EXPLANATORY STATEMENT
Issued by Authority of the Minister for Agriculture, Fisheries and Forestry
Primary Industries Levies and Charges Disbursement Act 2024
Primary Industries Levies and Charges Disbursement Amendment (Fishing Levy Component) Rules 2026
Legislative authority
Section 90 of the Primary Industries Levies and Charges Disbursement Act 2024 (the Disbursement Act) provides that the Minister may, by legislative instrument, make rules prescribing matters required or permitted by the Act to be prescribed by the rules or necessary or convenient to be prescribed for carrying out or giving effect to the Act.
Purpose
The purpose of the Primary Industries Levies and Charges Disbursement Amendment (Fishing Levy Component) Rules 2026 (the Amendment Rules) is to amend the Primary Industries Levies and Charges Disbursement Rules 2024 (the Disbursement Rules) to prescribe rules for the purposes of paragraph 36(1)(a) of the Disbursement Act, providing for the component of the fishing levy for the 2025-26 financial year in respect of which amounts must be paid to the Fisheries Research and Development Corporation (the FRDC).
Background
The agricultural levy and charge system, known as the agricultural levy system, is a long-standing partnership between industry and the Australian Government to facilitate industry investment in strategic activities.
The Disbursement Act requires the Commonwealth to pay the FRDC amounts equal to amounts received by the Commonwealth of levy imposed by section 5 of the Fishing Levy Act 1991 (the Fishing Levy Act) to the extent those amounts consist of a component of the levy worked out in accordance with the rules.
The component of levy in respect of which amounts are paid to the FRDC is worked out each year to give effect to a policy agreed by the Australian Fisheries Management Authority (AFMA), the FRDC and the fishing industry that the amount be equal to 0.25% of a gross value of production amount for Commonwealth fisheries subject to levy imposed under the Fishing Levy Act for the year.
Based on the total amount of fishing levy expected to be collected in respect of relevant Commonwealth-managed fisheries under the Fishing Levy Act for the 2025-26 financial year, the component in respect of which amounts are to be paid to the FRDC to give effect to the agreed policy is 5.50% of the fishing levy amounts paid to the Commonwealth.
Impact and effect
The Amendment Rules amend the Disbursement Rules to provide for the component of the fishing levy for the financial year commencing on 1 July 2025 in respect of which amounts equal to amounts received by the Commonwealth must be paid to the FRDC under the Disbursement Act.
The Disbursement Act requires that the amounts paid to the FRDC may only be spent on certain specified matters, which include research and development activities that are for the benefit of a designated primary industry sector in relation to the FRDC and in accordance with the FRDC’s funding agreement and annual operational plan, and the Disbursement Rules. Those rules require expenditure by the FRDC of such amounts paid to it to be for the benefit of the designated primary industry sector that is the fishing industry (except any declared fishery).
Consultation
The department consulted with AFMA in determining the component of the fishing levy for inclusion in the Amendment Rules in respect of which amounts must be paid to the FRDC. AFMA collects fishing levy on behalf of the Commonwealth, including amounts of fishing levy in respect of which payments are made to the FRDC. The FRDC has been notified of the process to amend the Disbursement Rules. Both AFMA and the FRDC are supportive of Amendment Rules being made to enable the payments to be made to the FRDC consistent with the agreed policy. Broader consultation was not considered necessary as the Amendment Rules are routine in nature.
Details
Details of the Amendment Rules are set out in Attachment A.
Other
The Amendment Rules are compatible with the human rights and freedoms recognised or declared under section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011. A full statement of compatibility is set out in Attachment B. The Amendment Rules commence on the day on which they are registered. The Amendment Rules are a legislative instrument for the purposes of the Legislation Act 2003.
ATTACHMENT A
Details of the Primary Industries Levies and Charges Disbursement Amendment (Fishing Levy Component) Rules 2026
Section 1—Name
This section provides that the name of the instrument is the Primary Industries Levies and Charges Disbursement Amendment (Fishing Levy Component) Rules 2026 (the Amendment Rules).
Section 2—Commencement
This section provides that the Amendment Rules commence on the day on which the Amendment Rules are registered. Although the Amendment Rules commence on the day of registration, the rules only apply to the Commonwealth and authorities of the Commonwealth and do not apply to any other person.
Section 3—Authority
This section provides that the Amendment Rules are made under the Primary Industries Levies and Charges Disbursement Act 2024 (the Disbursement Act).
Section 4—Schedules
This section provides that each instrument that is specified in a Schedule to the Amendment Rules is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to the Amendment Rules has effect according to its terms.
Schedule 1—Amendments
Primary Industries Levies and Charges Disbursement Rules 2024
Item 1—Section 21 (at the end of the table)
This item adds new item 2 at the end of the table in section 21 of the Primary Industries Levies and Charges Disbursement Rules 2024 (the Disbursement Rules).
Table item 2 provides that for the financial year commencing on 1 July 2025, the percentage of the levy is 5.50%. This percentage enables the working out of the component of the fishing levy in respect of which amounts must be paid to the Fisheries Research and Development Corporation (the FRDC) for the financial year commencing on 1 July 2025.
An item is inserted annually into this table to enable funds received by the Commonwealth through fishing levy to be paid to the FRDC.
Subsection 36(1) of the Disbursement Act provides that the Commonwealth must pay to the FRDC amounts equal to amounts received by the Commonwealth:
- of levy (the fishing levy) imposed by section 5 of the Fishing Levy Act 1991 (Fishing Levy Act) to the extent that those amounts consist of the component of that levy worked out in accordance with the rules (paragraph 36(1)(a) of the Disbursement Act); and
- by way of penalty under section 112 of the Fisheries Management Act 1991, to the extent that those amounts are attributable to the non‑payment of that component (paragraph 36(1)(b) of the Disbursement Act).
Section 21 of the Disbursement Rules prescribes, for the purposes of paragraph 36(1)(a) of the Disbursement Act, the component of the fishing levy in respect of which amounts must be disbursed to the FRDC. Specifically, it provides that the component of the levy is the percentage of the levy worked out using the table provided in that section. Item 2 of the table in section 21 provides that, for the financial year commencing on 1 July 2025, the component of the fishing levy is 5.50% of the levy.
As a result, the Commonwealth must pay to the FRDC, under paragraph 36(1)(a) of the Disbursement Act, amounts equal to 5.50% of the amounts of fishing levy for the 2025-26 financial year that it has received.
ATTACHMENT B
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Primary Industries Levies and Charges Disbursement Amendment (Fishing Levy Component) Rules 2026
This legislative instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
Overview of the legislative instrument
The purpose of the Primary Industries Levies and Charges Disbursement Amendment (Fishing Levy Component) Rules 2026 is to amend the Primary Industries Levies and Charges Disbursement Rules 2024 to prescribe rules for the purposes of paragraph 36(1)(a) of the Primary Industries Levies and Charges Disbursement Act 2024, providing for the component of the fishing levy for the 2025-26 financial year in respect of which amounts must be paid to the Fisheries Research and Development Corporation.
Human rights implications
This legislative instrument does not engage any of the applicable rights or freedoms.
Conclusion
The measures in the legislative instrument are compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011 as the legislative instrument does not engage any human rights issues.
The Hon Julie Collins MP
Minister for Agriculture, Fisheries and Forestry