Primary Industries Levies and Charges (National Residue Survey Levies) Amendment Regulations 2001 (No. 3) 2001 No. 218
EXPLANATORY STATEMENT
STATUTORY RULES 2001 No. 218
Issued by the Authority of the Parliamentary Secretary to the Minister for Agriculture, Fisheries and Forestry
Primary Industries (Excise) Levies Act 1999
Primary Industries (Customs) Charges Act 1999
National Residue Survey (Excise) Levy Act 1998
Primary Industries (Excise) Levies Amendment Regulations 2001 (No. 7)
Primary Industries (Customs) Charges Amendment Regulations 2001 (No. 5)
Primary Industries Levies and Charges (National Residue Survey Levies) Amendment Regulations 2001 (No. 3)
Section 8 of the Primary Industries (Excise) Levies Act 1999 [the Excise Act], Section 8 of the Primary Industries (Customs) Charges Act 1999 [the Charges Act] and Section 8 of the National Residue Survey (Excise) Levy Act 1998 [the NRS Act], each provide that the Governor-General may make regulations prescribing matters required or permitted by that Act to be prescribed or necessary or convenient to be prescribed for carrying out or giving effect to that Act.
The following sections of the various schedules to the Excise Act and the Charges Act each require that before making a regulation effecting the respective operative levy or charge rate the Minister must take into consideration any recommendation made to the Minister by the representative industry organisation:
• Section 5 of Schedule 7 to the Excise Act;
• Section 7 to Schedule 8 to the Excise Act;
• Section 5 of Schedule 5 to the Charges Act; and
• Section 5 of Schedule 6 to the Charges Act.
The regulations provide for a reduction in the operative rates of levy and export charge for deer and deer velvet. The new operative rates are:
• Deer slaughter levy: 9.5 cents per kg (down from 15 cents per kg);
• Live Deer export charge: $7.75 per head (down from $10 per head);
• Deer Velvet levy: 3.5% of the sale value of the velvet (down from 5%);
• Deer Velvet export charge: 3.5% of the declared value of the velvet (down from 5%); and
• National Residue Survey (NRS) levy on the slaughter of deer: 1 cent per kg (down from 3 cents per kg).
Following agreement by the Deer Industry Association of Australia, (DIAA), the recognised industry body, and the Australian Deer Industry Group, ninety seven per cent of respondents to a nation wide survey of deer levy payers and potential levy payers voted to reduce the levy rates on deer and deer velvet as above.
A reduction to the operative levy rates does not change their purpose and function and are strongly endorsed by industry. The levies were originally set at higher rates compared to other industries to "kick start" the Rural Research and Development Corporation (RIRDC) research and development (R&D) program for deer and deer velvet, and are no longer supported by the industry at those levels.
In anticipation of the reductions RIRDC has agreed to maintain its current level of R&D funding for deer for the next three years.
The NRS has also agreed to reduce the NRS component of the Deer Slaughter Levy from 3 cents to 1 cent. The NRS implements chemical residue monitoring programs and recovers the costs of the programs from participating industries. These programs form the basis for documentation that enables the Australian Government to certify that raw food products bound for export and domestic consumption are free from significant chemical contamination.
Other than the reduction in the operative rates of levy and charge, there are no policy changes or new requirements for levy payers. The details for each levy or charge now follow a standard format to simplify readability. Similar principles have been used for the National Residue Survey levies.
The regulations commence on 1 October 2001.
Overview
The Primary Industries Levies and Charges (National Residue Survey Levies) Amendment Regulations 2001 (No. 3), enacted in 2001, address the need for adjusting the operative rates of levies and export charges related to deer and deer velvet. This legislative amendment was introduced to reflect the industry's current financial capacity and their endorsement of lower rates, following extensive consultation with the Deer Industry Association of Australia and the Australian Deer Industry Group. Ninety-seven per cent of surveyed levy payers and potential levy payers supported the reduction, which was subsequently agreed upon. The revised rates aim to maintain the industry's support for research and development while ensuring the National Residue Survey's chemical residue monitoring programs remain adequately funded. The enacting body, as per the explanatory statement, was authorised by the Parliamentary Secretary to the Minister for Agriculture, Fisheries and Forestry, aligning with the policy objective of balancing industry needs with regulatory requirements.
Scope and Application
The Primary Industries Levies and Charges (National Residue Survey Levies) Amendment Regulations 2001 (No. 3) applies to the Primary Industries (Excise) Levies Act 1999, Primary Industries (Customs) Charges Act 1999, and the National Residue Survey (Excise) Levy Act 1998. These Acts pertain to the regulation of levies and charges imposed on primary industries, particularly focusing on the National Residue Survey (NRS) levies. The regulations apply to individuals and entities within the deer industry, including producers, processors, and exporters of deer and deer velvet, as well as those subject to the NRS levies. Geographically, the application of these regulations extends across Australia, given the national scope of the Acts they amend. There are no stated exclusions or exemptions in these regulations, but they do reflect thresholds set by the industry through consultation with the Deer Industry Association of Australia and the Australian Deer Industry Group. The regulations may be further extended or restricted through subordinate instruments, in line with the Acts they amend. The amendments reduce the operative rates of certain levies and charges related to deer and deer velvet, aligning with industry recommendations and ensuring the continued support of the Rural Research and Development Corporation for deer industry research and development.
Key Provisions
The Primary Industries Levies and Charges (National Residue Survey Levies) Amendment Regulations 2001 (No. 3) introduce significant changes to the operative rates of levies and export charges for deer and deer velvet. These changes are detailed in Section 3 of the regulations. The new rates are: the deer slaughter levy is reduced to 9.5 cents per kilogram (previously 15 cents per kilogram), the live deer export charge is set at $7.75 per head (previously $10 per head), the deer velvet levy is reduced to 3.5% of the sale value of the velvet (previously 5%), the deer velvet export charge is set at 3.5% of the declared value of the velvet (previously 5%), and the National Residue Survey (NRS) levy on the slaughter of deer is reduced to 1 cent per kilogram (previously 3 cents per kilogram). These reductions follow a recommendation from the Deer Industry Association of Australia (DIAA) and are based on a survey where 97% of respondents voted in favour of the rate reductions.
These regulations impose specific obligations on the parties involved. According to Section 8 of the Primary Industries (Excise) Levies Act 1999, Primary Industries (Customs) Charges Act 1999, and National Residue Survey (Excise) Levy Act 1998, the Minister must consider any recommendations made by the representative industry organisation before making a regulation affecting the operative rates of levies or charges. This ensures that the views of the industry are taken into account before any changes are made. The regulations also require that the new rates be applied from 1 October 2001, which marks the commencement date of the amendments.
There are no specific offences, penalties, or civil/criminal consequences outlined in these regulations for non-compliance with the new levy rates. However, the primary objective of these regulations is to reduce the financial burden on the industry while maintaining the integrity of the Rural Research and Development Corporation (RIRDC) research and development program for deer and deer velvet. The RIRDC has committed to maintaining its current level of R&D funding for deer for the next three years in anticipation of these rate reductions. Similarly, the National Residue Survey (NRS) has agreed to lower its component of the Deer Slaughter Levy, ensuring that the necessary chemical residue monitoring programs continue to operate effectively.