Commonwealth Numbered Regulations - Explanatory Statements

[Index] [Search] [Download] [Related Items] [Help]

DAIRY PRODUCE LEVY REGULATIONS (AMENDMENT) 1996 NO. 127

EXPLANATORY STATEMENT

STATUTORY RULES 1996 No. 127

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

Dairy Produce Levy Regulations (Amendment)

The Dairy Produce Levy (No. 1) Act 1986 (the Act) provides for the imposition of dairy industry levies on milk produced in Australia. These levies are the market milk levy, the manufacturing milk levy, the research levy, the Corporation levy and the promotion levy. All levies, except for the manufacturing milk levy, are paid by the producer. The manufacturing milk levy is paid by the manufacturer on milk used in the manufacture of dairy products. The rates of the levies are determined on the milk fat and protein content of the milk.

The purpose of the proposed Regulations is to alter the operational rates of the manufacturing and research levies from 1 July 1996.

The manufacturing milk levy is used to finance the domestic market support scheme for the dairy industry. Support for manufacturing milk producers is obtained through an intersectoral transfer from market milk producers via the market milk levy and through a financial transfer from domestic consumers via the levy paid by manufacturers. Manufacturers can recoup the levy through the price to domestic consumers or through an export rebate. This levy is adjusted annually to generate receipts equal to the consumer transfer which would have been provided under the 1992 Dairy Plan (which ceased on 30 June 1995), subject to legislated maximum levels that are reducing annually. The research levy is used to fund the activities of the Dairy Research and Development Corporation (DRDC).

The Act works in conjunction with the Dairy Produce Act 1986, the Dairy Produce Levy (No. 2) Act 1986 and the Primary Industries Levies and Charges Collection Act 1991.

Subsection 14 (1) of the Act provides for the Governor-General to make regulations that set the prescribed rates of dairy industry levies.

Subsection 14 (2) of the Act provides for the Australian Dairy Industry Council (ADIC) to make recommendations on the appropriate rates for the market milk levy, the Corporation levy, the promotion levy and the research levy.

Subsection 14 (3) of the Act provides for the Executive Director of the Australian Bureau of Agricultural and Resource Economics (ABARE) to make a report relating to an appropriate rate for the manufacturing milk levy.

These amendments to the rates of research and manufacturing milk levies to apply from 1 July 1996 are based on recommendations received from the ADIC and the Executive Director of ABARE respectively.

Details of the regulations are set out below:

Regulation 1 provides for these regulations to commence on 1 July 1996.

Regulation 2 provides for the Dairy Produce Levy Regulations to be amended in accordance with these regulations.

Regulation 3 prescribes that the milk fat and protein rates of the manufacturing milk levy to apply from 1 July 1996 are 32.857 cents per kilogram and 77.919 cents per kilogram respectively.

Regulation 4 prescribes that the milk fat and protein rates of the research levy to apply from 1 July 1996 are 0.805 cents per kilogram and 1.9621 cents per kilogram respectively.