Commonwealth Numbered Regulations - Explanatory Statements

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PRIMARY INDUSTRIES LEVIES AND CHARGES (CHESTNUT) REGULATIONS 1991 NO. 434

STATUTORY RULES 1991 No. 434

Issued by the Authority of the Minister of State for Primary Industries and Energy.

PRIMARY INDUSTRIES LEVIES AND CHARGES COLLECTION ACT 1991

HORTICULTURAL LEVY ACT 1987

HORTICULTURAL EXPORT CHARGE ACT 1987

PRIMARY INDUSTRIES LEVIES AND CHARGES (CHESTNUT) REGULATIONS

The Australian Horticultural Corporation (AHC) carries out domestic and export market promotion for horticultural industries. The Horticultural Research and Development Corporation (HRDC) carries out joint industry/government funded research and development activities for Australian horticultural industries. Industries may contribute to the activities of both these statutory bodies by way of voluntary contribution or statutory levy.

Subsection 30(1) of the Primary Industries Levies and Charges Collection Act 1991, No 25 Assented to on 1 March 1991 (the Collection Act), subsection 14(1) of the Horticultural Levy Act 1987 (the Levy Act), and subsection 14(1) of the Horticultural Export Charge Act 1987 (the Export Charge Act) provide that the Governor-General may make regulations for the purposes of these Acts.

Section 6 of the Levy Act provides for a levy to be imposed on leviable horticultural products produced in Australia and sold by the producer or used in the production of other goods. Section 6 of the Export Charge Act provides for an export charge to be imposed on chargeable horticultural products produced in Australia that are exported.

The proposed Regulations prescribe chestnuts as a leviable and chargeable horticultural product. Funds raised by the levies and charges will be directed to the AHC for domestic and export promotion of chestnuts, and to the HRDC to support industry research and development.

Subsections 7(1) and 7(3) of the Collection Act provide that, for better securing the payment of levy and export charge, a first purchaser who purchases prescribed products, a buying or selling agent who trades in a prescribed product or an exporting agent who exports prescribed products may be declared liable to pay on behalf of the producer, amounts of levy and export charge due for payment that remain unpaid by the producer. Section 8 of the Collection Act provides that the intermediaries may deduct such amounts paid from proceeds due to the producer.

Section 8 of the Levy and Export Charge Acts provides that regulations may fix the rate of levy and export charge destined for the AHC for a class of leviable and chargeable products. Similarly, section 9 of the Levy and Export Charge Acts provides that regulations may fix the rate of levy and export charge destined for the HRDC for a class of leviable and chargeable products.

Subsections 14(3) and 14(4) of the Levy and Export Charge Acts provide that before making regulations for the purposes of sections 8 and 9, the Governor-General must take into account any relevant recommendation made to the Minister by the AHC and HRDC. The AHC and HRDC have both recommended a levy and charge rate for chestnuts of 5 cents per kilogram.

Subsections 14(6) and 14(7) of both the Levy and Export Charge Acts require the AHC and the HRDC respectively to consult with the eligible industry body before making a recommendation to the Minister on the rate of levy and export charge. This ensures that the industry fully supports a levy and export charge prior to its implementation. The Chestnut Growers of Australia Limited, which is to be the eligible industry body for the purposes of these Regulations, has agreed to the imposition and amount of the levy and export charge for both the AHC and HRDC.

The Regulations provide for the manner of payment of levy and charge, the provision of returns by producers and intermediaries and the keeping of records.

Details of the proposed Regulations for chestnuts are given at Attachment A.

ATTACHMENT A

DETAILS OF THE PRIMARY INDUSTRIES LEVIES AND CHARGES (CHESTNUT) REGULATIONS

Regulation 1 is a formal provision.

Regulation 2 provides that the Regulations commence on 1 February 1992.

Regulation 3 provides that the Primary Industries Levies and Charges Collection Regulations, which provide regulations on matters common to all levies and charges collected under the Primary Industries Levies and Charges Collection Act 1991, must be read as one with these Regulations.

Regulation 4 defines terms used in the Regulations.

Regulation 5 defines the period from the commencement of these Regulations to 31 March 1992 as the first levy quarter and levy quarters thereafter finishing on the last day of June, September and December and March.

Regulation 6 provides that for the purposes of these Regulations, the producer is the person who owns the product immediately after it is harvested.

Regulation 7 provides for exporting agents of chestnuts to be prescribed as intermediaries in the collection of export charge under subsection 7(3) of the Collection Act.

Regulation 8 requires that levy and export charge on chestnuts be paid by the same date as returns are due. These dates are set by regulation 16.

Regulation 9 prescribes chestnuts as a horticultural product subject to levy.

Regulation 10 prescribes chestnuts as a horticultural product subject to export charge.

Regulation 11 prescribes that the rate of levy destined for the AHC will be 5 cents per kilogram.

Regulation 12 prescribes that the rate of levy destined for the HRDC will be 5 cents per kilogram.

Regulation 13 prescribes that the rate of export charge destined for the AHC will be 5 cents per kilogram.

Regulation 14 prescribes that the rate of export charge destined for the HRDC will be 5 cents per kilogram.

Regulation 15 prescribes The Chestnut Growers of Australia Limited as the industry body which must be consulted on the rate of levy and export charge to apply, and the classes of producers and chestnuts which should be exempt from levy and/or export charge.

Regulation 16 defines who must lodge a return.

Regulation 17 requires that persons required to lodge returns under regulation 15 must do so by the 28th day of the month following the end of the quarter.

Regulation 18 prescribes details of the information which should be contained in returns and where the returns should be lodged.

Regulation 19 describes what records of transactions must be kept by producers and dealers of chestnuts and prescribes a maximum penalty of $1,000 to apply for breaches of this regulation.

Regulation 20 requires that records be kept for at least 5 years.