EXPLANATORY STATEMENT
STATUTORY RULES 1985 No. 2
Issued by the Authority of the Minister for Primary Industry
TOBACCO CHARGE (No 1) REGULATIONS
The Tobacco Charge Acts (No 1), (No 2), (No 3) 1955 provide for the imposition of a uniform levy on both tobacco growers and tobacco manufacturers for the purpose of funding tobacco research and to meet the costs of the Australian Tobacco Board. The existing rate is 2.5 cents per kilogram.
Under Section 6 of the Tobacco Charge Act (No 1) 1955, the Governor-General is empowered to prescribe a rate of levy not exceeding 6 cents per kilogram.
The Tobacco Charge (No 1) Regulations provide for an increase in the rate of charge to 3.5 cents per kilogram.
The Commonwealth matches levy revenue spent on tobacco research on a $ for $ basis after an amount has been deducted for the annual expenses of the Australian Tobacco Board.
Rising costs and reduced quota deliveries under the current Tobacco Stabilisation Plan prevent the industry from supporting existing research programs at the current rate of levy collection.
The increase in the tobacco levy has been sought by the industry in order to help maintain the current level of tobacco research. The increased charges are to come into effect from 1 February 1985.