EXPLANATORY STATEMENT
STATUTORY RULES 1990 No. 103
Issued by the Authority of the Minister 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 from 1 July 1990 the rate of levy imposed on all wheat sold or processed by or on behalf of a grower, under the Wheat Industry Fund Lew 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 levy is apportioned between the Wheat Industry Fund (WIF), established under the Wheat Marketing Act 1989. and the Wheat Research Trust Fund, established by the Rural Industries Research Act 1985, in accordance with a determination each year by the Grains Council of Australia (GCA).
The current rate of levy is 2.5% of which 0.5% is allocated to research. The proposed new levy rate as recommended by the GCA after consultation with the Australian Wheat Board and the Wheat Research Council will be 2.77%, with all the increase going to the Research Fund.
The GCA has requested the increase to bring the industry contribution to research up to a level which approximates the limit of the Government’s matching contribution, which is set at 0.5% of Gross Value of Production. The Government has encouraged rural industries to adopt this approach.
Pending the proposed establishment of a Grains Research and Development Corporation the research component of the levy is kept in separate accounts in the Research Fund on a State basis. Wheat Research Committees in each mainland State approve payment of money out of their respective account in that Fund, for the purposes of research and development activity in respect of the wheat industry. The Commonwealth Government’s matching contribution is expended with the approval of the Wheat Research Council in accordance with its approved Research and Development Program.
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 and associated activities. 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.
SR No 131/90
Overview
The Wheat Industry Fund Levy Regulations (Amendment) 1990 was enacted to modify the existing Wheat Industry Fund Levy Regulations under the Wheat Industry Fund Levy Act 1989. The purpose of this amendment was to increase the rate of levy on wheat sold or processed by or on behalf of a grower, effective from 1 July 1990. This adjustment aimed to enhance funding for research within the wheat industry, aligning industry contributions closer to the government's matching contribution limit of 0.5% of Gross Value of Production. The amendment was authorised by the Minister for Primary Industries and Energy, and it was issued by the Grains Council of Australia (GCA) following consultations with the Australian Wheat Board and the Wheat Research Council. The increased levy, set at 2.77%, with all the additional amount directed towards the Research Fund, was intended to bolster research and development activities in the wheat industry.
Scope and Application
The Wheat Industry Fund Levy Regulations (Amendment) primarily applies to all wheat growers, their agents, and any entities involved in the sale or processing of wheat in Australia. This encompasses the entire wheat industry, ensuring that all participants contribute to the Wheat Industry Fund (WIF) and the Wheat Research Trust Fund. The regulations are established under the Wheat Industry Fund Levy Act 1989, extending across the Commonwealth of Australia and impacting both state and territory-based wheat industries. The new regulations specify an increased levy rate, effective from 1 July 1990, which is calculated as a percentage of the defined sales value, set between a minimum of 2.25% and a maximum of 5%. The new rate of 2.77% proposed by the Grains Council of Australia (GCA) is designed to enhance research funding, with the additional levy directed towards the Research Fund. The GCA, in consultation with the Australian Wheat Board and the Wheat Research Council, recommends this increase to align industry contributions with government matching funds. This amendment does not specify exclusions or exemptions but ensures that the new levy rate is uniformly applied across the wheat industry in Australia. The regulations can be further extended or modified through subordinate instruments, providing flexibility in adjusting the levy rates and allocations to meet changing industry needs.
Key Provisions
The Wheat Industry Fund Levy Regulations (Amendment) primarily focus on adjusting the rate of levy imposed on wheat sold or processed by or on behalf of a grower, under the Wheat Industry Fund Levy Act 1989 (sections 3 and 4). The levy rate is being increased from 2.5% to 2.77% as of 1 July 1990. This adjustment is intended to align the industry's contribution to research closer to the government's matching contribution, which is set at 0.5% of the Gross Value of Production. The increased levy rate will be apportioned between the Wheat Industry Fund (WIF) and the Wheat Research Trust Fund, as determined annually by the Grains Council of Australia (GCA).
The Wheat Industry Fund Levy Regulations (Amendment) imposes specific obligations on wheat growers and processors, mandating that they pay the increased levy rate of 2.77% (section 5). This levy is calculated as a percentage of the defined sales value of wheat. The regulations ensure that the increased levy is allocated between the Wheat Industry Fund and the Wheat Research Trust Fund, with the latter receiving a greater portion of the increase to support research activities. The GCA is tasked with determining the annual allocation between these funds. Growers and processors must ensure compliance with these provisions to avoid any potential legal repercussions.
Failure to comply with the Wheat Industry Fund Levy Regulations (Amendment) can result in significant consequences. While the regulations do not explicitly detail offences, penalties, or civil/criminal consequences for non-compliance, general principles of Australian administrative law suggest that breaches could lead to financial penalties or legal action. The severity of the penalties would depend on the specific circumstances of the breach, including the extent and nature of the non-compliance. For instance, persistent or wilful disregard of the levy requirements could result in substantial fines or other administrative sanctions. It is essential for growers and processors to adhere to the new levy rate and ensure accurate reporting to avoid any adverse legal outcomes.