Primary Industries (Excise) Levies Amendment (Thoroughbred Horses) Regulations 2017

Administered by Department of Agriculture

Legislation au F2017L01010 Regulations Not in force Legislative Instrument

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Explanatory Statement

 

 

Issued by Authority of the Deputy Prime Minister and Minister for Agriculture and Water Resources

 

Primary Industries (Excise) Levies Act 1999

 

Primary Industries (Excise) Levies Amendment (Thoroughbred Horses) Regulations 2017

 

The Primary Industries (Excise) Levies Act 1999 (the Levies Act) provides for the imposition of primary industry levies that are duties of excise.

 

Section 8 of the Levies Act provides that the Governor‑General may make regulations prescribing matters required or permitted by the Levies Act, or necessary or convenient to be prescribed for carrying out or giving effect to the Levies Act.

 

The purpose of the Primary Industries (Excise) Levies Amendment (Thoroughbred Horses) Regulations 2017 (the Regulations) is to establish a statutory levy of $10 per mare covered per season, paid by the stallion producer, and $10 per mare returned per season, paid by the mare producer, to fund research and development (R&D) activities for the thoroughbred horse industry.

 

The thoroughbred horse industry sought to introduce a statutory levy to help conduct a comprehensive, long‑term R&D program. An R&D program will assist with the ongoing profitability, productivity and competitiveness of the Australian thoroughbred horse industry.

 

Rather than relying on voluntary industry contributions, establishing a thoroughbred horse R&D levy ensures that all thoroughbred horse producers invest equitably in R&D. A levy also provides the thoroughbred horse industry with greater certainty about the amount of revenue that will be collected and will enable forward-year planning to deliver priority R&D for the benefit of the whole industry. It also allows industry to receive the benefits of Commonwealth matching payments for eligible R&D expenditure.

 

Thoroughbred Breeders Australia, the national thoroughbred horse industry representative body, proposed an R&D levy in 2013 of $10 per mare covered per season, paid by the stallion producer, and $10 per mare returned per season, paid by the mare producer. Investment in R&D aims to improve the profitability, sustainability and international competitiveness of the Australian thoroughbred horse industry. Based on estimates of future thoroughbred horse production in Australia, the levy rate allows for sufficient funds to be collected from the thoroughbred horse industry and ensures that priority R&D projects can continue over the long term. In June 2016, the Australian Government announced that it would provide matched Commonwealth funding for eligible thoroughbred horse R&D.  

 

Thoroughbred Breeders Australia undertook a detailed consultation process on the levy in 2013, including an independent ballot, to consult all known potential levy payers. Sixty-eight per cent of voters supported the introduction of an R&D levy.

 

The Office of Best Practice Regulation (OBPR) was consulted on the introduction of a thoroughbred horse R&D levy and assessed the Regulation Impact Statement (RIS). On 11 April 2017, OBPR assessed the RIS as compliant with government requirements. The OBPR reference number for this assessment is 21808.

 

Details of the Regulations are set out in Attachment A.

 

The Regulations are compatible with the human rights and freedoms recognised or declared under section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011. A full statement of compatibility is set out in Attachment B.

 

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


Attachment A

 

Details of the Primary Industries (Excise) Levies Amendment (Thoroughbred Horses) Regulations 2017

 

Section 1 – Name

 

This section provides that the name of the Regulations are the Primary Industries (Excise) Levies Amendment (Thoroughbred Horses) Regulations 2017.

 

Section 2 – Commencement

 

This section provides for the Regulations to commence on 1 September 2017.

 

Section 3 – Authority

 

This section provides that the Regulations are made under the Primary Industries (Excise) Levies Act 1999.

 

Section 4 – Schedules

 

This section provides that the Regulations are amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this instrument has effect according to its terms.

 

Schedule 1 – Amendments

 

Item 1 inserts a new Part 12 of Schedule 27 to the Primary Industries (Excise) Levies Regulations 1999 relating to thoroughbred horses. Notes on the individual clauses are set out below.

 

Part 12 – Thoroughbred horses

 

12.1 Imposition of levy

This clause imposes a research and development levy on thoroughbred horses. The levy is not imposed on a thoroughbred mare unless the mare has been recorded in a mare return lodged by the producer with Racing Australia for registration in the Australian Stud Book. The levy is not imposed on a thoroughbred stallion unless the stallion covers a mare and the covering is recorded in a declaration of service lodged by the producer with Racing Australia for registration in the Australian Stud Book.

 

 

12.2 Rate of levy

The rate of the levy that is imposed on a thoroughbred horse is $10 for each mare included in a mare return in a levy year, and $10 per mare covered by a stallion in a levy year that is recorded in a declaration of service.

 

 

 

 

12.3 Who pays the levy

Where levy is imposed on a mare, it is payable by the producer of the mare. Where levy is imposed on a stallion, it is payable by the producer of the stallion.

 

A producer is defined as the person who lodges a mare return or declaration of service with Racing Australia, in clause 14.4 of Part 14 of Schedule 37 to the Primary Industries Levies and Charges Collection Regulations 1991.

 


Attachment B

 

Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

 

Primary Industries (Excise) Levies Amendment (Thoroughbred Horses) Regulations 2017

 

This Legislative Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

 

Overview of the Legislative Instrument

The purpose of the Primary Industries (Excise) Levies Amendment (Thoroughbred Horses) Regulations 2017 is to establish a statutory levy of $10 per mare covered per season, paid by the stallion producer, and $10 per mare returned per season, paid by the mare producer, to fund research and development activities for the thoroughbred horse industry.

 

Human rights implications

This Legislative Instrument does not engage any of the applicable rights or freedoms.

 

Conclusion

This Legislative Instrument is compatible with human rights as it does not raise any human rights issues.

 

 

The Hon. Barnaby Joyce MP

Deputy Prime Minister and Minister for Agriculture and Water Resources

 

 

 

 

Overview

The Primary Industries (Excise) Levies Amendment (Thoroughbred Horses) Regulations 2017 were introduced to address a gap in funding for research and development (R&D) within the Australian thoroughbred horse industry. Enacted by the Australian Government, these regulations were designed to establish a statutory levy, with $10 per mare covered per season to be paid by the stallion producer, and $10 per mare returned per season to be paid by the mare producer, to fund R&D activities. This legislative measure was intended to ensure equitable investment from all thoroughbred horse producers, enhance the industry's profitability, sustainability, and competitiveness, and provide certainty and forward-year planning for R&D projects. The regulations were developed in consultation with Thoroughbred Breeders Australia, with 68% of voters supporting the introduction of the levy, and were assessed as compliant with government requirements by the Office of Best Practice Regulation. The regulations are compatible with human rights, as determined by a Statement of Compatibility with Human Rights. The Primary Industries (Excise) Levies Amendment (Thoroughbred Horses) Regulations 2017 were made under the authority of the Primary Industries (Excise) Levies Act 1999. They came into effect on 1 September 2017, imposing a levy on thoroughbred horses to support a comprehensive R&D program for the industry. The levy is payable by the producer of the mare or stallion, depending on whether the mare has been recorded in a mare return or the stallion has covered a mare. The regulations are designed to ensure that all thoroughbred horse producers contribute to the industry's future growth and competitiveness by investing in R&D.

Scope and Application

The Primary Industries (Excise) Levies Amendment (Thoroughbred Horses) Regulations 2017 applies to the thoroughbred horse industry in Australia, specifically targeting the producers of thoroughbred mares and stallions. This regulation was enacted to establish a statutory levy of $10 per mare covered per season, payable by the stallion producer, and $10 per mare returned per season, payable by the mare producer. The primary purpose of these levies is to fund research and development activities that will enhance the profitability, productivity, and competitiveness of the Australian thoroughbred horse industry. The regulation applies to any thoroughbred mare that is recorded in a mare return lodged with Racing Australia for registration in the Australian Stud Book and any thoroughbred stallion whose covering of a mare is recorded in a declaration of service lodged with Racing Australia. These levies ensure equitable contributions from all thoroughbred horse producers towards industry-wide research and development efforts, providing long-term financial stability and strategic planning capabilities. The geographic and jurisdictional reach of these regulations is national, applying across all states and territories in Australia. The regulations were designed under the authority of the Primary Industries (Excise) Levies Act 1999, and they came into effect on 1 September 2017. The regulation does not explicitly mention any exclusions or exemptions but operates within the framework provided by the Act, potentially allowing for further definition through subordinate instruments. Additionally, the regulation is assessed to be compatible with human rights as it does not engage any of the applicable rights or freedoms under the Human Rights (Parliamentary Scrutiny) Act 2011.

Key Provisions

The Primary Industries (Excise) Levies Amendment (Thoroughbred Horses) Regulations 2017 introduce a new statutory levy to support research and development (R&D) activities in the thoroughbred horse industry. Section 12.1 of Part 12 (Item 1 of Schedule 1) imposes this levy, which is not applied unless specific conditions are met: the mare must be recorded in a mare return lodged by the producer with Racing Australia, and the stallion must cover a mare with the covering recorded in a declaration of service lodged with Racing Australia. The rate of the levy, as specified in Section 12.2, is $10 for each mare included in a mare return in a levy year and $10 per mare covered by a stallion in a levy year, provided these events are recorded in the appropriate declarations. The payment obligations are delineated in Section 12.3, which states that the producer of the mare is responsible for paying the levy for the mare, and the producer of the stallion is responsible for paying the levy for the stallion. These obligations are further defined in clause 14.4 of Part 14 of Schedule 37 to the Primary Industries Levies and Charges Collection Regulations 1991, where a producer is identified as the person lodging the mare return or declaration of service with Racing Australia. The Regulations impose clear obligations on the parties involved. Stallion producers must ensure that any coverings are recorded in a declaration of service with Racing Australia to trigger the levy. Similarly, mare producers must ensure that mares are recorded in a mare return with Racing Australia to incur the levy. These obligations are critical to the administration and enforcement of the levy, as they determine who is liable for payment. Additionally, producers must be aware of and comply with the registration requirements set by Racing Australia to ensure that their activities are correctly captured for levy purposes. Failure to comply with the provisions of the Regulations may result in legal consequences. While the explanatory statement does not detail specific penalties for non-compliance, under the Primary Industries (Excise) Levies Act 1999, non-compliance with excise duties can lead to significant penalties. For example, section 20 of the Act imposes penalties for failure to lodge a return, failure to pay the duty, and failure to provide information. The maximum penalties can include fines and imprisonment, depending on the severity and frequency of the non-compliance. The Act also provides for the recovery of unpaid levies and interest, ensuring that the intended revenue is collected to fund the R&D activities.

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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.