Commonwealth of Australia Explanatory Memoranda Commonwealth of Australia Explanatory Memoranda[Index] [Search] [Download] [Bill] [Help]
2019-2020
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
HOUSE OF REPRESENTATIVES
EXCISE LEVIES LEGISLATION AMENDMENT (SHEEP AND LAMB) BILL 2020
CUSTOMS CHARGES AND LEVIES LEGISLATION AMENDMENT
(SHEEP AND LAMB) BILL 2020
EXPLANATORY MEMORANDUM
(Circulated by authority of the Minister for Agriculture, Drought and Emergency
Management, the Hon. David Littleproud MP)
EXCISE LEVIES LEGISLATION AMENDMENT (SHEEP AND LAMB) BILL 2020
CUSTOMS CHARGES AND LEVIES LEGISLATION AMENDMENT
(SHEEP AND LAMB) BILL 2020
GENERAL OUTLINE
The Primary Industries (Excise) Levies Act 1999 and the Primary Industries (Customs)
Charges Act 1999 authorise the imposition of levies and charges on primary producers,
processors and exporters. The National Residue Survey (Excise) Levy Act 1998 and the
National Residue Survey (Customs) Levy Act 1998 authorise the imposition of levies for the
purposes of residue testing.
Primary industry levies and charges are imposed by the Australian Government at the request
of an industry to allow producers, processors and exporters to collectively invest in research
and development (R&D), marketing, animal health, emergency biosecurity response and
residue testing for the benefit of their industry. Levies and charges are collected by the
Department of Agriculture, Water and the Environment and equivalent amounts are disbursed
to a levy recipient body, such as one of the 15 rural research and development corporations.
The Acts currently provide for levies and charges to be imposed on sheep and lamb sale
transactions, slaughter and export, and define sheep and lamb for these purposes. Amounts
equivalent to the levy and charge funds raised through these arrangements are disbursed to
levy recipient bodies Meat and Livestock Australia, the Australian Meat Processor
Corporation, the Australian Livestock Export Corporation Limited, Animal Health Australia,
and the National Residue Survey.
The Excise Levies Legislation Amendment (Sheep and Lamb) Bill 2020 and the Customs
Charges and Levies Legislation Amendment (Sheep and Lamb) Bill 2020 (the Bills) amend
the definition in the Acts to align with the new definition of lamb used for export purposes
and by industry.
The definition of lamb used in Australia for export and industry purposes was changed in July
2019 following a proposal from and extensive consultation undertaken by the sheep and meat
processing sectors.
Sheep Producers Australia (SPA), the national representative organisation for the sheep
industry, and the Australian Meat Industry Council (AMIC), the national representative
organisation for the meat processing sector, conducted comprehensive consultation with
stakeholders over two years on the change to the definition of lamb. This included
engagement with SPA member state farming organisations and a public survey. The public
survey received 509 responses with 83 per cent in support of the new definition of lamb as
well as majority support from state farming bodies.
The new definition of lamb is an ovine animal that is under 12 months of age; or does not
have any permanent incisor teeth in wear. The new definition is designed to bring Australia's
definition in line with our international competitors and provide a definitive signal for
producers about when a sheep is no longer a lamb.
2
The change to the definition of lamb has been given effect through amendments to the Export
Control (Meat and Meat Products) Orders 2005 and changes to the industry's AUSMEAT
trade description language, as well as amendments to state legislation where relevant.
Updating the definition of lamb used for the purposes of imposing levies and charges to align
with the new industry definition reflects the intent of the industry and has the support of
AMIC and SPA. It will provide administrative clarity for levy payers and support compliance
with the levies system, through ensuring consistency across relevant legislation in the
definition of the animal upon which levies and charges are imposed.
FINANCIAL IMPACT STATEMENT
These Bills are estimated to have a nil net financial impact over the forward estimates period.
STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS
The measures in these Bills are compatible with the human rights and freedoms recognised or
declared in the international instruments listed in section 3 of the Human Rights
(Parliamentary Scrutiny) Act 2011.
The full statement of compatibility with human rights for each Bill is attached to this
explanatory memorandum.
3
ACRONYMS, ABBREVIATIONS AND COMMONLY USED TERMS
the Department the Department administered by the Minister
administering the Primary Industries (Excise) Levies Act
1999, the Primary Industries (Customs) Charges Act 1999,
the National Residue Survey (Excise) Levy Act 1998 and
the National Residue Survey (Customs) Levy Act 1998
the Minister the Minister administering the Primary Industries (Excise)
Levies Act 1999, the Primary Industries (Customs)
Charges Act 1999, the National Residue Survey (Excise)
Levy Act 1998 and the National Residue Survey (Customs)
Levy Act 1998
AMIC Australian Meat Industry Council
SPA Sheep Producers Australia
4
Excise Levies Legislation Amendment (Sheep and Lamb) Bill 2020
NOTES ON AMENDMENTS
Preliminary
Clause 1 Short Title
Clause 1 provides for the short title of the Act to be the Excise Levies Legislation Amendment
(Sheep and Lamb) Act 2020.
Clause 2 Commencement
Clause 2 provides for the commencement of each provision in the Act, as set out in the table.
Item 1 in the table provides that the whole of the Act will commence on 1 January 2021.
Deferring commencement until 1 January 2021 is necessary to provide certainty to industry
about the date from which the new definition will apply.
Subclause 2(2) provides that any information in column 3 of the table is not part of the Act. It
also clarifies that information may be inserted in column 3 of the table, or information in it
may be edited, in any published version of the Act.
Clause 3 Schedules
Clause 3 provides that legislation that is specified in a Schedule to the Act is amended or
repealed as set out in the applicable items in the Schedule concerned, and any other item in a
Schedule has effect according to its terms. This is a technical provision to give operational
effect to the amendments contained in the Schedules.
5
Schedule 1--Amendments
National Residue Survey (Excise) Levy Act 1998
Item 1 Subclause 1(1) of Schedule 15
Subclause 1(1) of Schedule 15 to the National Residue Survey (Excise) Levy Act 1998 sets
out the definitions of lamb, sheep and slaughter for the purposes of imposing sheep and lamb
transactions levies that are duties of excise, for the purposes of investment in residue testing.
It defines these terms so that they have the same respective meanings as in Schedule 18 of the
Primary Industries (Excise) Levies Act 1999.
Item 1 repeals subclause 1(1) of Schedule 15 and substitutes it with a new subclause which
defines each of those terms as follows:
'lamb' means an ovine animal that is under 12 months of age; or does not have any
permanent incisor teeth in wear;
'sheep' does not include lambs;
'slaughter' means slaughter at an abattoir for human consumption.
This is to ensure clarity in the application of the new definitions in residue testing legislation.
Primary Industries (Excise) Levies Act 1999
Item 2 Clause 1 of Schedule 17 (definition of lamb)
Clause 1 of Schedule 17 to the Primary Industries (Excise) Levies Act 1999 sets out the
definition of lamb for the purposes of imposing sheep and lamb slaughter levies that are
duties of excise.
Item 2 repeals the definition of lamb and substitutes the following definition: lamb means an
ovine animal that is under 12 months of age; or does not have any permanent incisor teeth in
wear. This is to align the definition of lamb for the purposes of imposing primary industry
levies and charges with the new definition used for export and industry purposes.
Item 2 does not amend the existing definition of sheep. However, as the term sheep is defined
to exclude lambs, the amendment to the definition of lamb may affect which animals come
within that definition.
Item 3 Clause 1 of Schedule 18 (definition of lamb)
Clause 1 of Schedule 18 to the Primary Industries (Excise) Levies Act 1999 sets out the
definition of lamb for the purposes of imposing sheep and lamb transactions levies that are
duties of excise.
Item 3 repeals the definition of lamb and substitutes the following definition: lamb means an
ovine animal that is under 12 months of age; or does not have any permanent incisor teeth in
wear. This is to align the definition of lamb for the purposes of imposing primary industry
levies and charges with the new definition used for export and industry purposes.
6
Item 3 does not amend the existing definition of sheep. However, as the term sheep is defined
to exclude lambs, the amendment to the definition of lamb may affect which animals come
within that definition.
Item 4 Application provisions
Item 4 provides that the amendments made by items 1 and 3 of Schedule 1 apply in relation
to:
a transaction entered into on or after 1 January 2021 by which the ownership of sheep
or lambs is transferred from one person to another;
the delivery on or after 1 January 2021 of sheep or lambs to a processor;
the slaughter by a processor on or after 1 January 2021 of sheep or lambs.
Item 4 also provides that the amendment made by item 2 of Schedule 1 applies in relation to
the slaughter of sheep or lambs on or after 1 January 2021.
7
Customs Charges and Levies Legislation Amendment (Sheep and Lamb) Bill 2020
NOTES ON AMENDMENTS
Preliminary
Clause 1 Short Title
Clause 1 provides for the short title of the Act to be the Customs Charges and Levies
Legislation Amendment (Sheep and Lamb) Act 2020.
Clause 2 Commencement
Clause 2 provides for the commencement of each provision in the Act, as set out in the table.
Item 1 in the table provides that the whole of the Act will commence on 1 January 2021.
Deferring commencement until 1 January 2021 is necessary to provide certainty to industry
about the date from which the new definition will apply.
Subclause 2(2) provides that any information in column 3 of the table is not part of the Act. It
also clarifies that information may be inserted in column 3 of the table, or information in it
may be edited, in any published version of the Act.
Clause 3 Schedules
Clause 3 provides that legislation that is specified in a Schedule to the Act is amended or
repealed as set out in the applicable items in the Schedule concerned, and any other item in a
Schedule has effect according to its terms. This is a technical provision to give operational
effect to the amendments contained in the Schedules.
8
Schedule 1--Amendments
National Residue Survey (Customs) Levy Act 1998
Item 1 Clause 1 of Schedule 5
Clause 1 of Schedule 5 to the National Residue Survey (Customs) Levy Act 1998 sets out the
definitions of sheep and lamb for the purposes of imposing sheep and lamb levies that are
duties of customs, for the purposes of investment in residue testing. It defines these terms so
that they have the same respective meanings as in Schedule 12 to the Primary Industries
(Customs) Charges Act 1999.
Item 1 repeals clause 1 of Schedule 5 and substitutes it with a new clause which defines each
of those terms as follows:
'lamb' means an ovine animal that is under 12 months of age; or does not have any
permanent incisor teeth in wear;
'sheep' does not include lambs.
This is to ensure clarity in application of the new definitions in residue testing legislation.
Primary Industries (Customs) Charges Act 1999
Item 2 Clause 1 of Schedule 11 (definition of lamb)
Clause 1 of Schedule 11 to the Primary Industries (Customs) Charges Act 1999 sets out the
definition of lamb for the purposes of imposing the live-stock (exporters) charge that is a duty
of customs.
Item 2 repeals the definition of lamb and substitutes the following definition: lamb means an
ovine animal that is under 12 months of age; or does not have any permanent incisor teeth in
wear. This is to align the definition of lamb for the purposes of imposing primary industry
levies and charges with the new definition used for export and industry purposes.
Item 2 does not amend the existing definition of sheep. However, as the term sheep is defined
to exclude lambs, the amendment to the definition of lamb may affect which animals come
within that definition.
Item 3 Clause 1 of Schedule 12 (definition of lamb)
Clause 1 of Schedule 12 to the Primary Industries (Customs) Charges Act 1999 sets out the
definition of lamb for the purposes of imposing the live-stock (producers) charge that is a
duty of customs.
Item 3 repeals the definition of lamb and substitutes the following definition: lamb means an
ovine animal that is under 12 months of age; or does not have any permanent incisor teeth in
wear. This is to align the definition of lamb for the purposes of imposing primary industry
levies and charges with the new definition used for export and industry purposes.
Item 3 amends the existing definition of sheep. However, as the term sheep is defined to
exclude lambs, the amendment to the definition of lamb may affect which animals come
within that definition.
Item 4 Application provision
Item 4 provides that the amendments made by Schedule 1 apply in relation to the export of
sheep or lambs from Australia on or after 1 January 2021.
9
STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
EXCISE LEVIES LEGISLATION AMENDMENT (SHEEP AND LAMB) BILL 2020
This Bill is compatible with the human rights and freedoms recognised or declared in the
international instruments listed in section 3 of the Human Rights (Parliamentary
Scrutiny) Act 2011.
Overview of the Bill
The Primary Industries (Excise) Levies Act 1999 and the Primary Industries (Customs)
Charges Act 1999 authorise the imposition of levies and charges on primary producers,
processors and exporters. The National Residue Survey (Excise) Levy Act 1998 and the
National Residue Survey (Customs) Levy Act 1998 authorise the imposition of levies for the
purposes of residue testing.
Primary industry levies and charges are imposed by the Australian Government at the request
of an industry to allow producers, processors and exporters to collectively invest in research
and development (R&D), marketing, animal health, emergency biosecurity response and
residue testing for the benefit of their industry. Levies and charges are collected by the
Department of Agriculture, Water and the Environment and equivalent amounts are disbursed
to a levy recipient body, such as one of the 15 rural research and development corporations.
The Acts currently provide for levies and charges to be imposed on sheep and lamb sale
transactions, slaughter and export, and define sheep and lamb for these purposes. Amounts
equivalent to the levy and charge funds raised through these arrangements are disbursed to
levy recipient bodies Meat and Livestock Australia, the Australian Meat Processor
Corporation, the Australian Livestock Export Corporation Limited, Animal Health Australia,
and the National Residue Survey.
The Excise Levies Legislation Amendment (Sheep and Lamb) Bill 2020 aligns the definition
of lamb for the purposes of imposing sheep and lamb levies that are duties of excise with the
new definition of lamb used for export purposes and by industry.
The definition of lamb used in Australia for export and industry purposes was changed in
July 2019 following a proposal from and extensive consultation undertaken by the sheep and
meat processing sectors.
The new definition of lamb is an ovine animal that is under 12 months of age; or does not
have any permanent incisor teeth in wear. The new definition is designed to bring Australia's
definition in line with our international competitors and provide a definitive signal for
producers about when a sheep is no longer a lamb.
The change to the definition of lamb has been given effect through amendments to the Export
Control (Meat and Meat Products) Orders 2005 and changes to the industry's AUSMEAT
trade description language, as well as amendments to legislation in jurisdictions where
relevant.
Updating the definition of lamb used for the purposes of imposing levies and charges to align
with the new definition reflects the intent of the industry and has the support of the Australian
10
Meat Industry Council and Sheep Producers Australia. It will provide administrative clarity
for levy payers and support compliance with the levies scheme through ensuring consistency
across relevant legislation in the definition of the animal upon which levies and charges are
imposed.
Conclusion
The measures in the Bill are compatible with the human rights and freedoms recognised or
declared in the international instruments listed in section 3 of the Human Rights
(Parliamentary Scrutiny) Act 2011, as the Bill does not engage any human rights issues.
(Circulated by authority of the Minister for Agriculture, Drought and Emergency
Management, the Hon. David Littleproud MP)
11
STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
CUSTOMS CHARGES AND LEVIES LEGISLATION AMENDMENT
(SHEEP AND LAMB) BILL 2020
This Bill is compatible with the human rights and freedoms recognised or declared in the
international instruments listed in section 3 of the Human Rights (Parliamentary
Scrutiny) Act 2011.
Overview of the Bill
The Primary Industries (Excise) Levies Act 1999 and the Primary Industries (Customs)
Charges Act 1999 authorise the imposition of levies and charges on primary producers,
processors and exporters. The National Residue Survey (Excise) Levy Act 1998 and the
National Residue Survey (Customs) Levy Act 1998 authorise the imposition of levies for the
purposes of residue testing.
Primary industry levies and charges are imposed by the Australian Government at the request
of an industry to allow producers, processors and exporters to collectively invest in research
and development (R&D), marketing, animal health, emergency biosecurity response and
residue testing for the benefit of their industry. Levies and charges are collected by the
Department of Agriculture, Water and the Environment and equivalent amounts are disbursed
to a levy recipient body, such as one of the 15 rural research and development corporations.
The Acts currently provide for levies and charges to be imposed on sheep and lamb sale
transactions, slaughter and export, and define sheep and lamb for these purposes. Amounts
equivalent to the levy and charge funds raised through these arrangements are disbursed to
levy recipient bodies Meat and Livestock Australia, the Australian Meat Processor
Corporation, the Australian Livestock Export Corporation Limited, Animal Health Australia,
and the National Residue Survey.
The Customs Charges and Levies Legislation Amendment (Sheep and Lamb) Bill 2020
aligns the definition of lamb for the purposes of imposing sheep and lamb levies that are
duties of customs with the new definition of lamb used for export purposes and by industry.
The definition of lamb used in Australia for export and industry purposes was changed in
July 2019 following a proposal from and extensive consultation undertaken by the sheep and
meat processing sectors.
The new definition of lamb is an ovine animal that is under 12 months of age; or does not
have any permanent incisor teeth in wear. The new definition is designed to bring Australia's
definition in line with our international competitors and provide a definitive signal for
producers about when a sheep is no longer a lamb.
The change to the definition of lamb has been given effect through amendments to the Export
Control (Meat and Meat Products) Orders 2005 and changes to the industry's AUSMEAT
trade description language, as well as amendments to legislation in jurisdictions where
relevant.
12
Updating the definition of lamb used for the purposes of imposing levies and charges to align
with the new definition reflects the intent of the industry and has the support of the Australian
Meat Industry Council and Sheep Producers Australia. It will provide administrative clarity
for levy payers and support compliance with the levies scheme through ensuring consistency
across relevant legislation in the definition of the animal upon which levies and charges are
imposed.
Conclusion
The measures in the Bill are compatible with the human rights and freedoms recognised or
declared in the international instruments listed in section 3 of the Human Rights
(Parliamentary Scrutiny) Act 2011, as the Bill does not engage any human rights issues.
(Circulated by authority of the Minister for Agriculture, Drought and Emergency
Management, the Hon. David Littleproud, MP)
13