Commonwealth Numbered Acts

DAIRY PRODUCE LEVY (No. 1) AMENDMENT ACT 1995 No. 46 of 1995 - SCHEDULE 1

                           SCHEDULE                  Section 3
1. Subsection 4(1) (definitions of "authorised person", "butter", "butteroil",
"cheese", "cream", "dairy product", "milk fat levy", "relevant owner"): Omit
the definitions. 2. Subsection 4(1): Insert the following definitions:

" 'Australian Bureau of Agricultural and Resource Economics' means the
organisation established within the Department under that name;
'Council' means the association by the name of the Australian Dairy Industry
Council Inc. that is incorporated under the
Associations Incorporation Act 1981 of the State of Victoria;
'manufacturer' means a person who carries on a business that consists of, or
includes, the manufacture of dairy produce;
'month' means any of the 12 months of the calendar year;". 3. Subsections 4(2)
to (7): Omit the subsections, substitute:

"(2) For the purposes of this Act, a person who applies any process to
relevant dairy produce is taken to use the relevant dairy produce in the
manufacture of dairy produce unless:

   (a)  the process consists only of chilling; and

   (b)  the person is the producer of the relevant dairy produce.

"(3) For the purposes of this Act, a person is a prescribed exporter in
relation to a financial year if:

   (a)  the person has an export milk fat component or an export protein
        component, or both, within the meaning of section 7, for a month or
        months of the year; or

   (b)  during the year, the person has exported dairy produce and:

        (i)    manufacturing milk levy was imposed on relevant dairy produce
               used, whether by that person or by another person, in the
               manufacture of the exported dairy produce; and

        (ii)   the export of the dairy produce has not been taken into account
               for the purposes of subsection 7(2).

"(4) For the purposes of this Act, an export of dairy produce constitutes a
relevant export if:

   (a)  the export of the dairy produce has been taken into account for the
        purposes of subsection 7(2); or

   (b)  both of the following conditions are satisfied:

        (i)    manufacturing milk levy was imposed on relevant dairy produce
               used, whether by the person who exported the dairy produce or
               by another person, in the manufacture of the exported dairy
               produce;

        (ii)   the export of the dairy produce has not been taken into account
               for the purposes of subsection 7(2).

"(5) For the purposes of this Act, the question whether a body corporate is
related to another body corporate is to be determined in the same way as the
question whether bodies corporate are related to each other is determined for
the purposes of the Corporations Law.".

4. Part II: Repeal the Part, substitute:

"PART II-LEVIES ON DAIRY PRODUCE Imposition of levies

"5.(1) Levies are imposed as follows:

   (a)  a levy to be known as the market milk levy is imposed on relevant
        dairy produce processed, during a month ending before 1 July 2000, as
        liquid milk for human consumption and sold or distributed in Australia
        as liquid milk for human consumption;

   (b)  a levy to be known as the manufacturing milk levy is imposed on
        relevant dairy produce:

        (i)    delivered to a manufacturer by the producer during a month
               ending before 1 July 2000; or

        (ii)   produced by a manufacturer and used by the manufacturer, during
               a month ending before 1 July 2000, in the manufacture of dairy
               produce; other than dairy produce referred to in paragraph (a);

   (c)  a levy to be known as the acquisition offset levy is imposed on the
        total quantity of dairy produce acquired by a prescribed exporter or,
        if the prescribed exporter is a body corporate, by a body corporate
        (other than a prescribed exporter) that is related to the prescribed
        exporter, during a financial year commencing on or after 1 July 1995,
        being dairy produce imported into Australia on or after 1 July 1995
        and on which levy has not been paid, and is not payable, under section
        8 or 9 of the Dairy Produce Levy (No. 2) Act 1986;

   (d)  a levy to be known as the Corporation levy is imposed on relevant
        dairy produce produced on or after 1 July 1995;

   (e)  a levy to be known as the promotion levy is imposed on relevant dairy
        produce produced on or after 1 July 1995;

   (f)  a levy to be known as the research levy is imposed on relevant dairy
        produce produced on or after 1 July 1995.

"(2) If a levy is imposed by a paragraph of subsection (1) on particular
relevant dairy produce, the paragraph does not have the effect of imposing any
further levy on:

   (a)  that relevant dairy produce; or

   (b)  relevant dairy produce produced by modifying, or extracting material
        from, the first-mentioned relevant dairy produce. Amount of market
        milk levy

"6. The amount of the market milk levy imposed by section 5 on relevant dairy
produce processed during a month is the total of:

   (a)  an amount calculated at the milk fat rate prescribed in relation to
        that levy for that month on the milk fat content of the relevant dairy
        produce; and

   (b)  an amount calculated at the protein rate prescribed in relation to
        that levy for that month on the protein content of the relevant dairy
        produce. Amount of manufacturing milk levy

"7.(1) In this section:
'milk fat rate', in relation to a month, means the milk fat rate prescribed in
relation to the manufacturing milk levy for that month;
'protein rate', in relation to a month, means the protein rate prescribed in
relation to the manufacturing milk levy for that month.

"(2) The amount of the manufacturing milk levy imposed by section 5 on
relevant dairy produce delivered to, or used by, a manufacturer during a month
is the total of:

   (a)  an amount calculated at the milk fat rate for the month on the milk
        fat content of the relevant dairy produce; and

   (b)  an amount calculated at the protein rate for the month on the protein
        content of the relevant dairy produce; less the total of:

   (c)  the manufacturer's export milk fat component for the month; and

   (d)  the manufacturer's export protein component for the month.

"(3) A manufacturer's export milk fat component for a month is the amount
calculated at the milk fat rate for the month on the milk fat content of:

   (a)  dairy produce exported by the manufacturer during the month; and

   (b)  dairy produce manufactured by the manufacturer and exported, during
        the month, by another person.

"(4) A manufacturer's export protein component for a month is the amount
calculated at the protein rate for the month on the protein content of:

   (a)  dairy produce exported by the manufacturer during the month; and

   (b)  dairy produce manufactured by the manufacturer and exported, during
        the month, by another person.

"(5) If, in relation to a particular manufacturer and a particular month, the
total of the amounts referred to in paragraphs (2)(c) and (d) exceeds the
total of the amounts referred to in paragraphs (2)(a) and (b), no
manufacturing milk levy is payable by the manufacturer in relation to the
month. Amount of acquisition offset levy

"8.(1) Subject to subsection (2), the amount of the levy imposed by paragraph
5(1)(c) on dairy produce acquired by a prescribed exporter or, if the
prescribed exporter is a body corporate, by a body corporate that is related
to the prescribed exporter, during a financial year is calculated as follows:

   (a)  in respect of each quantity of dairy produce acquired:

        (i)    an amount is calculated at the milk fat rate for the month in
               which the dairy produce was acquired on the milk fat content of
               the dairy produce when acquired; and

        (ii)   an amount is calculated at the protein rate for the month in
               which the dairy produce was acquired on the protein content of
               the dairy produce when acquired;

   (b)  the amount of the levy is an amount equal to the total of the amounts
        calculated under paragraph (a) in respect of dairy produce acquired
        during the year.

"(2) If, but for this subsection, the amount of the levy imposed by paragraph
5(1)(c) on dairy produce acquired by a prescribed exporter or, if the
prescribed exporter is a body corporate, by a body corporate that is related
to the prescribed exporter, during a financial year would exceed the maximum
amount, the amount of the levy imposed in respect of that dairy produce is an
amount equal to the maximum amount.

"(3) Except in a case to which subsection (4) applies, the maximum amount of
the levy imposed by paragraph 5(1)(c) on dairy produce acquired by a
prescribed exporter or, if the prescribed exporter is a body corporate, by a
body corporate that is related to the prescribed exporter, during a financial
year is an amount calculated as follows:

   (a)  in respect of each quantity of dairy produce the subject of a relevant
        export by the prescribed exporter during the financial year:

        (i)    an amount is calculated at the milk fat rate for the month in
               which the dairy produce was exported on the milk fat content of
               the dairy produce; and

        (ii)   an amount is calculated at the protein rate for the month in
               which the dairy produce was exported on the protein content of
               the dairy produce;

   (b)  the amounts calculated under paragraph (a) are added together;

   (c)  if levy has been paid, or is payable, by the prescribed exporter under
        section 8 of the Dairy Produce Levy (No. 2) Act 1986 in respect of the
        importation, during the financial year, of any dairy produce and the
        amount so paid or payable is less than the amount arrived at under
        paragraph (b), the maximum amount is the amount equal to the
        difference between the amount arrived at under paragraph (b) and the
        amount of levy paid or payable;

   (d)  if no deduction is made under paragraph (c), the total amount arrived
        at under paragraph (b) is the maximum amount.

"(4) If:

   (a)  levy has been paid, or is payable, by the prescribed exporter under
        section 8 of the Dairy Produce Levy (No. 2) Act 1986 in respect of the
        importation, during the financial year, of any dairy produce; and

   (b)  the amount so paid or payable equals or exceeds the amount arrived at
        under paragraph (3)(b); acquisition offset levy is not imposed on the
        acquisition of the dairy produce by the prescribed exporter or, if the
        prescribed exporter is a body corporate, by a body corporate related
        to that prescribed exporter.

"(5) In subsections (1) and (3), a reference to the milk fat rate or the
protein rate for a month is a reference to the milk fat rate or the protein
rate, as the case may be, prescribed in relation to the manufacturing milk
levy for that month. Amounts of other levies on relevant dairy produce

"9. The amount of a levy imposed by paragraph 5(1)(d), (e) or (f) on relevant
dairy produce is the total of:

   (a)  an amount calculated at the milk fat rate prescribed in relation to
        that levy on the milk fat content of the dairy produce; and

   (b)  an amount calculated at the protein rate prescribed in relation to
        that levy on the protein content of the dairy produce. Milk fat rate

"10. The milk fat rate prescribed in relation to the levy specified in Column
1 of an item in the following table must not exceed the rate specified in
Column 2 of the item.
Item       Column 1                             Column 2

1      Market milk levy              15.750 cents per kilogram

2      Manufacturing milk levy       45.000 cents per kilogram

3      Corporation levy               0.875 cents per kilogram

4      Promotion levy                 2.800 cents per kilogram

5      Research levy                  0.875 cents per kilogram
Protein rate

"11. The protein rate prescribed in relation to the levy specified in Column 1
of an item in the following table must not exceed the rate specified in Column
2 of the item.
Item       Column 1                             Column 2

1      Market milk levy             38.39060 cents per kilogram

2      Manufacturing milk levy     110.00000 cents per kilogram

3      Corporation levy              2.13281 cents per kilogram

4      Promotion levy                6.82500 cents per kilogram

5      Research levy                 2.13281 cents per kilogram
By whom levies payable

"12.(1) The market milk levy imposed on relevant dairy produce is payable by
the producer of the relevant dairy produce.

"(2) The manufacturing milk levy imposed on relevant dairy produce delivered
to, or used by, a manufacturer of dairy produce is payable by the
manufacturer.

"(3) The acquisition offset levy imposed on dairy produce acquired by a
prescribed exporter or, if the prescribed exporter is a body corporate, by a
body corporate that is related to the prescribed exporter, is payable by the
prescribed exporter.

"(4) The following levies imposed on relevant dairy produce are payable by the
producer of the relevant dairy produce:

   (a)  the Corporation levy;

   (b)  the promotion levy;

   (c)  the research levy.". 5. Part III: Repeal the Part. 6. Section 12:
        Repeal the section. 7. Section 14: Omit subsections (2), (3) and (4),
        substitute:

"(2) Before making regulations prescribing a rate for the purposes of section
6 or 9, the Governor-General must take into consideration any report relating
to the proposed regulations made to the Minister by the executive of the
Council.

"(3) Before making regulations prescribing a rate for the purposes of
subsection 7(1), the Governor-General must take into consideration any report
relating to the proposed regulations made to the Minister by the Executive
Director of the Australian Bureau of Agricultural and Resource Economics.".