Commonwealth Numbered Regulations - Explanatory Statements
[Index] [Search] [Download] [Related Items] [Help]
PRIMARY INDUSTRIES LEVIES AND CHARGES COLLECTION AMENDMENT (SWEET POTATOES AND HONEY) REGULATION 2015 (SLI NO 223 OF 2015)
EXPLANATORY STATEMENT
SELECT LEGISLATIVE INSTRUMENT No. 223, 2015
Issued by Authority of the Parliamentary Secretary to the Minister for Agriculture and Water Resources
Primary Industries Levies and Charges Collection Act 1991
Primary Industries Levies and Charges Collection Amendment (Sweet Potatoes and Honey) Regulation 2015
Section 30 of the Primary Industries Levies and Charges Collection Act 1991 (the Act) provides that the Governor-General may make regulations prescribing matters required or permitted by the Act to be prescribed or that are necessary or convenient for carrying out or giving effect to the Act.
The purpose of the Primary Industries Levies and Charges Collection Amendment (Sweet Potatoes and Honey) Regulation 2015 (the Regulation) is to set out details for the payment, by growers, of a new statutory levy and export charge on sweet potatoes to fund marketing activities. Horticulture Innovation Australia Limited (HIA Ltd) is the relevant industry services body for marketing and administers the funds raised by the levy and charge. HIA Ltd co-ordinates marketing programs for most horticultural industries. The Regulation will also increase the estimated revenue threshold below which a honey levy payer is eligible to apply for exemption from lodging quarterly returns and further clarify the circumstances under which honey producers must lodge an annual return.
Previously there was no marketing levy or charge on sweet potatoes. Part 17 of Schedule 22 of the Primary Industries Levies and Charges Collection Regulations 1991 had provided for a vegetable research and development (R&D), a Plant Health Australia (PHA) and an Emergency Plant Pest Response (EPPR) component of levy/export charge, which included sweet potatoes as a leviable vegetable. Sweet potatoes are now a separate leviable horticultural commodity with R&D and marketing component of levy and with scope for a PHA and an EPPR component of levy (Part 30 of Schedule 22 of the Regulation). The Regulation also establishes the Australian Sweetpotato Growers Inc (ASPG) as the eligible industry body for the marketing levy on sweet potatoes.
The Regulation implements collection aspects for the following:
* A marketing rate levy of one per cent (1%) of the value of the sweet potato at the first domestic point of sale to be paid to HIA Ltd (if the levy is paid at the first domestic point of sale, the export charge does not apply); and
* A marketing rate export charge of one per cent (1%) of the free on board value of the sweet potatoes applying immediately before export and to be paid to HIA Ltd.
The sweet potato marketing levy and charge is expected to raise approximately $800 000 annually.
The Regulation defines who is liable to pay the sweet potato marketing levy and export charge, who is a producer, provisions of returns and other collection matters for the sweet potatoes.
The Regulation also implements two minor changes to honey levy arrangements. The first clarifies that a producer who must lodge annual returns is also one who is exempt from lodging quarterly returns. The second change doubles the estimated revenue threshold below which a honey levy payer is eligible to apply for exemption from lodging quarterly returns. It follows the doubling of the levy rate from 1 July 2015 and means that those who previously lodged annual returns will continue to be able to do so. Allowing annual returns where the levy amount paid is relatively low improves the cost efficiency of the levy for the whole industry.
The Australian Sweetpotato Growers Inc (ASPG) undertook a thorough consultation process for the new levy on sweet potatoes to fund marketing activities. A ballot was conducted by the Australian Electoral Commission and resulted in a strong vote in favour of the proposal (80 per cent of potential levy payers participated and 92.5 per cent (62 votes) of these were in support put to ballot).
The Department of Agriculture and Water Resources consulted the departments of the Prime Minister and Cabinet, Treasury, and Finance and Deregulation in preparing the Regulation. The Office of Best Practice Regulation (OPBR) approved a Regulation Impact Statement (ID 14851). A copy is available from OBPR's website at ris.dpmc.gov.au/category/primary-industries.
Details of the Regulation are set out in Attachment A.
The Regulation is compatible with the human rights and freedoms recognised or declared under section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011. A full statement of compatibility is set out in the Attachment B.
The Regulation is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
Attachment
Details of the Primary Industries Levies and Charges Collection Amendment (Sweet Potatoes and Honey) Regulation 2015
Section 1 - Name of Regulation
This Section provides that the name of the Regulation is the Primary Industries Levies and Charges Collection Amendment (Sweet Potatoes and Honey) Regulation 2015.
Section 2 - Commencement
This Section provides for the Regulation to commence on 1 January 2016.
Section 3 - Authority
This Section provides that the Regulation is made under the Primary Industries Levies and Charges Collection Act 1991.
Section 4 - Schedules
This Section provides that the Regulation is amended as set out in the Schedules.
Schedule 1 - Amendments relating to sweet potatoes
This Section provides for the Primary Industries Levies and Charges Collection Regulations 1991 to be amended as set out in Schedule 1.
Item 1 deletes "(other than sweet potatoes)" from the definition of what horticulture produce are not vegetables at paragraph 17.1(g) of Schedule 22, after potatoes.
Item 2 inserts "(ha) sweet potatoes; or" to the definition of vegetables after paragraph 17.1(h) of Schedule 22.
Item 3 removes the out dated reference to two accounting standards (at paragraph 17.18(2) of Schedule 22) and replaces "with accepted accounting principles", for calculating the value of vegetables for the research and development component of levy.
Item 4 inserts a new Part 30 about sweet potatoes into Schedule 22.
Subclause 30.1 provides that Part 30 applies to sweet potatoes.
Subclause 30.2 provides definitions for use in Part 30. The definitions are for "exporters", "retail sale" and "sweet potato".
Subclause 30.3 provides that a levy year for sweet potatoes is a financial year.
Subclause 30.4 prescribes operations (washing, grading, packing and transporting or preparing sweet potatoes for sale in their natural state) that are not considered processes for sweet potatoes.
Subclause 30.5 prescribes sweet potatoes as a product for the definition of producer in subsection 4(1) of the Act.
Subclause 30.6 provides when a levy or charge is due for payment for people who lodge quarterly returns:
* If a return for the quarter is lodged within the period mentioned in clause 30.8 (28 days after the end of the quarter to which it relates) - on the day the return is lodged; or
* If a return for the quarter is not lodged with the period mentioned in clause 30.8 (28 days after the end of the quarter to which it relates) - on the last day of that period
The note indicates that under section 15 of the Act, penalties for late payment may be applicable
Subclause 30.7 prescribes that the following persons who deal in leviable sweet potatoes in a quarter must lodge a return for that quarter:
* A first purchaser who buys sweet potatoes in the quarter;
* A buying agent who buys sweet potatoes in the quarter;
* A selling agent who sells sweet potatoes in the quarter;
* An exporter who exports sweet potatoes in the quarter;
* An exporting agent who exports sweet potatoes in the quarter;
* A producer who sells sweet potatoes other than by retail sale in the quarter.
Unless:
* The person has applied for an exemption under clause 30.13 and has not yet received notice of the Secretary's decision; or
* The Secretary has granted the person an exemption for the levy year under clause 30.15, or has continued the person's exemption under clause 30.16; or
* The Secretary is required, under clause 30.16, to decide whether to continue the person's exemption and the person has not yet received notice of the Secretary's decision.
The note indicates offences under section 24 of the Act may be applicable.
Subclause 30.8 prescribes that a quarterly return must be lodged within 28 days after the end of the quarter to which it relates.
The note indicates that offences in relation returns under section 15 of the Act may be applicable.
Subclause 30.9 provides when a levy or charge is due for payment for people who lodge annual returns.
The note indicates that under section 15 of the Act, penalties for late payment may be applicable.
Subclause 30.10 prescribes the following persons who deal in leviable sweet potatoes must lodge an annual return:
* A person who is described in subclause 30.7(1) and is exempt from lodging quarterly returns for the levy year under clause 30.15 or 30.16; and
* A producer who sells sweet potatoes in the levy year.
Subclause 30.11 provides that a person who is lodging an annual return for sweet potatoes must lodge the return on or before 28 August of the following year.
The note indicates offences under section 24 of the Act may be applicable.
Subclause 30.12 stipulates what information must be included in a return for sweet potatoes.
The note indicates offences under section 24 of the Act may be applicable.
Subclause 30.13 provides that a person may apply for an exemption from the requirement to lodge a quarterly return if they have reasonable grounds for believing that the sum of levy and charge payable on sweet potatoes will be, or is likely to be less than $500 in a levy year.
Subclause 30.14 stipulates what information must be included in an application for exemption from lodging annual returns.
Subclause 30.15 prescribes that the Secretary must grant or refuse an application for exemption from lodging annual returns within 14 days after receiving an application and the information that they must consider in deciding to grant or refuse an exemption.
Subclause 30.16 prescribes the conditions that the Secretary must consider when deciding whether or not to continue an exemption from lodging quarterly returns.
Subclause 30.17 prescribes that a person who receives notice of a refusal to grant, or of a refusal to continue, an exemption for a levy year must lodge a return for each quarter of the year:
* If the quarter ended before receiving the notice, within 28 days of receiving the notice; or
* Within 28 days after the end of the quarter.
The note indicates offences under section 24 of the Act may be applicable.
Subclause 30.18 stipulates what records must be kept by people who pay the levy or charge on leviable sweet potatoes. A penalty of 10 penalty units is provided for breaches of this requirement. Section 4AA of the Crimes Act 1914 provides that a penalty unit equals $180.
Subclause 30.19 provides that applications may be made to the Administrative Appeals Tribunal for the following decisions made by the Secretary:
* A decision under paragraph 30.15(1)(a) to refuse to grant an exemption
* A decision under paragraph 30.16(1)(a) to refuse to continue an exemption.
Subclause 30.20 provides the transitional arrangements for the definition of a levy year and exemptions from lodging quarterly returns.
Schedule 2 - Amendments relating to honey
This Section provides for the Primary Industries Levies and Charges Collection Regulations 1991 to be amended as set out in Schedule 2.
Item 1 inserts "and (c) the producer is exempt from lodging quarterly returns" after paragraph 9(b) of Schedule 21.
Item 2 replaces notes 1 and 2 in clause 9 of Schedule 21, with "For offences in relation to returns see section 24 of the Act".
Items 1 and 2 clarifies that a condition for lodging an annual return is that the levy payer be a person who is exempt from lodging a quarterly return.
Item 3 replaces "$2 000" with "$4 000" in clause 11A of Schedule 21. This doubles the estimated revenue threshold below which a honey levy payer is eligible to apply for exemption from lodging quarterly returns. It follows the doubling of the levy rate from 1 July 2015 and will generally mean that those who previously lodged annual returns will continue to be able to do so. Allowing annual returns where the levy amount paid is relatively low improves the cost efficiency of the levy for the whole industry.
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Primary Industries Levies and Charges Collection Amendment (Sweet Potatoes and Honey) Regulation 2015
This Legislative Instrument 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 Legislative Instrument
The purpose of the Regulation is to set out details for payment of levy, provision of returns by liable persons and other collection matters for new Australian Government statutory levy on sweet potatoes for the purpose of undertaking marketing activities.
Human rights implications
This Legislative Instrument does not engage any of the applicable rights or freedoms.
Conclusion
This Legislative Instrument is compatible with human rights as it does not raise any human rights issues.
This Legislative Instrument 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 Legislative Instrument
Human rights implications
This Legislative Instrument does not engage any of the applicable rights or freedoms.
Conclusion
This Legislative Instrument is compatible with human rights as it does not raise any human rights issues.
Senator the Hon. Anne Ruston
Parliamentary Secretary to the Minister for Agriculture and Water Resources
AustLII: Copyright Policy | Disclaimers | Privacy Policy | Feedback