Commonwealth Numbered Regulations - Explanatory Statements

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

PRIMARY INDUSTRIES (CUSTOMS) CHARGES AMENDMENT REGULATIONS 2004 (NO. 4) 2004 NO. 118

Section 8 of both the Primary Industries (Excise) Levies Act 1999 (the Levies Act) and the Primary Industries (Customs) Charges Act 1999 (the Charges Act) provide that the Governor-General may make regulations prescribing matters required or permitted by those Acts to be prescribed or necessary or convenient to be prescribed for carrying out or giving effect to each Act.

The purpose of the Regulations is to alter the existing statutory levy and export charge on custard apples, without changing the overall impost, to:

•       13 cents per standard tray; 13 cents per standard box; and $16 per tonne; to go to Horticulture Australia Limited (HAL) for marketing; and

•       27 cents per standard tray; 27 cents per standard box; and $34 per tonne; to go to HAL for research and development (R&D).

HAL is the relevant industry services body for the administration of the custard apple industry levy and charge. HAL co-ordinates marketing and R&D programs for many horticultural industries. HA L is funded by statutory levies and export charges, voluntary contributions and Australian Government matching funding for eligible R&D expenditure. This matching funding is provided under the Horticultural Marketing and Research and Development Services Act 2000.

Primary Industries (Excise) Levies Regulations 1999

Subclause 4(1) of Schedule 15 to the Levies Act provides that regulations may fix rates of levy for marketing purposes.

Subclause 4(3) of Schedule 15 to the Levies Act provides that regulations may fix rates of levy for R&D purposes.

Subclause 6(4) of Schedule 15 to the Levies Act provides that before the Governor-General makes regulations to fix rates of levy for marketing, the Minister must take into consideration any relevant recommendations made to the Minister by HAL.

Subclause 6(6) of Schedule 15 to the Levies Act provides that before the Governor-General makes regulations to fix rates of levy for R&D, the Minister must take into consideration any relevant recommendations made to the Minister by HAL.

Subclause 6(7) of Schedule 15 to the Levies Act requires HAL to consult with the body that is the eligible industry body for the relevant horticultural product before recommending rates of levy for marketing to the Minister.

Subclause 6(8) of Schedule 15 to the Levies Act requires HAL to consult with the body that is the eligible industry body for the relevant horticultural product before recommending rates of levy for R&D to the Minister.

Subclause 6(9) of Schedule 15 to the Levies Act requires that a recommendation made by HAL to the Minister be accompanied by a written statement of the views of the industry body consulted in relation to the recommendation.

The Regulations prescribe the Australian Custard Apple Growers Association Inc (ACAGA) as the eligible industry body with which HAL must consult in relation to custard apples. ACAGA proposed a change in the statutory levy on custard apples to HAL, and HAL in turn recommended the change to the Minister. The Regulations give effect to the recommendation of HAL, which is consistent with the custard apple industry's request.

Primary Industries (Customs) Charges Regulations 2000

Subclause 3(3) of Schedule 10 to the Charges Act provides that regulations may fix rates of export charge for marketing purposes.

Subclause 3(5) of Schedule 10 to the Charges Act provides that regulations may fix rates of export charge for R&D purposes.

Subclause 5(3) of Schedule 10 to the Charges Act provides that before the Governor-General makes regulations to fix rates of export charge for marketing, the Minister must take into consideration any relevant recommendations made to the Minister by HAL.

Subclause 5(5) of Schedule 10 to the Charges Act provides that before the Governor-General makes regulations to fix rates of export charge for R&D, the Minister must take into consideration any relevant recommendations made to the Minister by HAL.

Subclause 5(6) of Schedule 10 to the Charges Act requires HAL to consult with the body that is the eligible industry body for the relevant horticultural product before recommending rates of export charge for marketing to the Minister.

Subclause 5(7) of Schedule 10 to the Charges Act requires HAL to consult with the body that is the eligible industry body for the relevant horticultural product before recommending rates of export charge for R&D to the Minister.

Subclause 5(8) of Schedule 10 to the Charges Act requires that a recommendation made by HAL to the Minister be accompanied by a written statement of the views of the industry body consulted in relation to the recommendation.

The Regulations prescribe the Australian Custard Apple Growers Association Inc (ACAGA) as the eligible industry body with which HAL must consult in relation to custard apples. ACAGA proposed a change in the statutory export charge on custard apples to HAL, and HAL in turn recommended the change to the Minister. The Regulations give effect to the recommendation of HAL, which is consistent with the custard apple industry's request.

The Regulations implement the proposal by ACAGA for a change in the mix of the statutory levy and export charge on custard apples between the marketing component and the R&D component, without changing the overall impost. The ACAGA proposed that the current levy/charge apportioned 50% to marketing and 50% to R&D to be changed to 32% to marketing and 68% to R&D so that:

•       the marketing levy/charge component becomes 13 cents per standard tray (down from 20 cents); 13 cents per standard box (down from 20 cents); and $16 per tonne (down from $25 per tonne); and;

•       the R&D levy/charge component becomes 27 cents per standard tray (up from 20 cents); 27 cents per standard box (up from 20 cents); and $34 per tonne (up from $25 per tonne).

The total levy and export charge on custard apple growers remains unchanged at: 40 cents per standard tray; 40 cents per standard box; and $50 per tonne. The increased R&D levy and export charge component would result in increased dollar for dollar matching by the Australian Government on R&D expenditure under the Horticulture Marketing and Research and Development Services Act 2000.

Arrangements for the collection and administration of the levy and export charge on custard apples are provided for in Part 8 of Schedule 22 to the Primary Industries Levies and Charges Collection Regulations 1991.

Details of the regulations are contained in the attachment.

The Office of Regulation Review (ORR) was consulted in the preparation of the Regulations. ORR has advised that it is not necessary to prepare a Regulation Impact Statement on this matter (ORR no 6134).

The regulations commence on 1 July 2004.

0403384A
0403384B

ATTACHMENT

DETAILS OF THE PRIMARY INDUSTRIES (EXCISE) LEVIES AMENDMENT REGULATIONS 2004 (No. 4)

Regulation 1 provides for the name of the Regulations to be the Primary Industries (Excise) Levies Amendment Regulations 2004 (No. 4).

Regulation 2 provides for the Regulations to commence on 1 July 2004.

Regulation 3 provides that Schedule 1 amends the Primary Industries (Excise) Levies Regulations 1999.

Schedule 1 Amendments

Item [1] and Item [2] prescribe new rates of levy for the marketing component on custard apples of 13 cents per standard tray, 13 cents per standard box and $16 per tonne.

Item [3] and Item [4] prescribe new rates of levy for the research and development component on custard apples of 27 cents per standard tray, 27 cents per standard box and $34 per tonne.

DETAILS OF THE PRIMARY INDUSTRIES (CUSTOMS) CHARGES AMENDMENT REGULATIONS 2004 (No. 4)

Regulation 1 provides for the name of the Regulations to be the Primary Industries (Customs) Charges Amendment Regulations 2004 (No. 4).

Regulation 2 provides for the Regulations to commence on 1 July 2004.

Regulation 3 provides that Schedule 1 amends the Primary Industries (Customs) Charges Regulations 2000.

Schedule 1 Amendments

Item [1] and Item [2] prescribe new rates of export charge for the marketing component on custard apples of 13 cents per standard tray, 13 cents per standard box and $16 per tonne.

Item [3] and Item [4] prescribe new rates of export charge for the research and development component on custard apples of 27 cents per standard tray, 27 cents per standard box and $34 per tonne.