Primary Industries Levies and Charges Collection (Coarse Grains) Regulations (Amendment) 1993 No. 249
EXPLANATORY STATEMENT
STATUTORY RULES 1993 No. 249
Issued by Authority of the Minister for Primary Industries and Energy
Coarse Grains Levy Act 1992
Primary Industries Levies and Charges Collection Act 1991
Primary Industries Levies and Charges Collection (Coarse Grains) Regulations (Amendment)
In the Primary Industries Levies and Charges Collection (Coarse Grains) Regulations (the Regulations) the definition of the sale value for oats, cereal rye or sorghum does not take account of the special situation that occurs when these grains are produced specifically for sale as seed for sowing. In this case there are added costs in growing the grain and the harvested product is subjected to special cleaning, grading and chemical processes, as well as requiring packaging and labelling. As a result, the sale price of the seed is significantly higher than the price at which grain of the same type would be sold for normal commercial purposes such as milling or stockfeed.
The proposed Regulations will provide that for the purposes of determining levy, the sale value of oats, cereal rye and sorghum sold as seed for sowing shall be determined as if the grain had been sold at the market price applying to that particular coarse grain when sold for normal commercial purposes at the time levy is imposed. This will ensure that under the ad valorem levy arrangements, seed oats, cereal rye and sorghum growers are levied on the same value basis as other growers of these grains.
The proposed Regulations will commence on 1 October to coincide with the start of the crop year and the commencement of a levy collection period.
Details of the proposed Regulations are set out in the Attachment.
ATTACHMENT
Details of the proposed Regulations are as follows:
Regulation 1 - Provides for the proposed Regulations to commence on 1 October 1993.
Regulation 2 - Provides for the amendment of the Primary Industries Levies and Charges Collection (Coarse Grains) Regulations.
Regulation 3 -
Subregulation 3.1 inserts a new paragraph in regulation 5 to provide that the sale value of oats, cereal rye and sorghum sold as seed for sowing shall be determined as if the grain had been sold for normal commercial purposes at the market price prevailing on the day the grain was delivered.
Subregulation 3.2 amends subparagraph 5(1)(b)(ii) relating to oats, cereal rye and sorghum not intended for sowing, to clarify that where there are no sales invoices the sale value is the market price prevailing on the day the grain was processed or delivered.
Overview
The Primary Industries Levies and Charges Collection (Coarse Grains) Regulations (Amendment) 1993 No. 249 aims to address a specific issue in the way the sale value of oats, cereal rye, and sorghum is determined when these grains are sold as seed for sowing. This amendment was introduced to rectify the oversight in the existing regulations, which did not adequately account for the additional costs and processes involved when these grains are produced for sowing purposes. These processes include special cleaning, grading, chemical treatments, packaging, and labelling, leading to a significantly higher sale price for seed compared to grain sold for other commercial purposes such as milling or stockfeed. The policy objective is to ensure that growers of these grains are levied on an equitable basis, reflecting the true economic value of their product.
These Regulations, issued by authority of the Minister for Primary Industries and Energy, were designed to align the levy assessment for seed grains with that of grains sold for normal commercial purposes. The amendment specifies that the sale value of oats, cereal rye, and sorghum sold as seed for sowing should be determined based on the market price of the grain when sold for normal commercial purposes, ensuring fairness in the levy system. The Regulations are set to commence on 1 October 1993 to align with the start of the crop year and the beginning of the levy collection period.
Scope and Application
The Primary Industries Levies and Charges Collection (Coarse Grains) Regulations (Amendment) 1993 No. 249 aims to amend the existing regulations under the Coarse Grains Levy Act 1992 and the Primary Industries Levies and Charges Collection Act 1991. This legislation applies to entities involved in the production and sale of coarse grains such as oats, cereal rye, and sorghum, particularly those selling these grains as seed for sowing. The amendment ensures that the sale value for these grains is appropriately determined for levy purposes, considering the additional costs and processes involved in producing and preparing the grains for sale as seed. This adjustment is designed to ensure that seed growers are taxed in a manner consistent with other coarse grain growers. The Regulations have a national reach, affecting all entities within Australia engaged in the specified activities. The amendment does not exclude any particular entities or transactions from its scope but rather seeks to provide a more equitable assessment of the sale value for those involved in the seed grain trade. The regulations are set to commence on 1 October, aligning with the beginning of the crop year and the levy collection period. Subordinate instruments may further define or extend the application of these regulations.
Key Provisions
The Primary Industries Levies and Charges Collection (Coarse Grains) Regulations (Amendment) 1993 No. 249 (the Regulations) amends the existing Coarse Grains Regulations to address the disparity in levy calculation for certain grains sold as seed for sowing. Regulation 2 of the Regulations introduces an amendment to Regulation 5, specifically altering the definition of the sale value for oats, cereal rye and sorghum. Regulation 3.1 inserts a new paragraph to ensure that the sale value of these grains, when sold as seed for sowing, is determined based on the market price for normal commercial purposes at the time the levy is imposed. This amendment aims to align the levy calculation for seed grains with that of other grains sold for conventional commercial purposes. Regulation 3.2 further clarifies that for oats, cereal rye and sorghum not intended for sowing, the sale value is determined by the market price on the day the grain was processed or delivered, provided there are no sales invoices. These changes are intended to ensure fairness in the levy system by accounting for the additional costs associated with producing grain for sowing.
The Regulations impose specific obligations on growers and entities involved in the sale of oats, cereal rye and sorghum. Growers selling these grains as seed for sowing must now report the sale value based on the market price applicable for normal commercial purposes. This requirement ensures that the levy imposed on seed grains accurately reflects the true market value, considering the additional costs associated with seed production. The Regulations also mandate that entities involved in the sale of these grains must comply with the new definitions and methods of determining sale value. This includes providing accurate market price information and ensuring that all relevant data is available for levy calculation purposes.
Non-compliance with the provisions of the Regulations may result in civil or administrative consequences. The Primary Industries Levies and Charges Collection Act 1991 and the Coarse Grains Levy Act 1992 provide for penalties for non-compliance. These may include fines, administrative charges, and potential legal action to recover unpaid levies. The specific penalties for breach are not detailed in the Regulations but are outlined in the primary legislation. The exact penalties depend on the nature and severity of the non-compliance and may include substantial fines as prescribed by the relevant Acts.