Sugar Cane Levy Regulations (Amendment) 1992 No. 300
EXPLANATORY STATEMENT
STATUTORY RULES 1992 No. 300
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 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 $0.15 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.
Currently the prescribed rate of levy under Regulation 3 of the Sugar Cane Levy Regulations is $0.10 per tonne.
Consultations with the Australian Cane Growers' Council Ltd (ACGC) represented by Canegrowers, together with the Australian Sugar Milling Council Pty Ltd (ASMC) and the Australian Cane Farmers Association Ltd (ACFA), resulted in a submission to the Minister requesting that the rate of levy be increased to $0.14 per tonne, commencing in 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 cane 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 $3.25 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 0.39 per cent to 0.65 per cent of the industry's estimated GVP for 1992-93.
Details of the proposed regulations are set out below:
Subregulation 1.1 provides that the Regulations shall commence on 1 October 1992.
Subregulation 2.1 provides for the existing regulations to be amended.
Subregulation 3.1 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 $0.14 per tonne.
Overview
The Sugar Cane Levy Regulations (Amendment) 1992 No. 300, issued by the Authority of the Minister for Primary Industries and Energy, amends the existing Sugar Cane Levy Regulations under the Sugar Cane Levy Act 1987. The primary aim of this legislative amendment is to adjust the rate of the sugar cane levy to align with the industry's contribution towards research and development funding, as per the Government's objective. The current rate of levy, set at $0.10 per tonne, is to be increased to $0.14 per tonne, effective from 1 October 1992. This adjustment follows consultations between the Minister and sugar industry organisations, which recommend the increase to support research efforts by the Sugar Research and Development Corporation, with the Commonwealth Government contributing matching funds to cover the research expenditure.
This amendment reflects the policy objective of encouraging rural industries to enhance their research contributions, aligning with the industry's gross value of production. The increased levy rate will contribute to meeting the Commonwealth's matching obligation for research expenditure, supporting the overall goal of fostering agricultural development and innovation.
Scope and Application
The Sugar Cane Levy Regulations (Amendment) 1992 No. 300 applies to the sugar cane industry, specifically to growers, millers, and any other parties involved in the delivery of sugar cane for purposes other than storage on behalf of the grower. The regulations are a direct implementation of the Sugar Cane Levy Act 1987, which imposes a levy on sugar cane delivered by the grower to another person, excluding deliveries for storage purposes. The Act applies on a Commonwealth level, thereby encompassing all activities within Australia’s jurisdiction. The amendment to the regulations increases the rate of levy from $0.10 per tonne to $0.14 per tonne, effective from 1 October 1992. This amendment 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. The increased levy rate is the result of consultations with the Australian Cane Growers' Council Ltd, the Australian Sugar Milling Council Pty Ltd, and the Australian Cane Farmers Association Ltd. The increased levy rate is subject to the consideration and approval processes outlined in the Act, including consultation recommendations and the Minister’s agreement.
Key Provisions
The Sugar Cane Levy Regulations (Amendment) 1992 No. 300 (the Amendment) amends the existing Sugar Cane Levy Regulations, primarily by increasing the prescribed rate of the sugar cane levy (section 3.1). This amendment commences on 1 October 1992 (section 1.1). The increase in the levy rate from $0.10 to $0.14 per tonne aligns with the government's objective to boost industry contributions towards research, reflecting a shift from 0.39 per cent to 0.65 per cent of the industry's estimated gross value of production (GVP) for the 1992-93 season.
Under the Amendment, parties governed by the Sugar Cane Levy Act 1987 are required to adhere to the new levy rate when delivering sugar cane to another person, other than for storage on behalf of the grower (section 6). This obligation extends to ensuring that the new rate is applied accurately to all transactions involving leviable sugar cane. The regulations also impose a requirement on relevant industry bodies to facilitate the transition to the new levy rate and to ensure compliance among growers and other stakeholders.
Failure to comply with the new levy rate or to remit the correct amount of levy as prescribed under the Amendment may result in civil or criminal consequences. While the Amendment does not explicitly outline specific penalties, breaches of the Sugar Cane Levy Act 1987 or its regulations could potentially incur fines or other penalties as prescribed under the Act. Given that the Sugar Cane Levy Act 1987 allows for penalties to be imposed for non-compliance, it is imperative for all parties involved to adhere to the new regulations to avoid any legal repercussions.