Primary Industries Levies and Charges Collection (Grain Legumes) Regulations (Amendment) 1993 No. 248
EXPLANATORY STATEMENT
STATUTORY RULES 1993 No. 248
Issued by Authority of the Minister for Primary Industries and Energy
Grain Legumes Levy Act 1985
Primary Industries Levies and Charges Collection Act 1991
Primary Industries Levies and Charges Collection (Grain Legumes) Regulations (Amendment)
The Primary Industries Levies and Charges Collection (Grain Legumes) Regulations (the Regulations) currently define, for the purpose of determining levy, the sale value for grain legumes whether they are included in a pool or otherwise sold. This definition does not take account of the special situation of grain legumes that have been produced specifically for sale as seed for sowing. In this case there are added costs in growing the grain legumes 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 legumes 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 grain legumes sold as seed for sowing shall be determined as if the grain legumes had been sold at the market price applying to grain legumes sold for normal commercial purposes at the time levy is imposed. This will ensure that under the ad valorem levy arrangements, seed grain legumes growers are levied on the same basis as other grain legume growers. The opportunity has also been taken to bring the current definition of value into line with similar provisions in regulations for other grains.
The proposed Regulations will commence on 1 October to coincide with the start of the bulk of the grain legumes harvest 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 (Grain Legumes) Regulations.
Regulation 3 -
Subregulation 3.1 inserts a new paragraph in regulation 3B to provide that the sale value of grain legumes sold as seed for sowing shall be determined as if the grain legumes had been sold for normal commercial purposes at the market price prevailing on the day the grain legumes were delivered.
Subregulation 3.2 amends subparagraph 3B(1)(b)(ii) relating to grain legumes other than seed grain legumes, to clarify that the sale price to be used in determining levy where there are no sales invoices, is the market price prevailing on the day the grain legumes were delivered.
Overview
The Primary Industries Levies and Charges Collection (Grain Legumes) Regulations (Amendment) 1993 No. 248 were enacted to address a gap in the existing legislation concerning the levy on grain legumes sold specifically as seed for sowing. This amendment was introduced to ensure that seed grain legumes growers are levied on the same basis as other grain legume growers, aligning the sale value definition with the special circumstances and additional costs associated with producing seed grain legumes. The Act was issued by authority of the Minister for Primary Industries and Energy under the Grain Legumes Levy Act 1985 and the Primary Industries Levies and Charges Collection Act 1991. The policy objective of these Regulations is to accurately reflect the market conditions and additional processes involved in producing and selling grain legumes as seed, ensuring fair levy imposition on all grain legumes growers. The Regulations are set to commence on 1 October 1993, aligning with the start of the grain legumes harvest and the levy collection period.
Scope and Application
The Primary Industries Levies and Charges Collection (Grain Legumes) Regulations (Amendment) 1993 No. 248 applies to entities and individuals involved in the sale of grain legumes, particularly those selling them as seed for sowing, under the Commonwealth jurisdiction. These Regulations amend the existing Primary Industries Levies and Charges Collection (Grain Legumes) Regulations to adjust the definition of sale value for grain legumes intended for sowing purposes, aligning it with the market price of grain legumes sold for standard commercial purposes such as milling or stockfeed. This amendment ensures that growers of seed grain legumes are subject to the same ad valorem levy as other grain legume growers. The Regulations come into effect on 1 October 1993 to align with the commencement of the grain legumes harvest and the levy collection period. The Regulations also clarify the method of determining the sale price for other grain legumes in the absence of sales invoices, setting it at the market price on the day of delivery.
Key Provisions
The main operative sections of the Primary Industries Levies and Charges Collection (Grain Legumes) Regulations (Amendment) 1993 No. 248 (the Regulations) introduce significant changes to the way the sale value of grain legumes sold as seed for sowing is determined for levy purposes. Regulation 2, in particular, amends the existing regulations to ensure that the sale value of grain legumes intended for sowing is assessed based on the market price for grain legumes intended for normal commercial purposes (Reg. 3.1). This amendment aims to align the levy on seed grain legumes with that of other grain legumes, reflecting the additional costs associated with producing and processing seed for sowing. Furthermore, Regulation 3.2 amends the existing provisions to clarify that where no sales invoices are available, the market price for grain legumes on the day of delivery will be used to determine the sale value for levy purposes.
The obligations imposed by the Regulations require that grain legumes sold as seed for sowing be valued for levy purposes based on the market price of grain legumes sold for normal commercial purposes. This means that growers of seed grain legumes must ensure they are aware of the market price on the day their grain legumes are delivered, as this will determine the levy they owe. Additionally, the Regulations require that any sales invoices or market price data used to determine the sale value be accurate and reflective of the true market conditions at the time of sale. These obligations ensure that the levy is calculated fairly and consistently across all types of grain legumes.
Breaches of the Regulations can result in significant consequences. Under the Primary Industries Levies and Charges Collection Act 1991, failure to comply with the provisions of the Regulations may result in the imposition of penalties. The exact nature and severity of these penalties are not detailed in the provided explanatory statement, but they could potentially include fines or other civil or criminal penalties as outlined in the Act. The primary focus is on ensuring compliance to avoid any financial penalties or legal repercussions that may arise from non-compliance. Additionally, incorrect valuation of grain legumes for levy purposes could lead to disputes with the levy collection authorities, potentially resulting in audits or investigations.