EXPLANATORY STATEMENT
Select Legislative Instrument 2011 No. 9
Issued by the Authority of the Parliamentary Secretary
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 2011 (No. 1)
Primary Industries Levies and Charges Collection Amendment Regulations 2011 (No. 1)
Section 8 of the Primary Industries (Excise) Levies Act 1999 (the Levies Act) and section 30 of the Primary Industries Levies and Charges Collection Act 1991 (the Collection Act) provide that the
Governor-General may make regulations prescribing matters required or permitted by those Acts to be prescribed or necessary or convenient to be prescribed for carrying out or giving effect to each Act.
The purpose of the Regulations is to introduce a new Australian Government statutory levy on ginger growers for the purpose of undertaking research and development (R&D) as proposed by the Australian Ginger Growers Association Inc (AGGA). The Regulations would set an ad valorem R&D levy of a half of one per cent (0.5%) on any variety of the species “Zingiber officinale”. Currently, there is no Commonwealth levy on ginger.
The levy would be collected on the sale of fresh ginger, seed ginger, organic ginger and ginger for processing and would be collected at the first point of sale. The levy would not apply to fresh ginger sold on the export market, ginger sold direct to the public through farmers markets and roadside stalls and seed ginger used by seed producers to grow their own ginger.
The Rural Industries Research and Development Corporation (RIRDC) would be the body to administer the ginger industry levy scheme and would be the body to manage the moneys collected. RIRDC co-ordinates R&D programs for many agricultural industries. RIRDC is funded through Australian Government appropriations, by statutory levies and export charges, and by Australian Government matching funding for eligible R&D expenditure. This matching funding is provided under the Primary Industries and Energy Research and Development Act 1989.
Primary Industries (Excise) Levies Regulations 1999
Clause 6 of Schedule 27 to the Levies Act provides that regulations may fix rates of levy for specified primary industry products.
Subclause 14(2) of Schedule 27 to the Levies Act provides that before the Governor-General makes regulations to fix rates of levy for ginger, the Minister must take into consideration any relevant recommendations made to the Minister by a specified body that is a designated body for ginger. There is no designated body for ginger. However, the AGGA represents ginger growers nationally. The AGGA recommended the new operative rates of ginger R&D levy to the Minister. The Regulations give effect to the recommendations of AGGA.
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Primary Industries Levies and Charges Collection Regulations 1991
Schedule 37 to the Primary Industries Levies and Charges Collection Regulations 1991 sets out the details for payment of levy, provision of returns by liable persons and other collection matters for various leviable agricultural products.
The Collection Act specifies no conditions that need to be met before the power to make the Regulations may be exercised.
The ginger R&D levy is expected to raise approximately $78,000 annually. With government matching funds it is expected there would be approximately $150,000 available annually for the R&D program.
The AAGA undertook an extensive consultation and ballot process. The R&D levy rate was determined as part of the consultation process. The ballot was conducted in January 2010 by an independent returning officer, with the guidance of the Australian Electoral Commission. Ballots were sent to 37 potential levy payers with 34 ballot papers (91.9 per cent) returned for counting. The ballot delivered a positive result in favour of the levy proposal. On a one vote per enterprise basis, the vote was 30 growers (88.2 per cent) in favour and four growers (11.8 per cent) against.
Details of the Regulations are contained in the attachment.
The Regulations are legislative instruments for the purposes of the Legislative Instruments Act 2003.
The Office of Best Practice Regulation (OPBR) was consulted in the preparation of the Regulations. A Regulation Impact Statement is attached, as an Annex (OBPR No 11249).
The Regulations commence on 1 April 2011.
1009327A
1009327B
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ATTACHMENT
DETAILS OF THE PRIMARY INDUSTRIES (EXCISE) LEVIES AMENDMENT REGULATIONS 2011 (No. 1)
Regulation 1 – Name of Regulations
This regulation provides for the name of the Regulations to be the Primary Industries (Excise) Levies Amendment Regulations 2011 (No. 1).
Regulation 2 – Commencement
This regulation provides for the commencement date to be 1 April 2011.
Regulation 3 – Amendment of Primary Industries (Excise) Levies Regulations 1999
This regulation provides that Schedule 1 amends the Primary Industries (Excise) Levies Regulations 1999 (the Excise Levies Regulations).
Schedule 1 Amendments
Item [1] – would insert a new Part 9 relating to ginger into Schedule 27 to the Excise Levies Regulations.
Clause 9.1 would provide for the definition of ginger being a rhizome of a plant of a variety of the species Zingiber officinale.
Clause 9.2 would provide that levy is imposed on ginger produced in Australia and sold by the producer to a first purchaser, buying agent, selling agent, processor or wholesale produce market.
∙ The note provides a cross-reference to the definition of processor.
Clause 9.3 would set an initial operative rate of R&D levy on ginger of 0.5% (half of one per cent) of the sale price of fresh ginger, seed ginger, organic ginger and ginger for processing at the first point of sale:
∙ The note indicates that sale price is taken to exclude net GST.
Clause 9.4 would specify that levy on ginger is payable by the producer of the ginger.
DETAILS OF THE PRIMARY INDUSTRIES LEVIES AND CHARGES COLLECTION AMENDMENT REGULATIONS 2011 (No. 1)
Regulation 1 – Name of Regulations
This regulation provides for the name of the Regulations to be the Primary Industries Levies and Charges Collection Amendment Regulations 2011 (No. 1).
Regulation 2 – Commencement
This regulation provides for the commencement date to be 1 April 2011.
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Regulation 3 – Amendment of Primary Industries Levies and Charges Collection Regulations 1991
This regulation provides that Schedule 1 amends the Primary Industries Levies and Charges Collection Regulations 1991 (the Collection Regulations).
Schedule 1 Amendments
Item [1] – would insert a new Part 10 relating to ginger into Schedule 37 to the Collection Regulations.
Clause 10.1 would provide that the Part applies to ginger.
Clause 10.2 would provide definitions for use in the Part. The definitions are for “ginger”, “leviable ginger” “seed ginger”, and “trimming”.
Clause 10.3 would provide that a levy year for leviable ginger is a financial year.
Clause 10.4 would prescribe operations (washing, cleaning, grading, sorting, packing, storing and trimming) that are not considered processes for ginger sold.
Clause 10.5 would prescribe who is a processor of ginger (as defined in paragraph 4(1)(b) in the Collection Act).
Clause 10.6 would prescribe ginger for the purpose of paragraph 7(2)(b) of the Collection Act in relation to the liability of processors.
∙ The note indicates that processors are liable to pay, on behalf of producers, any unpaid levy and/or late payment penalty.
Clause 10.7 would prescribe ginger for the definition of “producer” (as defined in paragraph 4(1)(b) in the Collection Act).
Clause 10.8 would stipulate what information must be included in a quarterly or annual return.
∙ The note indicates offences under section 24 of the Collection Act may be applicable if a return is not submitted.
Clause 10.9 would prescribe that the following persons who deal in leviable ginger in a quarter must lodge a return for a quarter, unless that person is granted an exemption to lodging quarterly returns:
A first purchaser who buys leviable ginger in the quarter;
A buying agent who buys leviable ginger in the quarter;
A selling agent who sells leviable ginger in the quarter;
A processor who processes leviable ginger in the quarter;
A producer who sells leviable ginger other than by retail sale in the quarter.
∙ The note indicates offences under section 24 of the Collection Act may be applicable if a return is not submitted.
Clause 10.10 would provide that a quarterly return must be lodged within 28 days of the end of the quarter to which it relates.
∙ The note indicates offences under section 24 of the Collection Act may be applicable.
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Clause 10.11 would provide that a quarterly return must be lodged within 28 days of the end of the quarter to which it relates.
∙ The note indicates penalties can be imposed under section 15 of the Collection Act for late payment.
Clause 10.12 would specify who may apply to be exempt from the requirement to lodge a quarterly return in a levy year but lodge an annual return instead. The main criterion is that the person has reasonable grounds for believing that the total amount of levy payable in the levy year is likely to be less than $200.
Clause 10.13 would specify what information must be included in a written application for exemption from the requirement to lodge a quarterly return, and in its place be allowed to lodge an annual return for that levy year.
Clause 10.14 would stipulate the conditions for granting or refusing an exemption from the requirement to lodge quarterly returns. The applicant is to be given written notice of the decision.
Clause 10.15 would stipulate what conditions apply for continuing an exemption from lodging a quarterly return. The applicant is to be given written notice of the decision.
Clause 10.16 would stipulate when a quarterly return is to be lodged if exemption is refused or not continued.
∙ The note indicates offences under section 24 of the Collection Act may be applicable if a return is not submitted.
Clause 10.17 would specify who must lodge an annual return.
∙ The note indicates offences under section 24 of the Collection Act may be applicable if a return is not submitted.
Clause 10.18 would prescribe that for people who lodge annual returns, levy is due for payment on 28 August in the following levy year (being the last day on which the annual return for the levy year must be lodged as set out in clause 10.19, below).
∙ The note indicates penalties can be imposed under section 15 of the Collection Act for late payment.
Clause 10.19 would prescribe that an annual return must be lodged by 28 August in the next levy year.
∙ The note indicates offences under section 24 of the Collection Act may be applicable if a return is not submitted.
Clause 10.20 would stipulate what records must be kept by people who pay the ginger levy. A penalty of 10 penalty units is provided for breaches of this requirement. Section 4AA of the Crimes Act 1914 provides that a penalty unit equals $110. An offence under this clause is an offence of strict liability.
∙ Note 1 provides a cross-reference to the definition of strict liability.
∙ Note 2 provides a cross-reference to offences in relation to how long records must be kept.
Clause 10.21 would stipulate that a person may apply to the Administrative Appeals Tribunal for a review of a decision made by the Secretary of the Department of Agriculture, Fisheries and Forestry relating to the grant or refusal to grant an exemption under paragraphs 10.14(1)(a) or 10.15(1)(a) of the Regulations.