Commonwealth Numbered Regulations - Explanatory Statements

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COARSE GRAINS LEVY REGULATIONS (AMENDMENT) 1998 NO. 28

STATUTORY RULES 1998 NO. 28

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

Coarse Grains Levy Act 1992

Coarse Grains Levy Regulations (Amendment)

The Coarse Grains Levy Act 1992 (the Act) provides for the imposition of levies on certain coarse grains to fund research. Levies revenue, together with matching Commonwealth contributions, is administered by the Grains Research and Development Corporation (GRDC) to fund research programs of benefit to the grains industry, or to the rural sector and/or the wider community.

The Grains Council of Australia (GCA) has recommended to the Minister for Primary Industries and Energy that the rate of the research and development levy for grain sorghum should be increased from 0.7% of the value of the grain to 1% of the value of the grain.

The proposed increase in levy rate, together with Commonwealth contributions, should redress the current imbalance between income and sorghum program expenditures by the GRDC, and generate additional income to allow new research initiatives.

The Regulations effect that increase from 1 April 1998.

Subsection 11(2) of the Act provides that where a coarse grain has been prescribed as a "leviable coarse grain", the rate of levy for that grain is such a rate (not higher than 5% of the value of the grain) as is prescribed from time to time.

Regulation 3A of Coarse Grains Levy Regulations prescribes grain sorghum as a leviable coarse grain while Regulation 6 prescribes that the rate of levy to be imposed on grain sorghum.

For the purposes of imposition of levy under the Act, the value of grain is prescribed by Regulation 5 of the Primary Industries Levies and Charges Collection (Coarse Grains) Regulations and defines the sales value to be net of handling, storage, transport and f.o.b. costs.

Details of the Regulations are set out below:

Regulation 1 provides for the Coarse Grains Levy Regulations (Amendment) to commence on 1 April 1998.

Regulation 2 provides for the Coarse Grains Levy Regulations to be amended.

Regulation 3 increases the rate of levy for grain sorghum from 0.7% to 1% of the value of the grain.