EXPLANATORY STATEMENT

 

Select Legislative Instrument 2009 No. 351

 

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

 

Primary Industries (Excise) Levies Act 1999

 

Primary Industries (Excise) Levies Amendment Regulations 2009 (No. 5)

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, necessary or convenient to be prescribed for carrying out or giving effect to the Act.

Schedule 22 to the Act provides for the imposition of excise levy on pig slaughter (the levy), and paragraphs 3(a) and 3(b) of that Schedule provides that an amount in respect of each pig slaughtered – not exceeding $1 for research and development (R&D) and $2.50 for marketing payments – may be prescribed by the Primary Industries (Excise) Levies Regulations 1999 (the Principal Regulations).

 

Clause 1 of Schedule 22 to the Principal Regulations currently sets the rate of the R&D component of the levy at 70 cents and of the marketing component at $1.65 for paragraphs 3(a) and 3(b) of Schedule 22 to the Act.

 

The Primary Industries (Excise) Levies Amendment Regulations 2009 (the Amendment Regulations) increase the R&D component of the levy by 30 cents and decrease the marketing component by 30 cents. This would enable Australia Pork Limited (APL) to maintain a balance between R&D and marketing expenditure, consistent with its 2010-15 strategic plan.

 

Clause 5 of Schedule 22 to the Act provides that regulations must not prescribe an amount for the purposes of paragraph 3(a) and 3(b), unless the industry services body has made a recommendation to the Minister for Agriculture, Fisheries and Forestry (the Minister) with respect to the amount to be prescribed. The regulations must not prescribe an amount that is greater than the amount last recommended by the industry services body to the Minister. APL has been declared under the Pig Industry Services Act 2001 as industry services body for the pig industry. As such APL manages the pig industry’s R&D and marketing activities. APL consulted its members directly and other pork producers via industry media, regarding the change of levy mix and recommended transfer of 30 cents from the marketing component to the R&D component.

 

Details of the Amendment Regulations are contained in Attachment 1. The Amendment Regulations are a legislative instrument for the purposes of the Legislative Instruments Act 2003.

 

The Office of Best Practice Regulation has approved a Preliminary Assessment prepared by the department (Ref: OBPR ID 2009/10384) and advised that a Regulation Impact Statement is not required as there is no net increase to the overall levy rate.

Regulations 1 to 3 commence on the day after they are registered , whilst Schedule 1 commences from the first day of the first month following registration with the Federal Register of Legislative Instruments.
0916455A-090728Z

 

ATTACHMENT 1

 

Details of the Primary Industries (Excise) Levies Amendment Regulations 2009 (No. 5)

 

Regulation 1 – Name of Regulations

 

This Regulation provides for the name of the Regulation to be the Primary Industries (Excise) Levies Amendment Regulations 2009 (No. 5).

 

Regulation 2 – Commencement

 

This Regulation commence as follows:

(a)    on the day after they are registered – regulations 1 to 3

(b)    on the first day of the first month after the month in which regulations 1 to 3 commences – Schedule 1.

 

Regulation 3 – Amendment of Primary Industries (Excise) Levies Regulations 1999

 

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

 

Schedule 1 – Amendments

 

Item [1] – Schedule 22

 

Item 1 substitutes subclause 1(1) of Schedule 22 (Pig Slaughter) to the Principal Regulations, to omit 70 cents and insert $1.00.

 

Item [2] – Schedule 22

 

Item 2 substitutes subclause 1(2) of Schedule 22 (Pig Slaughter) to the Principal Regulations, to omit $1.65 and insert $1.35.

 

The amendment of Schedule 22 transfers 30 cents from the marketing component to the R&D component of the pig slaughter levy.