Primary Industries Levies and Charges Collection (Forest and Wood Products) Regulations (Amendment) 1997 No. 202
EXPLANATORY STATEMENT
STATUTORY RULES 1997 No. 202
Issued by the Authority of the Minister for Resources and Energy for the Minister for Primary Industries and Energy
Forest Industries Research Levy Act 1993
Forest Industries Research Export Charge Act 1993
Forest Industries Research Import Charge Act 1993
Primary Industries Levies and Charges Collection (Forest and Wood Products) Regulations (Amendment)
Section 9 of each of the Forest Industry Research Levy Act 1993 ('the Levy Act'), the Forest Industries Research Export Charge Act 1993 ('the Export Charge Act') and the Forest Industries Research Import Charge Act 1993 ('the Import Charge Act') [collectively referred to as 'the Acts'] provides that:
(1) the Governor-General may make regulations prescribing matters required or permitted by this Act to be prescribed; and
(2) before making a regulation the Governor-General is to take into consideration any recommendation made to the Minister by an industry body.
Subsection 3(1) of each of the Acts provides that -industry body' means an industry body declared under section 7 of the Primary Industries and Energy Research and Development Act 1989 to be a representative organisation in relation to an R & D [Research and Development] Corporation established under section 8 of that Act in respect of forest industries." The National Association of Forest Industries Limited (NAFI) was declared to be such a representative organisation in 1993.
Section 5 of the Levy Act provides for the imposition of a levy on logs that are produced in Australia and delivered to a mill in Australia. Section 5 of the Export Charge Act provides for the imposition of a levy on logs that are produced in Australia and exported from Australia. Section 5 of the Import Charge Act provides for the imposition of a levy on forest products imported into Australia.
Section 6 of each of the Acts provides for a declaration by regulation as to the rate of levy to be imposed and in addition specifies the mechanisms and conditions used to determine levy rates for forest and wood products.
Subsection 6(6) of the Levy Act, subsection 6(2) of the Export Charge Act and subsection 6(5) of the Import Charge Act provide that the regulations may provide that the charge is not payable if the total amount of levy and charge to be collected is less than the amount specified in the regulations.
NAFI has recommended an increase in levy rates on certain forest products and also to increase the levy exemption threshold amount as specified in this statement.
The Prime Minister and Treasurer have agreed to the proposed changes.
The purpose of the proposed regulations is to increase the levy rate on certain forest products to provide increased research and development program funding to be administered by the Forest and Wood Products Research and Development Corporation. The proposed regulations will also increase the annual levy exemption threshold so as to ensure small producers previously below the levy exemption threshold (and therefore not liable to pay the charge) will not be pushed above the threshold level and become liable to pay the charge because of the levy increase.
Details of the regulations are as follows:
Regulation 1 provides for the regulations to commence on 1 August 1997.
Regulation 2 provides for the existing regulations to be amended.
Regulation 3 amends Regulation 10 to increase the existing annual levy exemption threshold from $75 to $330. Under regulation 10 the forest industry levy or charge is not payable if the total amount of levy and charge that a producer is liable to pay is less than (a prescribed amount) in a levy year.
Regulation 4.1 provides for the increase in levy rate for softwood sawlogs (other than cypress sawlogs) [Item 5 in Column 3 of the Schedule] from 18 cents per cubic metre to 29 cents per cubic metre.
Regulation 4.2 provides for the increase in levy rate for hardwood sawlogs (Item 6 in Column 3 of the Schedule) from 15 cents per cubic metre to 22 cents per cubic metre.
Regulation 4.3 provides for the increase in levy rate for cypress sawlogs (Item 7 in Column 3 of the Schedule) from 15 cents per cubic metre to 22 cents per cubic metre.
The minute recommends that the regulations be made in the form proposed.
Overview
The Primary Industries Levies and Charges Collection (Forest and Wood Products) Regulations (Amendment) 1997 No. 202, issued under the authority of the Minister for Resources and Energy, aims to adjust the levy rates on certain forest products to enhance funding for research and development programs managed by the Forest and Wood Products Research and Development Corporation. This amendment responds to recommendations from the National Association of Forest Industries Limited (NAFI), a representative organisation for the forest industry, and is consistent with the policy objective of supporting industry-led research and development initiatives. The proposed changes, which have received the approval of the Prime Minister and Treasurer, include increasing the levy rates on specific forest products while simultaneously raising the annual levy exemption threshold to protect smaller producers from becoming liable for the charge due to the increased levy rates. The regulations are set to commence on 1 August 1997, with specific amendments to the existing regulations to reflect these changes.
Scope and Application
The Primary Industries Levies and Charges Collection (Forest and Wood Products) Regulations (Amendment) 1997 No. 202 applies to entities involved in the production, export, or import of forest and wood products in Australia. These entities include individuals and companies that produce logs within Australia, export logs from Australia, or import forest products into Australia. The regulations implement and amend the Forest Industries Research Levy Act 1993, the Forest Industries Research Export Charge Act 1993, and the Forest Industries Research Import Charge Act 1993. The amendments are made pursuant to recommendations from the National Association of Forest Industries Limited (NAFI), a declared representative organisation for forest industries under the Primary Industries and Energy Research and Development Act 1989. The geographic reach of these regulations is national, as they pertain to activities occurring within Australia and its borders. The regulations provide for increased levy rates on certain forest products to fund research and development programs administered by the Forest and Wood Products Research and Development Corporation. They also adjust the annual levy exemption threshold to ensure that small producers remain exempt from the levy if their total liability is below a certain amount. The regulations came into effect on 1 August 1997 and include specific amendments to the levy rates and exemption thresholds as proposed by NAFI and agreed upon by the Prime Minister and Treasurer.
Key Provisions
The proposed regulations under the Forest Industries Research Levy Act 1993, Forest Industries Research Export Charge Act 1993, and Forest Industries Research Import Charge Act 1993 aim to revise the rates and conditions for levies on forest and wood products in Australia. Section 6 of each Act allows for the specification of the rates and conditions of the levies, and Regulation 2 of the new regulations amends the existing rates. Regulation 3 increases the annual levy exemption threshold from $75 to $330, ensuring that small producers remain exempt from the levy even after the rate increase. Regulation 4.1, 4.2, and 4.3 raise the levy rates for various types of sawlogs: softwood sawlogs from 18 cents per cubic metre to 29 cents per cubic metre, hardwood sawlogs from 15 cents per cubic metre to 22 cents per cubic metre, and cypress sawlogs from 15 cents per cubic metre to 22 cents per cubic metre. These changes are intended to provide additional funding for research and development programs managed by the Forest and Wood Products Research and Development Corporation.
The regulations impose specific obligations on the parties governed by these Acts. Firstly, the Governor-General, under section 9 of each Act, must consider any recommendations from industry bodies, such as the National Association of Forest Industries Limited (NAFI), before making regulations. These bodies are declared under the Primary Industries and Energy Research and Development Act 1989 as representative organisations for forest industries. The regulations also require compliance with the amended levy rates and exemption thresholds, ensuring that producers correctly calculate and remit the appropriate levies. Moreover, the National Association of Forest Industries Limited must continue to provide recommendations on levy rates to the Minister for Primary Industries and Energy, ensuring ongoing review and adjustment of the levy system to meet the needs of the industry.
Under these Acts, breaches of the regulations can lead to various civil and criminal consequences. The specific provisions detailing offences and penalties are not exhaustively outlined in the explanatory statement, but generally, non-compliance with the regulations can result in fines or other penalties as determined by the relevant legislation. For instance, failing to pay the correct levy or charge as specified by the regulations could result in financial penalties. Additionally, if an entity deliberately evades or attempts to evade the payment of the levy or charge, this could lead to more severe penalties, including potential criminal charges. The maximum penalties, however, are not specified in the explanatory statement, and further reference to the primary Acts and other relevant legislation would be required to determine the exact nature and extent of the penalties.