Explanatory Statement
Issued by Authority of the Deputy Prime Minister and Minister for Agriculture and Water Resources
Primary Industries Research and Development Act 1989
Rural Industries Research and Development Corporation Amendment (Thoroughbred Horses) Regulations 2017
The Primary Industries Research and Development Act 1989 (the PIRD Act) provides for the funding and administration of research and development (R&D) and marketing relating to primary industries.
Section 149 of the PIRD Act provides that the Governor‑General may make regulations prescribing matters required or permitted to be prescribed, or necessary or convenient to be prescribed for carrying out or giving effect to the PIRD Act.
The purpose of the Rural Industries Research and Development Corporation Amendment (Thoroughbred Horses) Regulations 2017 (the Regulations) is to attach a statutory levy for thoroughbred horse R&D to the Rural Industries Research and Development Corporation (RIRDC) and to establish obligations on RIRDC to keep relevant accounting records.
The thoroughbred horse industry sought to introduce a statutory levy to help conduct a comprehensive, long‑term R&D program. An R&D program will assist with the ongoing profitability, productivity and competitiveness of the Australian thoroughbred horse industry.
The purpose of the Regulations is to enable any funds raised by the new R&D levy on the thoroughbred industry to be paid to RIRDC so that it can administer the industry’s R&D program. The Regulations also require certain accounting records to be kept by RIRDC regarding the funding of thoroughbred horse industry R&D, to ensure the transparency of RIRDC’s management of the industry’s R&D funds.
Thoroughbred Breeders Australia, the national thoroughbred horse industry representative body, undertook a detailed consultation process on the levy in 2013, including an independent ballot, to consult all known potential levy payers. Sixty-eight per cent of voters supported the introduction of an R&D levy.
The Office of Best Practice Regulation (OBPR) was consulted on the introduction of a thoroughbred horse R&D levy and assessed the Regulation Impact Statement (RIS). On 11 April 2017, OBPR assessed the RIS as compliant with government requirements. The OBPR reference number for this assessment is 21808.
Details of the Regulations are set out in Attachment A.
The Regulations 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 Regulations are a legislative instrument for the purposes of the Legislation Act 2003.
Attachment A
Details of the Rural Industries Research and Development Corporation Amendment (Thoroughbred Horses) Regulations 2017
Section 1 – Name
This section provides that the name of the Regulations is the Rural Industries Research and Development Corporation Amendment (Thoroughbred Horses) Regulations 2017.
Section 2 – Commencement
This section provides for the Regulations to commence on 1 September 2017.
Section 3 – Authority
This section provides that the Regulations are made under the Primary Industries Research and Development Act 1989.
Section 4 – Schedules
This section provides that the Regulations are amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this instrument has effect according to its terms.
Schedule 1 – Amendments
Item 1 inserts a new Division 15 in Part 2 to the Rural Industries Research and Development Corporation Regulations 2000 relating to thoroughbred horses. Notes on the individual clauses are set out below.
Division 15 – Thoroughbred horses levy
49 Definitions
This clause provides for thoroughbred horse to have the same meaning as in clause 14.2 of Part 14 of Schedule 37 to the Primary Industries Levies and Charges Collection Regulations 1991 (Collection Regulations) as amended from time to time. Thoroughbred horse is defined in the Collection Regulations as a mare or a stallion that is recorded in the Australian Stud Book. Clause 49 also defines the thoroughbred horse industry as the part of the primary industry concerned with the breeding of thoroughbred horses.
50 Attachment of levy
This clause attaches the levy to the Rural Industries Research and Development Corporation. The whole of the levy is for research purposes and the thoroughbred horse industry is the primary industry to which the levy relates.
51 Accounting records for the thoroughbred horses levy
This clause provides for certain accounting records relating to the funding of thoroughbred horse industry research and development activities (including funding received from the Commonwealth and other contributions) to be kept separate, in line with section 40 of the Primary Industries Research and Development Act 1989.
Attachment B
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Rural Industries Research and Development Corporation Amendment (Thoroughbred Horses) Regulations 2017
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 Rural Industries Research and Development Corporation Amendment (Thoroughbred Horses) Regulations 2017 is to attach the statutory levy to the Rural Industries Research and Development Corporation (RIRDC) and to establish obligations on RIRDC to keep relevant accounting records.
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
Deputy Prime Minister and Minister for Agriculture and Water Resources