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2019-2020
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
HOUSE OF REPRESENTATIVES
PRIMARY INDUSTRIES (CUSTOMS) CHARGES AMENDMENT (DAIRY CATTLE
EXPORT CHARGE) BILL 2020
EXPLANATORY MEMORANDUM
(Circulated by authority of the Minister for Agriculture, Drought and
Emergency Management, the Hon. David Littleproud MP)
PRIMARY INDUSTRIES (CUSTOMS) CHARGES AMENDMENT (DAIRY CATTLE
EXPORT CHARGE) BILL 2020
GENERAL OUTLINE
The Primary Industries (Customs) Charges Act 1999 (the Act) authorises the imposition of
primary industries charges that are duties of customs. Charges are generally imposed at the
request of an industry to allow primary producers to manage their own investment in research
and development (R&D) and marketing. Each R&D and marketing charge is attached to one
of the 15 rural research and development corporations (RDCs). The Act currently provides for
export charges to be imposed on the export of cattle other than dairy cattle. To enable the
imposition of a statutory Dairy Cattle Export Charge, as requested by industry, amendments
to the Act are required.
The Primary Industries (Customs) Charges Amendment (Dairy Cattle Export Charge) Bill
2020 (the Bill) will make amendments to the Act to provide for the imposition of an export
charge on the export of dairy cattle, and amend the rate provision to provide for two different
rates of charges - a per head charge on dairy cattle and a per kilogram charge on cattle other
than dairy cattle.
In 2006, Australian Livestock Exporters' Council (ALEC) members voted to introduce a
voluntary export charge on dairy cattle, payable to the Australian Livestock Export
Corporation Limited (LiveCorp), as the declared livestock export marketing and research
body, at a rate of $3 per head of dairy cattle exported. The voluntary charge was established
by industry to enable the implementation of the Dairy Cattle Export Program (the Program).
The Program aims to improve R&D specific to dairy cattle exports, focusing on animal health
and welfare; supply chain efficiency and regulatory performance; and market access for dairy
cattle exports. In 2014, ALEC members agreed to increase the voluntary charge to $6 per
head of dairy cattle exported.
Due to the voluntary characteristic of the current export charge on dairy cattle, the existing
export charge is significantly under-collected and not sufficient to meet the R&D and
marketing needs of the dairy cattle export sector. Continued under-collection of the charge
has led to the temporary suspension of the Program.
ALEC, as the peak industry body representing Australia's livestock export sector, requested
the government consider implementing a statutory Dairy Cattle Export Charge. Stakeholder
consultation on a statutory Dairy Cattle Export Charge, of $6 per head of dairy cattle, was
undertaken by ALEC from 31 May to 13 October 2017. In December 2017, ALEC held a
ballot, with the majority of eligible registered voters voting in support of a statutory Dairy
Cattle Export Charge.
At the request of government, ALEC undertook a further six-week objection period with
industry, commencing 5 October and concluding 16 November 2018, to ensure all charge
payers and interested stakeholders had an opportunity to express their views on the
implementation of a statutory Dairy Cattle Export Charge. There were no objections received
to the implementation of the Dairy Cattle Export Charge. The Bill will:
provide for export charges to be imposed on dairy cattle
set the rate of provision on a per head basis on the export of dairy cattle, and
enable the full funding of the Dairy Cattle Export Program, to meet specific R&D and
marketing activities for the dairy cattle export sector.
1
Consultation on the Bill occurred with appropriate Commonwealth agencies, including the
Department of the Prime Minister and Cabinet, the Department of the Treasury, and the
Department of Finance.
FINANCIAL IMPACT STATEMENT
This measure is estimated to have a nil net financial impact over the forward estimates period.
Costs associated with the collection and administration of the Dairy Cattle Export Charge are
to be cost-recovered from industry by the Department of Agriculture, Water and the
Environment.
STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS
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.
The full statement of compatibility with human rights is attached to this explanatory
memorandum.
2
ACRONYMS, ABBREVIATIONS AND COMMONLY USED TERMS
the Act Primary Industries (Customs) Charges Act 1999
ALEC Australian Livestock Exporters' Council
ALEC is a prescribed industry body representing
Australia's livestock export sector under the AMLI Act
the AMLI Act Australian Meat and Live-stock Industry Act 1997
the Department the Department administered by the Minister
administering the Primary Industries (Customs) Charges
Act 1999
LiveCorp Australian Livestock Export Corporation Limited
LiveCorp is a declared livestock export marketing and
research body under the AMLI Act
the Minister the Minister administering the Primary Industries
(Customs) Charges Act 1999
MLA Meat and Livestock Australia Limited
MLA is a declared industry marketing and research body
under the AMLI Act
the Privacy Act Privacy Act 1988
R&D research and development
RDC rural research and development corporation
the Secretary the Secretary of the Department administered by
the Minister administering the Primary Industries
(Customs) Charges Act 1999
3
NOTES ON AMENDMENTS
Preliminary
Clause 1 Short Title
Clause 1 provides for the short title of the Act to be the Primary Industries (Customs)
Charges Amendment (Dairy Cattle Export Charge) 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 clauses 1, 2 and 3, which concern the formal aspects of
the Act, as well as anything in the Act not elsewhere covered by the table, will commence on
the day on which the Act receives the Royal Assent.
Item 2 in the table provides that Schedule 1 to the Act will commence on a single day to be
fixed by Proclamation. However, if any of the proposed provisions do not commence within
the period of 6 months beginning on the day the Act receives the Royal Assent, then they will
commence on the day after the end of that period. Deferring commencement of Schedule 1 to
the Act is necessary to enable the commencement of the Act to align with amendments to the
regulations.
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.
4
Schedule 1--Amendments
Overview
Schedule 1 to the Bill will amend the Act to impose an export charge on dairy cattle and
provide for the rate of that charge.
Primary Industries (Customs) Charges Act 1999
Item 1 After subclause 2(1) of Schedule 2
Item 1 amends Schedule 2 to the Act to insert subclause 2(1A) to state that a charge on the
export of dairy cattle from Australia is imposed on commencement of the subclause.
Subclause 2(1) of Schedule 2 to the Act currently imposes export charges on the export of
cattle other than dairy cattle. Item 1 inserts new subclause 2(1A) to impose an export charge
on dairy cattle and provides that the export charge on dairy cattle will be imposed from the
commencement of the subclause.
Item 2 Subclause 3(1) of Schedule 2
Item 2 omits reference to 'the following amounts per kilogram of cattle so exported' from
subclause 3(1) of Schedule 2.
Subclause 3(1) of Schedule 2 to the Act currently only provides for a rate of charge on cattle
on a per kilogram basis. This item amends that subclause to permit a rate of charge to be set
other than on a per kilogram of cattle basis.
Item 2 is necessary to facilitate the amendments made by item 3 below, to allow for two rate
provisions - one for cattle other than dairy cattle and one for dairy cattle.
Item 3 Paragraphs 3(1)(a) and (b) of Schedule 2
Item 3 amends Schedule 2 to the Act to repeal paragraphs 3(1)(a) and (b) and substitute new
paragraphs providing for regulations to prescribe the rate of charge on the export of cattle
other than dairy cattle and dairy cattle.
Paragraphs 3(1)(a) and (b) of Schedule 2 to the Act currently provide for regulations to be
made which prescribe the rate of charge on the export of cattle other than dairy cattle.
This item amends these paragraphs to enable the regulations to also prescribe the rate of
charge on the export of dairy cattle as well.
The prescribed amount of charge in paragraphs 3(1)(a) and (b) are ultimately paid to the
livestock export marketing body and the livestock export research body through paragraphs
64A(1)(a) and 64B(1)(a) of the Australian Meat and Live-stock Industry Act 1997. At
present, the Australian Livestock Export Corporation Limited is the declared livestock export
marketing and research body.
Item 3 is consequential to the amendments made by item 1 above, which imposes an export
charge on dairy cattle. It is necessary to amend paragraphs 3(1)(a) and (b) of the Act to reflect
that there are two rate provisions - one for cattle and one for dairy cattle.
5
Item 4 Subclause 5(1) of Schedule 2
Item 4 omits reference to the repealed paragraphs 3(1)(a) and (b) and substitutes with
reference to the new subparagraphs 3(1)(a)(i) or (ii) and 3(1)(b)(i) or (ii).
Subclause 5(1) of Schedule 2 to the Act currently provides that the Minister may declare a
body whose recommendations must be taken into consideration in relation to regulations
made under paragraphs 3(1)(a) and 3(1)(b) which prescribe a rate of charges on the export of
cattle.
Item 4 is consequential to the amendments made by items 2 and 3 above, which amend
paragraphs 3(1)(a) and (b) of Schedule 2 to insert subparagraphs to these paragraphs. Those
amendments enable the regulations to also prescribe the rate of charge for the export of dairy
cattle while retaining the current power to prescribe the rate of charge for the export of cattle
other than dairy cattle to be retained.
Item 5 Subclause 5(2) of Schedule 2
Item 5 omits references to paragraph and substitutes references to subparagraph. This is a
technical amendment consequential to item 4.
Item 6 Subclause 5(3) of Schedule 2
Item 6 omits reference to the repealed paragraphs 3(1)(a) and (b) and substitutes with
reference to the new subparagraphs 3(1)(a)(i) or (ii) and 3(1)(b)(i) or (ii).
Subclause 5(3) of Schedule 2 to the Act currently requires the Minister, in the absence of a
declared body, to take into account recommendations from the livestock export marketing
body and the livestock export research body in relation to regulations which prescribe a rate
of marketing and R&D charges (respectively) on exported cattle.
Item 6 is consequential to the amendments made by items 2 and 3 above, which amend
paragraphs 3(1)(a) and (b) of Schedule 2 to insert subparagraphs to these paragraphs. Those
amendments enable the regulations to also prescribe the rate of charge for the export of dairy
cattle while retaining the current power to prescribe the rate of charge for the export of cattle
other than dairy cattle to be retained.
Item 7 Paragraph 5(3)(a) of Schedule 2
Item 7 omits the reference to paragraph 3(1)(a) and substitutes it for a reference to
subparagraph 3(1)(a)(i) or (ii). This is a technical amendment consequential to item 6.
Item 8 Paragraph 5(3)(b) of Schedule 2
Item 8 omits the reference to paragraph 3(1)(b) and substitutes it for a reference to
subparagraph 3(1)(b)(i) or (ii). This is a technical amendment consequential to item 6.
Item 9 Subclause 5(5) of Schedule 2
Item 9 omits reference to the repealed paragraphs 3(1)(a) and (b) and substitutes with
reference to the new subparagraphs 3(1)(a)(i) or (ii) and 3(1)(b)(i) or (ii).
Subclause 5(5) of Schedule 2 to the Act currently prevents the regulations from prescribing a
charge rate for marketing and R&D for exported cattle that is higher than the rate
recommended by a declared body, or in the absence of a declared body, the livestock export
marketing body or the livestock export research body.
6
Item 9 is consequential to the amendments made by items 2 and 3 above, which amend
paragraphs 3(1)(a) and (b) of Schedule 2 to insert subparagraphs to these paragraphs. Those
amendments enable the regulations to also prescribe the rate of charge for the export of dairy
cattle while retaining the current power to prescribe the rate of charge for the export of cattle
other than dairy cattle to be retained.
Item 10 Subclause 5(5) of Schedule 2
Item 10 omits the reference to "that paragraph" and substitutes it for a reference to "that
subparagraph". This is a technical amendment consequential to item 9.
7
STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
Primary Industries (Customs) Charges Amendment (Dairy Cattle Export Charge)
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.
Overview of the Bill
The Primary Industries (Customs) Charges Act 1999 (the Act) authorises the imposition of
primary industries charges that are duties of customs. Charges are generally imposed at the
request of an industry to allow primary producers to manage their own investment in research
and development (R&D) and marketing. Each R&D and marketing charge is attached to one
of the 15 rural research and development corporations (RDCs). The Act currently provides
for export charges to be imposed on the export of cattle other than dairy cattle. To enable the
imposition of a statutory Dairy Cattle Export Charge, as requested by industry, amendments
to the Act are required.
The Primary Industries (Customs) Charges Amendment (Dairy Cattle Export Charge) Bill
2020 (the Bill) will make amendments to the Act to provide for the imposition of an export
charge on the export of dairy cattle, and amend the rate provision to provide for two different
rates of charges - a per head charge on dairy cattle and a per kilogram charge on cattle other
than dairy cattle.
In 2006, Australian Livestock Exporters' Council (ALEC) members voted to introduce a
voluntary export charge on dairy cattle, payable to the Australian Livestock Export
Corporation Limited (LiveCorp), as the declared livestock export marketing and research
body, at a rate of $3 per head of dairy cattle exported. The voluntary charge was established
to enable the implementation of the Dairy Cattle Export Program (the Program). The Program
aims to improve R&D specific to dairy cattle exports, focusing on animal health and welfare;
supply chain efficiency and regulatory performance; and market access for dairy cattle
exports. In 2014, ALEC members agreed to increase the voluntary charge to $6 per head of
dairy cattle exported.
Due to the voluntary characteristic of the current export charge on dairy cattle, the existing
export charge is significantly under-collected and is not sufficient to meet the R&D and
marketing needs of the dairy cattle export sector. Continued under-collection of the charge
has led to the temporary suspension of the Program.
ALEC, as the peak industry body representing Australia's livestock export sector, requested
the government consider implementing a statutory Dairy Cattle Export Charge. Stakeholder
consultation on a statutory Dairy Cattle Export Charge, of $6 per head of dairy cattle, was
undertaken by ALEC from 31 May to 13 October 2017. In December 2017, ALEC held a
ballot, with the majority of eligible registered voters voting in support of a statutory Dairy
Cattle Export Charge.
At the request of government, ALEC undertook a further six-week objection period with
industry, commencing 5 October and concluding 16 November 2018, to ensure all charge
payers and interested stakeholders had an opportunity to express their views on the
8
implementation of a statutory Dairy Cattle Export Charge. There were no objections received
to the implementation of the Dairy Cattle Export Charge.
The Bill will:
provide for export charges to be imposed on dairy cattle
set the rate of provision on a per head basis on the export of dairy cattle, and
enable the full funding of the Dairy Cattle Export Program, to meet specific R&D and
marketing activities for the dairy cattle export sector.
Consultation on the Bill occurred with appropriate Commonwealth agencies, including the
Department of the Prime Minister and Cabinet, the Department of the Treasury, and the
Department of Finance.
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, 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)
9