Commonwealth Numbered Regulations - Explanatory Statements

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WHEAT INDUSTRY FUND REGULATIONS (AMENDMENT) 1994 NO. 394

STATUTORY RULES 1994 No. 394

Issued by Authority of the Minister for Primary Industries and Energy

WHEAT MARKETING ACT 1989

WHEAT INDUSTRY FUND REGULATIONS (AMENDMENT)

Subsection 94(1) of the Wheat Marketing Act 1989 (the Act) provides that the Governor-General may make regulations for the purposes of the Act. An amendment to subsection 94(3) of the Act, made by the Primary Industries and Energy Legislation Amendment Act (No. 2) 1994, which received Royal Assent on 21 October 1994, provides that regulations may be made prescribing penalties, not exceeding a fine of 10 penalty units, for offences against the regulations.

The Wheat Industry Fund (the Fund), established under the Act, is made up of levies paid on all wheat sold or processed plus earnings on Fund monies. The Fund is used by the AWB as a capital base to finance a range of commercial activities such as trading in grains and investment in grain related value adding activities.

The management of the Fund is determined by the provisions of the Act and the associated Wheat Industry Fund Regulations, Statutory Rules 1990 No. 28 as amended. The AWB is required to allocate levy contributions and earnings of the Fund to equity holders. Also, the annual statement which must be issued to each equity holder, is required to show the amount of levy paid by the person which was credited to the Fund.

The main purpose of the Regulations is to make it compulsory for levy payers or intermediaries who make levy payments on behalf of producers, to provide certain grower information to enable the AWB to meet its statutory obligations regarding allocation of total levy receipts amongst equity holders in the Fund.

The information being sought in respect of each leviable transaction is

-       the name, business/residential address and postal address of the person providing the information

-       the producer's name and address

-       the producer's grower registration number or Wheat Industry Fund Number issued by the AWB

-       the month and year, the value of the wheat and the amount of levy which is being remitted, in respect of each instance of a levy liability occurring.

This information is currently collected on a voluntary basis but because of some past difficulties in obtaining complete information from some intermediaries, the Regulations provide for a penalty of 10 penalty units ($1000) for failure to meet these requirements.

The Regulations commenced on 1 December 1994 to meet administrative levy collecting procedures.

Details of the Regulations are as follows:

Regulation 1 - Provides for the Regulations to commence on 1 December 1994.

Regulation 2 - Provides for amendment of the Wheat Industry Fund Regulations.

Regulation 3 - Inserts a number of definitions, most of which are already defined elsewhere in levy related legislation, and which are relevant to the new provisions in the Regulations.

Subregulation 3.1 which omits the definition of "certificate of equity" is a consequential amendment as a result of previous changes to the Wheat Industry Fund Regulations.

Regulation 4 - Inserts new Regulations 6A and 6B.

Subregulation 6A(1) requires a producer, first purchaser, buying agent, selling agent or receiver to provide, unless there is a reasonable excuse for not doing so, details of the producer to whom the liability to pay levy applies. These details include the name and address of the producer, the grower registration number or WIF number allocated by the AWB to the producer if this is available, the value of the wheat and the amount of levy payable on the leviable transaction, and the month and year of each leviable transaction. This information must accompany levy returns submitted under the Primary Industries Levies and Charges Collection (Wheat) Regulations.

Subregulation 6A(2) provides for a declaration to be submitted that the information given under subregulation 6A(1) is materially correct.

A penalty of 10 penalty units (currently equivalent to $1000) applies for failure to comply with Regulation 6A.

Subregulation 6B sets out how documents to be provided under Regulation 6A must be signed in the case of individuals, partnerships or a body corporate.

Regulation 5 - Omits Regulation 7. The Commonwealth's guarantee arrangements for borrowings by the Australian Wheat Board (AWB) for the purposes of the Wheat Industry Fund ceased on 30 June 1994.

Regulation 6 - Requires the AWB to include in the annual statement of equity issued to equity holders, details of leviable transactions which have been provided under Regulation 6A and which have been forwarded to the AWB.

Regulation 7 - This is a grammatical correction.

Regulation 8 - This is a technical correction.

Regulation 9 - Inserts a new Regulation 20 to indicate the address to which documents for the purposes of Regulation 6A must be sent.