EXPLANATORY STATEMENT
STATUTORY RULES 1987 No. 324
Issued by the Authority of the Minister for Primary Industries and Energy
WINE GRAPES LEVY ACT 1979
WINE GRAPES LEVY REGULATIONS (AMENDMENT)
The Wine Grapes Levy Act 1979 empowers the Governor-General to make regulations prescribing the operative rate of the research amount of levy imposed by the Act which is paid by winemakers into the Grape and Wine Research Fund to finance the wine research program administered by the Grape and Wine Research Council. The Act provides that a declared winemakers organisation may make recommendations to the Minister with respect to regulations to be made setting the operative rate of the wine research levy.
The current operative rate of the wine research levy is $1.30 per tonne of the fresh grape equivalent of grapes and grape juice used in the manufacture of wine and the maximum rate set in the Act is $2.
Following consultations between the Grape and Wine Research Council and declared winemaker organisations, the Council suggested that declared winemakers organisations consider options for an increase in the operative rate of levy to maintain continuous and adequate funding for wine research and to establish an adequate level of reserves for this purpose. Each declared winemaker organisation subsequently made recommendations pursuant to the Act.
The Australian Wine and Brandy Producers’ Association Inc and the Australian Winemakers’ Forum Inc both support an increase in the operative rate of levy to $1.50 to take effect from 1 January 1988. However, the Wine and Brandy Co-operative Producers’ Association of Australia Inc, which accounts for about one tenth of wine production and hence a similar proportion of levy payments, does not support an increase in the operative rate of levy at this time.
In view of the support from declared winemakers organisations representing the vast majority of winemakers and levy payments the Minister for Primary Industries and Energy agreed to an increase in the operative rate of the wine research levy of 20 cents from $1.30 to $1.50 to take effect from 1 January 1988. These regulations prescribe the new levy rate of $1.50 to commence on 1 January 1988.