EXPLANATORY STATEMENT
Select Legislative Instrument 2011 No. 242
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 2011 (No. 1)
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 peak industry body for the cherry industry, Cherry Growers Australia Inc (CGA), has requested a change to the levy year associated with the cherry levy and export charge. The change better aligns the due dates for submitting levy returns and payments with the cherry production season.
The Regulations amend the Primary Industries Levies and Charges Collection Regulations 1991 (the Principal Regulations) to change the levy year for the cherry levy/charge. The levy year has been redefined as a period of 12 months commencing on 1 April. Consequently, the due dates for the payment of the cherry levy and charge have moved to 28 April in the following levy year. The Regulations also include transitional arrangements in the first year.
The cherry levy/charge is payable on cherries produced in Australia that are sold in or exported from Australia. It is payable by the producer of the cherries at a rate of 7 cents per kilogram. For ease of levy collection, generally the levy/charge is payable to the Commonwealth by an intermediary, such as a market agent or exporter, and then the intermediary is able to recover the levy/charge from the producer. The Regulations do not change the amount of cherry levy/charge that a levy payer is required to pay.
Details of the Regulations are contained in Attachment A.
The Regulations are 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 for this matter (Reference number 13270).
The Regulations commence on the day after they are registered on the Federal Register of Legislative Instruments.
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Attachment A
DETAILS OF THE PRIMARY INDUSTRIES LEVIES AND CHARGES COLLECTION AMENDMENT REGULATIONS 2011 (No. 1)
Regulation 1 provides for the name of the Regulations to be the Primary Industries Levies and Charges Collection Amendment Regulations 2011 (No. 1).
Regulation 2 provides for the commencement date to be the day after they are registered.
Regulation 3 provides that Schedule 1 amends the Primary Industries Levies and Charges Collection Regulations 1991.
Schedule 1 Amendments to Part 5 of Schedule 22
Item [1] inserts a new clause 5.3 which defines a levy year for cherries as a period of 14 months beginning on 1 February 2011; and in subsequent years as a period of 12 months beginning on 1 April. The 14 month levy year has been included as a transitional arrangement.
Item [2] inserts a new clause 5.6 which prescribes that levy or charge for a levy year is due for payment on the last day on which the return for the levy year must be lodged as set out in clause 5.8 (being 28 April in the following levy year).
∙ The note indicates penalties can be imposed under section 15 of the Collection Act for late payment.
Item [3] inserts a new clause 5.8 which prescribes that a return for a levy year must be lodged by 28 April 2012 for the levy year beginning on 1 February 2011; and for subsequent levy years, by 28 April in the following levy year.
∙ The note indicates offences under section 24 of the Collection Act may be applicable if a return is not submitted.
Overview
The Primary Industries Levies and Charges Collection Amendment Regulations 2011 (No. 1) were introduced to address a request from Cherry Growers Australia Inc to better align the due dates for submitting levy returns and payments with the cherry production season. Enacted under Section 30 of the Primary Industries Levies and Charges Collection Act 1991, these Regulations were issued by the Minister for Agriculture, Fisheries and Forestry. They amend the Primary Industries Levies and Charges Collection Regulations 1991 to redefine the levy year for the cherry levy/charge as a period of 12 months commencing on 1 April. This change effectively shifts the due dates for the payment of the cherry levy and charge to 28 April in the following levy year, facilitating smoother compliance and collection processes for industry stakeholders. The Regulations also include transitional arrangements to accommodate the initial change in the levy year.
Scope and Application
The Primary Industries Levies and Charges Collection Amendment Regulations 2011 (No. 1) pertain to the regulation of the cherry levy and export charge in Australia, applying to the cherry industry and specifically Cherry Growers Australia Inc. These regulations are designed to better align the due dates for submitting levy returns and payments with the cherry production season by adjusting the levy year to a 12-month period commencing on 1 April, with a transitional 14-month levy year for the period beginning on 1 February 2011. The levy and charge, which are payable on cherries produced in Australia and sold domestically or exported, remain at a rate of 7 cents per kilogram. The due dates for the payment of the cherry levy and charge have been moved to 28 April in the following levy year, with transitional arrangements in the initial year. These Regulations are a legislative instrument under the Legislative Instruments Act 2003 and apply nationally, governed by the Primary Industries Levies and Charges Collection Act 1991. They do not alter the amount of the levy or charge required to be paid and commence on the day after they are registered on the Federal Register of Legislative Instruments.
Key Provisions
The Primary Industries Levies and Charges Collection Amendment Regulations 2011 (No. 1) fundamentally alter the levy year for the cherry levy and export charge under the Primary Industries Levies and Charges Collection Act 1991 (the Act). These changes are made to better align the due dates for submitting levy returns and payments with the cherry production season. Regulation 1 names the Regulations as the Primary Industries Levies and Charges Collection Amendment Regulations 2011 (No. 1), while Regulation 2 specifies the commencement date as the day after they are registered. Regulation 3 indicates that Schedule 1 amends the Primary Industries Levies and Charges Collection Regulations 1991.
Under these Regulations, the levy year for cherries has been redefined. For the levy year beginning on 1 February 2011, it is set as a period of 14 months. However, for subsequent levy years, it is defined as a period of 12 months commencing on 1 April each year. This change is intended to create a smoother transition for industry participants. The due date for the payment of the cherry levy and charge has also been adjusted to 28 April in the following levy year. These amendments are designed to synchronise with the cherry production season, thus providing a more practical timeframe for levy payers.
The Regulations impose several obligations on the parties involved. Firstly, the cherry levy and export charge, payable by the producer of the cherries at a rate of 7 cents per kilogram, must be paid by an intermediary, such as a market agent or exporter, who can then recover the levy/charge from the producer. This is intended to facilitate the collection process. Additionally, the new due dates for the submission of levy returns and payments must be adhered to. For the levy year beginning on 1 February 2011, the return must be lodged by 28 April 2012, while for subsequent levy years, the return must be lodged by 28 April in the following levy year.
Failure to comply with the new due dates may result in penalties and legal consequences. Under section 15 of the Collection Act, penalties can be imposed for late payment of the cherry levy and export charge. Furthermore, section 24 of the Collection Act stipulates that offences may be applicable if a return is not submitted. While the exact penalties are not detailed in the provided text, the implication is that non-compliance with the new deadlines could result in financial penalties or legal action. The Regulations do not alter the rate of the cherry levy/charge itself, maintaining the established rate of 7 cents per kilogram.