EXPLANATORY STATEMENT
Select Legislative Instrument 2006 No. 324
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. 7)
Section 30 of the Primary Industries Levies and Charges Collection Act 1991 (the Act) provides, in part, 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 Nursery Products Levy (NPL) is a levy imposed on potted plants produced in Australia that are sold by the producer or used by the producer in the production of other goods. For ease of collection, the NPL is collected at the point of last sale of containers before they are be used to prepare potted plants for sale. Horticulture Australia Limited is responsible for the administration of the levy and charge schemes and co-ordination of promotion, research and development programs for the nursery industry. The Australian Government provides matching funds for eligible research and development expenditure under the Horticulture Marketing and Research and Development Services Act 2000.
The purpose of the proposed Regulations is to specify that persons who import containers and who incur a levy liability because they use those containers to produce potted plants are subject to the same requirements as other persons who currently remit the NPL.
The NPL is collected under the Primary Industries Levies and Charges Collection Regulations 1991 (the Collection Regulations). The Levies Revenue Service (LRS), within the Department of Agriculture, Fisheries and Forestry, is responsible for collecting and disbursing the NPL. The LRS has received NPL from producers of potted plants who import containers and then use those containers to produce potted plants. In this case, the actual sale of the container takes place outside Australia. Recent legal advice indicates that a levy liability exists where containers are imported into Australia and used by the importer for the preparation of potted plants for sale, however the Collection Regulations do not extend to those containers.
Some minor administrative changes are also being made to the Collection Regulations to ensure correct and efficient wording is used.
The Levies Revenue Service consulted with and received support from the relevant peak industry body, the Nursery and Garden Industry Australia, to progress these changes. As the Regulations are administrative in nature only and do not affect the existing liability of persons who import containers, it has not been necessary to conduct a full consultation process, involving a ballot of each affected industry member.
Details of the Regulations are contained in the Attachment.
The Regulations would be a legislative instrument for the purposes of the Legislative Instruments Act 2003.
The Office of Best Practice Regulations (OBPR) was consulted in the preparation of the Regulations. The OBPR has advised that it is not necessary to prepare a Regulation Impact Statement on this matter (ORR Number 2006/8375).
The Business Cost Calculator report completed as per the direction of the OBPR is at Attachment B.
The Regulations commence on 1 January 2007.
0614948B
Attachment
DETAILS OF THE PRIMARY INDUSTRIES LEVIES AND CHARGES COLLECTION AMENDMENT REGULATIONS 2006 (No. 7)
Regulation 1 would provide for the name of the regulations to be the Primary Industries Levies and Charges Collection Amendment Regulations 2006 (No. 7).
Regulation 2 would provide for the commencement date to be 1 January 2007.
Regulation 3 would provide that Schedule 1 amends the Primary Industries Levies and Charges Collection Regulations 1991.
Schedule 1 Amendments to Part 12 of Schedule 22
Item [1] amends clause 12.2 removing the definition of the term “buyer”. The term “buyer” will be removed from Part 12 of Schedule 22 to the Collection Regulations to ensure consistency in the use of the term “producer”.
Item [2] inserts a definition in clause 12.2 for the new term “contact details”,. The “contact details” consist of the person’s full name; business or residential address; and ABN or ACN.
Item [3] inserts definitions in clause 12.2 for the new terms “landed cost” and “overseas seller”. The “landed cost” is the total amount paid by a producer to import containers which they use in the production of potted plants. “Overseas seller” means a seller of containers who is outside Australia.
Item [4] amends clause 12.4 to clarify that persons who buy containers for use in producing potted plants, or persons that buy containers on behalf of persons who will use the containers to produce potted plants, are taken to be producers of Nursery Products.
Item [5] amends clauses 12.6 and 12.7. Clause 12.6 will be amended to clarify when levy is payable to the Commonwealth or to a seller of containers. Producers who purchase containers from sellers in Australia must pay an amount on account of levy to the seller within 3 months after the end of the month in which the producer bought the containers. Sellers who receive amounts on account of levy from producers must remit those amounts to the Commonwealth within 21 days after the end of the quarter in which they receive the amount. Producers who import containers and use them to produce potted plants, would be required to pay levy to the Commonwealth 21 days after the end of the quarter in which the containers come into their possession. Clause 12.7 will be amended to specify that a person must lodge a return for a quarter if they received an amount on account of levy from a producer that purchases a container from them with the intention to produce potted plants for sale with that container. This Clause also specifies that persons who buy containers from overseas sellers and become entitled to take possession of the containers in the quarter must lodge a return for that quarter.
Item [6] amends subclause 12.9(1) to specify the details that a seller must include in the return that they are required to submit for a quarter.
Item [7] amends paragraph 12.9(1)(c) to remove the term buyer and replace it with producer. The term buyer will be removed from Part 12 of Schedule 22 to the Collection Regulations to ensure consistency in the use of the term “producer”.
Item [8] amends subparagraphs 12.9(1)(c)(iv) and (d)(iii) replacing the words “the details mentioned in subclause (2)” with the words “the contact details”. The details that were previously listed in subclause (2) have been transferred to the definitions under the newly defined term “contact details” under Item [2].
Item [9] amends paragraph 12.9(1)(e) replacing the words “the details mentioned in subclause (2)” with the words “the contact details”. The details that were previously listed in subclause (2) have been transferred to the definitions under the newly defined term “contact details” under Item [2].
Item [10] amends subclause 12.9(2) to specify that a producer who buys containers from an overseas seller must include in their return for a quarter the landed value of that container, the amount of levy payable on the containers and the amount of levy paid on the containers. The NPL is calculated as a percentage of the value for which the container is sold. Where the sale for the container takes place outside Australia, the landed value is used for the purpose of calculating NPL.
Item [11] amends clause 12.10 to specify the records that must be kept by persons who sell containers or persons who use containers to produce potted plants. Sellers of containers must retain details of the people to whom they sell containers, the value of the containers sold, the amount of levy received on sales of leviable containers, the number of containers sold in which levy was not collected and the reasons why levy was not collected. Producers who purchase containers from sellers in Australia must keep details of the number and value of the containers they purchase, the amount on account of levy paid to the seller, the amount paid for containers that were not leviable and the purposes for which those containers were used. Persons who import containers and use those containers to produce potted plants must keep details of the landed cost of those containers, the levy payable on those containers and the levy paid.