Commonwealth Numbered Regulations - Explanatory Statements

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

PRIMARY INDUSTRIES (CUSTOMS) CHARGES AMENDMENT (FODDER) REGULATION 2016 (F2016L00760)

Explanatory Statement

Issued by Authority of the Deputy Prime Minister and Minister for Agriculture and Water Resources

Primary Industries (Customs) Charges Act 1999

Primary Industries (Customs) Charges Amendment (Fodder) Regulation 2016

Legislative Authority

The Primary Industries (Customs) Charges Act 1999 authorises the imposition of primary industries charges that are duties of customs. Section 8 of the this Act provides that the Governor-General may make regulations prescribing matters required or permitted by the Act to be prescribed or that are necessary or convenient for carrying out or giving effect to the Act. The regulations to this Act may impose a charge on one or more specified products in circumstances ascertained in accordance with the regulations.

Purpose

The purpose of the Primary Industries Levies and Charges Collection Amendment (Export Fodder) Regulation 2016 is to authorise the imposition of a new export charge on fodder products to fund research and development activities. Funds raised by the export charge will be collected by the Department of Agriculture and Water Resources, and passed on to the Rural Industries Research and Development Corporation (RIRDC) for the administration of fodder industry research and development.

Background

Matching government contribution for a new export fodder research and development levy was announced by the former Prime Minister and the then Minister for Agriculture as part of the Agricultural Competitiveness White Paper in July 2015.

Currently, research and development for the fodder industry is funded by voluntary contributions made by fodder producers, primarily those that are exporters, to RIRDC. Despite an agreement among exporters to share the cost of this research and development, these voluntary contributions are not made on an equitable basis. Nor do the contributions meet the total cost of the fodder research and development programme, requiring the shortfall to be made up from RIRDC's core funding. RIRDC has indicated that it may not fund the export fodder research and development programme following a scheduled review in June 2017. The mandatory collection of an equitable charge on exported fodder would ensure continued funding is provided for the RIRDC fodder crops programme and eliminate the need for supplementary funds from RIRDC's core funding.

Impact and Effect

The proposed Regulation will set out the rate of export charge for eligible export products ($0.50 for exported hay and straw). The Regulation will define who pays the export charge, which fodder products will attract the charge, and which products are exempt. The proposed Regulation also sets out a threshold of exported fodder above which exporters are liable to pay the export charge.

The Regulation will ensure that producers contribute to research and development in an equitable manner, through an export charge that accurately reflects the amount of chargeable fodder they export. The charge on export fodder will improve the fodder research and development system by ensuring that all fodder producers contribute proportionately to the statutory levy scheme based on their level of participation within the industry. The export charge collected by the Regulation will allow for the expansion of the current fodder research and development programme to include wider industry-good research and provide greater return on investment than current voluntary arrangements.

Consultation

The Department of Agriculture and Water Resources worked with the Australian Fodder Industry Association (AFIA) as AFIA developed its proposal for the export fodder levy. AFIA consulted extensively with its members in setting the rate of the export charge and determining research priorities to be funded by the collected charge. No exceptions to the levy proposal were received by the department, the Minister for Agriculture and Water Resources, AFIA or RIRDC.

The Department consulted the Office of Best Practice Regulation to develop a Regulation Impact Statement (RIS). The RIS was assessed as best practice and will be available on the Best Practice Regulation Updates website.

Details

Details of the Regulation are set out in the Attachment A.

The Regulation is compatible with the human rights and freedoms recognised or declared under section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011. A full statement of compatibility is set out in Attachment B.

The Regulation is a legislative instrument for the purposes of the Legislation Act 2003.

Attachment A

Details of the Primary Industries (Customs) Charges Amendment (Fodder) Regulation 2016

Section 1 - Name

This section provides that the name of the Regulation is the Primary Industries (Customs) Charges Amendment (Fodder) Regulation 2016.

Section 2 - Commencement

This section provides for the Regulation to commence on the day after this instrument is registered.

Section 3 - Authority

This section provides that the Regulation is made under the Primary Industries (Customs) Charges Act 1999.

Section 4 - Schedules

This section provides that the Regulation is amended as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this instrument has effect according to its terms.

Schedule 1 - Amendments

Item 1 inserts a new Part 5 relating to fodder into Schedule 14 to the Primary Industries (Customs) Charges Regulations 2000.

Clause 5.1 would provide that the definition of fodder is fodder products of the following kinds that are produced in Australia for use for animal feed:

            (a)        hay, including oaten hay, lucerne hay and wheaten hay;

            (b)      Â straw, including cereal straw;

but does not include chaff, extruded fodder products or silage.

Clause 5.2 provides that the charge is imposed on fodder if, on or after 1 July 2016, the fodder is exported from Australia. The note provides a cross-reference to attachment of the fodder levy to the Rural Industries Research and Development Corporation under the Primary Industries Research and Development Act 1989 and the Rural Industries Research and Development Corporation Regulations 2000.

Clause 5.3 sets the rate of the charge at 50 cents per tonne of fodder.

Clause 5.4 provides that the charge on fodder is payable by the producer of the fodder.

Clause 5.5 provides that fodder is exempt from charge in a quarter if the total quantity of fodder on which the producer would be liable to pay charge for the quarter is less than 250 tonnes.

Attachment B

Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

Primary Industries (Customs) Charges Amendment (Fodder) Regulation 2016

This Legislative Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

Overview of the Legislative Instrument

The purpose of the Primary Industries (Customs) Charges Amendment (Fodder) Regulation 2016 is to authorise the imposition of a new export charge on certain fodder products to fund research and development activities. Funds raised by the export charge will be collected by the Department of Agriculture and Water Resources, and passed on to the Rural Industries Research and Development Corporation for the administration of fodder industry research.

Human rights implications

This Legislative Instrument does not engage any of the applicable rights or freedoms.

Conclusion

This Legislative Instrument is compatible with human rights as it does not raise any human rights issues.

The Hon. Barnaby Joyce MP

Deputy Prime Minister and Minister for Agriculture and Water Resources