Wheat Industry Fund Levy Regulations (Amendment) 1991 No. 268
EXPLANATORY STATEMENT
STATUTORY RULES 1991 No. 268
Issued by the Authority of the Minister of State for Primary Industries and Energy
Wheat Industry Fund Levy Act 1989
Wheat Industry Fund Levy Regulations (Amendment)
The purpose of the Wheat Industry Fund Levy Regulations (Amendment) is to increase the rate of levy on all wheat sold or processed by or on behalf of the grower, under the Wheat Industry Fund Levy Act 1989. The operative rate of levy, which is calculated as a percentage of defined sales value, can be set by regulation between a minimum of 2.25% and a maximum of 5%.
The purpose of the levy is to provide funds for both wheat research through the Grains Research and Development Corporation (GRDC) and for the Wheat Industry Fund (WIF), established under Part 6 of the Wheat Marketing Act 1989. Apportionment of the levy between the GRDC and the WIF is determined by the Grains Council of Australia (GCA) in accordance with Section 85 of the Wheat Marketing Act 1989. Under those provisions at least 2% of the levy rate must be attributed to the WIF and at least 0.25% to the GRDC.
The current rate of levy is 2.77%, of which 0.77% is allocated to research.
The GCA has requested that the operative rate of levy for 1991/92 be set at 3%. The proportion to be attributed to the WIF will remain at 2% while the research component will increase to 1%. This increase is to compensate for the lower than expected levy receipts last year following the marked decline in wheat prices, while at the same time taking account of the financial difficulties facing many wheatgrowers and the capacity of the industry to pay. The increase will take effect from 1 October 1991 to align with the levy collection quarters and thereby minimise collection costs which are borne by the industry. The GCA has agreed to this date of implementation.
Levy paid to the GRDC is matched in the longer term by the Commonwealth, but up to a limit of 0.5% of Gross Value of Production in any one year. The Commonwealth's contribution is expended in accordance with the GRDC's approved annual operational plan. For 1991/92 the Commonwealth's expenditure for wheat is estimated to be $11.7m.
Money in the WIF is used by the Australian Wheat Board (AWB) as an asset base to finance a range of commercial activities such as cash trading in grains. The use and management of WIF monies is determined by the provisions of the Wheat Industry Fund Regulations which give the GCA a controlling role over the use of the Fund and ensure that levy payers hold equity in the WIF and its assets.
Details of the proposed Regulations are attached.
ATTACHMENT
Regulation 1 provides for the regulations to commence on 1 October 1991, which is the start of the Australian Wheat Board's financial year. This date also coincides with the commencement of a levy collection quarter and the start of the bulk of the season's harvest.
Regulation 2 provides for amendment of the Wheat Industry Fund Levy Regulations.
Regulation 3 increases the operative levy rate to 3% of sales value as defined under the Act.
Overview
The Wheat Industry Fund Levy Regulations (Amendment) 1991 No. 268, issued under the authority of the Minister of State for Primary Industries and Energy, amend the Wheat Industry Fund Levy Regulations established by the Wheat Industry Fund Levy Act 1989. This regulatory amendment aims to increase the levy rate on all wheat sold or processed by or on behalf of growers, in order to generate additional funds for wheat research through the Grains Research and Development Corporation and for the Wheat Industry Fund. The Wheat Industry Fund, established under Part 6 of the Wheat Marketing Act 1989, is managed by the Grains Council of Australia, which apportions the levy between research and the fund in accordance with Section 85 of the Wheat Marketing Act 1989. The policy objective is to compensate for lower-than-expected levy receipts due to the decline in wheat prices and to account for the financial difficulties faced by wheatgrowers while considering the industry's capacity to pay. The proposed increase in the levy rate to 3% will take effect from 1 October 1991, aligning with the levy collection quarters and minimising collection costs borne by the industry.
Scope and Application
The Wheat Industry Fund Levy Regulations (Amendment) 1991 No. 268 applies to all wheat growers, processors, and sellers in Australia who are subject to the Wheat Industry Fund Levy Act 1989. The amended regulations affect the entire wheat industry across the Commonwealth, focusing on the financial contributions made towards wheat research and the Wheat Industry Fund. The geographic scope of these regulations is national, impacting all wheat growers and processors regardless of the specific state or territory in which they operate. These regulations do not explicitly exclude any entities or transactions; however, they are designed to impose a levy on the sale or processing of wheat. The new levy rates are established through subordinate instruments, specifically the Wheat Industry Fund Levy Regulations, which were amended by these regulations. The Grains Council of Australia is responsible for determining how the increased levy is apportioned between research and the Wheat Industry Fund.
Key Provisions
The Wheat Industry Fund Levy Regulations (Amendment) 1991 No. 268 introduces changes to the levy rate applicable under the Wheat Industry Fund Levy Act 1989. Regulation 1 sets the commencement date of these amendments as 1 October 1991, aligning with the Australian Wheat Board's financial year and the start of the levy collection quarter, thereby minimizing collection costs (Reg. 1). Regulation 2 modifies the Wheat Industry Fund Levy Regulations to reflect these changes. Regulation 3 specifically increases the operative levy rate to 3% of the defined sales value, up from the previous rate of 2.77% (Reg. 3).
The Act and the amended Regulations impose specific obligations on wheat growers, processors, and other entities involved in the sale or processing of wheat. These obligations include the requirement to pay the increased levy rate, which is calculated as a percentage of the defined sales value of the wheat sold or processed (s. 3, Wheat Industry Fund Levy Act 1989). The levy is to be paid to the Grains Research and Development Corporation (GRDC) and the Wheat Industry Fund (WIF), with the apportionment determined by the Grains Council of Australia (GCA) in accordance with section 85 of the Wheat Marketing Act 1989. The minimum allocation of 2% of the levy rate to the WIF and 0.25% to the GRDC must be maintained (s. 85, Wheat Marketing Act 1989).
Failure to comply with the provisions of the Wheat Industry Fund Levy Regulations can result in civil or criminal penalties. The specific nature of these penalties is not detailed in the provided text, but generally, breaches of regulatory requirements can lead to fines, legal action, or other administrative consequences. The exact penalties would depend on the severity of the breach and the specific provisions of the Wheat Industry Fund Levy Act 1989 and other relevant legislation. The increase in the levy rate aims to ensure adequate funding for wheat research and the Wheat Industry Fund, reflecting the industry's financial capacity and the need for adequate support mechanisms.