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This is a Bill, not an Act. For current law, see the Acts databases.
2010-2011-2012-2013
The Parliament of the
Commonwealth of Australia
HOUSE OF REPRESENTATIVES
Presented and read a first time
Sugar Research and Development
Services Bill 2013
No. , 2013
(Agriculture, Fisheries and Forestry)
A Bill for an Act relating to service provision for
the sugar industry, and for related purposes
i Sugar Research and Development Services Bill 2013 No. , 2013
Contents
Part 1--Preliminary
1
1
Short title ........................................................................................... 1
2
Commencement ................................................................................. 2
3
Simplified outline of this Act ............................................................. 2
4
Definitions ......................................................................................... 2
Part 2--Funding contract
4
5
Simplified outline of this Part ............................................................ 4
6
Funding contract ................................................................................ 5
7
Appropriation for payments under funding contract etc. ................... 6
Part 3--Industry services body
10
8
Simplified outline of this Part .......................................................... 10
9
Declaration of industry services body .............................................. 10
10
Cessation of declaration of industry services body .......................... 11
Part 4--Miscellaneous provisions
13
11
Ministerial directions to industry services body in an
emergency ........................................................................................ 13
12
Delegations ...................................................................................... 14
13
Compensation for acquisition of property ....................................... 14
14
Rules ................................................................................................ 15
Sugar Research and Development Services Bill 2013 No. , 2013 1
A Bill for an Act relating to service provision for
1
the sugar industry, and for related purposes
2
The Parliament of Australia enacts:
3
Part 1--Preliminary
4
5
1 Short title
6
This Act may be cited as the Sugar Research and Development
7
Services Act 2013.
8
Part 1 Preliminary
Section 2
2 Sugar Research and Development Services Bill 2013 No. , 2013
2 Commencement
1
This Act commences on the day after this Act receives the Royal
2
Assent.
3
3 Simplified outline of this Act
4
The following is a simplified outline of this Act:
5
This Act provides for a company:
6
(a)
to receive (under a contract) Commonwealth
7
funding for research and development for the
8
Australian sugar industry; and
9
(b)
to be declared as the industry services body for the
10
Australian sugar industry.
11
This Act also requires the industry services body to comply with
12
directions given by the Minister in the national interest because of
13
an emergency.
14
Note:
The first industry services body has the assets and liabilities of the
15
Sugar Research and Development Corporation transferred to it by the
16
Sugar Research and Development Services (Consequential
17
Amendments and Transitional Provisions) Act 2013.
18
4 Definitions
19
In this Act:
20
company means a company registered under the Corporations Act
21
2001 as a company limited by guarantee.
22
funding contract means a contract entered into under section 6
23
(with the variations, if any, that are in force).
24
industry services body means the company that is declared to be
25
the industry services body under Part 3.
26
matching amounts means the following amounts that are received
27
by the Commonwealth on or after 1 July 2013:
28
Preliminary Part 1
Section 4
Sugar Research and Development Services Bill 2013 No. , 2013 3
(a) amounts of levy imposed under clause 3 of Schedule 24 to
1
the Primary Industries (Excise) Levies Act 1999;
2
(b) amounts that are required to be paid under section 7 of the
3
Primary Industries Levies and Charges Collection Act 1991
4
in relation to levy described in paragraph (a).
5
Note:
Section 7 of the Primary Industries Levies and Charges Collection Act
6
1991 concerns liability of intermediaries.
7
matching payments means payments mentioned in
8
paragraph 6(1)(b).
9
R&D amounts means the following amounts that are received by
10
the Commonwealth on or after 1 July 2013:
11
(a) amounts of levy imposed under clause 3 of Schedule 24 to
12
the Primary Industries (Excise) Levies Act 1999;
13
(b) amounts that are required to be paid under section 7 of the
14
Primary Industries Levies and Charges Collection Act 1991
15
in relation to levy described in paragraph (a);
16
(c) amounts that are payable under section 15 of the Primary
17
Industries Levies and Charges Collection Act 1991 in
18
relation to levy described in paragraph (a).
19
Note:
Section 7 of the Primary Industries Levies and Charges Collection Act
20
1991 concerns liability of intermediaries and section 15 of that Act
21
concerns penalty for late payment.
22
R&D payments means payments mentioned in paragraph 6(1)(a).
23
rules means rules made by the Minister under section 14.
24
sugar cane means:
25
(a) stalks (whether whole or not) of the sugar cane plant; or
26
(b) stalks (whether whole or not) and leaves of the sugar cane
27
plant.
28
sugar industry means the industry concerned with growing,
29
harvesting and processing sugar cane for any purpose.
30
Part 2 Funding contract
Section 5
4 Sugar Research and Development Services Bill 2013 No. , 2013
Part 2--Funding contract
1
2
5 Simplified outline of this Part
3
The following is a simplified outline of this Part:
4
The Minister may make a contract with a company for the
5
Commonwealth to make 2 kinds of payments to the company.
6
The first kind of payments (called R&D payments):
7
(a)
are to be spent by the company on research and
8
development benefiting the Australian sugar
9
industry and on payments of the Commonwealth's
10
expenses relating to the collection of amounts it
11
receives from the industry as primary industry
12
levies and related payments; and
13
(b)
cannot exceed those amounts.
14
The second kind of payments (called matching payments):
15
(a)
are to be spent by the company on research and
16
development benefiting the Australian sugar
17
industry and the Australian community generally,
18
and on payments of the Commonwealth's expenses
19
relating to the collection of amounts it receives
20
from the industry as primary industry levies and
21
related payments; and
22
(b)
are subject to limits based on those amounts, the
23
annual value of production by the industry and the
24
amount spent by the company on that research and
25
development.
26
Funding contract Part 2
Section 6
Sugar Research and Development Services Bill 2013 No. , 2013 5
6 Funding contract
1
(1) The Minister may, on behalf of the Commonwealth, enter into or
2
vary a contract with a company so that the contract provides for the
3
Commonwealth to make payments of the following kinds to the
4
company:
5
(a) payments called R&D payments;
6
(b) payments made for particular financial years, called
7
matching payments.
8
Note:
After a contract has been entered into, the company can be declared as
9
the industry services body under section 9.
10
(2) Before acting to enter into or vary the contract, the Minister must
11
be satisfied that the terms of the contract after the action will make
12
adequate provision to ensure that:
13
(a) R&D payments are spent by the company on one or both of
14
the following:
15
(i) research and development activities for the benefit of
16
the Australian sugar industry;
17
(ii) payments by the company to the Commonwealth to
18
meet the expenses (the administration expenses)
19
incurred by the Commonwealth in relation to the
20
collection and recovery of R&D amounts, the
21
administration of the contract and the payment of
22
refunds related to R&D amounts; and
23
(b) matching payments are spent by the company on one or more
24
of the following:
25
(i) research and development activities for the benefit of
26
the Australian sugar industry and the Australian
27
community generally;
28
(ii) payments by the company to the Commonwealth under
29
subsection 7(4);
30
(iii) payments by the company to the Commonwealth to
31
meet the administration expenses; and
32
(c) the administration expenses are met from one or more of the
33
following:
34
(i) the difference between R&D payments and the limit
35
under section 7 on the appropriation for those payments;
36
Part 2 Funding contract
Section 7
6 Sugar Research and Development Services Bill 2013 No. , 2013
(ii) the difference between matching payments and the limit
1
under section 7 on the appropriation for those payments;
2
(iii) payments by the company to the Commonwealth.
3
Note:
An example of the administration expenses is the Commonwealth's
4
expenses relating to an agreement under section 10 or 11 of the
5
Primary Industries Levies and Charges Collection Act 1991 between
6
the Commonwealth and a State or organisation for it (or a State
7
authority) to collect levies and related amounts on the
8
Commonwealth's behalf.
9
(3) The contract does not have to oblige the Commonwealth to pay the
10
full amounts that could be paid out of the money appropriated
11
under section 7.
12
Note:
For example, the contract may provide for payments less than the
13
limits specified in section 7 so the administration expenses are met.
14
(4) The contract may include provisions relating to assets and
15
liabilities that will become those of the company under the Sugar
16
Research and Development Services (Consequential Amendments
17
and Transitional Provisions) Act 2013. This subsection does not
18
impliedly limit the matters that may be included in the contract.
19
(5) This section does not impliedly limit the executive power of the
20
Commonwealth to enter into agreements.
21
(6) The Minister must cause a copy of the contract to be tabled in each
22
House of the Parliament within 15 sitting days of that House after
23
the day on which the contract was entered into.
24
(7) If the contract is varied, the Minister must cause a copy of the
25
contract as varied to be tabled in each House of the Parliament
26
within 15 sitting days of that House after the variation occurred.
27
7 Appropriation for payments under funding contract etc.
28
(1) The Consolidated Revenue Fund is appropriated for the purposes
29
of payments by the Commonwealth under section 6.
30
Overall limit for R&D payments
31
(2) For R&D payments, the total limit on the appropriation is the sum
32
of the R&D amounts.
33
Funding contract Part 2
Section 7
Sugar Research and Development Services Bill 2013 No. , 2013 7
Overall limit for matching payments
1
(3) For matching payments, the total limit on the appropriation is the
2
sum of the matching amounts.
3
Matching payments--retention limit
4
(4) The matching payments made to the company during a particular
5
financial year are subject to the condition that, if:
6
(a) before the end of 31 October next following the financial
7
year, the Minister determines the amount of the gross value
8
of sugar cane produced in Australia in the financial year; and
9
(b) as at the end of 31 October next following the financial year,
10
the sum of the matching payments that were paid to the
11
company during the financial year exceeds the lesser of:
12
(i) 0.5% of the amount of the gross value of sugar cane
13
produced in Australia in the financial year as
14
determined by the Minister; and
15
(ii) 50% of the amount spent by the company in the
16
financial year on activities that qualify, under the
17
funding contract, as research and development
18
activities;
19
the company will pay to the Commonwealth an amount equal to
20
the excess.
21
Note:
This ensures that the sum of the matching payments that are retained
22
by the company in relation to the financial year does not exceed the
23
lesser of the amounts calculated under subparagraphs (b)(i) and (b)(ii).
24
(5) If:
25
(a) before the end of 31 October next following a financial year,
26
the Minister has not determined under subsection (4) the
27
amount of the gross value of sugar cane produced in
28
Australia in the financial year; and
29
(b) the Minister has determined under subsection (4) the amount
30
of the gross value of sugar cane produced in Australia in the
31
previous financial year;
32
the Minister is taken to have made, immediately before the end of
33
that 31 October, a determination under subsection (4) that the
34
amount of the gross value of sugar cane produced in Australia in
35
the financial year is equal to the amount of the gross value of sugar
36
Part 2 Funding contract
Section 7
8 Sugar Research and Development Services Bill 2013 No. , 2013
cane produced in Australia determined under subsection (4) for the
1
previous financial year.
2
(6) An amount payable under subsection (4) by the company:
3
(a) is a debt due to the Commonwealth; and
4
(b) may be recovered by the Minister, on behalf of the
5
Commonwealth, by action in a court of competent
6
jurisdiction.
7
(7) A determination made under subsection (4) is not a legislative
8
instrument.
9
(8) For the purposes of subsection (4), the rules may prescribe the
10
manner in which the Minister is to determine the gross value of
11
sugar cane produced in Australia in a financial year.
12
Matching payments--unmatched R&D excess
13
(9) If there is an unmatched R&D excess for a financial year, the
14
amount spent by the company in the following financial year on
15
activities that qualify, under the funding contract, as research and
16
development activities is taken, for the purposes of this section
17
(including for the purposes of this subsection and subsection (10)),
18
to be increased by the amount of the unmatched R&D excess.
19
Note:
This means that research and development expenditure that is not
20
"50% matched" in one financial year because of the cap in
21
subsection (3) or the condition in subparagraph (4)(b)(i) (or both) can
22
be carried forward into later years.
23
(10) For the purposes of subsection (9), there is an unmatched R&D
24
excess for a financial year if:
25
(a) the company spends a particular amount (the R&D spend
26
amount) in the financial year on activities that qualify, under
27
the funding contract, as research and development activities;
28
and
29
(b) because of subsection (3) or subparagraph (4)(b)(i) (or both),
30
the net matching payments for the financial year are less than
31
50% of the R&D spend amount.
32
The amount of the unmatched R&D excess is:
33
Funding contract Part 2
Section 7
Sugar Research and Development Services Bill 2013 No. , 2013 9
The amount of the
R&D spend amount
2
net matching payments
in the financial year
for the financial year
1
Note:
Amounts spent and received by the Sugar Research and Development
2
Corporation before it ceased to exist may also affect whether there is
3
an unmatched R&D excess, and its amount: see the Sugar Research
4
and Development Services (Consequential Amendments and
5
Transitional Provisions) Act 2013.
6
Set off
7
(11) If:
8
(a) an amount (the first amount) is payable by the company
9
under subsection (4); and
10
(b) another amount (the second amount) is payable by the
11
Commonwealth to the company under the funding contract;
12
the Minister may, on behalf of the Commonwealth, set off the
13
whole or a part of the first amount against the whole or a part of
14
the second amount.
15
Net matching payments
16
(12) For the purposes of this section, net matching payments for a
17
financial year means the total of the matching payments made to
18
the company during the financial year, less the amount payable by
19
the company under subsection (4) as a condition of those matching
20
payments.
21
Part 3 Industry services body
Section 8
10 Sugar Research and Development Services Bill 2013 No. , 2013
Part 3--Industry services body
1
2
8 Simplified outline of this Part
3
The following is a simplified outline of this Part:
4
The Minister may declare a company to be the industry services
5
body if there is a contract under Part 2 with the company and the
6
Minister is satisfied that the company will comply with its
7
contractual and statutory obligations.
8
The Minister may declare that a company ceases to be the industry
9
services body in certain circumstances (for example, if the
10
company requests it, the company does not comply with its
11
contractual and statutory obligations or the company is wound up).
12
Note:
The significance of being the industry services body is that:
13
(a) the industry services body must comply with directions given by
14
the Minister in the national interest under section 11; and
15
(b) assets and liabilities of the Sugar Research and Development
16
Corporation are transferred to the first industry services body by
17
the Sugar Research and Development Services (Consequential
18
Amendments and Transitional Provisions) Act 2013.
19
9 Declaration of industry services body
20
(1) The Minister may, in writing, declare a company to be the industry
21
services body if:
22
(a) the Commonwealth and the company have entered into a
23
funding contract; and
24
(b) the Minister is satisfied that, if the company is so declared, it
25
will comply with its obligations under the funding contract
26
and this Act.
27
Declaration to specify day it takes effect
28
(2) A declaration under this section must specify the day on and after
29
which the relevant company is to be the industry services body.
30
The declaration has effect accordingly.
31
Industry services body Part 3
Section 10
Sugar Research and Development Services Bill 2013 No. , 2013 11
Tabling in Parliament
1
(3) The Minister must cause a copy of a declaration under this section
2
to be tabled in each House of the Parliament within 15 sitting days
3
of that House after the day on which the declaration is made.
4
Declaration is not a legislative instrument
5
(4) A declaration made under subsection (1) is not a legislative
6
instrument.
7
10 Cessation of declaration of industry services body
8
(1) If any of the following apply, the Minister may declare in writing
9
that the company that is the industry services body ceases to be the
10
industry services body:
11
(a) the company gives the Minister a written request that the
12
declaration be made;
13
(b) the Minister has reasonable grounds to believe that the
14
company has contravened this Act or the funding contract
15
with the company;
16
(c) the Minister has reasonable grounds to believe that:
17
(i) the company's constitution is no longer appropriate for
18
a company performing the functions of the industry
19
services body; or
20
(ii) the company has failed to comply with its constitution;
21
(d) an administrator of the company is appointed;
22
(e) the company starts to be wound up or ceases to carry on
23
business;
24
(f) a receiver, or a receiver and manager, of property of the
25
company is appointed (by a court or otherwise);
26
(g) the company enters into a compromise or arrangement with
27
some or all of its creditors.
28
(2) The declaration must specify the day on which the company is to
29
cease to be the industry services body.
30
(3) The declaration has effect accordingly.
31
Part 3 Industry services body
Section 10
12 Sugar Research and Development Services Bill 2013 No. , 2013
Tabling in Parliament
1
(4) The Minister must cause a copy of the declaration to be tabled in
2
each House of the Parliament within 15 sitting days of that House
3
after the day on which the declaration is made.
4
Declaration is not a legislative instrument
5
(5) A declaration made under subsection (1) is not a legislative
6
instrument.
7
Miscellaneous provisions Part 4
Section 11
Sugar Research and Development Services Bill 2013 No. , 2013 13
Part 4--Miscellaneous provisions
1
2
11 Ministerial directions to industry services body in an emergency
3
(1) The Minister may give a written direction to the industry services
4
body if:
5
(a) the Minister:
6
(i) is satisfied that the direction is in Australia's national
7
interest because of exceptional and urgent
8
circumstances; and
9
(ii) is satisfied that the direction would not require the body
10
to incur expenses greater than the sum of the amounts
11
previously paid to the body under the funding contract
12
that have not been spent or committed and the amounts
13
the body will receive under the funding contract during
14
the period to which the direction relates; and
15
(iii) has given the body's directors an adequate opportunity
16
to discuss with the Minister the need for the proposed
17
direction and the impact of compliance with
18
subsections (3) and (4) on the body's commercial
19
activities; and
20
(b) the direction is made for a purpose that is within the
21
Commonwealth's legislative power.
22
(2) The body must comply with the direction.
23
(3) The Minister must cause a copy of the direction:
24
(a) to be published in the Gazette as soon as practicable after
25
giving the direction; and
26
(b) to be tabled in each House of the Parliament within 5 sitting
27
days of that House after giving the direction.
28
(4) The body's annual report for each period to which the direction
29
relates must include:
30
(a) particulars of the direction; and
31
(b) an assessment of the impact of the direction on the body's
32
operations during the period.
33
Part 4 Miscellaneous provisions
Section 12
14 Sugar Research and Development Services Bill 2013 No. , 2013
(5) Subsections (3) and (4) do not apply to the direction if:
1
(a) on the body's recommendation, the Minister determines in
2
writing that compliance with the subsections would prejudice
3
the body's commercial activities or would be likely to do so;
4
or
5
(b) the Minister determines, in writing, that compliance with the
6
subsections would be contrary to the public interest.
7
(6) The Minister, or a person to whom the Minister delegates the
8
Minister's power under this section, is not a director of the body
9
for the purposes of the Corporations Act 2001 merely because of
10
that power.
11
(7) The Commonwealth is not in a position to exercise control over the
12
body merely because of the Minister's power under this section.
13
(8) A direction given under subsection (1) or a determination made
14
under subsection (5) is not a legislative instrument.
15
12 Delegations
16
(1) The Minister may delegate all or any of the Minister's powers and
17
functions under this Act (other than under section 14), or the rules,
18
to:
19
(a) the Secretary of the Department; or
20
(b) an SES employee, or acting SES employee, in the
21
Department.
22
The delegation must be in writing.
23
(2) In exercising powers or functions under a delegation, the delegate
24
must comply with any directions of the Minister.
25
13 Compensation for acquisition of property
26
(1) If the operation of this Act would result in an acquisition of
27
property from a person otherwise than on just terms, the
28
Commonwealth is liable to pay a reasonable amount of
29
compensation to the person.
30
(2) If the Commonwealth and the person do not agree on the amount
31
of the compensation, the person may institute proceedings in the
32
Miscellaneous provisions Part 4
Section 14
Sugar Research and Development Services Bill 2013 No. , 2013 15
Federal Court of Australia for the recovery from the
1
Commonwealth of such reasonable amount of compensation as the
2
court determines.
3
(3) In this section:
4
acquisition of property has the same meaning as in
5
paragraph 51(xxxi) of the Constitution.
6
just terms has the same meaning as in paragraph 51(xxxi) of the
7
Constitution.
8
14 Rules
9
The Minister may, by legislative instrument, make rules
10
prescribing matters:
11
(a) required or permitted by this Act to be prescribed by the
12
rules; or
13
(b) necessary or convenient to be prescribed for carrying out or
14
giving effect to this Act.
15
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