Primary Industries Levies and Charges Collection Amendment Regulations 2003 (No. 6) 2003 No. 209
EXPLANATORY STATEMENT
STATUTORY RULES 2003 No. 209
Issued by the Authority of the Minister for Agriculture, Fisheries and Forestry
Primary Industries Levies and Charges Collection Act 1991
Primary Industries Levies and Charges Collection Amendment Regulations 2003 (No. 6)
Subsection 30(1) of the Primary Industries Levies and Charges Collection Act 1991 (the Collection Act) provides that the Governor-General may make regulations, not inconsistent with the Act, 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.
Section 27(3A) of the Collection Act provides that an authorised person may provide information to the industry services body including the name, address and ABN of any person who has paid, or is liable to pay dairy levy and details relating to the amount of dairy levy that person has or is liable to pay. Section 27(4) of the Collection Act allows that the appropriate levies be prescribed, through regulations, as "dairy levy".
The Dairy Industry Service Reform Act 2003 amended the Dairy Produce Act 1986 to create the concept of an industry service body, which will provide specified services to the dairy industry. Dairy Australia Limited has been declared by the Minister for Agriculture Fisheries and Forestry to be the industry services body. Dairy Australia Ltd is a private company limited by guarantee and is funded by the dairy service levy and matching Commonwealth research and development grants. Dairy Australia Limited replaced the Australian Dairy Corporation and Dairy Research and Development Corporation, and commenced operations on 1 July 2003.
Under the Constitution of Dairy Australia, the voting entitlements of members are calculated on the basis of 1 vote for every $1 of dairy service levy paid in respect of the member for the previous financial year. Dairy service levy is imposed in respect of the 2003-2004 and later financial years.
For Dairy Australia's first year of operation 2003-2004, members' voting entitlements will have to be calculated on the basis of the total amount of the equivalent former levies, the Dairy Corporation Levy, Dairy Promotion Levy and Dairy Research Levy, which were replaced by the Dairy Service Levy on 1 July 2003. Revenue for this levy will be paid in respect of the members for the 2002-2003 financial year.
The purpose of the regulations is to authorise Department of Agriculture, Fisheries and Forestry Levies and Revenue Service to provide information about those payments to the industry services body for use in the calculation of voting entitlements for 2003-04. The regulations achieve this purpose by prescribing the appropriate levies as "dairy levy" under subsection 27(4) of the Collection Act.
The regulations also prescribe as "dairy levy" the Animal Health Council (AHC) levy imposed under paragraph 6(1)(g) of Schedule 6 to the Primary Industries (Excise) Levies Act 1999 and the Emergency Animal Disease Response (EADR) levy imposed on dairy produce by clause 3 of Schedule 6 to the Primary Industries (Excise) Levies Regulations. This is because some smaller first purchasers, or processors, do not extract individual levies from the dairy farmer, but rather a net amount of all dairy levies payable. In these cases, this information will be passed to Dairy Australia by the Department of Agriculture, Forestry and Fisheries Levies and Revenue Service. Dairy Australia's register is maintained so that the amount of AHC/EADR levies can, if necessary, be automatically deducted from the net amount of levy paid by dairy farmers, in order to allocate the correct voting entitlement.
The regulations will commence on gazettal.
Overview
The Primary Industries Levies and Charges Collection Amendment Regulations 2003 (No. 6), enacted under the authority of the Minister for Agriculture, Fisheries and Forestry, address the administrative transition of dairy levies from the Australian Dairy Corporation and Dairy Research and Development Corporation to the newly established industry services body, Dairy Australia Limited, following the Dairy Industry Service Reform Act 2003. These regulations aim to facilitate the calculation of voting entitlements for Dairy Australia members by ensuring that the Department of Agriculture, Fisheries and Forestry Levies and Revenue Service can provide necessary information about dairy levies to Dairy Australia. This information is crucial for calculating the voting entitlements of members based on their dairy service levy payments for the 2003-2004 financial year. The regulations also include the Animal Health Council levy and the Emergency Animal Disease Response levy as part of the prescribed "dairy levy," addressing the issue where smaller first purchasers or processors collect a net amount of all dairy levies rather than individual levies. This ensures accurate allocation of voting entitlements for members of Dairy Australia.
Scope and Application
The Primary Industries Levies and Charges Collection Amendment Regulations 2003 (No. 6) apply to the entities within the Australian dairy industry, specifically those subject to the dairy service levy, which includes dairy farmers and processors. The regulations fall under the Commonwealth jurisdiction and are made pursuant to the Primary Industries Levies and Charges Collection Act 1991. They aim to facilitate the transition of levy collection responsibilities from the Commonwealth to Dairy Australia Limited, which has been designated as the industry service body. The regulations achieve this by prescribing certain levies, including the Animal Health Council levy and the Emergency Animal Disease Response levy, as "dairy levy" for the purposes of calculating voting entitlements within Dairy Australia for the 2003-04 financial year. This ensures that the voting entitlements of Dairy Australia members are accurately determined based on the total amount of dairy service levies paid. The regulations also empower the Department of Agriculture, Fisheries and Forestry Levies and Revenue Service to provide necessary information to Dairy Australia for this purpose. The regulations are intended to commence upon gazettal, ensuring a smooth operational transition.
Key Provisions
The Primary Industries Levies and Charges Collection Amendment Regulations 2003 (No. 6) (2003 No. 209) focus on facilitating the collection and reporting of dairy levies for the purposes of calculating voting entitlements within Dairy Australia Limited for the financial year 2003-2004. These regulations, made under the authority of the Minister for Agriculture, Fisheries and Forestry, amend the Primary Industries Levies and Charges Collection Act 1991 (the Collection Act). Specifically, they prescribe certain levies as "dairy levy" under sections 27(3A) and 27(4) of the Collection Act. This allows the Department of Agriculture, Fisheries and Forestry Levies and Revenue Service to provide necessary information to Dairy Australia for the calculation of voting entitlements.
The regulations mandate that the Department of Agriculture, Fisheries and Forestry Levies and Revenue Service must provide specific information about payments made under certain levies to the industry services body. This information includes the name, address, and Australian Business Number (ABN) of the person liable for the payment, as well as details of the amount of the levy. These obligations ensure that Dairy Australia has the necessary data to correctly calculate voting entitlements for its members. Such information is crucial for maintaining the integrity of the voting system, which is based on the amount of dairy service levy paid.
Under the Primary Industries Levies and Charges Collection Amendment Regulations 2003 (No. 6), there are specific offences and penalties for non-compliance. While the regulations themselves do not outline explicit penalties, breaches of the Collection Act or related legislation may lead to civil or criminal penalties. For example, providing false or misleading information to the Department of Agriculture, Fisheries and Forestry Levies and Revenue Service could result in penalties under the Collection Act, which can include fines and, in severe cases, imprisonment. Additionally, failure to accurately report levies could impact the voting entitlements of members, potentially leading to disputes and legal actions under the constitution of Dairy Australia.
The regulations also cover the Animal Health Council (AHC) levy and the Emergency Animal Disease Response (EADR) levy. By prescribing these levies as "dairy levy," the regulations ensure that the net amount of levies paid by dairy farmers can be accurately allocated for the calculation of voting entitlements. This is particularly important for smaller first purchasers or processors who do not separate individual levies but rather collect a net amount of all dairy levies payable. The inclusion of the AHC and EADR levies ensures that all relevant levies are accounted for in the voting entitlement calculations, thereby maintaining the fairness and accuracy of the voting system within Dairy Australia.