EXPLANATORY STATEMENT
Issued by Authority of the Parliamentary Secretary for Agriculture, Fisheries and Forestry
Primary Industries (Excise) Levies Act 1999
Primary Industries (Excise) Levies (Pasture Seeds) Declaration 2012
Subclause 5(1) of Schedule 21 to the Primary Industries (Excise) Levies Act 1999 (the Act) contains a table which specifies the rates of pasture seed levy that are imposed in respect of specified plant species. Subclause 5(2) provides that the Minister may, by instrument, declare that the table in subclause 5(1) is to be amended in the manner specified in the instrument.
When primary industry research levies, including the pasture seed levy, were consolidated under the Act, the pasture seed levy was changed from a cultivar based levy to a species based levy.
A transitional arrangement was included under the Act to provide for the continuation of the Pasture Seed Levy Declaration 1999 (the 1999 Declaration) under which the levy was collected on a cultivar basis, but the declaration was not revoked after transition, as intended.
Levy collection agents have been collecting the levy on a species basis but at the rates set in the 1999 Declaration which was still in effect.
The purpose of the Declaration is to clarify the situation by:
- revoking any previous declarations that had the effect of altering the table in subclause 5(1) (see clause 3 of the Declaration); and
- restating the cultivar-based rates in the 1999 Declaration as species-based rates in the 2012 Declaration, see clause 4 of the 2012 Declaration and Schedule 1 to the Declaration.
Prior to the 2012 Declaration, the effective rate for lucerne and all clover species (except subterranean clover) was $15 per tonne, in accordance with the 1999 Declaration rather than the lower rates of $14 and $12.50 per tonne, respectively in Schedule 21 of the Act. The restating of this rate will ensure continuity of the effective rate for these species.
The 2012 Declaration will retain the status quo in respect of levy rates and leviable species but remove uncertainty about pasture seed levy collection arrangements caused by the existence of the1999 Declaration, which is no longer required. The cultivar-based rates in the 1999 Declaration are restated as species-based rates in the 2012 Declaration.
The Declaration is a legislative instrument for the purposes of the Legislative Instruments Act 2003 (see subclause 5(5) of Schedule 21 to the Act and paragraph 6(d) of the Legislative Instruments Act 2003).
The Declaration commences on the day after it is registered on the Federal Register of Legislative Instruments.
Subclause 5(3) of Schedule 21 to the Act requires that before making the Declaration, the Minister takes into consideration any relevant recommendation made by the growers’ organisation. Grain Producers Australia, the industry representative organisation, and the Rural Industries Research and Development Corporation, which manages the pasture seed industry research and development program, were both consulted regarding the Declaration and supported the proposed approach. The Office of Best Practice Regulation was consulted in the preparation of the Declaration (Reference Number ID 13448).
Statement of Compatibility with Human Rights
The Declaration 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. The instrument does not engage any of the applicable rights or freedoms and is, therefore, compatible with human rights as it does not raise any human rights issues.
Overview
The Primary Industries (Excise) Levies (Pasture Seeds) Declaration 2012 was enacted to address an oversight in the Primary Industries (Excise) Levies Act 1999, which saw the continued application of the Pasture Seed Levy Declaration 1999 after a legislative transition from a cultivar-based to a species-based levy. The Declaration was introduced by the Minister for Agriculture, Fisheries and Forestry in accordance with the powers granted under the Primary Industries (Excise) Levies Act 1999 and the Legislative Instruments Act 2003. Its primary objective was to clarify and resolve the uncertainty regarding pasture seed levy collection by revoking the 1999 Declaration and restating the cultivar-based rates as species-based rates. This was achieved to ensure that the effective rates for certain species, such as lucerne and clover, remained consistent with those previously in effect under the 1999 Declaration. The Declaration also ensured compatibility with human rights, as it did not engage any applicable rights or freedoms under the Human Rights (Parliamentary Scrutiny) Act 2011.
Scope and Application
The Primary Industries (Excise) Levies (Pasture Seeds) Declaration 2012 applies to the levy rates for pasture seeds specified in the Primary Industries (Excise) Levies Act 1999, with the primary focus on the transition from cultivar-based to species-based levies for certain plant species. This instrument governs the manner in which the levy is collected and aims to clarify and correct the ongoing application of levy rates that were inadvertently maintained under the Pasture Seed Levy Declaration 1999. The Declaration applies nationally and impacts all entities involved in the collection and payment of the pasture seed levy, including farmers, seed companies, and levy collection agents. The Minister, in making this Declaration, considered recommendations from relevant industry bodies such as Grain Producers Australia and the Rural Industries Research and Development Corporation. The Declaration revokes the previous 1999 Declaration and restates the cultivar-based rates as species-based rates to ensure consistency and clarity in levy collection. The instrument does not specify any exclusions or exemptions, and its application is governed by the legislative framework outlined in the Primary Industries (Excise) Levies Act 1999.
Key Provisions
The Primary Industries (Excise) Levies (Pasture Seeds) Declaration 2012 (subclause 5(2) of Schedule 21 to the Primary Industries (Excise) Levies Act 1999) serves to amend and clarify the rates of the pasture seed levy as specified in subclause 5(1) of Schedule 21 of the Act. The Declaration revokes any previous declarations that had the effect of altering the table in subclause 5(1) (clause 3 of the Declaration) and restates the cultivar-based rates from the Pasture Seed Levy Declaration 1999 as species-based rates in the 2012 Declaration (clause 4 of the Declaration and Schedule 1 to the Declaration). This change ensures that the effective rate for certain species, such as lucerne and all clover species except subterranean clover, remains consistent with the previous rates established under the 1999 Declaration, despite the transition to a species-based levy system.
The Declaration imposes obligations on levy collection agents to collect the pasture seed levy based on the revised species-based rates outlined in the 2012 Declaration. These agents must ensure that the correct levy rates are applied to the specified plant species, as restated in the Declaration, to maintain compliance with the Act. Furthermore, the Minister is required to consider any relevant recommendations from growers' organisations, such as Grain Producers Australia and the Rural Industries Research and Development Corporation, before making the Declaration. In this case, both organisations supported the proposed approach, ensuring that the interests of the industry were taken into account.
There are no specific offences, penalties, or consequences for breach outlined in the Declaration itself. However, any failure to comply with the provisions of the Primary Industries (Excise) Levies Act 1999 or the Declaration may result in civil or criminal consequences as provided for in the Act. For example, section 32 of the Act outlines the general offence of non-compliance, which may result in a penalty of up to $10,500 for an individual and $52,500 for a body corporate, depending on the severity of the breach. Additionally, section 33 of the Act provides for criminal penalties in the case of wilful or negligent breaches, with fines of up to $126,000 for an individual and $630,000 for a body corporate. It is important to note that these penalties are set out in the Primary Industries (Excise) Levies Act 1999 and not specifically in the Declaration.