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.
Overview
The Wine Grapes Levy Act 1979, enacted by the Commonwealth Parliament, addresses the need for continuous and adequate funding for research in the Australian wine industry. This Act allows the Governor-General to set the research levy rate, which is paid by winemakers and directed towards the Grape and Wine Research Fund, administered by the Grape and Wine Research Council. The Act aims to ensure that the wine industry has sufficient resources to support research initiatives that enhance the quality, efficiency, and sustainability of wine production. The Wine Grapes Levy Regulations (Amendment) of 1987 were made under the authority of the Minister for Primary Industries and Energy to implement the increased levy rate of $1.50 per tonne of fresh grape equivalent, effective from 1 January 1988, following recommendations from major winemakers' organisations that supported the increase to maintain funding levels for research.
Scope and Application
The Wine Grapes Levy Act 1979 applies to winemakers in Australia, specifically targeting those who use grapes or grape juice in the production of wine, and mandates the payment of a levy into the Grape and Wine Research Fund to finance the wine research program overseen by the Grape and Wine Research Council. The Act facilitates the regulation of the levy rate by the Governor-General, with input from declared winemakers' organisations that can recommend changes to the Minister for Primary Industries and Energy. The geographic reach of this Act is national, as it is a Commonwealth Act, applying uniformly across Australia. The Wine Grapes Levy Regulations (Amendment) Statutory Rules 1987 No. 324, issued under the authority of the Minister, set the new operative rate of the wine research levy at $1.50 per tonne of the fresh grape equivalent, effective from 1 January 1988, following recommendations from winemakers' organisations and approval by the Minister. This increase aims to ensure continuous and adequate funding for wine research, while the Wine and Brandy Co-operative Producers’ Association of Australia Inc opposed the increase, representing a minority of wine production and levy payments.
Key Provisions
The Wine Grapes Levy Act 1979, as amended by the Wine Grapes Levy Regulations (Amendment) Statutory Rules 1987 No. 324, sets out the framework for the imposition of a levy on winemakers. This levy is intended to fund the wine research program, which is administered by the Grape and Wine Research Council. The Act allows the Governor-General to set the operative rate of the levy, with the current rate being $1.30 per tonne of the fresh grape equivalent of grapes and grape juice used in wine production (Section 2). The Act also provides a mechanism for declared winemaker organisations to recommend changes to the Minister for Primary Industries and Energy (Section 3).
The obligations imposed by the Act primarily fall on winemakers who are required to pay the levy into the Grape and Wine Research Fund. This fund is used exclusively for financing the wine research program. The declared winemaker organisations, such as the Australian Wine and Brandy Producers’ Association Inc and the Australian Winemakers’ Forum Inc, have the obligation to consult with the Grape and Wine Research Council and make recommendations to the Minister regarding the operative rate of the levy (Section 4). These organisations must represent the interests of the majority of winemakers and consider the need for adequate funding and reserves for wine research.
Failure to comply with the requirements of the Wine Grapes Levy Act 1979 can lead to civil and criminal consequences. The regulations do not specify particular offences or penalties; however, non-compliance with the Act’s provisions, such as not paying the levy or failing to accurately report grape usage, could result in legal action. The Minister retains the authority to enforce the Act and ensure that the prescribed levy rates are adhered to, which could lead to fines or other penalties as deemed appropriate by the relevant authorities. The exact penalties are not outlined in the explanatory statement, but they are likely to be significant enough to encourage compliance with the levy obligations.