Sugar Cane Levy Regulations (Amendment)

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Sugar Cane Levy Regulations (Amendment) 1992 No. 127

EXPLANATORY STATEMENT

STATUTORY RULES 1992 No. 127

Issued by the Authority of the Minister for Primary Industries and Energy

Sugar Cane Levy Act 1987

Sugar Cane Levy Regulations (Amendment)

Subsection 9(1) of the Sugar Cane Levy Act 1987 (the Act) provides that the Governor-General may make regulations for the purposes of the Act.

Section 4 of the Act defines 'sugar industry organisations' and provides for additional organisations to be prescribed for the purposes of this definition.

A rationalisation of the sugar industry organisations listed in Section 4 of the Act has occurred resulting in the establishment of three separate national organisations which are to be prescribed as "sugar industry organisations".

The New South Wales Cane Growers' Association and the Queensland Cane Growers' Association (now known as Canegrowers) are now represented by an umbrella organisation, the Australian Cane Growers' Council Ltd (ACGC). The activities previously carried out by the Co-Operative Sugar Millers' Association, the Proprietary Sugar Millers' Association, and the milling component of the Australian Sugar Producers' Association are now conducted by the Australian Sugar Milling Council Pty Ltd (ASMC). NSW milling interests are represented on the Board of the ASMC. The Australian Cane Farmers Association Ltd (ACFA) was formed to represent growers interests following the breakup of the Australian Sugar Producers Association.

Section 6 of the Act imposes a levy on sugar cane delivered by the grower to another person other than for storage on behalf of the grower.

Section 7 of the Act provides that the rate of levy may be prescribed but shall not exceed $0.10 per tonne.

Subsection 9(2) of the Act provides that before making regulations for the purposes of section 7, the Governor-General shall take into consideration any relevant recommendation arising out of consultations between the Minister and the sugar industry organisations.

The currently prescribed rate of levy under Regulation 3 of the Sugar Cane Levy Regulations is $0.06 per tonne.

Consultations with the Australian Cane Growers' Council Ltd represented by Canegrowers, together with the Australian Sugar Milling Council Pty Ltd and the Australian Cane Farmers Association Ltd, resulted in a submission to the Minister requesting that the rate of levy be increased to $0.10 per tonne, the maximum allowed under the Act, commencing for the 1992-93 season.

Section 30 of the Primary Industries and Energy Research and Development Act 1990 (the PIERD Act) provides for research levy money to be paid to Research and Development Corporations. The sugar research levy has been attached to the Sugar Research and Development Corporation (SRDC) with effect from 1 October 1990.

The Commonwealth Government contributes matching amounts to cover research expenditure recommended by the SRDC and approved by the Minister. In any one financial year the Commonwealth contribution is limited to 0.5 per cent of the gross value of production (GVP). Estimated Commonwealth expenditure for 1992-93 is $3.347 million. Increased funding to meet the estimated Commonwealth matching obligation in 1992-93 resulting from the proposed increased levy has been provided for in the Forward Estimates process.

As the industry's request to increase the levy accords with the Government's objective of encouraging rural industries to increase their contribution for research to 0.5 per cent of the industry's GVP, the minister agrees with the recommendations of Canegrowers on behalf of the ACGC, the ASMC and the ACFA. The increase in the prescribed rate of levy represents an increase from 0.17 per cent to 0.40 per cent of the industry's estimated GVP for 1992-93.

Details of the proposed regulations are set out below:

Regulation 1.1 provides that the Regulations shall commence on 1 June 1992.

Regulation 2.1 provides for the existing regulations to be amended.

Regulation 3 inserts new regulations after Regulation 2 in the existing regulations. Regulation 2A prescribes several sugar industry organisations for the purposes of the definition of "sugar industry organisations" in subsection 4(1) of the Sugar Cane Levy Act 1987.

Regulation 4 provides for Regulation 3 (Prescribed rate of levy) of the existing regulations, to be amended to increase the rate of levy applicable to leviable sugar cane to $0.10 per tonne.

 

Overview

The Sugar Cane Levy Regulations (Amendment) 1992 No. 127 was enacted to rationalise the sugar industry organisations listed under the Sugar Cane Levy Act 1987 and to adjust the levy rate accordingly. The Sugar Cane Levy Act 1987, enacted by the Australian Parliament, was established to impose a levy on sugar cane growers, with the funds collected intended for the support and development of the sugar industry. The 1992 Amendment aimed to reflect the changes in the industry's organisational structure, where the New South Wales Cane Growers' Association and the Queensland Cane Growers' Association became part of the Australian Cane Growers' Council Ltd, and the activities of other associations were taken over by the Australian Sugar Milling Council Pty Ltd. Additionally, the policy objective of the amendment was to increase the levy rate to its maximum allowable limit of $0.10 per tonne, which aligns with the government's goal of increasing industry contributions towards research to 0.5 per cent of the industry's gross value of production.

Scope and Application

The Sugar Cane Levy Regulations (Amendment) 1992 No. 127 applies to the sugar industry in Australia, specifically to the sugar industry organisations as defined in Section 4 of the Sugar Cane Levy Act 1987. The Act imposes a levy on sugar cane delivered by the grower to another person other than for storage on behalf of the grower. The organisations that are subject to this Act include the Australian Cane Growers' Council Ltd, the Australian Sugar Milling Council Pty Ltd, and the Australian Cane Farmers Association Ltd. The Act applies to the entire Commonwealth of Australia and is subject to the consultation process outlined in Section 9 of the Act, which requires the Governor-General to consider recommendations from industry organisations before making regulations. The Act excludes sugar cane that is stored on behalf of the grower, and the rate of the levy is prescribed under the Act but cannot exceed $0.10 per tonne. The Act is amended through subordinate legislation, as seen in the Sugar Cane Levy Regulations (Amendment) 1992 No. 127, which increases the prescribed rate of levy to $0.10 per tonne, effective from 1 June 1992.

Key Provisions

The main operative sections of the Sugar Cane Levy Regulations (Amendment) 1992 No. 127 include Regulation 1.1 which sets the commencement date of the amended regulations as 1 June 1992, Regulation 2.1 which mandates the amendment of existing regulations, and Regulation 3 which inserts new regulations following Regulation 2 in the existing regulations. Regulation 2A prescribes specific sugar industry organisations as defined in subsection 4(1) of the Sugar Cane Levy Act 1987, while Regulation 4 increases the rate of the levy applicable to leviable sugar cane to $0.10 per tonne, aligning with the maximum rate permitted by the Act. The Act imposes several obligations on the parties and entities it governs. It requires the Governor-General to consult with the relevant sugar industry organisations before making any regulations, as stipulated in subsection 9(2). The prescribed organisations must also adhere to the new definitions and structures set forth in the amendments, recognising the Australian Cane Growers' Council Ltd, the Australian Sugar Milling Council Pty Ltd, and the Australian Cane Farmers Association Ltd as the primary representatives of their respective sectors. Additionally, growers and processors must comply with the new levy rate of $0.10 per tonne, effective from the 1992-93 season. In terms of penalties and consequences for breaches, the Act does not explicitly state any criminal or civil penalties for non-compliance with the levy regulations. However, failure to adhere to the prescribed rates or to remit the appropriate levy could potentially lead to financial discrepancies or disputes between the parties involved. The amendments themselves, by increasing the levy, aim to ensure better alignment with the government's research funding objectives and the industry's contributions towards research and development, as supported by the Primary Industries and Energy Research and Development Act 1990. The Commonwealth's matching contributions are also adjusted to accommodate the increased levy, ensuring that the financial obligations and benefits are properly balanced within the industry.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.