EXPLANATORY STATEMENT
Select Legislative Instrument 2006 No. 206
Issued by the Authority of the Parliamentary Secretary to the Minister for Agriculture, Fisheries and Forestry
Primary Industries Levies and Charges Collection Act 1991
Primary Industries Levies and Charges Collection Amendment Regulations 2006 (No. 6)
Section 30 of the Primary Industries Levies and Charges Collection Act 1991 (the Act) provides that the Governor-General may make regulations 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.
The Australian wine industry currently pays a statutory levy to fund marketing and research and development programmes to benefit the industry. The Australian Government provides matching funds for eligible research and development expenditure under the Primary Industries and Energy Research and Development Act 1989. The Grape and Wine Research and Development Corporation is the statutory body responsible for the coordination of research and development programmes for the wine industry. The Australian Wine and Brandy Corporation is the statutory body with responsibility for coordinating the industry’s marketing programmes.
The purpose of the Regulations is to amend the Primary Industries Levies and Charges Collection Regulations 1991 to change the wine grape levy payment arrangements for people who pay levy on 100 tonnes or less of prescribed goods, including fresh grapes, made into wine. The changes require those levy payers to pay the levy in a single instalment due by 30 September in the financial year following the year in which the wine is made.
All levy payers are currently required to pay 50 per cent of the levy by 30 September in the financial year following the year in which the wine is made. The remaining 50 per cent must be paid no later than 31 March in that financial year.
The changes have been proposed to increase the efficiency of collecting levy from small wine producers. Currently small levy payers may choose to pay amounts as low as $200 in two instalments, due six months apart. The Regulations require everyone who pays levy on 100 tonnes or less of prescribed goods to pay levy in a single instalment. The maximum amount payable in a single instalment at the current levy rates would be $1,100.
The Regulations are also expected to reduce the costs of collecting the wine grape levy, with the result that more of the funds raised would be available for marketing and R&D work for the benefit of the industry.
The Levies Revenue Service within the Australian Government Department of Agriculture, Fisheries and Forestry consulted with the Winemakers’ Federation of Australia (WFA) which is the peak industry body for the wine industry. These changes have the full support of the WFA. As the Regulations are administrative in nature only, it has not been necessary to conduct a full consultation process, involving a ballot of each industry member.
Details of the Regulations are contained in the Attachment.
The Act specifies no conditions that need to be met before the power to make the Regulations may be exercised.
The Regulations are a legislative instrument for the purposes of the Legislative Instruments Act 2003.
The Office of Regulation Review (ORR) was consulted in the preparation of the Regulations. ORR has advised that it is not necessary to prepare a Regulation Impact Statement on this matter (ORR Number 2006/8375).
The Regulations commenced on 15 August 2006.
0608575A
Attachment
Legislative provisions for a change to the due date for low level wine grape levy payers.
DETAILS OF THE PROPOSED PRIMARY INDUSTRIES LEVIES AND CHARGES COLLECTION AMENDMENT REGULATIONS 2006 (No. 6)
Regulation 1 would provide for the name of the proposed regulations to be the Primary Industries Levies and Charges Collection Amendment Regulations 2006 (No. 6).
Regulation 2 would provide for the commencement date to be 15 August 2006.
Regulation 3 would provide that Schedule 1 amends the Primary Industries Levies and Charges Collection Regulations 1991.
Schedule 1 Amendment to Schedule 36
Item [1] would substitute a new clause 8 setting out when levy on prescribed goods, namely fresh grapes, dried grapes and grape juice, is due for payment. People who pay levy on 100 tonnes or less of prescribed goods would be required to pay the levy in full no later than the last day for lodging a return, being 30 September in the financial year following the year in which the wine is made. There is no change to the due date for payments on prescribed goods over 100 tonnes. For this category of levy payers, they will be required to pay 50 per cent of the levy by the return due date of 30 September and the remainder will be due by 31 March in the following year.
Overview
The Primary Industries Levies and Charges Collection Amendment Regulations 2006 (No. 6) were introduced to streamline the collection process for small wine producers who are required to pay a levy on their production of fresh grapes, dried grapes, and grape juice. Enacted by the Australian Government, these regulations aim to enhance the efficiency of levy collection from smaller wine producers, who previously had the option to pay their levy in two instalments. The regulations were developed in consultation with the Winemakers’ Federation of Australia, the peak industry body for the wine industry, and have their full support. The policy objective is to ensure that more funds raised from the levy are available for marketing and research and development initiatives within the industry. The regulations came into effect on 15 August 2006, amending the Primary Industries Levies and Charges Collection Regulations 1991 to require small wine producers to pay their levy in a single instalment by 30 September in the financial year following the year in which the wine is made. This change is expected to reduce the administrative burden and costs associated with collecting the levy, thereby maximising the resources available for industry benefits.
Scope and Application
The Primary Industries Levies and Charges Collection Amendment Regulations 2006 (No. 6) applies to individuals and entities involved in the Australian wine industry, specifically those who pay a statutory levy on the use of prescribed goods such as fresh grapes, dried grapes, and grape juice for the production of wine. These Regulations amend the Primary Industries Levies and Charges Collection Regulations 1991, modifying the payment arrangements for small wine producers who pay a levy on 100 tonnes or less of prescribed goods. The changes require these small producers to pay their levy in a single instalment by 30 September in the financial year following the year in which the wine is made, as opposed to the previous requirement of two instalments. The Regulations are intended to increase the efficiency of levy collection and reduce administrative costs, thereby allowing more funds to be allocated towards marketing and research and development activities for the industry.
The Regulations have a national jurisdictional reach, applying across Australia and affecting all small wine producers who fall under the specified criteria. The changes are administrative in nature, and thus, a full consultation process involving each industry member was not deemed necessary. The Winemakers’ Federation of Australia has expressed full support for these amendments. The Regulations came into effect on 15 August 2006, and they do not specify any exclusions, exemptions, or thresholds beyond the 100-tonne limit for prescribed goods. The Office of Regulation Review has confirmed that a Regulation Impact Statement is not required for these amendments.
Key Provisions
The Primary Industries Levies and Charges Collection Amendment Regulations 2006 (No. 6) introduce significant changes to the payment arrangements for the wine grape levy for small wine producers (section 3). Specifically, under Regulation 3 and Schedule 1, those who pay levy on 100 tonnes or less of prescribed goods, including fresh grapes, made into wine, must now pay the levy in a single instalment by 30 September in the financial year following the year in which the wine is made (item [1]). This replaces the previous requirement for these producers to make two payments: one by 30 September and another by 31 March. These changes are intended to streamline the collection process and reduce administrative costs, thereby making more funds available for industry marketing and research and development.
These regulations impose clear obligations on small wine producers who pay the wine grape levy. Under the amended regulations, producers who handle 100 tonnes or less of prescribed goods must ensure that their full levy payment is made by 30 September of the financial year following the wine production year (Regulation 3, Schedule 1, item [1]). This represents a shift from the previous system, where payments were made in two instalments. The regulations clarify that there is no change to the payment schedule for producers handling over 100 tonnes of prescribed goods, who must still pay 50 per cent of their levy by 30 September and the remaining 50 per cent by 31 March.
Failure to comply with the payment requirements stipulated in the Primary Industries Levies and Charges Collection Amendment Regulations 2006 (No. 6) may have legal consequences. Although the explanatory statement does not detail specific penalties for non-compliance, breaches of the regulations could potentially lead to enforcement actions under the Primary Industries Levies and Charges Collection Act 1991. The Act may provide for fines or other penalties for non-compliance, though the exact penalties are not specified in the explanatory statement. Producers are advised to adhere to the new payment schedule to avoid any potential legal repercussions.