Sugar Cane Levy Regulations (Amendment)

Overview

The Sugar Cane Levy Regulations (Amendment) 1995 No. 258 was enacted to address the need for an increased levy rate on sugar cane to better support research and development within the sugar industry. This amendment to the Sugar Cane Levy Act 1987 was introduced in response to recommendations from industry bodies such as the Australian Cane Growers' Council Ltd, the Australian Sugar Milling Council, and the Australian Cane Farmers Association, who collectively sought to elevate the levy rate to $0.15 per tonne. The amendment was authorised by the Minister for Primary Industries and Energy, aligning with the government's policy objective of encouraging rural industries to contribute more significantly to research and development, specifically targeting an industry contribution of 0.5 per cent of the industry's Gross Value of Production. The regulations were designed to facilitate this increased contribution by raising the levy rate and were made under the authority of the Governor-General, taking into consideration consultations with the relevant sugar industry organisations.

Scope and Application

The Sugar Cane Levy Regulations (Amendment) 1995 No. 258 applies to the sugar industry, specifically the growers, millers, and associated industry bodies within Australia. The Act amends the existing Sugar Cane Levy Regulations under the Sugar Cane Levy Act 1987 to increase the rate of the levy on sugar cane from $0.14 to $0.15 per tonne. This change aims to align with the government's objective of increasing the industry's contribution to research and development. The amendment is set to commence on 1 September 1995. The increased levy rate supports the Sugar Research and Development Corporation, which is responsible for allocating funds for research and development within the sugar industry. The Act ensures that the new rate is considered in consultation with relevant sugar industry organisations and aligns with the broader policy of increasing industry contributions to research.

Key Provisions

The Sugar Cane Levy Regulations (Amendment) 1995 No. 258 amends the existing regulations to increase the rate of the sugar cane levy from $0.14 per tonne to $0.15 per tonne, effective from 1 September 1995. This amendment is in response to a request from the Australian Cane Growers' Council Ltd (ACGC), represented by Canegrowers, the Australian Sugar Milling Council (ASMC), and the Australian Cane Farmers Association (ACFA). The new rate aligns with the government’s objective of encouraging the sugar industry to increase its contribution for research to 0.5 per cent of the industry’s gross value of production (GVP). Under the Sugar Cane Levy Act 1987, growers of sugar cane are required to pay a levy on sugar cane delivered to another person, excluding deliveries made for storage on behalf of the grower (section 6). The rate of this levy is prescribed by regulation and must not exceed $0.15 per tonne (section 7). The Sugar Cane Levy Regulations (Amendment) 1995 No. 258 implements this requirement by increasing the prescribed rate to $0.15 per tonne (subregulation 3.1). The regulations also specify that they will come into effect on 1 September 1995 (subregulation 1.1), and that existing regulations will be amended accordingly (subregulation 2.1). The Act imposes several obligations on the parties involved. Growers of sugar cane must ensure that they comply with the new levy rate when delivering sugar cane to another person, as per section 6 of the Sugar Cane Levy Act 1987. The regulations must be adhered to by all parties involved in the delivery and processing of sugar cane. Additionally, the Minister for Primary Industries and Energy must consider recommendations from the sugar industry organisations before making regulations, as per subsection 9(2) of the Act. Failure to comply with these regulations could result in legal consequences. Under the Sugar Cane Levy Act 1987, breaches of the regulations could potentially lead to civil or criminal consequences, though specific offences, penalties, or consequences are not detailed in the explanatory statement. The maximum penalties for breaches of regulations under the Act are not explicitly stated in the document, but they could include fines or other penalties as determined by relevant authorities. The precise penalties would depend on the specific nature of the breach and applicable laws. The government’s commitment to contributing matching funds for research approved by the Minister also underscores the importance of compliance with these levy regulations.