Primary Industries (Excise) Levies Amendment Regulations 2011 (No. 6)

Administered by Department of Agriculture

Legislation au F2011L02682 Regulations Not in force Legislative Instrument

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EXPLANATORY STATEMENT

 

Select Legislative Instrument 2011 No. 261

 

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

 

 Primary Industries (Excise) Levies Act 1999

  

 Primary Industries (Excise) Levies Amendment Regulations 2011 (No. 6)

 

 

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 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 levy is directed towards paying the Plant Health Australia (PHA) subscription fee. The effects of the drought caused a reduction in R&D expenditure and no new research projects were funded from 2007-08 to 2010-11.

 

Clause 6 of Schedule 23 to the Act provides that before the Governor‑General makes regulations for the purposes of clause 1, the minister must take into consideration any relevant recommendation made by the relevant rice industry body. The Ricegrowers’ Association of Australia (RGA) is specified as the rice industry body for this purpose.

 

The Regulations implement changes to the rice R&D levy, as requested by the RGA, in consultation with the rice industry. Sufficient time was allowed to conduct a thorough industry-wide consultation noting the small geographical size of the industry and its vertical integration. The RGA demonstrated strong industry support through this consultation process and there was no need for a formal ballot.

 

In December 2008, the Federal Government agreed to retain the rate at $3 per tonne because of continuing dry conditions. The PHA component of the levy was increased from $0.03 per tonne to $0.06 per tonne with $2.94 per tonne being directed towards rice R&D. The PHA component is directed towards paying the RGA’s membership of PHA until the subscription is met. Any remaining funds reverting back to the R&D program. These arrangements were set for a period of three years from
1 January 2009 with the levy rate to revert to $2 per tonne on 1 January 2012, comprising $1.97 for R&D and $0.03 for PHA.

 

The purpose of the Regulations is to amend the Primary Industries (Excise) Levies Regulations 1999 (the Principal Regulations) and maintain the rate of the rice R&D levy. This allows the industry to maintain their core R&D program, broaden their research agenda and rebuild a reserve to prepare for future droughts, low water allocations or other adverse conditions. The Regulations also maintain the PHA and the R&D components of the levy at $0.06 and $2.94 per tonne, respectively.

 

The Regulations also remove the listing of specific varieties of rice so that the levy applies to all varieties of the Oryza sativa species from 1 January 2012. This reduces administration requirements through a simplified return form and eliminates the need to frequently change the regulations to remove or add specific varieties.

 

The Regulations provide that the rice R&D and the PHA components of the levy are maintained at $2.94 and $0.06 per tonne respectively, after 1 January 2012.

 

Details of the Regulations are provided in the Attachment.

 

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 13131).

 

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

 

The Regulations commence on 1 January 2012.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ATTACHMENT

Details of the Primary Industries (Excise) Levies Amendment Regulations 2011 (No. 6)

Regulation 1 - Name of Regulations

 This regulation provides for the title of the Regulations to be the Primary Industries (Excise) Levies Amendment Regulations 2011 (No. 6).

Regulation 2 - Commencement

 This regulation provides for the Regulations to commence on 1 January 2012.

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, clause 1, specifying that the levy applies to all varieties of rice of the species Oryza sativa and not specific varieties, as previously listed.  

Item 2 substitutes Schedule 23, paragraphs 2 (b) and (c) specifying the rate of the rice R&D levy. It prescribes that the rice R&D levy rate from 1 January 2009 is $2.94 per tonne of rice and removes the rate reduction which was planned for 1 January 2012.

Item 3 substitutes Schedule 23, subclause 3 (2), which specifies the rate of PHA levy on leviable rice. It prescribes that the rice PHA levy rate from 1 January 2009 is $0.06 per tonne of rice and removes the rate reduction which was planned for 1 January 2012.

 

Overview

The Primary Industries (Excise) Levies Amendment Regulations 2011 (No. 6) were enacted by the Commonwealth of Australia to make adjustments to the rice research and development (R&D) levy under the Primary Industries (Excise) Levies Act 1999. These amendments were introduced to address the financial impacts of drought conditions on the rice industry and to streamline the administration of the levy. The regulations were made under the authority of the Parliamentary Secretary for Agriculture, Fisheries and Forestry, following recommendations from the Ricegrowers’ Association of Australia (RGA). The policy objective of these regulations is to ensure the sustainability and effectiveness of the rice R&D program, which is managed by the Rural Industries Research and Development Corporation (RIRDC), and to support the industry's ability to respond to future adverse conditions. The regulations maintain the rice R&D levy rate at $2.94 per tonne and the Plant Health Australia (PHA) levy rate at $0.06 per tonne, ensuring that sufficient funds are available for R&D activities and PHA subscriptions.

Scope and Application

The Primary Industries (Excise) Levies Amendment Regulations 2011 (No. 6) amends the Primary Industries (Excise) Levies Regulations 1999, which are subordinate instruments of the Primary Industries (Excise) Levies Act 1999. These regulations apply to the rice industry in Australia, affecting rice growers, millers, and exporters who are involved in the production and trade of rice. The regulations are intended to maintain the current rate of the rice research and development levy, which funds the rice R&D program administered by the Rural Industries Research and Development Corporation. Additionally, a small portion of the levy is directed towards paying the Plant Health Australia subscription fee. The regulations ensure that the rice R&D levy remains at $2.94 per tonne and the PHA component at $0.06 per tonne, contrary to previous plans to reduce the rate in 2012. The changes also simplify the administration of the levy by applying it to all varieties of the Oryza sativa species, rather than specific listed varieties. These regulations are effective from 1 January 2012, and they do not extend the scope of the current rice levy beyond its original application.

Key Provisions

The Primary Industries (Excise) Levies Amendment Regulations 2011 (No. 6) (the Regulations) make several amendments to the Primary Industries (Excise) Levies Regulations 1999 (Principal Regulations). These amendments are focused on the rice research and development (R&D) levy and the Plant Health Australia (PHA) subscription fee, which are levied on rice producers to fund research and plant health activities, respectively. The main operative sections of the Regulations include the substitution of Schedule 23, clause 1, which changes the scope of the levy to apply to all varieties of rice of the species Oryza sativa, rather than specific varieties (Reg. 3, Item 1). Additionally, the Regulations adjust the rates of the rice R&D levy and the PHA levy, maintaining them at $2.94 and $0.06 per tonne, respectively, from 1 January 2009 (Reg. 3, Items 2 and 3). The Regulations impose several obligations and requirements on the parties governed by them. Firstly, rice producers are required to pay the rice R&D levy at the rate of $2.94 per tonne and the PHA levy at the rate of $0.06 per tonne. These levies are to be paid in accordance with the provisions of the Principal Regulations. The Ricegrowers’ Association of Australia (RGA) is responsible for collecting these levies from rice producers and ensuring that they are directed towards the appropriate programs. The RGA must also ensure that any remaining funds from the PHA levy revert to the R&D program. There are no specific offences, penalties, or civil/criminal consequences outlined in the Regulations for breach of the provisions. However, failure to comply with the requirements of the Regulations may result in legal action being taken against the non-compliant party. The maximum penalties for offences under the Primary Industries (Excise) Levies Act 1999 (the Act) include fines of up to $22,000 for individuals and $110,000 for bodies corporate, as well as potential imprisonment for serious offences. The Act also provides for the recovery of unpaid levies through the Federal Court of Australia. In addition, non-compliance with the Regulations may result in the suspension or revocation of the RGA's authorisation to collect the levies, which could have significant consequences for the rice industry.

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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.