Dairy Produce Act 1986* Dairy Produce Amendment (Dairy Service Levy Poll) Act 2016 Regulations Dairy Adjustment Levy Collection Regulations 2000 1st October 2019 Dairy Produce Regulations 1986 1st April 2018 Dairy Produce (Dairy Service Levy Poll) Regulations 2006 1st April 2017 Declarations Dairy Produce (Closure of Dairy Adjustment Authority) Declaration 2008 1st April 2019 Acts Egg Industry Service Provision Act 2002* Egg Industry Service Provision (Transitional and Consequential Provisions) Act 2002* Should have sunsetted or ceased by virtue of Section 48A Legislation Act 2003 (Cth) c Regulations Export Charges (Collection) Regulation 2015 1 April 2026 Export Charges Regulation 2015 1 April 2026 Acts Forestry Marketing and Research and Development Services Act 2007* Forestry Marketing and Research and Development Services (Transitional and Consequential Provisions) Act 2007* Regulations Forestry Marketing and Research and Development Services Regulations 2008 1st April 2019 Acts Grape and Wine Legislation Amendment (Australian Grape and Wine Authority) Act 2013* Acts Horse Disease Response Levy Act 2011* Horse Disease Response Levy Collection Act 2011* Acts Horticulture Marketing and Research and Development Services Act 2000*
Transparency There is transparency in the legislation and regulations in terms of the levies imposed on each commodity and the rates of those levies. In many instances it is apparent exactly how the levies collected are disbursed in terms of the amount attributed to R&D or marketing for example. There is less visibility is in the way in which peak industry bodies or representative organisations are established and in relation to agreements, Deeds or MOUs that exist between industry bodies, representative organisations and with the Government and the terms of those documents. See Section 3.3 of the report and Appendix D. Flexibility Under the current system there are specific instances where the exact levy rate has been specified in the Act, making it more difficult to amend (specifically goat fibres and deer slaughter). For a number of commodities there are maximum rates for the levy or charge specified in Act, which then provides for the regulations to prescribe the actual rate. From a legislative perspective the legislation is flexible if it is amended using the applicable parliamentary procedures. This is apparent from how historically the key acts have been amended see Table A.2 below. However, improved flexibility or dynamism could be achieved with standardising the 'fuel mix' to improve the operational flexibility and responsiveness of the levy system. This is discussed at Chapter 4 of the report. A.2 Name of Act/Regulation Commencement date Number of times the Act or Regulation have been amended Primary Industries (Customs) Charges Act 1999 1 July 1999 10 Primary Industries (Customs) Charges Regulations 2000 1 July 2000 75 Primary Industries (Excise) Levies Act 1999 1 Jan 2000 – schedule 26 1 July 1999 - remainder 22 Primary Industries (Excise) Levies Regulations 1999 1 Jan 2000 121 National Residue Survey (Customs) Levy Act 1998 1 Aug 1998 5 National Residue Survey (Excise) Levy Act 1998 1 Aug 1998 6 Primary Industries Levies and Charges Collection Act 1991 1 July 1991 28 Primary Industries Levies and Charges Collection Regulations 1991 1 July 1991 79 Primary Industries Levies and Charges (National Residue Survey Levies) Regulations 1998 1 Aug 1998 39 Plant Health Australia (Plant Industries) Funding Act 2002 8 Oct 2002 3 Australian Animal Health Council (Livestock Industries) Funding Act 1996 25 Oct 1996 6 National Residue Survey Administration Act 1992 1 July 1993. 8
Clarity of Roles - Disbursement The persimmons levy and export charge funds Horticulture Innovation Australia Limited research and development (R&D) and marketing. Primary Industries (Excise) Levies Regulations 1999 - Schedule 15 Part 24 The levy rate is 6.25 cents per kilogram, of which 2.5 cents are for marketing, and 3.75 are for research and development. Primary Industries (Customs) Charges Regulations 2000 - Schedule 10 Part 24 The charge rate is 6.25 cents per kilogram, of which 2.5 cents are for marketing, and 3.75 are for research and development. Roles and Responsibilities DAWR collects the levies and distributes them to HIAL. It also distributes the Australian Government’s matching R&D contributions Consistent Yes, consistent and legally efficient. Efficient Levy collection cost ratio (2015/16(e)): 9.3% (rank 60/72) Plain English Drafting Yes plain English drafting. Duplication The rates of levy between the export charge regulations and excise levy regulations are identical. Consider possibility to amalgamate these into one schedule outlining the applicable levies payable by Persimmon producers. Flexibility Yes, flexible, levy rate in regulations. Other Comments Quarterly with annual returns for retail producers. MINTER ELLISON AND ACIL ALLEN CONSULTING B.43 PINEAPPLES Commodity Comments Act Primary Industries (Excise) Levies Act 1999 Primary Industries (Customs) Charges Act 1999 Primary Industries Levies and Charges Collection Act 1991 Regulation Primary Industries (Excise) Levies Regulations 1999 (Cth) Primary Industries (Customs) Charges Regulations 2000 (Cth) Primary Industries Levies and Charges Collection Regulations 1991 (Cth) Fit for purpose The levy funds research and PHA plant health programs. Yes, fit for purpose.
When: Monthly Returns. How: Offline/ Online Clarity of Roles - Disbursement The cattle and livestock exporters charge funds LiveCorp research and development (R&D). Primary Industries (Customs) Charges Regulations 2000 Schedule 11 The charge rate is as follows for livestock: 60 cents per head of sheep, of which 50 cents for marketing, and 10 cents for research 60 cents per head of lamb, of which 50 cents for marketing, and 10 cents for research 50 cents per head of goats, of which 40 cents for marketing, and 10 cents for research The rate of charge is prescribed in the regulations, as per the direction of the act (with maximum rates imposed) Roles and Responsibilities Minister declares what bodies are research/marketing bodies etc. which determines where the charge amount goes. Charge is levied by Department of Agriculture and Water Resources and redistributed to LiveCorp. Consistent Consistent, but may be considered legally inefficient due to the complexity and number of levies and charges that apply. Efficient Levy collection cost ratio (2015/16(e)): 1.7% (rank 26/72) Plain English Drafting Yes plain English drafting. Legislative scheme however is difficult to understand as both regulations as act must be read side by side. Duplication No Duplication, but consider whether the complexity of the legislative scheme and number of levies and charges that apply suggests that this may be an area that could be simplified or streamlined. Notes 'duplication' in charge rate for lambs and sheep. Flexibility Flexible, levy rate in regulations overrides the act. However act sets limit on levy amount. Other Comments MINTER ELLISON AND ACIL ALLEN CONSULTING B.71 Commodity Comments Act Primary Industries (Customs) Charges Act 1999 (Cth) Primary Industries Levies and Charges Collection Act 1991 National Residue Survey (Customs) Levy Act 1998
MINTER ELLISON AND ACIL ALLEN CONSULTING B.81 Commodity Comments Act Primary Industries (Excise) Levies Act 1999 (Cth) Primary Industries Levies and Charges Collection Act 1991 (Cth) National Residue Survey (Excise) Levy Act 1998 (Cth) Regulation Primary Industries (Excise) Levies Regulations 1999 (Cth) Primary Industries Levies and Charges Collection Regulations 1991 (Cth) Primary Industries Levies and Charges (National Residue Survey Levies) Regulations 1998 (Cth) Fit for purpose Levy funds research and marketing, animal health Australia, emergency responses and NRS testing. Yes, fit for purpose. Who, What, When and How Schedule 16: Primary Industries (Excise) Levies Act 1999 Who: The producer (the proprietor of the hatchery where the laying chickens were hatched) is liable to pay the levy. What: Levy is payable on laying chickens hatched in a hatchery. Levy is not payable if the number of laying chickens hatched at a hatchery in a financial year is less than 1000. Levy is not imposed on laying chickens that die, or are destroyed, at the hatchery at which they are hatched within 48 hours after being hatched. For the purposes of this Schedule, in accordance with poultry industry practice, if the proprietor of a hatchery treats a number of chickens (not exceeding 106) as 100 chickens, that number is taken to be 100 chickens. When: Monthly returns. Schedule 10: National Residue Survey (Excise) Levy Act 1998 and Part 12 Primary Industries Levies and Charges (National Residue Survey Levies) Regulations 1998 (Cth) Who: The producer (the proprietor of the hatchery where the laying chickens were hatched) is liable to pay the levy. What: Levy is payable on laying chickens hatched in a hatchery. Levy is not payable if the number of laying chickens hatched at a hatchery in a financial year is less than 1000. Levy is not imposed on laying chickens that die, or are destroyed, at the hatchery at which they are hatched within 48 hours after being hatched. For the purposes of this Schedule, in accordance with poultry industry practice, if the proprietor of a hatchery treats a number of chickens (not exceeding 106) as 100 chickens, that number is taken to be 100 chickens. CHICKENS
Australian Mushroom Growers Association Ltd Onions Australia Australian Table Grape Association Inc Australian Mango Industry Association Australian Papaya Industry Association Australian Lychee Growers Association Persimmons Australia Inc Raspberries and Blackberries Australia Turf Producers Australia Ltd Australian Banana Growers’ Council Inc. Growcom Australia (representing pineapples) Australian Olive Association Ltd Australian Sweetpotato Growers Inc Meat and Livestock Australia Red Meat Advisory Council Limited (RMAC) Australian Livestock Exporters’ Council Australian Meat Industry Council Sheepmeat Council of Australia Cattle Council of Australia Inc. Australian Lot Feeders Association s59, Australian Meat and Live-stock Industry Act 1997 Sugar Research Australia Limited Australian Cane Farmers Association Ltd Canegrowers Australia (formerly Queensland Cane Growers Organisation Ltd) Australian Sugar Milling Council Proprietary Ltd Schedule 24, Primary Industries (Excise) Levies Act 1999
Government commitment (paid through LRB rather than levy system) Matching funding for new levies is required to be offset by the Department. Strong incentive to establish levies within industry Bias towards R&D levies Department cannot fund levy without efficiency gains or reduced services elsewhere Debate on what the matching dollar should be used for and who decides with LRBs Match other functions equally within existing cap Remove matching R&D funding (not supported by stakeholders) Separate matching R&D from Department’s operational budget Reduce the proportion of funds matched (e.g. match 50%) and allocate through other means Issue: Levy establishment cost Establishment requires industry capability and funding to “pass a reasonable test” (Levy Principles and Guidelines (LPG)) Industries may not have resources to establish levy Levy potential not realised Preferences well-resourced industries and PIBs Offer recoup of costs if successful from levy revenue Two systems: if the industry is not able to afford the cost of establishing a levy – offer an alternative Issue: Establishment criteria LPG are not in plain English LPG collection lacks sufficient guidance on tasks and criteria to establish (and review) levies Potential levy payers are not fully known increasing cost Variable interpretation incurs unnecessary cost and inconsistent application Sets an implicit industry maturity (levy readiness) threshold May result in some industries not establishing levies where there is a net benefit Update LPG in plain English Tighter definition More clarity less prescription Provide templates/pro formas, case studies and examples to assist industries in making an application Dedicated and knowledgeable department staff to assist with levy establishment and review Issue: Levy are tailored and must be designed and agreed upfront Levy rate, collection instrument, estimated revenue, functional allocation, and recipient body must be defined upfront Levy is fit for purpose Trade-off between willingness to pay and need creates insufficient or surplus funds for function Fixes allocation to functions limiting dynamic adjustment of levy mix Move to one levy and establish allocation function elsewhere Create mechanisms for dynamic adjustment Keep levies tailored as one size does not fit all Issue: PIB and levy payer rights and obligations unclear, misunderstood and inconsistent