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Live-stock Slaughter (Processors) Levy Bill 1997
Date Introduced: 1 October 1997
House: House of Representatives
Portfolio: Primary Industries and Energy
Commencement: On the same day as Part 3 of the proposed Australian
Meat and Live- stock Industry Act 1997, that is, on Proclamation
or nine months and one day after Royal Assent, whichever is first.
To impose a levy on the slaughter of sheep, lambs and goats at an abattoir for human consumption. The levy will be payable by the processor of such live-stock.
Under existing law a levy is imposed by the Live-stock Slaughter Levy Act 1964 on lambs, sheep, goats and buffalo (live-stock) slaughtered for human consumption at an abattoir. The levy is payable by the person who owns the live-stock when slaughter takes place.
The Primary Industries Levies and Charges Collection Act 1991 provides for the collection of the levy.
Proceeds raised by the levy are apportioned between the Meat Industry Council (MIC), the Australian Meat and Live-stock Corporation (AMLC), the Meat Research Corporation (MRC), the Australian Animal Health Council Limited (AAHC), the Rural Industries Research and Development Corporation (RIRDC), and the National Cattle Disease Eradication Trust Account (NCDE).
The Live-stock Slaughter Levy Act 1964 is being repealed by item 1 of Schedule 4 of the Australian Meat and Live-stock Industry (Repeals and Consequential Provisions) Bill 1997.
This Bill forms part of a package of 17 Bills restructuring the regulatory framework of the Australian meat and live-stock industry. Under existing levy and charge arrangements, funds raised primarily go towards funding the MIC, AMLC and MRC. Under the proposed arrangements the government intends that industry contributions will be sourced on a statutory and non-statutory basis. The collection of statutory levies is intended to be based on the current system but with changes providing for a transaction levy on sheep, lambs and goats, replacing the current livestock slaughter levy, and a separate transaction levy on grain fed cattle.
The rationale given by the Minister in the Second Reading Speech to the Australian Meat and Live-stock Industry Bill 1997 for the transaction levy approach is:
The transaction levy approach for sheep, lambs and goats was adopted at the request of a clear majority of industry whose submission met all of the requirements of the government's levy principles. A similar request was also submitted by the grain fed cattle industry sector for a separate cattle transaction levy. Again this submission met each of the Government's levy principles.
The existing levy and charge imposition Acts have been modified to provide for clear sectoral ownership.(1)
In relation to non-statutory contributions, the government is setting the processor and exporter levies at zero. It should be noted that the Minister in the Second Reading Speech to the Bill issues a warning in respect of such contributions, that is:
Should the non-statutory contributions by processors and livestock exporters fail to meet agreed funding levels for joint industry functions, and as specifically agreed by these two sectors, the Government has their prior agreement to maintain levies at a required level to ensure there is adequate funding.(2)
Under the proposed arrangements, the Government intends that decisions on levels of levies and charges be the responsibility of the peak industry councils.
In respect to this Bill, the Minister in the Second Reading Speech to the Australian Meat and Live-stock Industry Bill 1997 states:
The Live-stock Slaughter Levy Act 1964 will be replaced by a Live-stock Transactions Levy Act and a Live-stock Slaughter (Processors) Levy Act, to allow for the separation of producers' and processors' funding and for the processors' funding and for the processors funding to move to zero levy rates.(3)
The reader is also referred to the Digest for the Australian Meat and Live-stock Industry Bill 1997.
Clause 4 provides that a levy is imposed on the slaughter of live-stock (ie. sheep, lambs and goats) at an abattoir for human consumption. However, the levy will not be imposed on:
Clause 5 provides that the regulations may provide that no amount of levy is payable by processors of live-stock.
Clause 6 provides that the rate of levy on the slaughter of each head of sheep will be:
Clause 7 provides that the rate of levy on the slaughter of each head of lambs will be:
Clause 8 provides that the rate of levy on the slaughter of each head of goats will be:
The levy will be payable by the processor of the live-stock (clause 9).
The term 'processor' is defined by clause 3 to mean, in relation to live-stock, the person (including a State/Territory or State/Territory authority) who owns the carcases of the live-stock straight after the hot carcase weight of the live-stock would normally be determined.
Ian Ireland
4 November 1997
Bills Digest Service
Information and Research Services
This paper has been prepared for general distribution to Senators and Members of the Australian Parliament. While great care is taken to ensure that the paper is accurate and balanced, the paper is written using information publicly available at the time of production. The views expressed are those of the author and should not be attributed to the Information and Research Services (IRS). Advice on legislation or legal policy issues contained in this paper is provided for use in parliamentary debate and for related parliamentary purposes. This paper is not professional legal opinion. Readers are reminded that the paper is not an official parliamentary or Australian government document.
ISSN 1328-8091
© Commonwealth of Australia 1997
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Published by the Department of the Parliamentary Library, 1997.
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Last updated: 12 November 1997