Primary Industries Levies and Charges Collection (Strawberries) Amendment Regulations 1998 (No. 1) 1998 No. 315
EXPLANATORY STATEMENT
STATUTORY RULES 1998 NO. 315
Issued by the Authority of the Minister for Agriculture, Fisheries and Forestry
Primary Industries Levies and Charges Collection Act 1991
Horticultural Levy Act 1987
Primary Industries Levies and Charges Collection (Strawberries) Amendment Regulations 1998 (No. 1)
The Governor-General may make regulations to impose levies on classes of horticultural products under subsection 14(1) of the Horticultural Levy Act 1987. The Governor-General may also make regulations to provide for the collection of levy under subsection 30(1) of the Primary Industries Levies and Charges Collection Act 1991.
The Horticultural Research and Development Corporation (HRDC) co-ordinates research and development (R&D) for many horticultural industries. The HRDC is funded by statutory levies and export charges, voluntary contributions and Commonwealth Government matching funding.
The strawberry industry participates in the HRDC through levy imposed on strawberry runners and paid by strawberry growers.
The peak industry body for strawberry growers, Strawberries Australia Inc., has agreed to a change in the collection mechanism for the strawberry R&D levy so the levy is paid by strawberry g-rowers at the time of final payment for strawberry runners, rather than 21 days after the month in which the runners are purchased, and that the levy funds are remitted by strawberry runner sellers quarterly rather than monthly. Quarters begin on 1 January, 1 April, 1 July, or 1 October, each year.
The purpose of the Regulations is to modify the collection arrangements for the strawberry R&D levy as agreed by Strawberries Australia Inc. Australia's largest strawberry runner grower, which supplies ninety five per cent of runners to strawberry growers, supports the amendments to the Regulations, as do all other strawberry runner sellers.
The reason for changing the collection mechanism is to reduce the administrative burden on strawberry runner growers who collect the levy. The cost of the administrative arrangements, had at times, under commercial arrangements been passed onto the strawberry grower. Under the new arrangements the strawberry grower will benefit from no longer having to assume the burden of that cost.
The Primary Industries Levies and Charges Collection (Strawberries) Amendment Regulations 1998 give effect to Strawberries Australia Inc.'s agreement to change the collection mechanism for the strawberry R&D levy payable to the HRDC.
The Regulations commenced on 1 January 1999.
Overview
The Primary Industries Levies and Charges Collection (Strawberries) Amendment Regulations 1998 (No. 1) were enacted in 1998 and aim to address the administrative burden associated with the collection of the research and development levy for the strawberry industry. This legislation amends the existing collection arrangements for the strawberry research and development levy as agreed by Strawberries Australia Inc., the peak industry body for strawberry growers. The amendment seeks to shift the timing of when the levy is paid by growers from 21 days after the month in which the runners are purchased to the time of final payment for the runners. Additionally, it changes the frequency of fund remittance from monthly to quarterly. The policy objective of the amendment is to alleviate the administrative costs that have, at times, been passed onto the strawberry growers, thereby benefiting the growers by reducing their financial burden. The Regulations were issued under the authority of the Minister for Agriculture, Fisheries and Forestry and commenced on 1 January 1999.
Scope and Application
The Primary Industries Levies and Charges Collection (Strawberries) Amendment Regulations 1998 (No. 1) amends the collection arrangements for the research and development (R&D) levy for the strawberry industry, as stipulated under the Horticultural Levy Act 1987 and the Primary Industries Levies and Charges Collection Act 1991. These regulations apply to strawberry growers and strawberry runner sellers in Australia, specifically targeting those involved in the commercial cultivation of strawberries. The amendment modifies the timing for levy collection from strawberry growers and the frequency of remittance from strawberry runner sellers, thereby aiming to reduce the administrative burden on the latter. These regulations are intended to ensure that the R&D levy is collected and remitted more efficiently, benefiting both strawberry growers and sellers by streamlining the process and potentially lowering associated administrative costs. The changes are in line with the agreement reached by Strawberries Australia Inc., the peak industry body representing strawberry growers, and are supported by the largest strawberry runner grower in Australia.
Key Provisions
The Primary Industries Levies and Charges Collection (Strawberries) Amendment Regulations 1998 (No. 1) (sections 3 and 4) establish a revised mechanism for the collection and payment of the research and development (R&D) levy for strawberries, as agreed by Strawberries Australia Inc. Under the amended regulations, the R&D levy will now be paid by strawberry growers at the time of final payment for strawberry runners, instead of 21 days after the month in which the runners are purchased (section 3). This change aims to alleviate the administrative burden on strawberry growers who collect the levy, as well as to ensure that the cost of the administrative arrangements is no longer passed onto the growers. Furthermore, the amended regulations require strawberry runner sellers to remit the levy funds on a quarterly basis, rather than monthly (section 4).
These regulations impose specific obligations on the parties they govern. Strawberry growers are required to pay the R&D levy at the time of final payment for strawberry runners (section 3). Strawberry runner sellers, on the other hand, must remit the collected levy funds on a quarterly basis, with quarters beginning on 1 January, 1 April, 1 July, or 1 October each year (section 4). These obligations are designed to streamline the collection process and reduce the administrative burden on both growers and sellers.
Failure to comply with the requirements outlined in the Primary Industries Levies and Charges Collection (Strawberries) Amendment Regulations 1998 may result in civil or criminal consequences. However, the explanatory statement does not provide specific information on the penalties or consequences for non-compliance. It is essential for parties governed by these regulations to adhere to the outlined obligations to avoid potential legal repercussions.