EXPLANATORY STATEMENT

 

 

Select Legislative Instrument 2007 No. 135

 

 

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 2007 (No. 3)

 

Section 30 of the Primary Industries Levies and Charges Collection Act 1991 (the Act) provides that the Governor-General may make regulations not inconsistent with the Act, 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 Primary Industries Levies and Charges Collection Regulations 1991 (the Principal Regulations) set out the levy and charge collection details for a range of commodities; Schedule 22 to the Principal Regulations sets out the details for various horticultural products including, at Part 18, for Agaricus mushrooms.

 

The Principal Regulations provide for a levy on Agaricus mushrooms produced in Australia that are either sold by the producer or used by the producer in the production of other goods. No export charge applies to Agaricus mushrooms because mushroom spawn is not exported from Australia. Horticulture Australia Limited (HAL) is responsible for the administration of the levy and charge schemes and for the coordination of marketing and research and development programs for the Agaricus mushroom industry using the funds collected through the levy. The Australian Government provides matching funds for eligible research and development expenditure under the Horticulture Marketing and Research and Development Services Act 2000.

 

The Agaricus mushroom levy applies up to a limit of 250,000 kilograms of spawn per producer in a levy (financial) year. All mushrooms produced after the 250,000 kilogram spawn cap has been reached are exempt from levy. Previous to this amendment, producers submitted monthly returns from the beginning of each levy year until they had reached the levy cap. This meant that producers sometimes paid their whole levy liability of $540,000 ($2.16 per kilogram x 250,000 kilograms) in the first six months of the levy year, which lead to cash flow problems for their businesses. To ease the burden on business it was proposed to enable the levy liability of $540,000 to be paid in equal monthly payments of $45,000. In doing so, producers still meet their levy liability and the negative impacts on business cash flow are minimised.

 

The Australian Mushroom Growers Association (AMGA), the peak industry body for the Agaricus mushroom industry, requested that producers who exceed the 250,000 kilogram levy cap have the ability to make equal levy payments during the levy year.

 

The amendment allows producers of Agaricus mushrooms who produce or purchase more than 250,000 kilograms of mushroom spawn in a levy year to apply to pay their levy liability in equal monthly installments during the levy year. As these amendments were administrative in nature only and do not affect the existing liability of persons who produce Agaricus mushrooms, it was not necessary to conduct a full consultation process, involving a ballot of each affected industry member. The Levies Revenue Service of the Department of Agriculture Fisheries and Forestry consulted with HAL and the AMGA regarding this change.

 

Details of the Regulations are contained in Attachment A.

 

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

 

The Best Practice Regulation ‑ Preliminary Assessment was completed in accordance with OBPR directions and is at Attachment B.

 

The Regulations commenced on the day after they were registered on the Federal Register of Legislative Instruments (FRLI).

 

 

 

0606633A

 

Attachment A

 

DETAILS OF THE PRIMARY INDUSTRIES LEVIES AND CHARGES COLLECTION AMENDMENT REGULATIONS 2007 (No. 3)

 

Regulation 1 provides for the name of the Regulations to be the Primary Industries Levies and Charges Collection Amendment Regulations 2007 (No. 3).

 

Regulation 2 provides for the commencement date to be the day after they are registered.

 

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

 

Schedule 1 Amendment to Part 18 of Schedule 22

 

Item [1] inserts three additional subclauses to Part 18.8.

 

Subclause 18.8A provides producers with the ability to apply to the Secretary of the Department of Agriculture Fisheries and Forestry to pay their levy liability in equal monthly installments during the levy year. This subclause also directs applications to be submitted with the producer’s personal details and a statement detailing that the producer expects to produce or purchase 250,000 kilograms or more of mushroom spawn in the levy year.

 

Subclause 18.8B provides for the Secretary to grant or refuse applications within 14 days of receipt. This subclause also instructs the Secretary, when considering applications, to take into account levy paid by the applicant in the preceding levy year and any information available relating to the amount of mushroom spawn that the producer is likely to produce or purchase in the levy year to which the application relates.

 

Subclause 18.8C instructs producers, who have been granted permission by the Secretary, how to calculate their monthly payments.

 

Item [2] inserts an additional subclause providing for the review of the Secretary’s decisions via the Administrative Appeals Tribunal.

 

 

Attachment B

Best Practice Regulation – Preliminary Assessment

 

Department of Agriculture Fisheries & Forestry, Levies Revenue Service

Mushroom levy amendment

 

This form is designed to help you undertake a preliminary assessment of the impact of a regulatory proposal on business and individuals or the economy, and to determine what level of regulatory analysis is required. You should consult the Best Practice Regulation Handbook for a full outline of the requirements for developing regulatory proposals. All new and amending regulations and quasi-regulations, including those that impose a cost or confer a benefit, are subject to these processes.

 

Section 1: Business Compliance Costs

 

The Business Cost Calculator (BCC) Quickscan is to be used for all regulatory proposals to identify whether there will be business compliance costs. The following checklist will help you identify if there are compliance costs, and can be used as an alternative to the BCC Quickscan.

 

Will businesses incur costs when they are required to report certain events? Yes No

 

Will costs be incurred by business in keeping abreast of regulatory requirements? Yes No

 

Are costs incurred in seeking permission to conduct an activity? Yes No

 

Are businesses required to purchase materials or equipment? Yes No

 

Are businesses required to keep records up-to-date? Yes No

 

Will businesses incur costs when cooperating with audits or inspections? Yes No

 

Will businesses incur costs when producing documents for third parties? Yes No

 

Will business incur costs that are of a non-administrative nature? Yes No

 

Are there any other compliance costs associated with the regulatory proposal? Yes No

 

If you have answered no to each of these questions there would appear to be nil compliance costs and you may proceed to Section 2 on other impacts (including impacts on competition). If you answered yes to any of the questions you need to asses whether the impact on business is low, medium or significant.

 

Will this proposal have a low impact on business? Yes No

 

If you have assessed the impact on business as low you should attach an explanation of the reason for that assessment. If the impact is medium or significant you are required to estimate the compliance cost using the BCC. If the impact is medium or significant, or you are unsure, please contact the OBPR to discuss/confirm your preliminary assessment, and whether you need to prepare a Regulation Impact Statement (RIS).

 

Section2: Other impacts on business and individuals, including restrictions on competition

 

If a regulatory option is likely to have a significant impact on business and individuals or restricts competition you may be required to prepare a RIS. Restrictions on competition can include a limitation being placed on entry to a market, price, output or production methods. The following checklist will help you to assess whether a proposal restricts competition.

 

Would the regulatory proposal affect the number and range of suppliers? Yes No

For Example: Grant exclusive rights for a supplier to provide a good or service.

Establish a licence, permit or authorisation process as a requirement of operation.

Affect the ability of some types of firms to participate in public procurement.

Significantly alter costs of entry or exit to a supplier.

Create geographic barriers for businesses.

 

Would the regulatory proposal change the ability of suppliers to compete? Yes No

For Example: Control or substantially influence the price at which a good or service is sold.

Alter the ability of suppliers to advertise or market their products.

Set standards for product/service quality that are significantly different from current.

Significantly alter costs for some suppliers relative to others.

 

Would the regulatory proposal alter suppliers’ incentives to compete vigorously? Yes No

For Example: Create a self-regulatory or co-regulatory regime.

Impact on the mobility of customers between suppliers.

Require/encourage the publishing of data on company outputs/price, sales/cost.

Exempt an activity from general competition law.

 

If you tick yes to any of these boxes contact the OBPR to determine whether a RIS is required. If there are other impacts on business and individuals which may be significant you should seek advice from the OBPR.

 

Further action

 

This form and any supporting documents, including a brief outline of the proposal to which it relates, should be kept on file and copied to the person in your department/agency responsible for coordinating matters relating to best practice regulation.

 

 

 

 

 

Anna Pellew

26 February 2007

 

Assessment explanation

 

The Australian Mushroom Growers Association, the industry body for the mushroom industry, has proposed changes to the Agaricus Mushroom levy. The mushroom levy is imposed on mushrooms produced, that are either sold by the producer or used by the producer in the production of other goods. Levy is imposed on up to 250,000 kilograms of mushroom sold or used in a levy (financial) year. All mushrooms produced or purchased after the 250,000 kilogram cap has been reached are exempt from levy. The proposed change will allow producers of mushrooms who produce or purchase more than 250,000 kilograms of mushroom spawn in a levy year to apply to pay their levy liability in equal monthly instalments during the levy year. As the change is administrative in nature only, it will not affect producers levy liability. Actually, it is likely that equal levy payments spaced periodically during the levy year may benefit producers’ cash flow.

 

The change requires amendments to the Primary Industries Levies and Charges Regulations 1991 (the PILCC Regulations).