Commonwealth Numbered Regulations - Explanatory Statements

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PRIMARY INDUSTRIES (EXCISE) LEVIES AMENDMENT REGULATIONS 2003 (NO. 12) 2003 NO. 221

Section 8 of the Primary Industries (Customs) Charges Act 1999 (the Customs Charges Act), Section 30 of the Primary Industries Levies and Charges Collection Act 1991 (the Collection Act), Section 94 of the Wheat Marketing Act 1989 (the Marketing Act) and Section 8 of the Primary Industries (Excise) Levies Act 1999 (the Levies Act), provide that the Governor-General may make regulations prescribing matters required or permitted by those Acts to be prescribed or necessary or convenient to be prescribed for carrying out or giving effect to those Acts.

Schedule 14 of the Customs Charges Act provides that regulations may impose a charge that is a duty of customs on plant products, set the rate of charge and specify by whom it is payable.

Subsection 57(3D) of the Marketing Act provides that regulations may set a fee for applications for wheat export consents, which is payable to the Wheat Export Authority (WEA).

The regulations, together with recent amendments to the Marketing Act for a Special Appropriation to the WEA, provide for the funding of the WEA through a charge on all exports of Australian wheat and a fee on applications made to the WEA for export consents. The imposition of the export charge will cease on 30 June 2006. An export charge combined with application fees provides that those who benefit from the services of the WEA will meet its costs.

The inclusion of a sunset date of 30 June 2006 in the Primary Industries (Customs) Charges Amendment Regulations 2003 (No. 8) was agreed to during the Parliamentary debate on the Wheat Marketing Amendment Bill 2002 following consideration of the recommendations in a report from the Senate Rural and Regional Affairs and Transport Legislation Committee on that Bill.

The Primary Industries (Customs) Charges Amendment Regulations 2003 (No. 8) impose a charge at 22 cents per tonne on all exports of Australian wheat until 30 June 2006, payable by all exporters including AWB (International) Ltd (AWBI), the manager of the wheat single desk under the Marketing Act. This rate does not contravene the restricting provisions for plant products in Clause 9 of Schedule 14 of the Customs Charges Act ($5 per unit of plant product). The regulations also provide that if any body is designated under the Customs Charges Act so that it may recommend to the Minister changes in the wheat export charge, that body must consult the WEA before making a recommendation.

The Primary Industries Levies and Charges Collection Amendment Regulations 2003 (No. 8) provide for the manner of payment of the wheat export charge, the provision of returns by persons who must lodge returns for the charge and the keeping of records. Consequential amendments are also made to the collection provisions for the separate levies already imposed on wheat for research and development and for the industry's share of the costs of Plant Health Australia Ltd.

The Wheat Marketing Amendment Regulations 2003 (No. 1) identify the charge imposed by the Primary Industries (Customs) Charges Amendment Regulations 2003 (No. 8) as wheat export charge amounts for appropriation to the WEA under Section 10A of the Marketing Act. The Wheat Marketing Amendment Regulations 2003 (No. 1) also prescribe a wheat export consent application fee of $50, which is payable to the WEA under the Marketing Act.

The Primary Industries (Excise) Levies Amendment Regulations 2003 (No. 12) amend a numbering reference in Schedule 25 of the Primary Industries (Excise) Levies Regulations 1999 (which relates to wheat) to reflect the part-numbering changes which have been made in the Primary Industries Levies and Charges Collection Amendment Regulations 2003 (No. 8).

At the time of the privatisation of the former statutory Australian Wheat Board in 1999, the WEA was established as a regulatory body to monitor, review and report on AWBI's management of the wheat single desk, and to administer consent arrangements for persons other than AWBI who may want to export wheat. Recent amendments to the Marketing Act provide for the former review functions of the WEA to be conducted by an independent body but with assistance from the WEA. The WEA itself will also be reviewed. The associated costs of these reviews, incorporated in the WEA's budget, will be covered by the export charge. The WEA's `seed' funding of $6m will be fully utilised by about the end of its 2002/03 financial year (30 September).

There were no conditions under the Customs Charges Act, the Collection Act, the Marketing Act or the Levies Act that needed to be met before the power to make these regulations could be exercised. Consultation requirements in clause 13 of Schedule 14 of the Customs Charges Act do not apply in the present case, as the Minister has not declared any specified body to be the designated body in relation to wheat on which export charge is to be imposed.

Details of the Regulations are set out in Attachments 1, 2, 3 and 4.

The Regulations commence on 1 October 2003. This timing will allow at least one month's notice to be given to wheat exporters.

0300094A

0300093A

0300138A

0300093B

ATTACHMENT 1

PRIMARY INDUSTRIES (CUSTOMS) CHARGES AMENDMENT REGULATIONS 2003 (No. 8)

Regulation 1 provides for the name of the regulations to be the Primary Industries (Customs) Charges Amendment Regulations 2003 (No. 8).

Regulation 2 provides for the regulations to commence on 1 October 2003.

Regulation 3 provides that Schedule 1 amends the Primary Industries (Customs) Charges Regulations 2000 (the Customs Charges Regulations).

SCHEDULE 1       Amendments

Items 1 and 2 amend the Reader's Guide to reflect changes to the Custom Charges Regulations and to the Primary Industries (Excise) Levies Regulations 1999.

Item 3 inserts a new Part 5 to Schedule 14 of the Custom Charges Regulations relating to wheat.

Part 5       Wheat

Clause 5.1 provides that a charge is imposed on wheat produced in Australia which is exported after the commencement of this Part.

Clause 5.2 provides that the rate of charge is 22 cents per tonne of wheat exported.

Clause 5.3 provides that the charge on wheat exported is payable by the producer of the wheat as defined by the Primary Industries Levies and Charges Collection Regulations 1991 (the Collection Regulations). For this purpose, an amendment to the Collection Regulations defines the producer as the person who exports the wheat from Australia.

Clause 5.4 provides that if a body is declared as a `designated body' under the Customs Charges Act in respect of wheat on which export charge is imposed, that body must consult with the Wheat Export Authority (WEA) before making a recommendation to the Minister for Agriculture, Fisheries and Forestry regarding future amendments to the Customs Charges Regulations related to the charge. This would enable, for example, an industry body to consider expenditure and funding requirements of the WEA before recommending a rate of charge to the Minister.

Clause 5.5 provides that this new Part 5 to Schedule 14 of Custom Charges Regulations ceases to have effect at the end of 30 June 2006, and consequently the imposition of the wheat export charge would cease from that date.

ATTACHMENT 2

PRIMARY INDUSTRIES LEVIES AND CHARGES COLLECTION AMENDMENT REGULATIONS 2003 (No. 8)

Regulation 1 provides for the name of the regulations to be the Primary Industries Levies and Charges Collection Amendment Regulations 2003 (No. 8).

Regulation 2 provides for the regulations to commence on 1 October 2003.

Regulation 3(1) provides that Schedule 1 amends the Primary Industries Levies and Charges Collection Regulations 1991 (the Collection Regulations). Regulation 3(2) provides that Schedule 2 amends the Collection Regulations as amended by Schedule 1. This involves a renumbering of the Clauses of Schedule 34.

SCHEDULE 1       Amendments

Items 1 and 2 amend the Reader's Guide to reflect changes to Primary Industries (Customs) Charges Regulations 2000 (the Customs Charges Regulations) and to the Primary Industries (Excise) Levies Regulations 1999.

Item 3 provides for the current collection provisions in Schedule 34 of the Collection Regulations, which are applicable to the research and development and Plant Health Australia levies on wheat, to be included in a new Part 1 of the Schedule to apply to `leviable wheat'. The new Part is also renumbered.

Items 4 and 5 reflect the new Part 1 of Schedule 34. They define `leviable wheat' and provide for the definitions in clause 2 of Schedule 34 of the collection Regulations to apply only to leviable wheat.

Item 6 redefines when levy on leviable wheat is due for payment in order to provide consistency with levy management practices for other levies.

Item 7 inserts a new Part 2 to Schedule 34 of the Collection Regulations to apply to `chargeable wheat' i.e. wheat on which an export charge is imposed under the Customs Charges Regulations.

Part 2        Chargeable wheat

Clauses 2.1 and 2.2 provide that Part 2 of Schedule 34 applies to chargeable wheat being wheat on which charge is imposed by Part 5 of Schedule 14 to the Customs Charges Regulations. Notes refer to collection requirements for leviable wheat and to the cessation of imposition of the charge on chargeable wheat at the end of 30 June 2006.

Clause 2.3 defines a levy year for chargeable wheat as a financial year.

Clause 2.4 defines the producer of chargeable wheat for the purposes of the Primary Industries Levies and Charges Collection Act 1991 (the Collection Act) as the person who exports that wheat from Australia.

Clause 2.5 provides that an exporting agent is liable to pay the export charge in respect of chargeable wheat exported on behalf of a producer, and any relevant penalty imposed under the Collection Act.

Clause 2.6 provides that the charge imposed on chargeable wheat is payable monthly by people who lodge a monthly return and is due at the end of 28 days after the month to which it relates.

Clause 2.7 provides that producers and exporting agents who export wheat during a month must lodge a return for that month unless the exemption criteria in subclause 2.7(2) apply.

Clause 2.8 provides that a monthly return must be lodged within 28 days after the end of the month to which it relates.

Clause 2.9 provides for when the export charge is payable by people who lodge an annual return (Clause 2.10 refers).

Clauses 2.10 and 2.11 provide that producers and exporting agents who export wheat during a levy year and who are exempt from lodging monthly returns under Clause 2.7, must lodge a return for that levy year before 28 August in the following levy year.

Clause 2.12 stipulates what must be included in a return.

Clause 2.13 provides that a person may apply for an exemption from lodging monthly returns for a levy year if the total amount of charge they are likely to pay in that year is less than $750.

Clause 2.14 specifies what information must be included in an application for exemption from lodging monthly returns and where that application must be sent.

Clause 2.15 provides that the Secretary must make a decision whether to grant or refuse an exemption and give the applicant written notice of the decision within 14 days of receiving an application. It also specifies the information the Secretary must consider in making that decision.

Clause 2.16 provides that the Secretary must make a decision whether to continue an exemption and give the person written notice of the decision within 14 days of receiving an annual return. It also specifies the information the Secretary must consider in making that decision.

Clause 2.17 provides when a monthly return(s) must be lodged if an exemption to lodge annual returns is refused or discontinued.

Clause 2.18 stipulates what records must be kept by producers. A penalty of 10 penalty units is provided for breaches of this regulation.

Clause 2.19 stipulates what records must be kept by exporting agents. A penalty of 10 penalty units is provided for breaches of this regulation.

Clause 2.20 provides for a person to seek a review, through the Administrative Appeals Tribunal, of decisions of the Secretary to refuse to grant, or to continue, an exemption from the requirement to lodge monthly returns.

Item 8 is a consequential amendment to make amendments to clauses 3, 5, 6 and 7 of Schedule 34 to the Collection Regulations to reflect that the new Part 1 is applicable to `leviable wheat'.

SCHEDULE 2       Amendment (renumbering)

Item 1 provides for the renumbering of existing clauses in Part 1 of Schedule 34 consistent with part-based numbering in other Schedules of the Collection Regulations

ATTACHMENT 3

WHEAT MARKETING AMENDMENT REGULATIONS 2003 (No. 1)

Regulation 1 provides for the name of the regulations to be the Wheat Marketing Amendment Regulations 2003 (No. 1)

Regulation 2 provides for the regulations to commence on 1 October 2003.

Regulation 3 provides that Schedule 1 amends the Wheat Marketing Regulations 1990 (the Marketing Regulations).

SCHEDULE 1       Amendment

Item 1 inserts new regulations 2A and 2B to the Marketing Regulations. The new regulation 2A identifies that the charge imposed by Part 5 of Schedule 14 to the Primary Industries (Customs) Charges Regulations 2000 (i.e. a charge on wheat produced in Australia which is exported) is an amount of charge for the purposes of the definition of "wheat export charge amounts" in the Wheat Marketing Act 1989. Section 10A of that Act provides for the appropriation of "wheat export charge amounts" from the Commonwealth to the WEA.

A note indicates that the imposition of the charge on wheat exported as set out in Part 5 of Schedule 14 to the Primary Industries (Customs) Charges Regulations 2000, ceases on 30 June 2006.

The new regulation 2B prescribes, in accordance with Section 57(3D) of the Wheat Marketing Act 1989, a fee of $50 to accompany an application for a consent from the Wheat Export Authority (WEA) to export wheat. Section 57(3D) of that Act also provides that the fee is payable to the WEA.

ATTACHMENT 4

PRIMARY INDUSTRIES (EXCISE) LEVIES AMENDMENT REGULATIONS 2003 (No. 12)

Regulation 1 provides for the name of the regulations to be the Primary Industries (Excise) Levies Amendment Regulations 2003 (No. 12).

Regulation 2 provides for the regulations to commence on 1 October 2003.

Regulation 3 provides that Schedule 1 amends the Primary Industries (Excise) Levies Regulations 1999 (the Excise Regulations).

SCHEDULE 1       Amendment

Item 1 amends the reference to the Collection Regulations in Clause 1 of Schedule 25 of the Excise Regulations to reflect the renumbering of Clauses by the Primary Industries Levies and Charges Collection Amendment Regulations 2003 (No. 8) mentioned in Attachment 2.