EXPLANATORY STATEMENT
STATUTORY RULES 1990 NO. 233
Issued by the Authority of the Minister for Primary Industries
and Energy
SUGAR CANE LEVY ACT 1987
SUGAR CANE LEVY REGULATIONS
Section 6 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.
Section 7 of the Act provides that the rate of levy shall not exceed $0.10 per tonne.
Subsection 9(1) of the Act provides that the Governor-General may make regulations, not inconsistent with the Act, prescribing all matters required or permitted by the Act to be prescribed or necessary or convenient to be prescribed for carrying out or giving effect to the Act.
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 made to the Minister by the industry organisations, the Australian Cane Growers’ Council (ACGC), the Australian Sugar Milling Council Pty Ltd (ASMC) and the Australian Cane Farmers’ Association Ltd (ACFA).
The currently prescribed rate of levy operative since 1 July 1987 is $0.05 per tonne.
The Queensland Cane Growers’ Council (QCGC) and the New South Wales Cane Growers’ Association (NSWCGA) representing the ACGC, together with the ASMC and the ACFA have, through the Chairman of the Sugar Research Council, presented a submission to the Minister requesting that the rate of levy be increased by $0.01 to $0.06 per tonne commencing at the start of the 1990-91 season.
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% of the industry’s Gross Value of Production (GVP). The increase in the prescribed rate of levy represents an increase from 0.15% to 0.17% of the industry’s estimated GVP for 1990-91.
Section 7 of the Rural Industries Research Act 1985 (the Research Act) provides that sugar cane levy money be paid into the Sugar Research Trust Fund and subsection 9(1) of the Research Act provides that the Sugar Research Committee may approve the payment of money out of that Trust Fund for the purposes of research and development activities in respect of the sugar industry.
The Commonwealth Government contributes matching amounts to cover research expenditure recommended by the Sugar Reseach Council and approved by the Minister.
In any one financial year the Commonwealth contribution is limited to 0.5% of the GVP. Estimated Commonwealth expenditure for 1990-91 is $1.7 million Increased funding to meet estimated Commonwealth matching obligations in 1990-91 resulting from the proposed levy is provided for in the 1990-91 Budget.
The proposed Sugar Cane Levy Regulations to increase the rate of levy to $0.06 per tonne are to apply from 1 August 1990.
Overview
The Sugar Cane Levy Regulations 1990 were introduced under the authority of the Sugar Cane Levy Act 1987, aiming to address the need for increased funding for research and development within the sugar industry. The regulations were enacted by the Parliament of Australia and the relevant legislature, as authorised by the Act, to implement a revised levy rate on sugar cane delivered by growers. The problem these regulations sought to address was the inadequacy of existing funds for research purposes, given the Commonwealth Government's objective of having rural industries contribute more significantly to research efforts, specifically targeting an increase to 0.5% of the industry's Gross Value of Production. By increasing the levy from $0.05 to $0.06 per tonne, the regulations aim to enhance the Sugar Research Trust Fund, facilitating further research activities in the sugar industry.
Scope and Application
The Sugar Cane Levy Act 1987 applies to all growers of sugar cane in Australia who deliver their crop to another person, excluding instances where the delivery is for storage purposes on behalf of the grower. This levy is imposed to fund research and development activities within the sugar industry. The Act applies to the Commonwealth jurisdiction and is enforced through the regulations made under section 9, which includes the authority for the Governor-General to adjust the levy rate based on recommendations from relevant industry organisations. The proposed regulations to increase the levy from $0.05 to $0.06 per tonne, effective from 1 August 1990, are intended to align with the government’s objective of increasing the industry's contribution to research up to 0.5% of the industry’s Gross Value of Production. This adjustment is also supported by matching Commonwealth contributions to research expenditure, as outlined in the Rural Industries Research Act 1985.
Key Provisions
The Sugar Cane Levy Act 1987 imposes a levy on sugar cane growers when they deliver their produce to another party, with the exception of delivering it for storage on behalf of the grower. The levy is currently set at $0.05 per tonne, but this amount is subject to change based on recommendations from relevant industry bodies and the Minister's approval (sections 6 and 7). The Governor-General has the authority to create regulations that align with the Act, and these regulations must take into consideration any recommendations made by the Australian Cane Growers' Council (ACGC), the Australian Sugar Milling Council Pty Ltd (ASMC), and the Australian Cane Farmers' Association Ltd (ACFA) (subsection 9(2)).
Entities and individuals governed by this Act must comply with the imposed levy, which applies to the delivery of sugar cane to any party except for storage purposes. This obligation extends to accurately reporting the amount of sugar cane delivered and the associated levy payments. The Act mandates that the levy money be deposited into the Sugar Research Trust Fund, from which the Sugar Research Committee can approve payments for research and development activities within the sugar industry (subsection 9(1) of the Rural Industries Research Act 1985).
Failure to comply with the provisions of the Sugar Cane Levy Act 1987 may result in legal consequences. While the Act does not explicitly outline specific offences, penalties, or consequences for non-compliance, breaches of similar regulatory frameworks often result in fines or legal action. Given the structure of the Act and its purpose to fund research and development in the sugar industry, penalties could include financial sanctions, legal action, or other enforcement measures deemed appropriate by the relevant authorities. The exact penalties would be determined by the courts based on the nature and severity of the breach.