Primary Industries Levies and Charges Collection (Oilseeds) Regulations (Amendment) 1993 No. 247
EXPLANATORY STATEMENT
STATUTORY RULES 1993 No. 247
Issued by Authority of the Minister for Primary Industries and Energy
Oilseeds Levy Act 1977
Primary Industries Levies and Charges Collection Act 1991
Primary Industries Levies and Charges Collection (Oilseeds) Regulations (Amendment)
The Primary Industries Levies and Charges Collection (Oilseeds) Regulations (the Regulations) currently define, for the purpose of determining levy, the sale value for oilseeds whether they are included in a pool or otherwise sold. This definition does not take account of the special situation of oilseeds that have been produced specifically for sale as seed for sowing. In this case there are added costs in growing the oilseeds 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 oilseeds 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 oilseeds sold as seed for sowing shall be determined as if the oilseeds had been sold at the market price applying to oilseeds sold for normal commercial purposes at the time levy is imposed. This will ensure that under the ad valorem levy arrangements, seed oilseed growers are levied on the same basis as other oilseed 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 oilseeds 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 (Oilseeds) Regulations.
Regulation 3 -
Subregulation 3.1 inserts a new paragraph in regulation 3 A to provide that the sale value of oilseeds sold as seed for sowing shall be determined as if the oilseeds had been sold for normal commercial purposes at the market price prevailing on the day the oilseeds were delivered.
Subregulation 3.2 amends subparagraph 3B(1)(b)(ii) relating to oilseeds other than seed oilseeds, to clarify that the sale value where there are no sales invoices, is the market price prevailing on the day the oilseeds were delivered.
Overview
The Primary Industries Levies and Charges Collection (Oilseeds) Regulations (Amendment) 1993 No. 247 were introduced to address the problem of determining the levy on oilseeds that are sold specifically as seed for sowing, which incur additional costs and thus have a significantly higher sale price compared to oilseeds sold for normal commercial purposes. The issue with the existing regulations was that they did not account for this special situation, leading to potential inequities in the levy imposed on different types of oilseed growers. The enacting body for these regulations is the Minister for Primary Industries and Energy, acting under the authority of the Primary Industries Levies and Charges Collection Act 1991 and the Oilseeds Levy Act 1977. The policy objective of the amendment is to ensure that seed oilseed growers are levied on the same basis as other oilseed growers, thereby aligning the definition of sale value with that of other grains and ensuring fair treatment within the ad valorem levy arrangements.
Scope and Application
The Primary Industries Levies and Charges Collection (Oilseeds) Regulations (Amendment) 1993 No. 247 applies to oilseed growers and sellers within Australia who are subject to the Oilseeds Levy Act 1977 and the Primary Industries Levies and Charges Collection Act 1991. The Regulations specifically address the valuation of oilseeds intended for sowing rather than for traditional commercial uses such as milling or stockfeed, aiming to ensure that these growers are levied on the same basis as other oilseed growers by aligning their sale value with the market price of oilseeds sold for normal commercial purposes. This amendment seeks to rectify an oversight in the existing definition of sale value, thereby providing a more equitable assessment for those involved in the production of oilseeds specifically for sowing. The Regulations have a national reach within Australia and are designed to come into effect on 1 October, aligning with the oilseeds harvest season and the commencement of the levy collection period. The amendments will ensure that the valuation process for oilseeds sold as seed for sowing reflects the additional costs associated with their production and preparation for sowing, thus providing a fairer assessment for these growers.
Key Provisions
The Primary Industries Levies and Charges Collection (Oilseeds) Regulations (Amendment) 1993 No. 247 proposes a significant amendment to the existing regulations concerning the sale value of oilseeds. Specifically, Regulation 2 of the proposed regulations aims to modify the definition of the sale value for oilseeds sold as seed for sowing (subregulation 3.1). This amendment intends to ensure that the sale value of oilseeds sold specifically for sowing purposes is determined as if they were sold at the market price for oilseeds intended for normal commercial purposes, such as milling or stockfeed, at the time the levy is imposed (section 3.1). This change seeks to harmonise the levy assessment for seed oilseed growers with that of other oilseed growers, recognising the additional costs involved in producing, processing, and packaging oilseeds for sowing. Additionally, the amendment seeks to align the current definition of value with similar provisions in regulations for other grains (section 3.1).
The proposed regulations impose several obligations on parties involved in the sale and levy of oilseeds. Firstly, growers selling oilseeds specifically for sowing must now report the sale value in a manner consistent with oilseeds sold for standard commercial purposes. This requirement ensures transparency and consistency in the levy calculation process. Secondly, the levy collectors and processors must adjust their systems to account for the new valuation method, ensuring that they accurately calculate the levy based on the amended definition. Furthermore, the amendment necessitates that all relevant parties, including growers, levy collectors, and processors, update their records and reporting mechanisms to reflect the new valuation criteria. This requirement ensures that the levy is imposed correctly and fairly across all types of oilseed sales.
The regulations also outline the consequences for non-compliance with the new provisions. While the explanatory statement does not explicitly detail specific offences or penalties, it is understood that breaches of the Primary Industries Levies and Charges Collection Act 1991 and its associated regulations could lead to civil or criminal penalties, depending on the severity and intent of the breach. The potential penalties for non-compliance may include fines, recovery of unpaid levies, and in more severe cases, criminal charges. It is important for all parties involved to adhere to the new regulations to avoid any legal repercussions. The exact penalties would be determined by the relevant authorities and the specific nature of the breach.