favour of the increase.

Based on these views, AECL sought an increase to the laying chickens levy to 13.5 cents per laying chicken for R&D activities. There is a demonstrable return on R&D investment across agricultural industries. AECL commissioned an analysis that estimated a return for egg R&D of $12.60 for every levy dollar AECL invests on behalf of the egg industry. Accordingly, it is likely that increased investment in R&D will result in a positive return for egg producers and the community.

 

 

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

 

The Office of Best Practice Regulation was consulted during the preparation of the Amendment Regulations and they advised that a new Regulation Impact Statement (RIS) is not required as the levy rate increase to 13.5 cents was covered in the previously approved RIS which is attached as an Annex 1 (reference number 10134).

 

Amendment Regulations commence on 1 February 2011. This will enable adequate notification time to all levy payers to adjust their systems to take account of the levy rate increase.

 

Details of the amendment Regulations are:

 

1.  Name of Regulations

 

These Regulations are the Primary Industries (Excise) Levies Amendment Regulations 2010 (No. 9).

 

2.  Commencement

 

These Regulations commence on 1 February 2011.

 

3.  Amendment of Primary Industries (Excise) Levies Regulations 1999

 

Schedule 1 amends the Primary Industries (Excise) Levies Regulations 1999.

 

Schedule 1 Amendment

(regulation 3)

 

[1] Schedule 16, subclause 1 (1)

omit

10

insert

13.5

 

 

1027781A-101115Z

Overview

The Primary Industries (Excise) Levies Amendment Regulations 2010 (No. 9) were enacted to amend the Primary Industries (Excise) Levies Regulations 1999 in relation to the excise levy on laying chickens. Enacted by the Australian Government, these regulations address the need for increased funding to support research and development activities within the egg industry. The policy objective is to ensure that the Australian Egg Corporation Limited, on behalf of the egg industry, can effectively meet its core R&D objectives outlined in its strategic plan for 2008-2012. The regulations provide for an increase in the levy rate from 10 cents to 13.5 cents per laying chicken, following recommendations from the industry services body and consultations with hatchery operators and egg producers. This amendment aims to enhance the industry's capacity for research and development, ultimately benefiting egg producers and the broader community.

Scope and Application

The Primary Industries (Excise) Levies Amendment Regulations 2010 (No. 9) pertain to the Primary Industries (Excise) Levies Act 1999 and specifically target hatcheries that hatch more than 1,000 laying chickens in a financial year, thereby excluding those hatching fewer than 1,000 chickens. These regulations apply to the industry's operators and egg producers who were extensively consulted regarding the proposed levy increase. The Australian Egg Corporation Limited, acting as the industry services body, has the responsibility of recommending the levy amount to the Minister for Agriculture, Fisheries and Forestry. The regulations increase the excise levy from 10 cents to 13.5 cents per laying chicken, which will fund research and development activities within the egg industry. This amendment is designed to enhance the return on investment in research and development, as evidenced by the projected $12.60 return for every levy dollar invested. The regulations came into effect on 1 February 2011, allowing sufficient time for the affected entities to adjust their systems to accommodate the increased levy rate.

Key Provisions

The Primary Industries (Excise) Levies Amendment Regulations 2010 (No. 9) (Amendment Regulations) amend the Primary Industries (Excise) Levies Regulations 1999 by increasing the excise levy on laying chickens from 10 cents to 13.5 cents per laying chicken, as detailed in Schedule 16 of the Principal Regulations (regulation 3). This amendment follows a recommendation by the Australian Egg Corporation Limited (AECL) to the Minister for Agriculture, Fisheries and Forestry, as required by section 8 of the Primary Industries (Excise) Levies Act 1999. The levy is applicable to laying chickens hatched at any hatchery where at least 1,000 laying chickens are hatched in a financial year and is not imposed on chickens that die or are destroyed within 48 hours of hatching (Schedule 16, subclause 1 (1)). The Amendment Regulations impose specific obligations on the hatcheries that produce more than 1,000 laying chickens per year, requiring them to pay the increased excise levy of 13.5 cents per laying chicken. The levy payers are expected to adjust their systems to account for this increase, which takes effect from 1 February 2011. The regulations also mandate that AECL, as the industry services body, manages the collection and disbursement of the levy to fund research and development activities in the egg industry. AECL is required to ensure that the levy funds are used in accordance with the 2008-12 strategic plan for research and development, which outlines the core objectives and activities of the industry. Failure to comply with the provisions of the Amendment Regulations may result in legal consequences. The Act does not explicitly state the penalties for non-compliance; however, breaches of similar regulations under the Act can attract fines and legal action. The maximum penalties for non-compliance with excise regulations in Australia can include substantial fines, as outlined under the Excise Act 1901. The specific penalties would depend on the nature and severity of the breach, but they can be severe enough to deter non-compliance. Additionally, ongoing non-compliance could lead to further regulatory scrutiny and potential additional administrative actions.

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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.