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1998-99
THE PARLIAMENT
OF THE COMMONWEALTH OF AUSTRALIA
HOUSE
OF REPRESENTATIVES
PRIMARY
INDUSTRIES (EXCISE) LEVIES BILL
1998
SUPPLEMENTARY EXPLANATORY
MEMORANDUM
AND CORRECTIONS
AMENDMENTS
TO BE MOVED ON BEHALF OF THE
GOVERNMENT
(Circulated by authority of the
Minister for Agriculture, Fisheries and Forestry,
the Hon Mark Vaile,
MP)
ISBN: 0642 390215
PRIMARY INDUSTRIES (EXCISE) LEVIES BILL 1998
GENERAL OUTLINE
This explanatory memorandum relates to amendments to the Primary
Industries (Excise) Levies Bill 1998 requested by industry and corrections
to the original explanatory memorandum tabled in December 1998.
FINANCIAL IMPACT STATEMENT
There are no immediate financial implications for the Commonwealth, other than the savings involved when changes need to be made, unless and until new levies are imposed under this Act, as a result of these amendments and corrections.
AMENDMENTS
NOTES ON CLAUSES
Amendment 1: - Schedule 4 (coarse
grains), page 17 (lines 11 to 22)
This amendment amends the
definition of growers’ organisation for the purpose of this
Schedule.
The amendment provides that the manner in which
‘growers’ organisation’ is defined for coarse grains will be
consistent with similar definitions for wheat, grain legumes, oilseeds and
pasture seeds. The amendment does not alter the present arrangements under
which the Grains Council of Australia (GCA) is the growers’ organisation
in respect of all coarse grains except triticale. For triticale the defined
growers’ organisation continues to be the Triticale Grain Association of
Australia.
Amendment 2: - Schedule 4 (coarse grains), page 17 (line
24)
This amendment amends the definition of leviable
amount for the purpose of this Schedule.
The amendment reduces
the annual levy liability threshold from $50 to $25, below which levy on coarse
grains is not imposed in accordance with subclauses 5(2) and 5(4) of this
Schedule. The amendment, which has been agreed to by the relevant
growers’ organisations, will maintain consistency with other grain
industry definitions, particularly for wheat growers, regarding the level of
production below which an enterprise is not considered to be a commercial
operation.
Amendment 3: - Schedule 4 (coarse grains), page 20 (line
26)
This amendment amends the maximum levy rate imposed on oats,
cereal rye, barley and triticale and any other leviable coarse grain added to
the scheme by regulations.
The amendment reduces the maximum rate of levy
which can be prescribed for oats, cereal rye, barley or triticale, from 5% to 3%
of the sale value of the grain. The same maximum levy rate is to apply to all
other leviable coarse grains (See Amendment 4). The current maximum figure of 5%
in the legislation is an anomaly which arose when the levy for coarse grains was
changed to an ad valorem value. The amendment, which has been agreed to by the
relevant growers’ organisations, means that the maximum rate of levy on
coarse grains for research purposes will be consistent with the maximum for
other commodities which fund the Grains Research and Development Corporation.
The operative rates of levy for the various coarse grains are not altered by
this amendment.
Amendment 4: - Schedule 4 (coarse grains), page 20
(line 30)
This amendment amends the maximum levy rate imposed on any
other leviable coarse grain added to the scheme by regulations.
The
amendment provides that the maximum rate of levy for those grains which are
prescribed as ‘leviable coarse grains’ under Clause 1 of this
Schedule will be the same as the maximum rate set for oats, cereal rye, barley
and triticale by subclause 6(1) ie 3% of the sale value (See Amendment
3).
Amendment 5: - Schedule 9 (dried fruits), page 44 (lines 10 and
11)
This amendment amends the definition of dried vine
fruits for the purpose of this Schedule.
The amendment is
intended to provide for new grape varieties and existing tablegrape varieties
which are increasingly being dried, processed and marketed.
Amendment
6: - Schedule 9 (dried fruits), page 44 (lines 13 and 18)
This
amendment amends the definition of R&D authority for the
purpose of this Schedule by repealing paragraph A of the definition. The
paragraph is redundant because the Rural Industries Research Act 1985 was
repealed by the Primary Industries and Energy Legislation Amendment Act (No.
2) 1996.
Amendment 7: - Schedule 9 (dried fruits), page 45 (line
21)
This amendment amends the maximum levy rate imposed on dried vine
fruits.
The amendment is required because the research levy is currently
operating at its maximum level and therefore provides little scope for
increase.
By increasing the maximum rate at this time it allows the
operative rate to be increased without the need for further amendment to this
legislation in the foreseeable future. It should be noted that any operative
rate increase will be through regulatory change and thus subject to scrutiny by
Parliament.
Amendment 8: - Schedule 9 (dried fruits), page 45 (line
22)
This amendment amends the maximum levy rate imposed on dried tree
fruits.
The amendment is required because the research levy is currently
operating at its maximum level and therefore provides little scope for
increase.
By increasing the maximum rate at this time it allows the
operative rate to be increased without the need for further amendment to this
legislation in the foreseeable future. It should be noted that any operative
rate increase will be through regulatory change and thus subject to scrutiny by
Parliament.
Amendment 9: - Schedule 12 (grain legumes), page 53 (line
11)
This amendment amends the definition of leviable
amount for the purpose of this Schedule.
The amendment reduces
the annual levy liability threshold from $50 to $25, below which levy on grain
legumes is not imposed in accordance with subclauses 5(3) and 5(5) of this
Schedule. The amendment, which has been agreed to by the relevant growers’
organisation, will maintain consistency with other grain industry definitions,
particularly for wheat growers, regarding the level of production below which an
enterprise is not considered to be a commercial
operation.
Amendment 10: - Schedule 13 (grapes), page 58
(lines 17 to 22)
This amendment amends the definition of
representative organisation for the purpose of this
Schedule.
The amendment is required because the Rural Industries
Research Act 1985 was repealed by the Primary Industries and Energy
Legislation Amendment (No. 2) Act 1996.
Amendment 11: - Schedule
14 (honey), page 62 (lines 9 and 10)
This amendment amends the
definition of producers’ organisation for the purpose of
this Schedule.
The amendment is required because the Federal Council of
Australian Apiarists’ Associations (FCAAA) has been replaced as the
industry’s representative body by the Australian Honey Bee Industry
Council (AHBIC).
Amendment 12: - Schedule 14 (honey), page 62 (lines
14 to 19)
This amendment amends the definition of R&D
authority for the purpose of this Schedule by repealing paragraph A of
the definition. The paragraph is redundant because the Rural Industries
Research Act 1985 was repealed by the Primary Industries and Energy
Legislation Amendment Act (No. 2) 1996.
Amendment 13: - Schedule
14 (honey), page 64 (line 23)
This amendment amends the operative
rate for the marketing component imposed on the sale of honey.
The
amendment is required to reflect changes in the honey industry. The industry
has not sought collection of the marketing component since it ended marketing
arrangements with the Australian Horticultural Corporation and the operative
rates for the marketing components have been set at zero since 23 November 1995
by Statutory Rules 1995 No 353. Whilst it is nil at present the industry
wishes to retain the potential to introduce it at a future time.
Amendment 14: - Schedule 14 (honey), page 64 (line
27)
This amendment amends the operative rate for the research
component imposed on the sale of honey.
The amendment is required to
reflect the fact that the operative rate for the research component has been set
at 0.75 cents per kilogram since 25 June 1998 by Statutory Rules 1998 No
145.
Amendment 15: - Schedule 14 (honey), page 64 (line
28)
This amendment amends the maximum rate for the research component
imposed on the sale of honey.
The amendment is required because the
research component is currently operating at its maximum level and therefore
provides little scope for increase.
By increasing the maximum rate at
this time it allows the operative rate to be increased without the need for
further amendment to this legislation in the foreseeable future. It should be
noted that any operative rate increase will be through regulatory change and
thus subject to scrutiny by Parliament.
Amendment 16: - Schedule 14
(honey), page 65 (line 1)
This amendment amends the operative rate
for the marketing component imposed on honey used in the production of other
goods.
The amendment is required to reflect changes in the honey
industry. The industry has not sought collection of the marketing component
since it ended marketing arrangements with the Australian Horticultural
Corporation and the operative rates for the marketing components have been set
at zero since 23 November 1995 by Statutory Rules 1995 No 353. Whilst it is
nil at present the industry wishes to retain the potential to introduce it at a
future time.
Amendment 17: - Schedule 14 (honey), page 65 (line
5)
This amendment amends the operative rate for the research
component imposed on honey used in the production of other goods.
The
amendment is required to reflect the fact that the operative rate for the
research component has been set at 0.75 cents per kilogram since 25 June 1998 by
Statutory Rules 1998 No 145.
Amendment 18: - Schedule 14 (honey),
page 65 (line 6)
This amendment amends the maximum rate for the
research component imposed on honey used in the production of other
goods.
The amendment is required because the research component is
currently operating at its maximum level and therefore provides little scope for
increase.
By increasing the maximum rate at this time it allows the
operative rate to be increased without the need for further amendment to this
legislation in the foreseeable future. It should be noted that any operative
rate increase will be through regulatory change and thus subject to scrutiny by
Parliament.
Amendment 19: - Schedule 16 (laying chickens), page 75
(line 14)
This amendment amends the definition of who is liable to
pay the levy.
The amendment is required to reflect the fact that the
hatchery is responsible for payment of the levy.
Amendment 20: -
Schedule 19 (meat chickens), page 87 (lines 14 to 19)
This amendment
amends the definition of R&D authority for the purpose of this
Schedule by repealing paragraph A of the definition. The paragraph is redundant
because the Rural Industries Research Act 1985 was repealed by the
Primary Industries and Energy Legislation Amendment Act (No. 2)
1996.
Amendment 21: - Schedule 19 (meat chickens), page 88
(lines 3 to 10)
This amendment amends the definition of certain
chickens as being meat chickens for the purposes of this
Schedule.
The amendment is required as the definition is no longer
relevant because of the separate development of the chicken meat and egg
industries since the Meat Chicken Levy Act 1969.
Amendment 22:
- Schedule 19 (meat chickens), page 89 (line 17)
This amendment is
required to reflect the fact that the Australian Chicken Meat Federation has
been incorporated under the Associations Incorporation Act 1984 (NSW)
since 8 May 1997.
Amendment 23: - Schedule 19 (meat chickens), page 89
(line 22)
This amendment is required to reflect the fact that the
Australian Chicken Meat Federation has been incorporated under the
Associations Incorporation Act 1984 (NSW) since 8 May
1997.
Amendment 24: - Schedule 20 (oilseeds), page 91 (line
11)
This amendment amends the definition of leviable
amount for the purpose of this Schedule.
The amendment reduces
the annual levy liability threshold from $50 to $25, below which levy on
oilseeds is not imposed in accordance with subclauses 6(4) and 6(6) of this
Schedule. The amendment, which has been agreed to by the relevant growers’
organisation, will maintain consistency with other grain industry definitions,
particularly for wheat growers, regarding the level of production below which an
enterprise is not considered to be a commercial operation.
Amendment
25: - Schedule 21 (pasture seeds), page 96 (before line 7)
This
amendment inserts the definition of growers’ organisation
for the purpose of this Schedule.
The amendment corrects an anomaly so
that the growers’ organisation referred to in sub clause 5(3) of this
Schedule for the purposes of recommending changes to pasture seed levy
arrangements, will now be defined. The Grains Council of Australia (GCA)
through its Seeds Committee, is currently the peak industry body representing
seed growers. The definition provides that another body could be prescribed as
the grower organisation if, for example, the GCA changed its name or structure,
or was no longer the body to represent seed producers.
Amendment 26: -
Schedule 21 (pasture seeds), page 96 (line 7)
This amendment omits
reference to specified cultivars for the purpose of this
Schedule.
This is a consequential amendment following the removal of
references to ‘cultivars’ in subclause 5(1) of this Schedule (see
Amendments 32 and 33).
Amendment 27: - Schedule 21 (pasture seeds),
page 96 (lines 8 to 11)
This amendment is part of the change to
remove the requirement to list each cultivar of a species for which the rate of
pasture seed levy is specified under subclause 5(1) of this Schedule. All
cultivars of a species are subject to the same rate of pasture seed levy. This
change, which has been requested by the relevant growers’ organisation
(the Grains Council of Australia), will remove the need for keeping the cultivar
list in subclause 5(1) up to date. This is a time consuming task for the
industry and requires the gazettal of a Ministerial instrument each time a
change is made.
Amendment 28: - Schedule 21 (pasture seeds), page 96
(line 20)
This is a consequential amendment following the removal of
references to ‘cultivars’ in subclause 5(1) of this Schedule (see
Amendments 32 and 33).
Amendment 29: - Schedule 21 (pasture seeds),
page 97 (line 2)
Amendment 30: - Schedule 21 (pasture seeds), table of
pasture seeds, pages 97-102
These amendments remove the requirement
to list each cultivar of a species for which the rate of pasture seed levy is
specified under subclause 5(1) of this Schedule. All cultivars of a species are
subject to the same rate of pasture seed levy. This change, which has been
requested by the relevant growers’ organisation (the Grains Council of
Australia), will remove the need for keeping the cultivar list in subclause 5(1)
up to date. This is a time consuming task for the industry and requires the
gazettal of a Ministerial instrument each time a change is
made.
Amendment 31: - Schedule 22 (pig slaughter), page 104 (lines 11
to 16)
This amendment amends the definition of R&D
authority for the purpose of this Schedule by repealing paragraph A of
the definition. The paragraph is redundant because the Rural Industries
Research Act 1985 was repealed by the Primary Industries and Energy
Legislation Amendment Act (No. 2) 1996.
Amendment 32: - Schedule
25 (wheat), page 116 (before line 7)
This amendment inserts the
definition of growers’ organisation for the purpose of this
Schedule.
The amendment provides that the manner in which
‘growers’ organisation’ is defined for wheat will be
consistent with similar definitions for coarse grains, grain legumes, oilseeds
and pasture seeds. The Grains Council of Australia (GCA) is the growers’
organisation in respect of all these products. Clause 7 of this Schedule
currently provides for the GCA to make recommendations to the Minister
concerning changes to wheat levy arrangements. The new definition continues
this role for the GCA, but also provides that another body could be prescribed
as the grower organisation if, for example, the GCA changed its name or
structure, or was no longer the body to represent wheat
producers
Amendment 33: - Schedule 25 (wheat), page 117 (line
19)
This amendment amends the maximum levy rate imposed on
wheat.
The amendment reduces the maximum rate of levy which can be
prescribed for wheat from 5% to 3% of the sale value of the wheat. The current
5% maximum rate in the legislation is a cumulative figure for both the research
and Wheat Industry Fund (WIF) components of the levy. The WIF component, which
is currently paid to the Australian Wheat Board (AWB), will cease when the AWB
is privatised on 1 July 1999. The amendment will not alter the maximum
rate for the research component of the levy from the present 3% of sale value.
Also, the present operative rate of levy on wheat for research purposes is not
altered by this amendment.
This change, which has been requested by the
Grains Council of Australia, means that the maximum rate of levy on wheat for
research purposes will be consistent with the maximum for other commodities
which fund the Grains Research and Development Corporation.
Amendment
34: - Schedule 25 (wheat), page 117 (lines 28 and 29)
This is a
consequential amendment following the insertion of a definition for
‘growers’ organisation’ in Clause 1 of this Schedule (See
Amendment 35).
CORRECTIONS
Schedule 1 - Beef
production
The title on page 5 should read as
follows:
OUTLINE
Schedule 6 - Dairy
produce
Clause 6: Imposition of levies
The fifth
paragraph should read as follows:
Clause 6(1)(c) provides for an acquisition offset levy to be imposed on the
total quantity of imported dairy produce acquired by a prescribed exporter or a
related company (which is not a prescribed exporter) during a particular
financial year, providing levy has not been imposed by clauses 2 or 3 of
schedule 4 of the Primary Industries (Customs) Charges Act 1998 or
sections 8 or 9 of the repealed Dairy Produce Levy (No. 2) Act 1986 on
that dairy produce.
Clause 14: Regulations
The third
paragraph should read as follows:
The rate of levy on manufacturing milk
required to deliver the level of support which would have been provided had the
previous market support arrangements, which ceased on 1 July 1995, had continued
to 30 June 2000 are to be calculated annually by the Australian Bureau of
Agricultural and Resource Economics (ABARE) and, taken into consideration in the
recommendation by the Minister to the Governor-General.