Primary Industries Levies and Charges (National Residue Survey Levies) Amendment (Honey) Regulation 2015

Administered by Department of Agriculture

Legislation au F2015L00615 Regulations Not in force Legislative Instrument

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EXPLANATORY STATEMENT

 

SELECT LEGISLATIVE INSTRUMENT No. 54, 2015

 

Issued by Authority of the Minister for Agriculture

 

National Residue Survey (Excise) Levy Act 1998

 

Primary Industries Levies and Charges (National Residue Survey Levies) Amendment (Honey) Regulation 2015

 

Legislative Authority

Section 8 of the National Residue Survey (Excise) Levy Act 1998 (NRS Levy Act) provides that the Governor‑General may make regulations prescribing levies that are duties of excise, the rates of those levies, the person liable to pay those levies and any exemptions from a levy.

 

Subclause 2(5) of Schedule 7 of the NRS Levy Act provides that regulations may exempt a specified class of persons from the National Residue Survey Levy (the levy) for the sale of honey.

 

Part 9 of the Primary Industries Levies and Charges (National Residue Survey Levies) Regulations 1998 (Principal Regulations) provides that levies are imposed on honey and honey export. Excise levies are applied to domestic sales and uses of honey.

 

Purpose

The purpose of the Primary Industries Levies and Charges (National Residue Survey Levies) Amendment (Honey) Regulation 2015 (Amendment Regulation) is to amend the Principal Regulations to introduce a levy exemption for producers who in a financial year have sold (through prescribed sales) or used (in the production of other goods) a total weight of no more than 1500 kilograms of honey.

 

Background

The NRS Levy Act provides, among other things, that the Governor‑General may make regulations prescribing levies and any exemptions from a levy. The NRS Levy Act provides that producers of honey are exempt from having to pay the levy if their retail honey sales are below 600kg in a financial year. When initially implemented in 1963, this threshold was intended to keep the levy cost effective, by not collecting the levy from smaller producers where the cost of collection would exceed the revenue collected.

 

The Australian Honey Bee Industry Council (AHBIC), the peak industry body for honey producers in Australia, submitted a proposal to the Department of Agriculture (the Department) for amendments to the regulations relating to honey levies and charges.

 

Impact and Effect

The AHBIC proposal indicated that a recent rise in collection costs has resulted in an increased number of honey producers whose levy contribution is less than the corresponding collection cost, despite their annual retail sales of honey being greater than 600 kilograms. The Amendment Regulation would raise the threshold for the levy exemption to ensure that the levy is cost effective.

 

The proposal meets the requirements of the Australian Government Levy Principles and Guidelines.

 

Consultation

The amendments have been requested by AHBIC, who consulted with, and received majority support from, actual and potential levy and charge payers.

 

The Department of Treasury has confirmed costings undertaken by the Department for the proposal and that the changes will have no net impact on the Budget.

 

The Department consulted with the Office of Parliamentary Counsel in the drafting of the amendments. The Office of Best Practice Regulation (OBPR) advised that the regulation impact statement (RIS) meets best practice consistent with the Australian Government Guide to Regulation (OBPR reference 17593).

 

The Amendment Regulation is a legislative instrument for the purposes of the Legislative Instruments Act 2003.

 

The Amendment Regulation is 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 the Attachment.

 

Details of the Primary Industries Levies and Charges (National Residue Survey Levies) Amendment (Honey) Regulation 2015

 

Section 1 – Name

This section provides that the name of the Amendment Regulation is the Primary Industries Levies and Charges (National Residue Survey Levies) Amendment (Honey) Regulation 2015.

 

Section 2 – Commencement

This section provides that the Amendment Regulation commences on 1 July 2015.

 

Section 3 – Authority

This section provides that the Amendment Regulation is made under the National Residue Survey (Excise) Levy Act 1998.

 

Section 4 – Schedule

This section provides that the Primary Industries Levies and Charges (National Residue Survey Levies) Regulations 1998 are amended as set out in Schedule 1.

 

Schedule 1 – Amendments

 

Item 1 adds an exemption from the NRS excise levy on honey (in addition to the exemptions prescribed in Schedule 7 to the NRS Levy Act for no more than 600 kilograms of honey) for producers of honey who in a financial year have sold (through prescribed sales) or used in the production of other goods a total weight of no more than 1500 kilograms of honey. The exemption does not apply to honey sales through an intermediary (such as a buying agent).

 

 


Attachment

 

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 (National Residue Survey Levies) Amendment (Honey) Regulation 2015

 

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

This Legislative Instrument amends the Primary Industries Levies and Charges (National Residue Levies) Regulations 1998 and introduces a levy exemption for producers who in a financial year have sold (through prescribed sales) or used (in the production of other goods) a total weight of no more than 1500 kilograms of honey.

 

Human rights implications

This Legislative Instrument does not engage any of the applicable rights or freedoms.

 

Conclusion

This Legislative Instrument is compatible with human rights as it does not raise any human rights issues.

 

 

The Hon. Barnaby Joyce MP

Minister for Agriculture

 

 

Overview

The Primary Industries Levies and Charges (National Residue Survey Levies) Amendment (Honey) Regulation 2015 was enacted to amend the Primary Industries Levies and Charges (National Residue Survey Levies) Regulations 1998 in relation to the National Residue Survey (Excise) Levy Act 1998. This legislative instrument was introduced by the Australian Government in response to a proposal from the Australian Honey Bee Industry Council (AHBIC), which highlighted the financial burden on smaller honey producers due to rising collection costs, despite their annual retail sales exceeding the previous 600 kg threshold for exemption from the National Residue Survey (NRS) excise levy. The policy objective was to ensure the levy remained cost-effective by raising the exemption threshold to 1500 kilograms of honey sold or used in the production of other goods within a financial year. This adjustment aimed to support smaller producers without imposing excessive collection costs on them. The regulation was authorised under Section 8 of the National Residue Survey (Excise) Levy Act 1998, which empowers the Governor-General to prescribe levies and exemptions. The amendment was designed to meet the Australian Government Levy Principles and Guidelines, ensuring it aligns with best regulatory practices as advised by the Office of Best Practice Regulation. The Department of Agriculture, in consultation with relevant stakeholders and the Office of Parliamentary Counsel, drafted the regulation, which has no net impact on the Budget, as confirmed by the Department of Treasury. The regulation commenced on 1 July 2015, providing a practical solution to the financial challenges faced by smaller honey producers while maintaining the integrity and effectiveness of the levy system.

Scope and Application

The Primary Industries Levies and Charges (National Residue Survey Levies) Amendment (Honey) Regulation 2015 applies to honey producers in Australia, specifically those involved in the sale or use of honey in the production of other goods. This legislative instrument amends the Primary Industries Levies and Charges (National Residue Survey Levies) Regulations 1998 to introduce an exemption from the National Residue Survey (NRS) excise levy for honey producers who sell or use no more than 1500 kilograms of honey in a financial year. This amendment, however, does not apply to honey sales conducted through intermediaries such as buying agents. The regulation applies across Australia, with its jurisdiction deriving from the National Residue Survey (Excise) Levy Act 1998. The purpose of this regulation is to address the increased collection costs for smaller producers and ensure the levy remains cost-effective. The regulation does not extend or restrict application through subordinate instruments but rather sets a new threshold for exemption from the levy, aligning with the Australian Government Levy Principles and Guidelines.

Key Provisions

The Primary Industries Levies and Charges (National Residue Survey Levies) Amendment (Honey) Regulation 2015 (Amendment Regulation) primarily introduces a new exemption to the National Residue Survey (NRS) excise levy for honey producers. Specifically, Section 4 of Schedule 1 of the Amendment Regulation adds an exemption for producers who, in a financial year, sell or use through prescribed sales or in the production of other goods, a total weight of no more than 1500 kilograms of honey. This new exemption complements the existing exemption for sales of up to 600 kilograms (as per Schedule 7 of the National Residue Survey (Excise) Levy Act 1998). The Amendment Regulation imposes certain obligations on honey producers to determine their annual sales and usage of honey. Producers must ensure they do not exceed the specified thresholds to qualify for the levy exemption. They are also required to maintain accurate records of their honey sales and usage, particularly distinguishing between sales directly to consumers and sales through intermediaries, which are not eligible for the exemption. Additionally, the regulation mandates that producers report any changes in their production and sales activities to the relevant authorities to ensure compliance with the new exemption criteria. Failure to comply with the provisions of the Amendment Regulation may result in civil or criminal penalties. While the specific penalties are not detailed in the explanatory statement, under the National Residue Survey (Excise) Levy Act 1998, non-compliance with excise levy regulations can lead to civil penalties, including fines up to the greater of $52,500 or three times the amount of the duty or tax evaded. In more serious cases, criminal penalties, including imprisonment, may be imposed. The exact penalties would depend on the nature and extent of the non-compliance, as well as any previous offences. The Amendment Regulation was developed in response to recommendations from the Australian Honey Bee Industry Council (AHBIC) and aims to ensure the levy remains cost-effective by exempting smaller producers from the financial burden of the excise duty. By raising the exemption threshold, the regulation seeks to address the rising costs of collection and ensure that the administrative costs do not outweigh the revenue generated from the levy. The regulation also ensures compatibility with the Australian Government Levy Principles and Guidelines and has been reviewed by the Office of Best Practice Regulation, confirming that it meets best practice standards.

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