EXPLANATORY STATEMENT

 

Select Legislative Instrument 2005 No. 283

Issued by Authority of the Parliamentary Secretary to the Minister for Agriculture, Fisheries and Forestry

 

Primary Industries (Excise) Levies Act 1999

Primary Industries (Customs) Charges Act 1999

 

Primary Industries (Excise) Levies Amendment Regulations 2005 (No. 5)

Primary Industries (Customs) Charges Amendment Regulations 2005 (No. 3)

 

Statutory Basis

Section 8 of the Primary Industries (Excise) Levies Act 1999 (the Levies Act) and Section 8 of 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.

Schedule 3 to the Levies Act and Schedule 3 to the Charges Act imposes levies in relation to cattle transactions.  Funds corresponding with the amounts of revenue raised under each Schedule are appropriated for Meat & Livestock Australia Ltd (MLA) for marketing and research activities, Australian Animal Health Council Ltd to ensure that Australia’s national animal health system delivers competitive advantage for Australia’s livestock, and National Residue Survey for recovery of costs incurred in monitoring and testing residues and contaminants in food production.

Purpose of the Regulations

The purpose of the Regulations is to increase the rate of levy imposed by $1.50 per transaction of adult cattle for a period of five years.  The Regulations increase the amount destined for MLA, as the marketing body, from $2.32 to $3.82 per transaction for grass-fed cattle and from $2.54 to $4.04 per transaction for lot-fed cattle under the Levies Act and from $2.16 to $3.82 per transaction for adult cattle under the Charges Act.  The Regulations also reduce the levy rates by $1.50 per transaction on 1 January 2011.

The Regulations are legislative instruments for the purposes of the Legislative Instruments Act 2003. 

Background to the Regulations

Following an industry-wide ballot, the peak industry bodies of the Cattle Council of Australia and the Australian Lot Feeders’ Association approached government to increase the levy by $1.50 per transaction.

The increased funds for marketing will be made available to MLA to boost its domestic and export beef marketing programs.

Details of the Regulations are provided in the Attachment. 

The Office of Regulation Review has been consulted in the preparation of these regulations and a Regulation Impact Statement has been compiled (reference number RIS ID 7600).

0516889A-051117Z

0516889B-051117Z

 

ATTACHMENT

 

Details of the Primary Industries (Excise) Levies Amendment Regulations 2005 (No. 5)

 

Regulation 1 – Name of Regulations

 

This regulation provides for the citation of the Regulations.

 

Regulation 2 – Commencement

 

This regulation provides for Schedule 1 of the Regulations to commence on 1 January 2006.  Schedule 2 is taken to have commenced on 1 March 2003.  The split commencements are due to Schedule 2 of the Regulations omitting Schedule 2 from the Primary Industries (Excise) Levies Amendment Regulations 2003 (No. 3), which was to have reduced the overall levy rate by 17 cents per transaction of adult cattle from 1 January 2007.  Instead, the Regulations provide for the 17 cent levy reduction in its place.

 

Regulation 3 – Amendment of Primary Industries (Excise) Levies Regulations 1999

 

This regulation provides that the Primary Industries (Excise) Levies Regulations 1999 (the Excise Regulations) are amended as set out in Schedule 1.  It gives effect to the new levy rates.

 

Regulation 4 – Amendment of Primary Industries (Excise) Levies Amendment Regulations 2003 (No. 3)

 

This regulation provides that the Primary Industries (Excise) Levies Amendment Regulations 2003 (No. 3) are amended as set out in Schedule 2.  It omits Schedule 2 from the Primary Industries (Excise) Levies Amendment Regulations 2003 (No. 3), which was to have reduced the overall levy rate by 17 cents per transaction of adult cattle from 1 January 2007.  As a result of this omission, the other amendments under the Primary Industries (Excise) Levies Amendment Regulations 2003 (No. 3) continue to apply as of 1 March 2003.

 

Schedule 1 – Amendment

 

Item [1] – Schedule 3

 

Item [1] substitutes Schedule 3 (cattle transactions) to the Excise Regulations, providing for new rates of levy in 2006.  Item [1] also inserts the new Schedules 3A and 3B, providing the rates of levy for the periods 2007-2010, and 2011 onwards, respectively.

 

The replacement Schedule 3 revises the amount of levy imposed through a $1.50 increase on adult grass-fed and lot-fed cattle transactions for the period 1 January 2006 to 31 December 2006.

 

Schedule 3A replaces Schedule 3 on 1 January 2007 and has effect until the last moment of 31 December 2010.  It advises the amount of levy imposed on adult grass-fed and lot-fed cattle transactions, and from 1 January 2007, it reduces the overall levy rate by 17 cents, reflecting an existing sunset that was put in place on 1 March 2003 under the Primary Industries (Excise) Levies Amendment Regulations 2003 (No. 3).

 

To effect the 17 cent reduction in the levy, Schedule 3A:

 

§          amends subclause 3 (1) of Schedule 3 to decrease the levy amount destined for the marketing body from $3.82 to $3.66 per transaction for adult grass-fed cattle;

 

§          amends subclause 4 (1) of Schedule 3 to decrease the levy amount destined for the marketing body from $4.04 to $3.88 per transaction for adult lot-fed cattle; and

 

§          removes subclause 3 (4) and subclause 4 (4) of Schedule 3, including their respective notes.  Schedule 3A moves each respective note 2 under subclause 3 (3) and subclause 4 (3) to advise that the levy amount destined for the Australian Animal Health Council is provided under paragraph 6 (1) (d) of Schedule 3 to the Primary Industries (Excise) Levies Act 1999.  The amount identified reduces from 14 cents to 13 cents per head.

 

Schedule 3B replaces Schedule 3A on 1 January 2011.  It advises the amount of levy imposed on adult grass-fed and lot-fed cattle transactions will return to current levels, minus the 17 cents deducted under Schedule 3A, by deducting the amount of $1.50 per transaction from 1 January 2011.

 

Schedule 3B removes subclause 3 (1) of Schedule 3A.  Schedule 3B inserts the note under subclause 3 to advise that the amount destined for the marketing body from levy imposed on adult grass-fed cattle transactions is provided under paragraph 6 (1) (a) of Schedule 3 to the Primary Industries (Excise) Levies Act 1999.  The amount identified is $2.16 per head.

 

Schedule 3B amends subclause 4 (1) of Schedule 3A to decrease the amount destined for the marketing body from $3.88 to $2.38 per transaction for adult lot-fed cattle. 

 

Schedule 2 – Amendments taken to have commenced on 1 March 2003

 

Item [1] – Regulations 2 and 3

 

Item [1] substitutes regulations 2 and 3 of the Primary Industries (Excise) Levies Amendment Regulations 2003 (No. 3).  The Regulations replicate the planned 1 January 2007 amendments currently provided under Schedule 2 to the Primary Industries (Excise) Levies Amendment Regulations 2003 (No. 3).  Accordingly, item [1] provides that the commencement date for the separate and preceding amendments covered under the Primary Industries (Excise) Levies Amendment Regulations 2003 (No. 3) is 1 March 2003.

 

Item [2] – Schedule 2

 

Item [2] omits Schedule 2 from the Primary Industries (Excise) Levies Amendment Regulations 2003 (No. 3).  Schedule 2 of the Primary Industries (Excise) Levies Amendment Regulations 2003 (No. 3) was to have reduced the overall levy rate by 17 cents per transaction of adult cattle from 1 January 2007.  In its place, the Regulations instead replicate the 17 cent levy reduction, commencing 1 January 2007.
Details of the Primary Industries (Customs) Charges Amendment Regulations 2005 (No. 3)

 

Regulation 1 – Name of Regulations

 

This regulation provides for the citation of the Regulations.

 

Regulation 2 – Commencement

 

This regulation provides for Schedule 1 of the Regulations to commence on 1 January 2006.  Schedule 2 is taken to have commenced on 1 March 2003.  The split commencements are due to Schedule 2 of the Regulations omitting Schedule 2 from the Primary Industries (Customs) Charges Amendment Regulations 2003 (No. 3), which was to have reduced the overall levy rate by 17 cents per transaction of adult cattle from 1 January 2007.  Instead, the Regulations provide for the 17 cent levy reduction in its place.

 

Regulation 3 – Amendment of Primary Industries (Customs) Charges Regulations 2000

 

This regulation provides that the Primary Industries (Customs) Charges Regulations 1999 (the Customs Regulations) are amended as set out in Schedule 1.  It gives effect to the new levy rates.

 

Regulation 4 – Amendment of Primary Industries (Customs) Charges Amendment Regulations 2003 (No. 3)

 

This regulation provides that the Primary Industries (Customs) Charges Amendment Regulations 2003 (No. 3) are amended as set out in Schedule 2.  It omits Schedule 2 from the Primary Industries (Customs) Charges Amendment Regulations 2003 (No. 3), which have reduced the overall levy rate by 17 cents per transaction of adult cattle from 1 January 2007.  As a result of this omission, the other amendments under the Primary Industries (Customs) Charges Amendment Regulations 2003 (No. 3) continue to apply as of 1 March 2003.

 

Schedule 1 – Amendment

 

Item [1] – Schedule 3

 

Item [1] substitutes Schedule 3 (cattle producers) to the Customs Regulations, providing for new rates of levy in 2006.  Item [1] also inserts new Schedules 3A and 3B, providing the rates of levy for the periods 2007-2010, and 2011 onwards, respectively.

 

The replacement Schedule 3 revises the amount of levy imposed through a $1.50 per transaction increase on cattle producers relating to the export of adult cattle from Australia for the period 1 January 2006 to 31 December 2006.

 

Schedule 3A replaces Schedule 3 on 1 January 2007 and has effect until the last moment of 31 December 2010.  It advises the amount of levy imposed on cattle producers relating to the export of adult cattle from Australia, and from 1 January 2007, it reduces the overall levy rate by 17 cents, reflecting an existing sunset that was put in place on 1 March 2003 under the Primary Industries (Customs) Charges Amendment Regulations 2003 (No. 3).

 

To effect the 17 cent reduction in the levy, Schedule 3A:

 

§          amends subclause 2 (1) of Schedule 3 to decrease the levy amount destined for the marketing body from $3.82 to $3.66 per head exported from Australia; and

 

§          removes subclause 2 (4) of Schedule 3, including note 1.  Schedule 3A moves note 2 under subclause 2 (3) to advise that the levy amount destined for the Australian Animal Health Council is provided under paragraph 3 (1) (d) of Schedule 3 to the Primary Industries (Customs) Charges Act 1999.  The amount identified reduces from 14 cents to 13 cents per head.

 

Schedule 3B replaces Schedule 3A and commences on 1 January 2011.  It advises the amount of levy imposed on cattle producers relating to the export of adult cattle from Australia returns the levy to its current level, minus the 17 cents deducted under Schedule 3A, by deducting the amount of $1.50 per transaction from 1 January 2011.

 

Schedule 3B removes subclause 2 (1) of Schedule 3A.  Schedule 3B inserts the note under subclause 2 to advise that the amount destined for the marketing body from levy imposed on cattle producers relating to the export of adult cattle from Australia is provided under paragraph 3 (1) (a) of Schedule 3 to the Primary Industries (Customs) Charges Act 1999.  The amount identified is $2.16 per head.

 

Schedule 2 – Amendments taken to have commenced on 1 March 2003

 

Item [1] – Regulations 2 and 3

 

Item [1] substitutes regulations 2 and 3 of the Primary Industries (Customs) Charges Amendment Regulations 2003 (No. 3).  The Regulations replicate the planned 1 January 2007 amendments that were previously provided under Schedule 2 to the Primary Industries (Customs) Charges Amendment Regulations 2003 (No. 3).  Accordingly, item [1] provides that the commencement date for the separate and preceding amendments covered under the Primary Industries (Customs) Charges Amendment Regulations 2003 (No. 3) is 1 March 2003.

 

Item [2] – Schedule 2

 

Item [2] omits Schedule 2 from the Primary Industries (Customs) Charges Amendment Regulations 2003 (No. 3).  Schedule 2 of the Primary Industries (Customs) Charges Amendment Regulations 2003 (No. 3) was to have reduced the overall levy rate by 17 cents per transaction of adult cattle from 1 January 2007.  In its place, the Regulations instead replicate the 17 cent levy reduction, commencing 1 January 2007.