Commonwealth Numbered Regulations - Explanatory Statements

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PRIMARY INDUSTRIES (EXCISE) LEVIES AMENDMENT REGULATIONS 2004 (NO. 7) 2004 NO. 357

The Primary Industries (Excise) Levies Act 1999 (the Act) authorises the imposition of primary industries levies that are duties of excise. Schedule 26 to the Act makes provision for the imposition of a levy on wine grapes used at a winery in Australia, and provides that the rate of levy is to be determined in accordance with the regulations.

Section 8 of 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.

Clause 3 of Schedule 26 to the Primary Industries (Excise) Levies Regulations 1999 (the Principal Regulations) prescribes the research amount of the Wine Grapes Levy. The Wine Grapes Levy is payable by the producer of the wine.

The revenue raised under the research amount of the Wine Grapes Levy provides funds for the operation of the Grape and Wine Research and Development Corporation (GWRDC). The GWRDC is the statutory authority that supports the development of the Australian wine industry. It plans and funds collective research and development programs and then facilitates the dissemination, adoption and commercialisation of the results throughout the wine industry.

The Regulations amend Schedule 26 to the Principal Regulations to increase the research amount of the Wine Grapes Levy.

Sub-clause 9(4) of Schedule 26 to the Act provides that the Winemakers' Federation of Australia (WFA) as the declared winemakers organisation may make a recommendation to the Minister with respect to regulations to be made defining the research amount of the Wine Grape Levy. Such a recommendation was made to the Minister by the WFA on 6 May 2004.

Sub-clause 9(5) of Schedule 26 to the Act provides that before the Governor-General makes regulations to vary the research amount of the Wine Grapes Levy the Minister must take into consideration any relevant recommendations made to the Minister by the WFA(1).

The Regulations give effect to the recommendations of the WFA that the research amount of the Wine Grapes Levy be increased from 297.6 cents per tonne of grapes crushed to 497.6 cents per tonne of grapes crushed.

The Regulations increase the levy revenue raised by approximately $3.1 million per annum. Under the Primary Industries and Energy Research and Development Act 1989 this additional revenue will attract matching Australian Government payments to fund the operation of the GWRDC.

Details of the Regulations are set out in the Attachment.

The Regulations commence on the date of their notification in the Commonwealth of Australia Gazette.

ATTACHMENT

Details Of The Proposed Primary Industries (Excise) Levies Amendment Regulations 2004 (No. 7)

Regulation 1 provides for the name of the proposed Regulations to be the Primary Industries (Excise) Levies Amendment Regulations 2004 (No. 7).

Regulation 2 provides for the Regulations to commence on the date of their notification in the Commonwealth of Australia Gazette.

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

Schedule 1 Amendments

Item [1] Schedule 26, Clause 3

This item replaces "297.6 cents" with "497.6 cents" for the definition of the research amount of the Wine Grapes Levy.