Primary Industries Levies and Charges Collection Amendment Regulations 2003 (No. 9) 2003 No. 226
EXPLANATORY STATEMENT
STATUTORY RULES 2003 No. 226
Issued by the Authority of the Parliamentary Secretary to the Minister for Agriculture, Fisheries and Forestry
Primary Industries (Excise) Levies Act 1999
Primary Industries Levies and Charges Collection Act 1991
Primary Industries (Excise) Levies Amendment Regulations 2003 (No. 13)
Primary Industries Levies and Charges Collection Amendment Regulations 2003 (No. 9)
Section 8 of the Primary Industries (Excise) Levies Act 1999 (the Excise Act), and Section 30 of the Primary Industries Levies and Charges Collection Act 1991 (the Collection Act) each provides that the Governor-General may make regulations prescribing matters required or permitted by that Act to be prescribed or necessary or convenient to be prescribed for carrying out or giving effect to that Act.
The regulations implement a compulsory levy on grapes (paid by wine grape growers) and wine grapes (paid by winemakers) to fund the wine industry's share of the costs of the activities of Plant Health Australia Limited (PHA). The Primary Industries (Excise) Levies Amendment Regulations 2003 (No. 13) (the Excise regulations) set the initial rate of levy. To give effect to the industry's wish not to increase the overall levy burden on producers, the proposed PHA levies are being established by making a corresponding reduction in the present operative rate of the related wine industry research and development levies. The Primary Industries Levies and Charges Collection Amendment Regulations 2003 (No. 9) (the Collection regulations) will provide for the collection of the levies by incorporating references to the PHA levies within existing arrangements. Although these proposed PHA levies are to be established as new levies the basic collection arrangements will be identical to those for the existing research and development levies. Similar arrangements are in place for other plant industry members of PHA, which pay PHA levies.
The establishment of PHA was jointly supported by the Commonwealth government; State and Territory governments and industry. The money raised will be used to meet plant industries' contributions towards a joint Commonwealth government, State and Territory governments and industry agreement to fund the development and implementation of national plant health policies and programs. The regulations are being implemented at the request of the wine industry.
The Plant Health Australia (Plant Industries) Funding Act 2002 provides for the disbursement to PHA of moneys that have been collected from producers by way of industry PHA levies.
The Office of Regulation Review has been consulted and has advised that a Regulation Impact Statement is not necessary for the legislation (RIS ID number 2567).
Details of the Excise regulations and the Collection regulations are contained in Attachments 1 and 2 respectively.
The regulations commence on 1 October 2003.
ATTACHMENT 1
PRIMARY INDUSTRIES (EXCISE) LEVIES AMENDMENT REGULATIONS 2003 (No. 13).
Regulation 1 provides for the name of the regulations to be the Primary Industries (Excise) Levies Amendment Regulations 2003 (No. 13).
Regulation 2 provides for the regulations to commence on 1 October 2003.
Regulation 3 provides that Schedule 1 amends the Primary Industries (Excise) Levies Regulations 1999.
SCHEDULE 1 AMENDMENTS
Item [1] substitutes a new clause 1 of Schedule 13. Its purpose is to specify the reduced operative rates for the R&D levy on grapes. This Item also imposes a PHA levy on grapes and specifies the operative rate and the authority under which the levy is imposed and who pays the levy.
Item [2] specifies the reduced operative rate of R&D levy for wine grapes.
Item [3] inserts a new clause 5 of Schedule 26. Its purpose is to impose a PHA levy on wine grapes, and to specify the authority under which the levy is imposed. This Item also specifies the operative rate and who pays.
ATTACHMENT 2
PRIMARY INDUSTRIES LEVIES AND CHARGES COLLECTION AMENDMENT REGULATIONS 2003 (No. 9).
Regulation 1 provides for the name of the regulations to be the Primary Industries Levies and Charges Collection Amendment Regulations 2003 (No. 9).
Regulation 2 provides for the regulations to commence on 1 October 2003.
Regulation 3 provides that Schedule 1 amends the Primary Industries Levies and Charges Collection Regulations 1991.
SCHEDULE 1 AMENDMENTS
Item [1] amends the definition of "levy" in Schedule 36 to include reference to the fact that PHA levy is also imposed on wine grapes.
Item [2] amends the definition of "levy" in Schedule 20 to include reference to the fact that PHA levy is also imposed on grapes.
Overview
The Primary Industries Levies and Charges Collection Amendment Regulations 2003 (No. 9) were enacted to address the need for funding the activities of Plant Health Australia Limited (PHA) through levies on the wine industry. Enacted under the authority of the Parliamentary Secretary to the Minister for Agriculture, Fisheries and Forestry, these regulations aim to implement a compulsory levy on grapes and wine grapes to support PHA's role in developing and implementing national plant health policies and programs. This initiative was a collaborative effort between the Commonwealth government, state and territory governments, and the industry, seeking to ensure that the contributions from plant industries towards these national initiatives are met effectively. The regulations are designed to establish these levies without increasing the overall burden on producers by reducing the related wine industry research and development levies. These measures ensure that the basic collection arrangements for the new PHA levies mirror those for the existing research and development levies.
Scope and Application
The Primary Industries (Excise) Levies Amendment Regulations 2003 (No. 13) and the Primary Industries Levies and Charges Collection Amendment Regulations 2003 (No. 9) apply to the wine industry, specifically wine grape growers and winemakers, as they establish and collect a compulsory levy on grapes and wine grapes to fund Plant Health Australia Limited (PHA) activities. These regulations are made under the authority of the Primary Industries (Excise) Levies Act 1999 and the Primary Industries Levies and Charges Collection Act 1991, respectively. The scope of these regulations is national, as they are implemented by the Commonwealth government in coordination with state and territory governments and industry stakeholders. The purpose of these levies is to ensure the wine industry's contribution to the funding of national plant health policies and programs. The regulations commence on 1 October 2003, with the amendments made to existing regulations to incorporate the new PHA levies, ensuring that the overall levy burden on producers remains unchanged.
Key Provisions
The primary operative sections of the Primary Industries Levies and Charges Collection Amendment Regulations 2003 (No. 9) (Collection regulations) and the Primary Industries (Excise) Levies Amendment Regulations 2003 (No. 13) (Excise regulations) pertain to the imposition and collection of levies on grapes and wine grapes to fund Plant Health Australia Limited (PHA) (sections 1 to 3). These regulations amend the existing levies to introduce a PHA levy, which is designed to ensure that the overall levy burden on producers does not increase. Specifically, the PHA levy on grapes is set by substituting a new clause 1 of Schedule 13 in the Excise regulations (Item [1]), while the PHA levy on wine grapes is set by inserting a new clause 5 of Schedule 26 in the Excise regulations (Item [3]). The Collection regulations, on the other hand, incorporate references to these PHA levies within existing arrangements for levy collection (Items [1] and [2]).
These regulations impose specific obligations and requirements on the parties involved. Wine grape growers and winemakers, who are the primary entities governed by these regulations, are required to pay the PHA levies on grapes and wine grapes respectively. The levies are set at specific rates as per the Excise regulations. The collection of these levies is governed by the Collection regulations, which outline the method and schedule for collection, ensuring that the funds raised are directed towards PHA. Additionally, the regulations mandate that the collected funds will be used to meet plant industries' contributions towards a joint agreement to fund national plant health policies and programs, as stipulated in the Plant Health Australia (Plant Industries) Funding Act 2002.
There are no explicit offences, penalties, or civil/criminal consequences stated within the explanatory statement or the text of the regulations themselves. However, non-compliance with the levy requirements could potentially lead to legal consequences under the Primary Industries (Excise) Levies Act 1999 and the Primary Industries Levies and Charges Collection Act 1991, as these primary Acts provide the legal framework for the imposition and collection of levies. Penalties under these Acts can include fines and other civil or administrative penalties, although the exact penalties are not detailed in the explanatory statement. Given the nature of the levies and the potential for non-compliance to affect industry funding and national plant health programs, it is likely that penalties would be significant to ensure compliance.