Primary Industries Levies and Charges Collection (Wheat) Regulations (Amendment) 1993 No. 246
EXPLANATORY STATEMENT
STATUTORY RULES 1993 No. 246
Issued by Authority of the Minister for Primary Industries and Energy
Wheat Industry Fund Levy Act 1989
Primary Industries Levies And Charges Collection Act 1991
Primary Industries Levies And Charges Collection (Wheat) Regulations (Amendment)
The Primary Industries Levies and Charges Collection (Wheat) Regulations (the Regulations) currently define, for the purpose of determining levy, the sale value for wheat whether it is included in a pool or otherwise sold. This definition does not take account of the special situation of wheat that has been produced specifically for sale as seed for sowing. In this case there are added costs in growing the wheat 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 wheat 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 wheat sold as seed for sowing shall be determined as if the wheat had been sold at the market price applying to wheat sold for normal commercial purposes at the time levy is imposed. This will ensure that under the ad valorem levy arrangements, seed wheat growers are levied on the same basis as other wheat growers.
A consequential amendment to the Regulations concerning time of levy payment has also been necessary and the opportunity has 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 wheat harvest and the commencement of the quarterly 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 (Wheat) Regulations.
Regulation 3 -
Subregulation 3.1 corrects an error in the reference to the section of the Levy Act mentioned in regulation 4.
Subregulation 3.2 inserts a new paragraph in regulation 4 to provide that the sale value of wheat sold as seed for sowing shall be determined as if the wheat had been sold for normal commercial purposes at the market price prevailing on the day the wheat was delivered.
Subregulation 3.3 amends subparagraph 4(1)(b)(ii) relating to wheat other than seed wheat, to clarify that the sale value where there are no sales invoices is the market price prevailing on the day the wheat was processed or delivered.
Regulation 4. - This proposed Regulation is a consequential change to regulation 8 to include reference to wheat sold as seed for sowing in the provisions covering time of levy payment.
Overview
The Primary Industries Levies and Charges Collection (Wheat) Regulations (Amendment) 1993 No. 246, issued under the authority of the Minister for Primary Industries and Energy, aims to address a gap in the existing Wheat Industry Fund Levy Act 1989 and the Primary Industries Levies and Charges Collection Act 1991. These Acts did not adequately account for the additional costs and processes involved in producing wheat specifically for sale as seed, leading to discrepancies in the levies imposed on seed wheat growers compared to other wheat growers. The policy objective of these proposed Regulations is to ensure fairness in the ad valorem levy arrangements by aligning the levy calculation for seed wheat with that for wheat sold for normal commercial purposes. The Regulations are set to commence on 1 October 1993, aligning with the wheat harvest period and the start of the quarterly levy collection period.
Scope and Application
The Primary Industries Levies and Charges Collection (Wheat) Regulations (Amendment) 1993 No. 246, issued under the authority of the Minister for Primary Industries and Energy, amend the Primary Industries Levies and Charges Collection (Wheat) Regulations to address the specific circumstances of wheat sold as seed for sowing. This amendment ensures that the sale value of wheat intended for sowing is calculated as if it were sold at the market price for normal commercial purposes, thereby aligning the levy assessment for seed wheat growers with that of other wheat growers. This adjustment accounts for the additional costs and processes involved in producing and preparing wheat for sale as seed, which typically results in a higher sale price than that of wheat intended for other uses like milling or stockfeed. The Regulations also amend the definition of the value of wheat to align it with similar provisions for other grains and include a consequential amendment concerning the timing of levy payments. These changes will take effect on 1 October 1993, corresponding with the start of the wheat harvest and the quarterly levy collection period.
Key Provisions
The Primary Industries Levies and Charges Collection (Wheat) Regulations (Amendment) 1993 No. 246 aim to address a specific issue concerning the assessment of the sale value of wheat sold as seed for sowing. Section 2 of the proposed Regulations introduces an amendment to the existing definition of sale value for wheat sold as seed for sowing (Regulation 2, subregulation 3.2). This amendment ensures that the sale value of wheat sold as seed for sowing will be determined as if it had been sold for normal commercial purposes at the market price prevailing on the day the wheat was delivered. This change ensures that growers of seed wheat are levied on the same basis as other wheat growers under the ad valorem levy arrangements. Additionally, subregulation 3.3 of Regulation 3 amends subparagraph 4(1)(b)(ii) to clarify the sale value for wheat other than seed wheat, ensuring that the sale value where there are no sales invoices is the market price prevailing on the day the wheat was processed or delivered.
The Regulations impose specific obligations on wheat growers and other entities involved in the wheat industry. Wheat growers must now provide accurate information regarding the sale value of their wheat, particularly when it is sold as seed for sowing. They are required to determine this value based on the prevailing market price at the time of delivery, ensuring compliance with the new provisions. The Regulations also necessitate that entities involved in the collection and assessment of levies update their processes to reflect the changes, ensuring that all wheat, including seed wheat, is assessed uniformly. Furthermore, the Regulations require that all relevant documentation and records be maintained accurately to facilitate compliance and auditing processes.
Breaches of the provisions outlined in the Regulations may result in civil or criminal consequences, depending on the nature and severity of the non-compliance. While the Explanatory Statement does not specify maximum penalties, it is clear that non-compliance with the levy requirements could result in financial penalties or other enforcement actions. For instance, under the Primary Industries Levies and Charges Collection Act 1991, failure to comply with the levy provisions could lead to fines or legal action. The severity of penalties would depend on the specific circumstances of the breach, including whether it was intentional or due to negligence. The Wheat Industry Fund Levy Act 1989 also provides for penalties for non-compliance with levy requirements, reinforcing the importance of adhering to the Regulations.