Commonwealth Numbered Regulations - Explanatory Statements

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PRIMARY INDUSTRIES LEVIES AND CHARGES COLLECTION (FOREST AND WOOD PRODUCTS)REGULATIONS (AMENDMENT) 1997 NO. 202

EXPLANATORY STATEMENT

STATUTORY RULES 1997 No. 202

Issued by the Authority of the Minister for Resources and Energy for the Minister for Primary Industries and Energy

Forest Industries Research Levy Act 1993

Forest Industries Research Export Charge Act 1993

Forest Industries Research Import Charge Act 1993

Primary Industries Levies and Charges Collection (Forest and Wood Products) Regulations (Amendment)

Section 9 of each of the Forest Industry Research Levy Act 1993 ('the Levy Act'), the Forest Industries Research Export Charge Act 1993 ('the Export Charge Act') and the Forest Industries Research Import Charge Act 1993 ('the Import Charge Act') [collectively referred to as 'the Acts'] provides that:

(1)       the Governor-General may make regulations prescribing matters required or permitted by this Act to be prescribed; and

(2)        before making a regulation the Governor-General is to take into consideration any recommendation made to the Minister by an industry body.

Subsection 3(1) of each of the Acts provides that -industry body' means an industry body declared under section 7 of the Primary Industries and Energy Research and Development Act 1989 to be a representative organisation in relation to an R & D [Research and Development] Corporation established under section 8 of that Act in respect of forest industries." The National Association of Forest Industries Limited (NAFI) was declared to be such a representative organisation in 1993.

Section 5 of the Levy Act provides for the imposition of a levy on logs that are produced in Australia and delivered to a mill in Australia. Section 5 of the Export Charge Act provides for the imposition of a levy on logs that are produced in Australia and exported from Australia. Section 5 of the Import Charge Act provides for the imposition of a levy on forest products imported into Australia.

Section 6 of each of the Acts provides for a declaration by regulation as to the rate of levy to be imposed and in addition specifies the mechanisms and conditions used to determine levy rates for forest and wood products.

Subsection 6(6) of the Levy Act, subsection 6(2) of the Export Charge Act and subsection 6(5) of the Import Charge Act provide that the regulations may provide that the charge is not payable if the total amount of levy and charge to be collected is less than the amount specified in the regulations.

NAFI has recommended an increase in levy rates on certain forest products and also to increase the levy exemption threshold amount as specified in this statement.

The Prime Minister and Treasurer have agreed to the proposed changes.

The purpose of the proposed regulations is to increase the levy rate on certain forest products to provide increased research and development program funding to be administered by the Forest and Wood Products Research and Development Corporation. The proposed regulations will also increase the annual levy exemption threshold so as to ensure small producers previously below the levy exemption threshold (and therefore not liable to pay the charge) will not be pushed above the threshold level and become liable to pay the charge because of the levy increase.

Details of the regulations are as follows:

Regulation 1 provides for the regulations to commence on 1 August 1997.

Regulation 2 provides for the existing regulations to be amended.

Regulation 3 amends Regulation 10 to increase the existing annual levy exemption threshold from $75 to $330. Under regulation 10 the forest industry levy or charge is not payable if the total amount of levy and charge that a producer is liable to pay is less than (a prescribed amount) in a levy year.

Regulation 4.1 provides for the increase in levy rate for softwood sawlogs (other than cypress sawlogs) [Item 5 in Column 3 of the Schedule] from 18 cents per cubic metre to 29 cents per cubic metre.

Regulation 4.2 provides for the increase in levy rate for hardwood sawlogs (Item 6 in Column 3 of the Schedule) from 15 cents per cubic metre to 22 cents per cubic metre.

Regulation 4.3 provides for the increase in levy rate for cypress sawlogs (Item 7 in Column 3 of the Schedule) from 15 cents per cubic metre to 22 cents per cubic metre.

The minute recommends that the regulations be made in the form proposed.


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