EXPLANATORY STATEMENT

 

 

Select Legislative Instrument 2006 No. 206

 

 

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

 

Primary Industries Levies and Charges Collection Act 1991

 

 

Primary Industries Levies and Charges Collection Amendment Regulations 2006 (No. 6)

 

 

 

Section 30 of the Primary Industries Levies and Charges Collection Act 1991 (the Act) provides that the Governor-General may make regulations prescribing matters required or permitted by the Act to be prescribed or necessary or convenient to be prescribed for carrying out or giving effect to the Act.

 

The Australian wine industry currently pays a statutory levy to fund marketing and research and development programmes to benefit the industry.  The Australian Government provides matching funds for eligible research and development expenditure under the Primary Industries and Energy Research and Development Act 1989.  The Grape and Wine Research and Development Corporation is the statutory body responsible for the coordination of research and development programmes for the wine industry.  The Australian Wine and Brandy Corporation is the statutory body with responsibility for coordinating the industry’s marketing programmes.

 

The purpose of the Regulations is to amend the Primary Industries Levies and Charges Collection Regulations 1991 to change the wine grape levy payment arrangements for people who pay levy on 100 tonnes or less of prescribed goods, including fresh grapes, made into wine.  The changes require those levy payers to pay the levy in a single instalment due by 30 September in the financial year following the year in which the wine is made.

 

All levy payers are currently required to pay 50 per cent of the levy by 30 September in the financial year following the year in which the wine is made.  The remaining 50 per cent must be paid no later than 31 March in that financial year.

 

The changes have been proposed to increase the efficiency of collecting levy from small wine producers.  Currently small levy payers may choose to pay amounts as low as $200 in two instalments, due six months apart.  The Regulations require everyone who pays levy on 100 tonnes or less of prescribed goods to pay levy in a single instalment.  The maximum amount payable in a single instalment at the current levy rates would be $1,100.

 

The Regulations are also expected to reduce the costs of collecting the wine grape levy, with the result that more of the funds raised would be available for marketing and R&D work for the benefit of the industry.

 

The Levies Revenue Service within the Australian Government Department of Agriculture, Fisheries and Forestry consulted with the Winemakers’ Federation of Australia (WFA) which is the peak industry body for the wine industry.  These changes have the full support of the WFA.  As the Regulations are administrative in nature only, it has not been necessary to conduct a full consultation process, involving a ballot of each industry member.

 

Details of the Regulations are contained in the Attachment.

 

The Act specifies no conditions that need to be met before the power to make the Regulations may be exercised.

 

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

 

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 Number 2006/8375).

 

The Regulations commenced on 15 August 2006.

 

 

 

0608575A

 

Attachment

 

 

Legislative provisions for a change to the due date for low level wine grape levy payers.

 

DETAILS OF THE PROPOSED PRIMARY INDUSTRIES LEVIES AND CHARGES COLLECTION AMENDMENT REGULATIONS 2006 (No. 6)

 

Regulation 1 would provide for the name of the proposed regulations to be the Primary Industries Levies and Charges Collection Amendment Regulations 2006 (No. 6).

 

Regulation 2 would provide for the commencement date to be 15 August 2006.

 

Regulation 3 would provide that Schedule 1 amends the Primary Industries Levies and Charges Collection Regulations 1991.

 

Schedule 1                                          Amendment to Schedule 36

 

Item [1] would substitute a new clause 8 setting out when levy on prescribed goods, namely fresh grapes, dried grapes and grape juice, is due for payment.  People who pay levy on 100 tonnes or less of prescribed goods would be required to pay the levy in full no later than the last day for lodging a return, being 30 September in the financial year following the year in which the wine is made.  There is no change to the due date for payments on prescribed goods over 100 tonnes.  For this category of levy payers, they will be required to pay 50 per cent of the levy by the return due date of 30 September and the remainder will be due by 31 March in the following year.