Commonwealth Numbered Regulations - Explanatory Statements
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PRIMARY INDUSTRIES (EXCISE) LEVIES AMENDMENT (RICE) REGULATIONS 2020 (F2020L00664)
Explanatory Statement
Issued by Authority of the Minister for Agriculture, Drought and Emergency Management
Primary Industries (Excise) Levies Act 1999
Primary Industries (Excise) Levies Amendment (Rice) Regulations 2020
Legislative Authority
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 this Act to be prescribed; or necessary or convenient to be prescribed for carrying out or giving effect to this Act.
Purpose
The purpose of the Primary Industries (Excise) Levies Amendment (Rice) Regulations 2020 (the Regulations) is to amend the Primary Industries (Excise) Levies Regulations 1999 (the Principal Regulations) to increase the rice research and development (R&D) levy payable by the producer of the rice from $2.94 per tonne to $5.94 per tonne.
The Regulations implement changes to the rice R&D levy, as requested by Rice Growers' Association of Australia (RGA), a 'rice industry body' for the purposes of the Act, following consultation with the rice industry. Subclause 3(5) of Schedule 23 to the Act states the regulations must not specify a rate of levy imposed by that Schedule for a variety of rice unless the rate is recommended to the Minister by a rice industry body
Background
The Commonwealth and the agriculture industry recognise the importance of coordination to ensure R&D benefits both individuals and the industry as a whole. For this reason, the Commonwealth co-funds agricultural R&D by matching R&D levies paid by industry up to a certain dollar amount each year.
In April 2019, the RGA made a submission to the Australian Government seeking to increase the current rice R&D levy to fund critical projects and sustain the research effort and capacity in years of low rice production. The RGA had identified that rice research priorities under the Rice Program Five Year RD&E Plan 2016/17 to 2021/22, published by AgriFutures Australia, are not being funded, or sufficiently funded, by existing rice R&D levy revenue.
Consistent with the Australian Government's Levy Principles and Guidelines, available free of charge on the Department of Agriculture, Water and the Environment (the department) website, the RGA took all reasonable steps to consult on the proposal with actual and potential levy payers. The RGA's campaign included an information kit mail-out; presentations at RGA Branch Annual General Meetings, Rice Extension Pre-season meetings, the RGA annual conference, rice R&D Advisory Panel meetings and workshops, the SunRice AGM, and levy payer meetings; telephone calls to all Northern New South Wales levy payers; an information webpage on the RGA website; information and articles published in the RGA industry newsletter and the rice extension newsletter; information on the levy proposal and ballot promoted via the RGA, rice extension and AgriFutures Australia social media platforms; and production of an information video shared via social media to current and potential levy payers. These activities took place April to October 2018.
From 4 October 2018 to 7 December 2018 the RGA undertook an independent ballot of all rice growers seeking support for the levy proposal. The ballot was conducted by the Australian Election Company. Results indicated that 45 per cent of rice growers provided valid votes and 63 per cent of the ballots counted were in favour of the levy.
The RGA held an objection period from 24 June 2019 to 5 August 2019, providing an opportunity for growers to object to the proposal. Two objections were received: one relating to a lack of perceived benefit of the current rice levy funding; and another that did not oppose the increased levy but rather raised concerns beyond the scope of the proposal. The RGA has responded to both objections.
In accordance with subclause 3(6) of Schedule 23 to the Act, the RGA consulted with other rice industry bodies defined under the Act, namely the Rice Marketing Board for New South Wales and SunRice, the trading name of Ricegrowers Limited, which was formerly named Ricegrowers' Co-operative Limited.
In accordance with subclause 3(6A) of Schedule 23 to the Act, the Rice Marketing Board for New South Wales, a State marketing authority, has provided a letter endorsing the increased levy rate recommended by the RGA.
A Regulation Impact Statement was not required, as increases or decreases in agricultural levies where they relate to a levy's existing purpose are considered minor and machinery in nature (Office of Best Practice Regulation reference number: 22416).
The department consulted with the RGA to discuss the proposed timing of the levy increase in the context of the COVID-19 pandemic. The RGA has confirmed its support for the levy increase to come into effect on 1 July 2020.
Details of the Regulations are set out in Attachment A.
Other
The Primary Industries (Excise) Levies Amendment (Rice) Regulations 2020 is 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 Primary Industries (Excise) Levies Amendment (Rice) Regulations 2020 is a legislative instrument for the purposes of the Legislation Act 2003.
The Regulations commence on the day after registration on the Federal Register of Legislative Instruments.
Attachment A
Details of the Primary Industries (Excise) Levies Amendment (Rice) Regulations 2020
Section 1 - Name
This section provides that the name of the instrument is the Primary Industries (Excise) Levies Amendment (Rice) Regulations 2020.
Section 2 - Commencement
This section provides for the instrument to commence on the day after the instrument is registered.
Section 3 - Authority
This section provides that the instrument is made under the Primary Industries (Excise) Levies Act 1999.
Section 4 - Schedules
The effect of this section is that the instrument is amended as set out in the applicable items in the Schedule to the instrument.
Schedule 1 - Amendments
Primary Industries (Excise) Levies Regulations 1999
Item 1 - Paragraph 2(b) of Schedule 23
This item inserts in paragraph 2(b) of Schedule 23, "and before 1 July 2020", after "on or after 1 January 2009".
This amendment clarifies that for the purposes of subclause 3(1) of Schedule 23 of the Primary Industries (Excise) Levies Act 1999, the amount of the rice levy payable by producers of rice for research and development purposes for the period between 1 January 2009 and 30 June 2020 is $2.94 per tonne of rice.
Item 2 - At the end of clause 2 of Schedule 23
This item inserts at the end of clause 2 of Schedule 23, "; and (c) on or after 1 July 2020--$5.94 per tonne of rice".
This amendment specifies that the amount of the rice levy payable by producers of rice for research and development purposes on or after 1 July 2020 is $5.94 per tonne of rice.
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 (Rice) Regulations 2020
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 (Rice) Regulations 2020 (the Regulations) is to amend the Primary Industries (Excise) Levies Regulations 1999 (the Principal Regulations) to increase the rice research and development (R&D) levy from $2.94 per tonne to $5.94 per tonne of rice from 1 July 2020.
The Rice Growers' Association of Australia has requested this increase to the levy in consultation with the rice industry to enable the industry to meet its R&D priorities.
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. David Littleproud MP
Minister for Agriculture, Drought and Emergency Management