Commonwealth Numbered Regulations - Explanatory Statements

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PRIMARY INDUSTRIES LEVIES AND CHARGES COLLECTION (MACADAMIA NUT) REGULATIONS (AMENDMENT) 1995 NO. 340

STATUTORY RULES 1995 No. 340

Issued by the Authority of the Minister for Primary Industries and Energy

Primary Industries Levies and Charges Collection Act 1991

Horticultural Levy Act 1987

Horticultural Export Charge Act 1987

Primary Industries Levies and Charges Collection (Macadamia Nut) Regulations (Amendment)

The Primary Industries Levies and Charges Collection Act 1991 (the Collection Act), the Horticultural Levy Act 1987 (the Levy Act) and the Horticultural Export Charge Act 1987 (the Export Charge Act) provide for the imposition and collection of levy and export charge to fund the Australian Horticultural Corporation (AHC) (section 8) and the Horticultural Research and Development Corporation (HRDC) (section 9).

Section 10 of the Levy Act and the Export Charge Act provides for regulations to be made to fix a rate of levy and export charge, respectively, for other unspecified purposes. The proposed Regulations specify the National Residue Survey as a purpose for which a levy and an export charge is to be imposed.

Subsection 14(1) of the Levy Act, subsection 14(1) of the Export Charge Act, and subsection 30(1) of the Collection Act empower the Governor-General to make regulations for the purposes of these Acts.

The Primary Industries Levies and Charges Collection (Macadamia Nut) Regulations impose a levy and an export charge on macadamia nut producers for the purposes of funding the activities of the AHC and the HRDC.

The HRDC co-ordinates research and development for many horticultural industries. Most of these industries contribute funds to this process by way of statutory levies and export charges, whilst some others contribute through voluntary contributions.

Similarly, the AHC carries out marketing and promotion activities for many horticultural industries, in the main funded by statutory levies and export charges.

Subsections 14(4) and 14(5) of the Levy and Export Charge Acts require the Governor-General to take into account any recommendation to the Minister from the AHC and the HRDC before making regulations to fix a rate of levy and export charge, or to exempt subclasses of horticultural product or classes of producers from levy and export charge.

Subsections 14(1) and 14(7) of the Levy and Export Charge Acts require the AHC and the HRDC to consult with the eligible industry body for the relevant horticultural product before recommending rates of, and exemptions from, levy and export charge to the Minister. Copies of advice from the Chairman of the HRDC, Mr David Minnis, the Managing Director of the AHC, Mr John Baker and the President of the Australian Macadamia Society Limited (AMS) recommending the proposals are attached.

The AMS requested, and the AHC and HRDC recommended, that the following funding formulae be implemented:

(1)       an increase in the rates of macadamia levy and export charge destined for the HRDC from 2 cents per kilogram to 3.3 cents per kilogram;

(2)       a decrease in the rates of macadamia levy and export charge destined for the AHC from 2 cents per kilogram to 1.5 cents per kilogram;

(3)       the implementation of a chemical residue monitoring program levy and export charge of 0.2 cents per kilogram to be administered by the National Residue Survey (NRS);

(4)       the upper limit on the exemption from payment of levy and export charge by an individual producer be phased out as follows:

•       805 tonnes from 1 January 1996;

•       965 tonnes from 1 January 1997;

•       1158 tonnes from 1 January 1998;

•       1390 tonnes from 1 January 1999;

•       1668 tonnes from 1 January 2000; and

•       the exemption removed from 1 January 2001.

The proposed Primary Industries Levies and Charges Collection (Macadamia Nut) Regulations (Amendment) (the proposed Regulations), will give effect to the recommendation of the HRDC and the AHC, which is consistent with the industry request.

The proposed Regulations provide for a variation in rates payable for the macadamia nut levy and export charge directed to the HRDC and the AHC and the introduction of a chemical residue monitoring program levy and export charge on macadamia growers to fund participation in the NRS. The. impact of these decisions is to increase the total rate of levy and export charge on macadamia nuts from four to five cents per kilogram.

The Regulations are proposed to also include a change from the use of penalties currently expressed in dollar values to be expressed as penalty units, a penalty unit currently being one hundred dollars. This will allow, over time, omnibus changes to penalties expressed in Commonwealth Acts and Regulations to more easily be amended to reflect inflation.

Another minor amendment will require that where companies are the providers of information for the purpose of the Regulations, they must also provide their Australian Company Number (ACN). Companies are now required under Australian Securities Commission Legislation to quote ACN numbers on all official documents. It is appropriate, therefore, that ACN numbers be included on forms relating to mandatory industry levies. This constitutes no burden to levy payers and is convenient for both the levy payer and the Commonwealth.