Wine Grapes Levy Regulations (Amendment)

Overview

The Wine Grapes Levy Regulations (Amendment) 1991 No. 145 was enacted to amend the existing Wine Grapes Levy Regulations under the Wine Grapes Levy Act 1979. This piece of legislation was introduced to address the need to increase the operational rate of the research amount of the levy to support research and development in the wine industry. The enacting body responsible for this amendment was the authority of the Minister of State for Primary Industries and Energy, with advice from the Executive Council and consideration of recommendations from a declared winemakers organisation. The policy objective of these amendments was to enhance the funding available for research and development activities within the wine industry, thereby supporting its growth and innovation. The increase in the levy rate was supported by the Winemakers' Federation of Australia Incorporated, reflecting a consensus on the need for more substantial investment in industry research.

Scope and Application

The Wine Grapes Levy Regulations (Amendment) 1991 No. 145 pertains to the Wine Grapes Levy Act 1979, which imposes a levy on certain goods used at wineries, specifically fresh grapes, dried grapes, and grape juice. This levy is intended to finance a research scheme for the wine industry, with administrative and organisational arrangements governed under the Rural Industries Research Act 1985. The amendments outlined in this regulation serve to increase the operational rate of the research amount of the levy, with the levy being payable to the Grape and Wine Research and Development Corporation (GWRDC). The amendments apply to the 1992 vintage, raising the levy from $1.50 per tonne to $1.70 per tonne, and for the 1993 vintage, increasing it further to $1.90 per tonne of leviable goods. The Commonwealth has committed to matching industry contributions to the GWRDC dollar for dollar, up to a maximum of 0.5% of the average gross value of wine production for a financial year. This regulation's reach is national, as it operates under the authority of the Commonwealth and affects the entire wine industry within Australia.

Key Provisions

The Wine Grapes Levy Regulations (Amendment) 1991 No. 145 introduce significant changes to the operational rate of the levy imposed on prescribed goods such as fresh grapes, dried grapes, and grape juice used in wineries. Under Section 6(2) of the Wine Grapes Levy Act 1979, the operational rate of the levy, which funds a research scheme for the wine industry, is being increased. Specifically, the amendments raise the levy from $1.50 per tonne to $1.70 per tonne for the 1992 vintage and further to $1.90 per tonne for the 1993 vintage. These amendments are intended to provide more substantial funding for research and development within the industry. Entities governed by these regulations, primarily winemakers and wineries, are required to comply with the increased levy rates as stipulated. The levy is payable to the Grape and Wine Research and Development Corporation (GWRDC) starting from 2 July 1991. This means that from this date, all transactions involving the prescribed goods must account for the new levy rates in their financial records and payments. The regulations also clarify that the Commonwealth will match the industry's expenditure on research and development up to a maximum of 0.5% of the average gross value of wine production for a financial year. In terms of compliance and enforcement, Section 9(6) of the Act stipulates that any regulation made by the Governor-General must be on the advice of the Executive Council. The Executive Council is required to consider any recommendations from declared winemakers' organisations, such as the Winemakers' Federation of Australia Incorporated, which has supported the proposed increases. The amendments are designed to ensure that the research fund remains adequately resourced to support the wine industry's growth and innovation. Failure to comply with the new levy rates can lead to various consequences. While the specific penalties or enforcement actions are not detailed in the provided text, it can be inferred that non-compliance could potentially result in fines or other civil or criminal penalties. The precise nature of these penalties would likely be outlined in the relevant sections of the Wine Grapes Levy Act 1979 or other associated legislation, ensuring that the industry remains compliant and adequately funded for research and development.