PRIMARY INDUSTRIES (EXCISE) LEVIES AMENDMENT (THOROUGHBRED HORSES) REGULATIONS 2017 (F2017L01010) EXPLANATORY STATEMENT

Commonwealth Numbered Regulations - Explanatory Statements

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PRIMARY INDUSTRIES (EXCISE) LEVIES AMENDMENT (THOROUGHBRED HORSES) REGULATIONS 2017 (F2017L01010)

Explanatory Statement

 

 

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

 

Primary Industries (Excise) Levies Act 1999

 

Primary Industries (Excise) Levies Amendment (Thoroughbred Horses) Regulations 2017

 

The Primary Industries (Excise) Levies Act 1999 (the Levies Act) provides for the imposition of primary industry levies that are duties of excise.

 

Section 8 of the Levies Act provides that the Governor-General may make regulations prescribing matters required or permitted by the Levies Act, or necessary or convenient to be prescribed for carrying out or giving effect to the Levies Act.

 

The purpose of the Primary Industries (Excise) Levies Amendment (Thoroughbred Horses) Regulations 2017 (the Regulations) is to establish a statutory levy of $10 per mare covered per season, paid by the stallion producer, and $10 per mare returned per season, paid by the mare producer, to fund research and development (R&D) activities for the thoroughbred horse industry.

 

The thoroughbred horse industry sought to introduce a statutory levy to help conduct a comprehensive, long-term R&D program. An R&D program will assist with the ongoing profitability, productivity and competitiveness of the Australian thoroughbred horse industry.

 

Rather than relying on voluntary industry contributions, establishing a thoroughbred horse R&D levy ensures that all thoroughbred horse producers invest equitably in R&D. A levy also provides the thoroughbred horse industry with greater certainty about the amount of revenue that will be collected and will enable forward-year planning to deliver priority R&D for the benefit of the whole industry. It also allows industry to receive the benefits of Commonwealth matching payments for eligible R&D expenditure.

 

Thoroughbred Breeders Australia, the national thoroughbred horse industry representative body, proposed an R&D levy in 2013 of $10 per mare covered per season, paid by the stallion producer, and $10 per mare returned per season, paid by the mare producer. Investment in R&D aims to improve the profitability, sustainability and international competitiveness of the Australian thoroughbred horse industry. Based on estimates of future thoroughbred horse production in Australia, the levy rate allows for sufficient funds to be collected from the thoroughbred horse industry and ensures that priority R&D projects can continue over the long term. In June 2016, the Australian Government announced that it would provide matched Commonwealth funding for eligible thoroughbred horse R&D.  

 

Thoroughbred Breeders Australia undertook a detailed consultation process on the levy in 2013, including an independent ballot, to consult all known potential levy payers. Sixty-eight per cent of voters supported the introduction of an R&D levy.

 

The Office of Best Practice Regulation (OBPR) was consulted on the introduction of a thoroughbred horse R&D levy and assessed the Regulation Impact Statement (RIS). On 11 April 2017, OBPR assessed the RIS as compliant with government requirements. The OBPR reference number for this assessment is 21808.

 

Details of the Regulations are set out in Attachment A.

 

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


 

Attachment A

 

Details of the Primary Industries (Excise) Levies Amendment (Thoroughbred Horses) Regulations 2017

 

Section 1 - Name

 

This section provides that the name of the Regulations are the Primary Industries (Excise) Levies Amendment (Thoroughbred Horses) Regulations 2017.

 

Section 2 - Commencement

 

This section provides for the Regulations to commence on 1 September 2017.

 

Section 3 - Authority

 

This section provides that the Regulations are made under the Primary Industries (Excise) Levies Act 1999.

 

Section 4 - Schedules

 

This section provides that the Regulations are amended or repealed 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 12 of Schedule 27 to the Primary Industries (Excise) Levies Regulations 1999 relating to thoroughbred horses. Notes on the individual clauses are set out below.

 

Part 12 - Thoroughbred horses

 

12.1 Imposition of levy

This clause imposes a research and development levy on thoroughbred horses. The levy is not imposed on a thoroughbred mare unless the mare has been recorded in a mare return lodged by the producer with Racing Australia for registration in the Australian Stud Book. The levy is not imposed on a thoroughbred stallion unless the stallion covers a mare and the covering is recorded in a declaration of service lodged by the producer with Racing Australia for registration in the Australian Stud Book.

 

 

12.2 Rate of levy

The rate of the levy that is imposed on a thoroughbred horse is $10 for each mare included in a mare return in a levy year, and $10 per mare covered by a stallion in a levy year that is recorded in a declaration of service.

 

 

 

 

12.3 Who pays the levy

Where levy is imposed on a mare, it is payable by the producer of the mare. Where levy is imposed on a stallion, it is payable by the producer of the stallion.

 

A producer is defined as the person who lodges a mare return or declaration of service with Racing Australia, in clause 14.4 of Part 14 of Schedule 37 to the Primary Industries Levies and Charges Collection Regulations 1991.

           


 

Attachment B

 

Statement of Compatibility with Human Rights

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

 

Primary Industries (Excise) Levies Amendment (Thoroughbred Horses) Regulations 2017

 

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 (Excise) Levies Amendment (Thoroughbred Horses) Regulations 2017 is to establish a statutory levy of $10 per mare covered per season, paid by the stallion producer, and $10 per mare returned per season, paid by the mare producer, to fund research and development activities for the thoroughbred horse industry.

 

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

 

 

 

 


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