Commonwealth Numbered Regulations - Explanatory Statements

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PRIMARY INDUSTRIES (EXCISE) LEVIES AMENDMENT REGULATIONS 2004 (NO. 6) 2004 NO. 255

EXPLANATORY STATEMENT

STATUTORY RULES 2004 NO. 255

Issued by the Authority of the Parliamentary Secretary to the Minister for Agriculture, Fisheries and Forestry

Primary Industries (Excise) Levies Act 1999

Primary Industries (Excise) Levies Amendment Regulations 2004 (No. 6)

Section 8 of the Primary Industries (Excise) Levies Act 1999 (the Act) provides that the Governor-General may make regulations 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.

Schedule 3 to the Act imposes levies in relation to cattle transactions. Funds corresponding with the amounts of levy revenue raised under this Schedule are appropriated for purposes undertaken by various bodies, namely Meat & Livestock Australia Ltd (MLA) for marketing and research activities, Australian Animal Health Council Ltd (Animal Health Australia Ltd) (AHA) to ensure that Australia's national animal health system delivers competitive advantage for Australia's livestock, and National Residue Survey (NRS) for recovery of costs incurred in monitoring and testing residues and contaminants in food production.

The Regulations decrease the AHA component of the excise levy in respect of all adult cattle from 30 cents to 14 cents per head, and increase the marketing component from $2.16 to $2.32 per head for grass fed cattle and $1.51 to $1.67 per head for lot fed cattle. The Regulations do not alter the existing overall excise levy rate of $3.50 for each transaction per head for adult cattle. The Regulations also restore the levy rates to their current levels after twelve months.

The twelve-month temporary reduction in the AHA component of the excise levy will not affect existing or proposed animal health programs. With the support of the Cattle Council of Australia Incorporated (CCA), the extra funds that will be made available to MLA will be used to boost its beef marketing programs. Following the detection of bovine spongiform encephalopathy (BSE) in the United States its beef products were banned from entry into Japan. It is expected that when the ban is lifted, the United States will mount a strong promotional campaign in an attempt to regain its lost share of the market. The extra funds for MLA will help Australia maintain its market share in Japan in the event the United States reenters the market.

Subclause 8(1) of Schedule 3 to the Act provides that the Minister may declare an industry body to be the body for the purposes of subclause 8(2). Subclause 8(2) provides that if a declaration is in force under subclause 8(1) then, before the Governor-General makes regulations for the purposes of the paragraph to which the declaration relates, the Minister must take into consideration any relevant recommendation made to the Minister by the body specified in the declaration in relation to that paragraph.

No declarations have been made under subclause 8(1) of Schedule 3 to the Act. However the Regulations implement recommendations from the peak industry body that represents the beef cattle production sector, namely CCA. This means that the Minister has taken into account the recommendations of CCA as if CCA were a declared body under subclause 8(2) of the Act.

The Act specifies no other conditions that need to be met before the power to make the Regulations may be exercised. Details of the Regulations are provided in the Attachment.

The Office of Regulation Review have been consulted in the preparation of these regulations and a Regulation Impact Statement exemption has been granted (reference number RIS ID 6305)

Regulations 1 to 3, and Schedule 1 to the Regulations (which alters the levy rates) will commence on 1 September 2004. Schedule 2 to the Regulations (which restores the levy rates to their pre-existing levels) will commence on 1 September 2005.

0407259A-040715Z

ATTACHMENT

PRIMARY INDUSTRIES (EXCISE) LEVIES AMENDMENT REGULATIONS2004 (NO 6)

Regulation 1 provides for the citation of the Regulations.

Regulation 2 provides that regulations 1 to 3 and Schedule 1 of the Regulations commence on 1 September 2004, and Schedule 2 of the Regulations commences on 1 September 2005.

Regulation 3 provides that Schedules 1 and 2 of the Regulations amend the Primary Industries (Excise Levies) Regulations 1999 (the Excise Regulations). Schedules 1 and 2 identify the amendments to be made as follows.

Schedule 1 of the Regulations (commencing on 1 September 2004)

Item 1 will insert a new subclause 1A (1A) into Schedule 3 to the Excise Regulations to increase the marketing component of the excise levy from $2.16 per head (default rate in the Primary Industries (Excise) Levies Act 1999) (the Act)) to $2.32 per head for adult grass fed cattle. Item 1 will also add two notes to explain that that levy revenue is destined for the marketing body, and that the rate will remain in force until 31 August 2005.

Item 2 will amend subclause 1A (3) of Schedule 3 to the Excise Regulations to decrease the AHA component of the excise levy from $0.30 per head to $0.14 per head for adult grass fed cattle.

Item 3 will substitute note 2 under subclause 1A (3), to advise of the dates for the changes to the AHA component of the excise levy for adult grass fed cattle. Reference to the levy component in the Act, which is superseded by new subclause 1A (1A), is removed.

Item 4 will amend subclause 2 (1) of Schedule 3 to the Excise Regulations to increase the marketing component of the excise levy from $1.51 per head to $1.67 per head for lot fed cattle.

Item 5 will substitute the note under subclause 2 (1) to advise that the dates for reversion to the former marketing rate for lot fed cattle is 1 September 2005.

Item 6 will amend subclause 2(4) of Schedule 3 to the Excise Regulations to decrease the AHA component of the excise levy from $0.30 per head to $0.14 per head for adult lot fed cattle.

Item 7 will substitute the note under subclause 2 (4) to advise that the AHA component of the excise levy for adult lot fed cattle will revert to $0.30 per head on 1 September 2005.

Schedule 2 of the Regulations (commencing on 1 September 2005)

Items 1 to 4 will provide for the reversion of the rates and notes altered by those items described above under Schedule 1. The reversion will be to those rates and notes that existed immediately prior to the commencement of Schedule 1 of the Regulations.


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