Commonwealth of Australia Explanatory Memoranda

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AGRICULTURE (BIOSECURITY PROTECTION) CHARGES BILL 2024

                                2022-2023-2024




   THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA




                      HOUSE OF REPRESENTATIVES




 AGRICULTURE (BIOSECURITY PROTECTION) LEVIES BILL 2024


AGRICULTURE (BIOSECURITY PROTECTION) CHARGES BILL 2024




                     EXPLANATORY MEMORANDUM




(Circulated by authority of the Minister for Agriculture, Fisheries and Forestry,
                        Senator the Hon. Murray Watt)


AGRICULTURE (BIOSECURITY PROTECTION) LEVIES BILL 2024 AGRICULTURE (BIOSECURITY PROTECTION) CHARGES BILL 2024 GENERAL OUTLINE The Agriculture (Biosecurity Protection) Levies Bill 2024 and the Agriculture (Biosecurity Protection) Charges Bill 2024 (the Imposition Bills) along with the Agriculture (Biosecurity Protection) Levies and Charges Collection Bill 2024 (the Collection Bill) are a package of Bills that would provide for the imposition, collection and administration of the new biosecurity protection levy and charge (the BPL). The BPL is one component of the larger 2023-24 Budget measure 'Strengthened and Sustainably Funded Biosecurity System' which would implement the Government's election commitment to sustainably fund Australia's biosecurity system. The BPL will generate revenue to contribute around six per cent of the costs of a sustainably funded biosecurity system. It will supplement much larger contributions from taxpayers and importers, that between them will contribute more than nine out of every ten dollars needed to fund our biosecurity system. The Bills enable BPL to be payable by producers of agricultural, forestry and fisheries goods and products, whether produced for domestic or overseas markets. Producers derive significant benefits from Australia's biosecurity system, including through prevention of pests and diseases entering Australia, maximisation of trade opportunities, and sustainable access to premium overseas markets. Without strong and sustainably funded biosecurity, our biodiversity would be at risk, jobs would be lost and producers would experience lower production and higher costs. The BPL would ensure that, in addition to the large and direct contributions from importers and taxpayers, those that directly benefit from Australia's strong biosecurity make a modest and direct contribution to ensure the biosecurity system is sustainably funded every year in the future. The Imposition Bills would: • impose a new levy or charge, or enable the imposition of such a levy or charge, known as the BPL, to be payable by certain producers of agricultural, forestry and fisheries products within Australia; and • provide for the rate of BPL to be specified or worked out in accordance with regulations to ensure that the rate can be set, and where appropriate, be changed to account for existing circumstances; and • enable the specification of the relevant levy or charge payer for the BPL; and • set out other matters relating to how the imposition provisions apply. CONSULTATION The development of the biosecurity protection levies legislation has been informed by extensive consultation with industry groups, current agricultural levy payers and their collection agents, and the public. Consultation on this legislation also occurred with relevant Commonwealth agencies during the development of the Bills, including the Attorney-General's Department, the Department 1


of Finance, the Department of Foreign Affairs and Trade, the Department of the Prime Minister and Cabinet and The Treasury. FINANCIAL IMPACT STATEMENT The Imposition Bills would provide for a modest six per cent contribution by producers to the costs of the Commonwealth biosecurity system. The BPL was estimated in the 2023-24 Budget to increase receipts by $153.0 million over the 3 years from 2024-25. This amount compares to the estimated $2.3 billion contribution from importers and the general public over those three years. IMPACT ANALYSIS The Office of Impact Analysis published the Impact Analysis for the Biosecurity Protection Levy on its website on 12 May 2023 in the document titled Biosecurity sustainable funding submission. STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS Each Imposition Bill 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. The full statement of compatibility with human rights for each Imposition Bill is attached to this explanatory memorandum. 2


ACRONYMS, ABBREVIATIONS AND COMMONLY USED TERMS BPL Biosecurity Protection Levy Collection Act Agriculture (Biosecurity Protection) Levies and Charges Collection Act 2024 Charges Act Agriculture (Biosecurity Protection) Charges Act 2024 Levies Act Agriculture (Biosecurity Protection) Levies Act 2024 Legislation Act Legislation Act 2003 3


AGRICULTURE (BIOSECURITY PROTECTION) LEVIES BILL 2024 NOTES ON CLAUSES Part 1--Preliminary Section 1 Short title 1. Section 1 would provide for the short title of the proposed Act to be the Agriculture (Biosecurity Protection) Levies Act 2024 (the Levies Act). Section 2 Commencement 2. Section 2 of the proposed Act would provide for the commencement of each provision of the proposed Act, as set out in the table in subsection 2(1). 3. Item 1 in the table would provide that the whole of the proposed Act will commence as follows: • if this Act receives the Royal Assent before 1 July 2024--on 1 July 2024; • if this Act receives the Royal Assent on or after 1 July 2024--on a single day to be fixed by Proclamation. 4. However, if the provisions do not commence within the period of 6 months beginning on the day this Act receives the Royal Assent, they commence on the day after the end of that period. 5. A note to subsection 2(1) would state that the table relates only to the provisions of the proposed Act as originally enacted and it will not be amended to deal with any later amendments of the proposed Act. 6. Subsection 2(2) would provide that any information in column 3 of the table is not part of the proposed Act. Information may be inserted in column 3 of the table, or information in it may be edited, in any published version of the proposed Act. This would allow information to be inserted in column 3 to assist the reader after commencement. Section 3 Simplified outline of this Act Biosecurity protection levies on products or goods subject to an existing levy 7. Section 3 of the proposed Act would set out a simplified outline of the proposed Act. The simplified outline would explain that the biosecurity protection levy is imposed on a product or goods on which an existing levy is imposed by: • the old levy law; or • regulations made for the purposes of Part 2 or 4 of the Primary Industries (Excise) Levies Act 2024. 4


8. The regulations would set out the rate of the BPL. The BPL would generally be payable by the person liable to pay the existing levy. Other biosecurity protection levies 9. The outline would further explain that regulations may also impose a biosecurity protection levy in relation to: • animal products, plant products, fungus products or algal products that are produce of a primary industry; or • goods that are for use in the production or preparation of nursery products for sale or for use in the commercial production of other goods. 10. The regulations would also set out: • any exemptions from the biosecurity protection levy; and • the rate of the biosecurity protection levy; and • the person who is liable to pay the biosecurity protection levy (the levy payer). Section 4 Definitions 11. Section 4 of the proposed Act would provide the definitions used in the proposed Act. Term Definition algae means macroalgae, microalgae or cyanobacteria, and includes seaweeds. This definition would also include the singular of algae which is "alga". algal product means an alga, or any part of an alga, or anything produced by an alga, or anything wholly or principally produced from, or wholly or principally derived from, an alga. animal means any member, alive or dead, of the animal kingdom (other than a human being). animal product means an animal, or any part of an animal, or anything produced by an animal, or anything wholly or principally produced from, or wholly or principally derived from, an animal. aquaculture means propagating, rearing, keeping or breeding aquatic vertebrates or aquatic invertebrates. 5


biosecurity means biosecurity protection levy imposed by Part 2 and protection levy biosecurity protection levy imposed by regulations made for the purposes of Part 3. existing levy This would be a signpost definition to draw the reader's provision attention to subsection 7(1) which relates to the imposition of biosecurity protection levy. fishing means the catching, capturing or harvesting of aquatic vertebrates or aquatic invertebrates. This term has been defined to specifically include all aquatic animals obtained in one of the specified ways. forest operations means the growing, harvesting or processing of wood. fungus means any member, alive or dead, of the fungi kingdom, and includes yeasts, mushrooms and truffles. This definition would also include the plural of fungus which is "fungi". fungus product means a fungus, or any part of a fungus, anything produced by a fungus, or anything wholly or principally produced from, or wholly or principally derived from, a fungus. nursery products includes trees, shrubs, plants, seeds, bulbs, corms, tubers, propagating material and plant tissue cultures, grown for ornamental purposes or for producing fruits, vegetables, nuts or cut flowers and foliage. old levy law means the following: (a) the Primary Industries (Excise) Levies Act 1999 (including that Act as continued in operation under item 2 of Schedule 4 to the Primary Industries (Consequential Amendments and Transitional Provisions) Act 2024); (b) regulations made under the Primary Industries (Excise) Levies Act 1999 (including those regulations as continued in operation under that item); (c) the National Residue Survey (Excise) Levy Act 1998 (including that Act as continued in operation under that item). plant means any member, alive or dead, of the plant kingdom. plant product means a plant, or any part of a plant, or anything produced by a plant, or anything wholly or principally produced from, or wholly or principally derived from, a plant. produce of a means products that result from any of the following: primary industry (a) agriculture or the cultivation of land; 6


(b) the maintenance of animals for commercial purposes; (c) soilless growing systems, including hydroponics, aeroponics and aquaponics; (d) controlled environment cropping, including vertical farming, indoor farming and protected cropping; (e) forest operations; (f) fishing; (g) aquaculture; (h) hunting or trapping; (i) picking or harvesting from the wild; (j) horticulture; (k) viticulture; (l) the cultivation of fungi or algae; (m) any other primary industry activity. product means an animal, plant, fungus or algal product, whether or not any operations have been performed in relation to the product. property of any kind This would be a signpost definition to draw the reader's belonging to a State attention to subsection 13(2). Secretary means the Secretary of the Department. Section 5 Crown to be bound 12. Section 5 of the proposed Act would provide that the Act would bind the Crown in right of each of the States, of the Australian Capital Territory and of the Northern Territory. However, it would not bind the Crown in the right of the Commonwealth. Section 6 Application of this Act in external Territories 13. Subsection 6(1) of the proposed Act would provide that subject to subsection (2), this Act and the regulations do not extend to the external Territories. 14. Subsection 6(2) would provide that the regulations may extend this Act, and any provisions of the regulations, to an external Territory that is prescribed by the regulations. This would enable the regulations to extend the Act and any provisions of the regulations to external Territories on a case-by-case basis. 7


Part 2--Biosecurity protection levies on products or goods subject to an existing levy Overview 15. Part 2 of the proposed Act would impose BPL on products or goods in relation to which an existing levy is imposed by an existing levy provision. Section 7 Imposition of biosecurity protection levy 16. Subsection 7(1) of the proposed Act would provide that the biosecurity protection levy is imposed on a product or goods, or on a transaction, act or thing in relation to a product or goods, if: • levy on the product or goods, or on the transaction, act or thing in relation to the product or goods, is imposed by a provision (the existing levy provision) of: o the old levy law; or o regulations made for the purposes of Part 2 or 4 of the Primary Industries (Excise) Levies Act 2024; and • the existing levy provision is prescribed by regulations made under this Act for the purposes of this paragraph. 17. The effect of subsection 7(1) would be to impose BPL on products or goods, or on a transaction, act or thing in relation to a product or goods subject to an existing levy under the old levy law (as defined in section 4 of the proposed Act); or regulations made for the purposes of Part 2 or 4 of the Primary Industries (Excise) Levies Act 2024; and the existing levy provision prescribed by regulations made under this Act. 18. Subsection 7(1) would clarify that if BPL is imposed on a product or goods, or on a transaction, act or thing in relation to a product or goods, it would be imposed in accordance with the existing levy provision, unless prescribed differently by regulations made under subsection 7(3). 19. Subsection 7(2) would provide that subsection 7(1) applies separately in relation to each existing levy provision. 20. Subsection 7(3) would provide that this section does not apply in relation to an existing levy provision to the extent prescribed by the regulations for the purposes of this subsection. 21. Section 4 would define the old levy law as the Primary Industries (Excise) Levies Act 1999 (including that Act as continued in operation under item 2 of Schedule 4 to the Primary Industries (Consequential Amendments and Transitional Provisions) Act 2024; regulations made under the Primary Industries (Excise) Levies Act 1999 (including those regulations as continued in operation under that item); and the National Residue Survey (Excise) Levy Act 1998 (including that Act as continued in operation under that item). 8


Duty of excise 22. Subsection 7(4) would provide that this section would impose biosecurity protection levy only so far as that levy is a duty of excise within the meaning of section 55 of the Constitution. 23. The purpose of section 7 would be to ensure that a BPL would be imposed, where appropriate, on products or goods subject to a levy under an existing levy provision; and where the existing levy provision would be prescribed by regulations made under this Act. The regulations would be a disallowable legislative instrument under the Legislation Act, which would ensure appropriate Parliamentary oversight. The regulations would also not be exempt from sunsetting under that Act. 24. The levy on the product or goods, or on the transaction, act or thing in relation to a product or goods, would be imposed by an existing levy provision which includes the old levy law; or regulations made for the purposes of Part 2 or 4 of the Primary Industries (Excise) Levies Act 2024. The Primary Industries (Excise) Levies Act 2024 is due to commence on 1 January 2025. 9


Part 3--Other biosecurity protection levies Overview 25. Part 3 of the proposed Act would authorise the regulations made under the Act to impose BPL in relation to one or more specified products or goods in the circumstances prescribed by the regulations. Section 8 Imposition of biosecurity protection levy Products that are produce of a primary industry 26. Subsection 8(1) of the proposed Act would provide that the regulations may impose a biosecurity protection levy in relation to one or more specified products in the circumstances prescribed by the regulations. 27. A note to subsection 8(1) would explain that products may be specified by name, by inclusion in a specified class, or in any other way. 28. Subsection 8(2) would provide that the products must be produce of a primary industry. Goods connected with nursery products 29. Subsection 8(3) would provide that the regulations may impose a biosecurity protection levy in relation to one or more specified goods: • that are for use in the production or preparation of nursery products: o for sale; or o for use in the commercial production of other goods; and • in the circumstances prescribed by the regulations. 30. A note to subsection 8(3) would explain that goods may be specified by name, by inclusion in a specified class, or in any other way. Duty of excise 31. Subsection 8(4) would clarify that section 8 authorises the imposition of a biosecurity protection levy only so far as that levy is a duty of excise within the meaning of section 55 of the Constitution. 32. Section 8 would provide an alternative means to impose BPL in relation to a product or goods than imposition under section 7. Section 8 would permit the regulations to impose a BPL on products or goods that may or may not be subject to an existing levy under the Primary Industries legislation. 10


33. The regulations would be a disallowable legislative instrument under the Legislation Act, which would ensure appropriate Parliamentary oversight. The regulations would also not be exempt from sunsetting under that Act. Section 9 Exemptions from biosecurity protection levy 34. Section 9 of the proposed Act would provide for the regulations made under the proposed Act to specify exemptions from a BPL under Part 3. 35. The effect of this section would be to allow the regulations to provide for circumstances under which a BPL would not be imposed in relation to one or more specified products or goods. For example, an exemption may be applied to a BPL in circumstances where a producer is growing less than a certain amount of product. Section 10 Relationship with Part 2 36. Section 10 of the proposed Act would provide that Part 2 does not limit this Part. 37. The purpose of section 10 would be to clarify that section 7 is not the only means by which BPL may be imposed in relation to a product or goods that is subject to the imposition of a levy under the Primary Industries legislation. Section 8 would also enable the imposition of a BPL in relation to such a product or goods. 38. Parts 2 and 3 of the proposed Act would work together to enable the most efficient and effective imposition of the BPL, whether by reference to existing levy provisions or by establishing entirely new imposition arrangements. 11


Part 4--Rate of biosecurity protection levy Overview 39. Part 4 of the proposed Act would provide for matters relating to the rate of a BPL. Section 11 Rate of biosecurity protection levy 40. Subsection 11(1) of the proposed Act would provide that the rate of a biosecurity protection levy is the rate specified in, or worked out in accordance with, the regulations. Section 11 would operate in conjunction with section 18, which would contain the regulation-making power. It is intended that the regulations would generally prescribe the rate of a BPL. 41. Subsection 11(2) would provide that different rates of the same biosecurity protection levy may be prescribed by the regulations for different kinds of products or goods. This would allow for different rates of BPL to be imposed on individual products or goods. 42. Subsection 11(3) would clarify that subsection 11(2) does not limit the operation of subsection 11(1), which provides that the rate of a levy imposed under Part 2 or 3 is the rate specified in, or worked out in accordance with, the regulations made under the Act. 43. Subsection 11(4) would provide that subsection 11(2) does not limit the operation of subsection 33(3A) of the Acts Interpretation Act 1901, which relates to where an Act confers a power to make, among other instruments, regulations, with respect to particular matters. 44. Subsection 11(5) would provide that the rate of a biosecurity protection levy may be expressed to be nil; or zero; or $0 or 0 cents per unit of measure; or 0% of the sale price of a product or goods. This would allow for PBL to be imposed with a rate set to nil or zero if required. It would also provide certainty for industry and the Commonwealth that a mechanism to reduce the rate of BPL to nil or zero is available. A reason for setting the BPL rate to nil could include the cost of collection of the BPL exceeding the revenue raised from the BPL. 12


Part 5--Levy payer Overview 45. Part 5 of the proposed Act would provide for the levy payer. Section 12 Levy payer Biosecurity protection levy imposed by Part 2 46. Subsection 12(1) of the proposed Act would provide that subject to subsection (2), a biosecurity protection levy imposed by Part 2 is payable by the person liable to pay the levy imposed by the existing levy provision. 47. Subsection 12(2) would provide that in relation to a particular biosecurity protection levy, the regulations may prescribe the levy is payable by the person prescribed by the regulations. Biosecurity protection levy imposed by regulations made for the purposes of Part 3 48. Subsection 12(3) would provide that a biosecurity protection levy imposed by regulations made for the purposes of Part 3 is payable by the person prescribed by the regulations. 49. Allowing the regulations to prescribe the BPL payer for each levy would enable arrangements to be made for the relevant levy to be paid by the most appropriate person in the circumstances. For example, the levy payer could be the owner of the good or product at a point in time or the grower of the product, or another relevant person in the industry. 13


Part 6--Other matters Overview 50. Part 6 of the proposed Act would provide for other matters, including: that the Act would not impose levy on State property; the exclusion of net GST from the price of products or goods or amounts paid for products or goods; the treatment of partnerships, trusts and unincorporated bodies or associations; and the making of regulations under the proposed Act. Section 13 Act does not impose levy on property of a State 51. Section 13 of the proposed Act would provide that this Act does not authorise the imposition of a tax on property of any kind belonging to a State. 52. Subsection 13(2) would provide that property of any kind belonging to a State has the same meaning as in section 114 of the Constitution. Section 114 of the Constitution provides that the Commonwealth may not impose any tax on property of any kind belonging to a State. 53. Subsection 13(3) would provide that for the purposes of this section, assume that a reference in section 114 of the Constitution to a State includes a reference to the Australian Capital Territory and the Northern Territory. 54. The effect of section 13 would be that the Act would not impose a tax on property of any kind belonging to a State (including the Australian Capital Territory and the Northern Territory) to ensure the Act is not inconsistent with section 114 of the Constitution. Section 14 Net GST not included in price of product or goods or amount paid for product or goods 55. Section 14 of the proposed Act would provide a contrary intention to section 177-12 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act). Subsection 177-12(1) of the GST Act provides that, in any Act, unless the contrary intention appears, a reference to a price relating to a supply, or a proposed supply, is taken to include the net GST (if any) that is, or would be, payable by an entity making the supply. 56. This section would ensure that BPL is not paid on amounts of GST. For example, if the sale price of a product was $4.40 including GST, the BPL would be calculated on a sale price of $4.00 as the GST exclusive value. Section 15 Treatment of partnerships 57. Subsection 15(1) of the proposed Act would provide that the Act and the regulations apply to a partnership as if it were a person, but with the changes set out in this section. 14


58. Subsection 15(2) would provide that an obligation that would otherwise be imposed on the partnership, by this Act or the regulations, is imposed on each partner instead, but may be discharged by any of the partners. 59. Subsection 15(3) would provide that if this Act or the regulations would otherwise permit something to be done by the partnership, the thing may be done by one or more of the partners on behalf of the partnership. 60. Subsection 15(4) would provide that for the purposes of this Act and the regulations, a change in the composition of a partnership would not affect the continuity of the partnership. 61. Under this section, an obligation to pay BPL that would otherwise be imposed on a partnership would instead be imposed on each partner in the partnership, and any of the partners can discharge that obligation by paying the amount of BPL. Section 16 Treatment of trusts 62. Subsection 16(1) of the proposed Act would provide that the Act and the regulations apply to a trust as if it were a person, but with the changes set out in this section. Trusts with a single trustee 63. Subsection 16(2) would provide that if the trust has a single trustee, an obligation that would otherwise be imposed on the trust by this Act or the regulations is imposed on the trustee instead; and if this Act or the regulations would otherwise permit something to be done by the trust, the thing may be done by the trustee. Trusts with multiple trustees 64. Subsection 16(3) would provide that if the trust has 2 or more trustees, an obligation that would otherwise be imposed on the trust by this Act or the regulations is imposed on each trustee instead but may be discharged by any of the trustees; and if this Act or the regulations would otherwise permit something to be done by the trust, the thing may be done by one or more of the trustees on behalf of the trust. 65. Under this section, an obligation to pay BPL that would otherwise be imposed on a trust would be imposed on the trustee or on each of the trustees of the trust instead. The trustee or any one or more of the trustees can discharge that obligation by paying the amount of BPL. Section 17 Treatment of unincorporated bodies or associations 66. Subsection 17(1) of the proposed Act would provide that this Act and the regulations apply to an unincorporated body or association as if it were a person, but with the changes set out in this section. 67. Subsection 17(2) would provide that an obligation that would otherwise be imposed on the body or association by this Act or the regulations is imposed on each member of the body's or association's committee of management instead, but may be discharged by any of the members. 15


68. Subsection 17(3) would provide that if this Act or the regulations would otherwise permit something to be done by the body or association, the thing may be done by one or more of the members of the body's or association's committee of management on behalf of the body or association. 69. Under this section, an obligation to pay BPL that would otherwise be imposed on an unincorporated body or association would be imposed on each member of the body's or association's committee of management instead. Any one or more members of the body's or association's committee of management can discharge that obligation by paying the amount of BPL. Section 18 Making of regulations 70. Section 18 of the proposed Act would enable the Governor-General to make regulations prescribing matters: required or permitted by the Act to be prescribed by the regulations; or necessary or convenient to be prescribed for carrying out or giving effect to the Act. 71. The Act would establish a framework that provides for BPL to be imposed in relation to different products and goods by the regulations. Due to the number of products or goods on which BPL would be imposed, it would be necessary and appropriate for certain details of levy rates to be included in the regulations rather than in the Act. 72. By providing for certain BPL settings to be located in the regulations, rather than split between the Act and the regulations, the proposed Act would increase accessibility for industry in understanding BPL settings and would provide the necessary flexibility for rates of BPL to be adjusted where necessary and appropriate. 73. The regulations would be a disallowable legislative instrument under the Legislation Act, which would ensure appropriate Parliamentary oversight. The regulations would also not be exempt from sunsetting under that Act. Other instruments 74. Subsection 18(2) would provide that the regulations may make provision in relation to a matter by conferring on the Minister or the Secretary a power to make a legislative instrument. 75. It is considered appropriate to enable the regulations to confer a power to make legislative instruments on the Minister or the Secretary to allow for matters of detail that are subject to frequent change to be included in other legislative instruments. Incorporation of other instruments 76. Subsection 18(3) would provide that despite subsection 14(2) of the Legislation Act 2003, the regulations may make provision in relation to a matter by applying, adopting or incorporating, with or without modification, any matter contained in an instrument or other writing as in force or existing from time to time. 16


77. Subsection 14(2) of the Legislation Act 2003 provides that, unless the contrary intention appears, a legislative instrument may not make provision in relation to a matter by applying, adopting, or incorporating any matter contained in an instrument or other writing as in force or existing from time to time. 78. Subsection 18(3) would therefore provide a contrary intention to subsection 14(2) of the Legislation Act. That is, the incorporation of certain documents by reference would not be limited to the instrument or other writing as at the date of incorporation. 79. It is considered appropriate to enable the incorporation of documents as they exist from time to time because the documents that would be referred to may include technical reference materials or production standards that are updated as required. 80. It is intended that where the regulations would incorporate such documents, they would either be freely or publicly available, or they would be documents required in the ordinary course of doing business in the particular industry. For example, the tea tree oil levy is imposed with reference to the ISO standard for tea tree oil production. In Australia, industry practice requires tea tree oil to conform to this standard, so access to the standard is already an industry requirement. 81. In order to comply with paragraph 15J(2)(c) of the Legislation Act, the explanatory statements for the regulations that apply, adopt or incorporate any matter contained in an instrument or other writing as in force or existing from time to time would contain a description of the relevant incorporated material and indicate how it may be obtained. No limit on subsection (1) 82. Subsection 18(4) would provide that subsections (2) and (3) do not limit subsection (1) (which would enable the Governor-General to make regulations under the proposed Act). 17


AGRICULTURE (BIOSECURITY PROTECTION) CHARGES BILL 2024 NOTES ON CLAUSES Part 1--Preliminary Section 1 Short title 1. This section would provide for the short title of the proposed Act to be the Agriculture (Biosecurity Protection) Charges Act 2024 (the Charges Act). Section 2 Commencement 2. Section 2 would provide for the commencement of each provision of the proposed Act, as set out in the table in subsection 2(1). 3. Item 1 in the table would provide that the whole of the proposed Act commences as follows: • if this Act receives the Royal Assent before 1 July 2024-- on 1 July 2024; • if this Act receives the Royal Assent on or after 1 July 2024-- on a single day to be fixed by Proclamation. 4. However, if the provisions do not commence within the period of 6 months beginning on the day this Act receives the Royal Assent, they commence on the day after the end of that period. 5. A note to subsection 2(1) would state that the table relates only to the provisions of the proposed Act as originally enacted and it will not be amended to deal with any later amendments of the proposed Act. 6. Subsection 2(2) would provide that any information in column 3 of the table is not part of the proposed Act. Information may be inserted in column 3 of the table, or information in it may be edited, in any published version of the proposed Act. This would allow information to be inserted in column 3 to assist the reader after commencement. Section 3 Simplified outline of this Act Biosecurity protection charges on products subject to an existing charge 7. Section 3 would set out a simplified outline of the proposed Act. The simplified outline would explain that the biosecurity protection charge is imposed on a product on which existing charge is imposed by: • the old charge law; or • regulations made for the purposes of Part 2 of the Primary Industries (Customs) Charges Act 2023. 18


8. The regulations would set out rate of the BPL. The BPL is generally payable by the person liable to pay the existing charge. Other biosecurity protection charges 9. The outline would further explain that regulations may also impose biosecurity protection charge in relation to animal products, plant products, fungus products or algal products that are produce of a primary industry. 10. The regulations would also set out: • any exemptions from the biosecurity protection charge; and • the rate of the biosecurity protection charge; and • the person who is liable to pay the biosecurity protection charge (the charge payer). Section 4 Definitions 11. Section 4 would provide the definitions used in the proposed Act. Term Definition algae means macroalgae, microalgae or cyanobacteria, and includes seaweeds. This definition would also include the singular of algae which is "alga". algal product means an alga, or any part of an alga, or anything produced by an alga, or anything wholly or principally produced from, or wholly or principally derived from, an alga. animal means any member, alive or dead, of the animal kingdom (other than a human being). animal product means an animal, or any part of an animal, or anything produced by an animal, or anything wholly or principally produced from, or wholly or principally derived from, an animal. aquaculture means propagating, rearing, keeping or breeding aquatic vertebrates or aquatic invertebrates. biosecurity protection means biosecurity protection charge imposed by Part 2; charge and biosecurity protection charge imposed by regulations made for the purposes of Part 3. 19


existing charge This would be a signpost definition to draw the reader's provision attention to subsection 7(1) which is the imposition of biosecurity protection charge. fishing means the catching, capturing or harvesting of aquatic vertebrates or aquatic invertebrates. This term has been defined to specifically include all aquatic animals obtained in one of the specified ways. forest operations means the growing, harvesting or processing of wood. fungus means any member, alive or dead, of the fungi kingdom, and includes yeasts, mushrooms and truffles. This definition would also include the plural of fungus which is "fungi". fungus product means a fungus, or any part of a fungus, or anything produced by a fungus, or anything wholly or principally produced from, or wholly or principally derived from, a fungus. old charge law means the following: (a) the Primary Industries (Customs) Charges Act 1999 (including that Act as continued in operation under item 2 of Schedule 4 to the Primary Industries (Consequential Amendments and Transitional Provisions) Act 2024); (b) regulations made under the Primary Industries (Customs) Charges Act 1999 (including those regulations as continued in operation under that item); (c) the National Residue Survey (Customs) Charges Act 1998 (including that Act as continued in operation under that item). plant means any member, alive or dead, of the plant kingdom. plant product means a plant, or any part of a plant, or anything produced by a plant, or anything wholly or principally produced from, or wholly or principally derived from, a plant. produce of a primary means products that result from any of the following: industry (a) agriculture or the cultivation of land; (b) the maintenance of animals for commercial purposes; (c) soilless growing systems, including hydroponics, aeroponics and aquaponics; (d) controlled environment cropping, including vertical farming, indoor farming and protected cropping; (e) forest operations; 20


(f) fishing; (g) aquaculture; (h) hunting or trapping; (i) picking or harvesting from the wild; (j) horticulture; (k) viticulture; (l) the cultivation of fungi or algae; (m) any other primary industry activity. product means an animal, plant, fungus or algal product, whether or not any operations have been performed in relation to the product. property of any kind This would be a signpost definition to draw reader's belonging to a State attention to subsection 13(2). Secretary means the Secretary of the Department Section 5 Crown to be bound 12. Section 5 of the proposed Act would provide that the Act binds the Crown in right of each of the States, of the Australian Capital Territory and of the Northern Territory. However, it would not bind the Crown in right of the Commonwealth. Section 6 Application of this Act in external Territories 13. Subsection 6(1) of the proposed Act would provide that subject to subsection (2), this Act and the regulations made under the Act do not automatically extend to the external Territories. 14. Subsection 6(2) would provide that the regulations may extend this Act, and any provisions of the regulations, to an external Territory that is prescribed by the regulations. This would enable the regulations to extend the Act and any provisions of the regulations to external Territories on a case-by-case basis. 15. Subsection 6(3) would provide that each biosecurity protection charge does not apply to products exported to an external Territory. 21


Part 2--Biosecurity protection charges on products subject to an existing charge Overview 16. Part 2 of the proposed Act would impose BPL on a product that is exported from Australia, or on the export of a product from Australia, on which an existing charge is imposed by an existing charge provision. Section 7 Imposition of biosecurity protection charge 17. Subsection 7(1) of the proposed Act would provide that the biosecurity protection charge is imposed on a product that is exported from Australia, or on the export of a product from Australia, if: • charge on the product that is exported from Australia, or on the export of the product from Australia, is imposed by a provision (the existing charge provision) of: o the old charge law; or o regulations made for the purposes of Part 2 of the Primary Industries (Customs) Charges Act 2024; and • the existing charge provision is prescribed by regulations made under this Act for the purposes of this paragraph. 18. The effect of subsection 7(1) is to impose the BPL on products or export subject to an existing charge under the old charge law (as defined in section 4 of the proposed Act) or regulations made for the purposes of Part 2 of the Primary Industries (Customs) Charges Act 2024 if the existing charge provision is prescribed by regulations made under this Act. 19. Subsection 7(1) would clarify that if BPL is imposed on products or export, it would be imposed in accordance with the existing charge provision, unless prescribed differently by regulations made under subsection 7(3). 20. Subsection 7(2) would provide that subsection (1) applies separately in relation to each existing charge provision. 21. Subsection 7(3) would provide that section 7 does not apply in relation to an existing charge provision to the extent prescribed by the regulations for the purposes of this subsection. 22. Section 4 would define the old charge law as the Primary Industries (Customs) Charges Act 1999 (including that Act as continued in operation under item 2 of Schedule 4 to the Primary Industries (Consequential Amendments and Transitional Provisions) Act 2024; regulations made under the Primary Industries (Customs) Charges Act 1999 (including those regulations as continued in operation under that 22


item); and the National Residue Survey (Customs) Charges Act 1998 (including that Act as continued in operation under that item). Duty of customs 23. Subsection 7(4) would provide that section 7 imposes biosecurity protection charge only so far as that charge is a duty of customs within the meaning of section 55 of the Constitution. 24. The purpose of section 7 would be to ensure that a BPL would be imposed, where appropriate, on products or export subject to a charge under an existing charge provision; and where the existing charge provision would be prescribed by regulations made under this Act. The regulations would be a disallowable legislative instrument under the Legislation Act, which would ensure appropriate Parliamentary oversight. The regulations would also not be exempt from sunsetting under that Act. 25. The charge on the product that is exported from Australia, or on the export of the product from Australia would be imposed if charge is imposed by an existing charge provision which includes the old charge law; or regulations made for the purposes of Part 2 of the Primary Industries (Customs) Charges Act 2024 and the existing charge provision is prescribed by regulations made under this Act. The Primary Industries (Customs) Charges Act 2024 is due to commence on 1 January 2025. 23


Part 3--Other biosecurity protection charges 26. Part 3 of the proposed Act would authorise the regulations made under the Act to impose BPL in relation to one or more specified products in the circumstances prescribed by the regulations. Section 8 Imposition of biosecurity protection charge 27. Subsection 8(1) of the proposed Act would provide that the regulations may impose a biosecurity protection charge in relation to one or more specified products in the circumstances prescribed by the regulations. 28. A note to subsection 8(1) would explain that products may be specified by name, by inclusion in a specified class, or in any other way. 29. Subsection 8(2) would provide that the products must be produce of a primary industry. No biosecurity protection charge on imported products 30. Subsection 8(3) would provide that the regulations must not impose a biosecurity protection charge on the import of products into Australia. Duty of customs 31. Subsection 8(4) would clarify that section 8 authorises the imposition of a biosecurity protection charge only so far as that charge is a duty of customs within the meaning of section 55 of the Constitution. 32. Section 8 would provide an alternative means to impose BPL in relation to a product than imposition under section 7. Section 8 would permit the regulations to impose BPL on specified products that may or may not be subject to an existing charge under Primary Industries legislation. 33. The regulations would be a disallowable legislative instrument under the Legislation Act, which would ensure appropriate Parliamentary oversight. The regulations would also not be exempt from sunsetting under that Act. Section 9 Exemptions from biosecurity protection charge 34. This section would provide that the regulations may provide for exemptions from a biosecurity protection charge under Part 3. 35. This section would allow the regulations to provide for circumstances under which a BPL would not be imposed in relation to one or more specified products. For example, an exemption may be applied to BPL in circumstances where a producer is growing less than a certain amount of product. 24


Section 10 Relationship with Part 2 36. Section 10 would provide that Part 2 does not limit the operation of this Part. 37. The purpose of section 10 would be to clarify that section 7 is not the only means by which BPL may be imposed in relation to a product or export that is subject to the imposition of a charge under the Primary Industries legislation. Section 8 may also enable the imposition of a BPL in relation to such a product. 38. Parts 2 and 3 of the proposed Act would work together to enable the most efficient and effective imposition of the BPL, whether by reference to existing charge provisions or by establishing entirely new imposition arrangements. 25


Part 4--Rate of biosecurity protection charge Overview 39. Part 4 of the proposed Act would provide for matters relating to the rate of a BPL. Section 11 Rate of biosecurity protection charge 40. Subsection 11(1) would provide that the rate of a biosecurity protection charge is the rate specified in, or worked out in accordance with, the regulations. Section 11(1) would operate in conjunction with section 18, which would provide for the making of regulations. It is intended that the regulations would generally prescribe the methodology used to determine the rate of BPL. 41. Subsection 11(2) would provide that different rates of the same biosecurity protection charge may be prescribed by the regulations for different kinds of products. This would allow specific BPL charge rates to be set for individual products. 42. Subsection 11(3) would clarify that subsection 11(2) does not limit the operation of subsection 11(1), which would provide that the rate of a biosecurity protection charge imposed is the rate specified in, or worked out in accordance with, the regulations. 43. Subsection 11(4) would provide that subsection (2) does not limit subsection 33(3A) of the Acts Interpretation Act 1901, which relates to where an Act confers a power to make, among other instruments, regulations, with respect to particular matters. 44. Subsection 11(5) would provide that the rate of a biosecurity protection charge, may be expressed to be nil; or zero; or $0 or 0 cents per unit of measure; or 0% of the sale price of a product or goods. This would allow for BPL to be imposed with a rate set to nil or zero if required. It would also provide certainty for industry and the Commonwealth that a mechanism to reduce the rate of the BPL to nil or zero is available. A reason for setting a BPL rate to nil could be the cost of collection of the BPL exceeding the revenue raised from the BPL. Part 5--Charge payer Overview 45. Part 5 of the proposed Act would provide for the charge payer. Section 12 Charge payer Biosecurity protection charge imposed by Part 2 46. Subsection 12(1) of the proposed Act would provide that subject to subsection (2), a biosecurity protection charge imposed Part 2 is payable by the person liable to pay the charge imposed by the existing charge provision. 26


47. Subsection 12(2) would provide that in relation to a particular biosecurity protection charge, the regulations may prescribe the charge is payable by the person prescribed by the regulations. Biosecurity protection charge imposed by regulations made for the purposes of Part 3 48. Subsection 12(3) would provide that a biosecurity protection charge imposed by regulations made for the purposes of Part 3 is payable by the person prescribed by the regulations. 49. Allowing the regulations to prescribe the charge payer for each BPL charge would enable the relevant charge to be paid by the most appropriate person in the circumstances. For example, the charge payer could be the owner of the good or product at a point in time, or the grower of the product, or another relevant person in the industry. 27


Part 6--Other matters Overview 50. Part 6 of the proposed Act would provide for other matters, including that: the Act would not impose charge on State property; the exclusion of net GST from the price of products or goods or amounts paid for products or goods; the treatment of partnerships, trusts and unincorporated bodies or associations; and the making of regulations under the Act. Section 13 Act does not impose charge on property of a State 51. Subsection 13(1) of the proposed Act would provide that this Act does not authorise the imposition of a tax on property of any kind belonging to a State. 52. Subsection 13(2) would provide that property of any kind belonging to a State has the same meaning as in section 114 of the Constitution. Section 114 of the Constitution provides that the Commonwealth may not impose any tax on property of any kind belonging to a State. 53. Subsection 13(3) would provide that for the purposes of this section, assume that a reference in section 114 of the Constitution to a State includes a reference to the Australian Capital Territory and the Northern Territory. 54. The effect of section 13 would be that the Act would not impose a tax on property of any kind belonging a State (including the Australian Capital Territory and the Northern Territory) to ensure that the Act is not inconsistent with section 114 of the Constitution. Section 14 Net GST not included in the price of product or goods or amount paid for product or goods 55. Section 14 would provide a contrary intention to section 177-12 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act). Subsection 177-12(1) of the GST Act provides that, in any Act, unless the contrary intention appears, a reference to a price relating to a supply, or a proposed supply, is taken to include the net GST (if any) that is, or would be, payable by an entity making the supply. 56. This section would ensure that BPL is not paid on amounts of GST. For example, if the sale price of a product was $4.40 including GST, the BPL would be calculated on a sale price of $4.00 as the GST exclusive value. Section 15 Treatment of partnerships 57. Subsection 15(1) of the proposed Act would provide that this Act and the regulations apply to a partnership as if it were a person, but with the changes set out in this section. 58. Subsection 15(2) would provide that an obligation that would otherwise be imposed on the partnership by this Act or the regulations is imposed on each partner instead but may be discharged by any of the partners. 28


59. Subsection 15(3) would provide that if this Act or the regulations would otherwise permit something to be done by the partnership, the thing may be done by one or more of the partners on behalf of the partnership. 60. Subsection 15(4) would provide that for the purposes of this Act and the regulations, a change in the composition of a partnership would not affect the continuity of the partnership. 61. Under this section, an obligation to pay BPL that would otherwise be imposed on a partnership would instead be imposed on each partner in the partnership, and any of the partners could discharge that obligation by paying the amount of BPL. Section 16 Treatment of trusts 62. Subsection 16(1) of the proposed Act would provide that this Act and the regulations apply to a trust as if it were a person, but with the changes set out in this section. Trust with a single trustee 63. Subsection 16(2) would provide that if the trust has a single trustee, an obligation that would otherwise be imposed on the trust by this Act or the regulations is imposed on the trustee instead; and if this Act or the regulations would otherwise permit something to be done by the trust, the thing may be done by the trustee. Trusts with multiple trustees 64. Subsection 16(3) would provide that if the trust has 2 or more trustees an obligation that would otherwise be imposed on the trust by this Act or the regulations is imposed on each trustee instead but may be discharged by any of the trustees; and if this Act or the regulations would otherwise permit something to be done by the trust, the thing may be done by one or more of the trustees on behalf of the trust. 65. Under this section, an obligation to pay BPL that would otherwise be imposed on a trust would be imposed on the trustee or on each of the trustees of the trust instead. The trustee or any one or more of the trustees could discharge that obligation by paying the amount of BPL. Section 17 Treatment of unincorporated bodies or associations 66. Subsection 17(1) of the proposed Act would provide that this Act and the regulations apply to an unincorporated body or association as if it were a person, but with the changes set out in this section. 67. Subsection 17(2) would provide that an obligation that would otherwise be imposed on the body or association by this Act or the regulations is imposed on each member of the body's or association's committee of management instead, but may be discharged by any of the members. 68. Subsection 17(3) would provide that if this Act or the regulations would otherwise permit something to be done by the body or association, the thing may be done by 29


one or more of the members of the body's or association's committee of management on behalf of the body or association. 69. Under this section, an obligation to pay BPL that would otherwise be imposed on an unincorporated body or association would be imposed on each member of the body's or association's committee of management instead. Any one or more members of the body's or association's committee of management could discharge that obligation by paying the amount of BPL. Section 18 Making of regulations 70. Section 18 of the proposed Act would enable the Governor-General to make regulations prescribing matters required or permitted by the Act to be prescribed by the regulations; or necessary or convenient to be prescribed for carrying out or giving effect to the Act. 71. The Act would establish a framework that provides for charges to be imposed in relation to different products by regulations. Due to the number of products on which charge is to be imposed, it is necessary and appropriate for certain details of charges to be included in the regulations rather than in the Act. 72. By providing certain biosecurity protection charge settings to be located in the regulations, rather than split between the Act and the regulations, the proposed Act would increase accessibility for industry in understanding charge settings and would provide the necessary flexibility for rates of BPL to be adjusted where necessary and appropriate. 73. The regulations would be a disallowable legislative instrument under the Legislation Act, which would provide for appropriate Parliamentary oversight. The regulations would also not be exempt from sunsetting under that Act. Other instruments 74. Subsection 18(2) would provide that the regulations made under the Act may make provision in relation to a matter by conferring on the Minister or the Secretary a power to make a legislative instrument. 75. It is considered appropriate to enable the regulations to confer a power to make legislative instruments on the Minister or the Secretary to allow for matters of detail that are subject to frequent change to be included in other legislative instruments. Incorporation of other instruments 76. Subsection 18(3) would provide that despite subsection 14(2) of the Legislation Act 2003, the regulations may make provision in relation to a matter by applying, adopting or incorporating, with or without modification, any matter contained in an instrument or other writing as in force or existing from time to time. 77. Subsection 14(2) of the Legislation Act provides that, unless the contrary intention appears, a legislative instrument may not make provision in relation to a matter by 30


applying, adopting, or incorporating any matter contained in an instrument or other writing as in force or existing from time to time. 78. Subsection 18(3) would therefore provide a contrary intention to subsection 14(2) of the Legislation Act. That is, the incorporation of certain documents by reference would not be limited to the instrument or other writing as at the date of incorporation. 79. It is considered appropriate to enable the incorporation of such documents as they exist from time to time because the documents that would be referred to may include technical reference materials or production standards that are updated as required. 80. It is intended that where the regulations would incorporate such documents, they would either be freely or publicly available, or they would be documents required in the ordinary course of doing business in the particular industry. For example, the tea tree oil levy is imposed with reference to the ISO standard for tea tree oil production. In Australia, industry practice requires tea tree oil to conform to this standard, so access to the standard is already an industry requirement. 81. In order to comply with paragraph 15J(2)(c) of the Legislation Act, the explanatory statements for the regulations that apply, adopt or incorporate any matter contained in an instrument or other writing as in force or existing from time to time would contain a description of the relevant incorporated material and indicate how it may be obtained. No limit on subsection (1) 82. Subsection 18(4) would provide that subsections (2) and (3) do not limit subsection (1) (which would enable the Governor-General to make regulations under the proposed Act). 31


STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011 AGRICULTURE (BIOSECURITY PROTECTION) LEVIES BILL 2024 The Bill 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. GENERAL OUTLINE The Agriculture (Biosecurity Protection) Levies Bill 2024 and the Agriculture (Biosecurity Protection) Charges Bill 2024 (the Imposition Bills) along with the Agriculture (Biosecurity Protection) Levies and Charges Collection Bill 2024 (the Collection Bill) are a package of Bills that would provide for the imposition, collection and administration of the new biosecurity protection levy and charge (the BPL). The BPL is one component of the larger 2023-24 Budget measure 'Strengthened and Sustainably Funded Biosecurity System' which would implement the Government's election commitment to sustainably fund Australia's biosecurity system. The BPL will generate revenue to contribute around six per cent of the costs of a sustainably funded biosecurity system. It will supplement much larger contributions from taxpayers and importers, that between them will contribute more than nine out of every ten dollars needed to fund our biosecurity system. The Bills enable BPL to be payable by producers of agricultural, forestry and fisheries goods and products, whether produced for domestic or overseas markets. Producers derive significant benefits from Australia's biosecurity system, including through prevention of pests and diseases entering Australia, maximisation of trade opportunities, and sustainable access to premium overseas markets. Without strong and sustainably funded biosecurity, our biodiversity would be at risk, jobs would be lost and producers would experience lower production and higher costs. The BPL would ensure that, in addition to the large and direct contributions from importers and taxpayers, those that directly benefit from Australia's strong biosecurity make a modest and direct contribution to ensure the biosecurity system is sustainably funded every year in the future. The Bill would: • impose a new levy, or enable the imposition of such a levy, known as the Biosecurity Protection Levy (BPL) to be payable by certain producers of agricultural, forestry and fisheries products within Australia; and • provide for the rate of BPL to be specified or worked out in accordance with regulations to ensure that the rate can be set, and where appropriate, be changed to account for existing circumstances; and • enable the specification of the relevant levy payer for the BPL; and • set out other matters relating to how the imposition applies. 32


Human rights implications The Bill engages the following rights: • the right to an adequate standard of living - Article 11(1) of the International Covenant on Economic, Social and Cultural Rights (ICESCR); and • the right to health - Article 12(1) of the ICESCR. Right to an adequate standard of living, in particular, the right to adequate food The Bill engages the right to an adequate standard of living under Article 11(1) of the ICESCR. This includes the right to adequate food, clothing, water and housing, and to the continuous improvement of living conditions. States Parties have an obligation to ensure the availability and accessibility of the resources necessary for the progressive realisation of this right. Article 4 of the ICESCR provides that these rights may be subject to permissible limitation only where those limitations are provided by law and are for the purpose of promoting the general welfare in a democratic society. The imposition of the biosecurity protection levy will result in sustainable funding and expenditure on a strong biosecurity system which would directly benefit Australian producers, industry and individuals. By avoiding or reducing the impacts of exotic pests and diseases, an effective biosecurity system would support the sustainability, profitability and competitiveness of Australia's agriculture, fisheries and forestry industries and support stronger food security. The imposition of biosecurity protection levy is reasonable and proportionate to the objective of improving the standard of living of levy payers because it enhances their individual productivity, access to markets, environmental health through better functioning ecosystems and profitability. The activities intended to be funded by the levy are expected to provide long-term benefits for individual levy payers, industry as a whole, and the Australian public that exceed the cost to individuals. The Bill promotes the right to an adequate standard of living as it is intended to impose a levy to raise revenue to support controls and measures to manage and minimise the risk of pests, weeds and diseases entering Australia, while facilitating trade and the movement of plants, animals, people and products. This would increase beneficial farming, fisheries and forestry technologies and practices to help communities to achieve greater productivity, sustainability, climate resilience, and food security. The Bill equally promotes the right to adequate food as provided by Article 11. The United Nations Committee on Economic, Social and Cultural Rights (UNCESCR) has stated (General Comment No. 12: The Right to Adequate Food (Art. 11) (May 1999)), that the right to adequate food should 'not be interpreted in a narrow or restrictive sense which equates it with a minimum package of calories, proteins and other specific nutrients', but implies it should be free from adverse substances and accessible, both economically and physically. The right to food is promoted by the Bill to the extent that the levy is specifically imposed to contribute to funding the costs of biosecurity protection to manage the risk of pests and diseases entering Australia. A strong biosecurity system is critical to protecting Australia's economy, environment and standard of living. It can also prevent or lessen the impact of these pests and disease on human, animal and plant health. 33


The Bill promotes the right to adequate food by providing for the imposition of levies that are intended to contribute to the costs of an effective biosecurity system which supports the sustainability, profitability and competitiveness of Australia's agriculture, fisheries and forestry industries. The imposition of the BPL represents a reasonable and proportionate contribution by individual levy payers to the biosecurity system. Summary The Bill is compatible with the right to an adequate standard of living, including food, clothing, water and housing, under Article 11(1) of the ICESCR because it positively engages and promotes that right. Right to health Article 12 of the ICESCR recognises the right of all individuals to enjoy the highest attainable standards of physical and mental health. This includes the application of measures for the prevention, treatment, and control of epidemic, endemic, occupational, and other diseases (Article 12(2)). The UNCESCR has stated (General Comment No. 14: The Right to the Highest Attainable Standard of Health (Art. 12) (2000)) that health is a fundamental human right indispensable for the exercise of other human rights and that the right to health is not to be understood as the right to be healthy, but rather entails 'the right to a system of health protection which provides equality of opportunity for people to enjoy the highest attainable level of health'. The right may be understood as encompassing the prevention and reduction of the population's exposure to harmful substances such as harmful chemicals or other detrimental environmental conditions that directly or indirectly impact upon human health (at [15]). The Bill engages and promotes the right to health by imposing biosecurity protection levy to support a strong and sustainable biosecurity system which will prevent or reduce harm to human health. The biosecurity activities intended to be funded by the BPL are expected to reduce the risk of harmful pests and diseases entering Australia and support access to food which is nutritionally adequate and safe for the Australian and international community. In summary, the Bill takes positive steps to promote the right to health through funding biosecurity protection measures which will support and underpin the sourcing and availability of safe food as well as improving, monitoring and managing new and emerging food safety and security risks. Summary The Bill is compatible with the right to health under Article 12 of the ICESCR because it positively engages and promotes that right. 34


Conclusion The Bill is compatible with the human rights outlined above because it engages and promotes those rights. (Circulated by authority of the Minister for Agriculture, Fisheries and Forestry, Senator the Hon. Murray Watt) 35


STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011. AGRICULTURE (BIOSECURITY PROTECTION) CHARGES BILL 2024 This Bill 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 Bill GENERAL OUTLINE The Agriculture (Biosecurity Protection) Levies Bill 2024 and the Agriculture (Biosecurity Protection) Charges Bill 2024 (the Imposition Bills) along with the Agriculture (Biosecurity Protection) Levies and Charges Collection Bill 2024 (the Collection Bill) are a package of Bills that provide for the imposition, collection and administration of the new biosecurity protection levy and charge (the BPL). The BPL is one component of the larger 2023-24 Budget measure 'Strengthened and Sustainably Funded Biosecurity System' which would implement the Government's election commitment to sustainably fund Australia's biosecurity system. The BPL will generate revenue to contribute around six per cent of the costs of a sustainably funded biosecurity system. It will supplement much larger contributions from taxpayers and importers, that between them will contribute more than nine out of every ten dollars needed to fund our biosecurity system. The Bills enable BPL to be payable by producers of agricultural, forestry and fisheries goods and products, whether produced for domestic or overseas markets. Producers derive significant benefits from Australia's biosecurity system, including through prevention of pests and diseases entering Australia, maximisation of trade opportunities, and sustainable access to premium overseas markets. Without strong and sustainably funded biosecurity, our biodiversity would be at risk, jobs would be lost and producers would experience lower production and higher costs. The BPL would ensure that, in addition to the large and direct contributions from importers and taxpayers, those that directly benefit from Australia's strong biosecurity make a modest and direct contribution to ensure the biosecurity system is sustainably funded in the future. The Bill would: • impose a new charge, or enable the imposition of such a charge, known as the Biosecurity Protection Levy (BPL) to be payable by certain producers of agricultural, forestry and fisheries products within Australia; and • provide for the rate of BPL to be specified or worked out in accordance with regulations to ensure that the rate can be set, and where appropriate, be changed to account for existing circumstances; and • enable the specification of the relevant charge payer for the BPL; and • set out other matters relating to how the imposition applies. 36


Human rights implications The Bill engages the following rights: • the right to an adequate standard of living - Article 11(1) of the International Covenant on Economic, Social and Cultural Rights (ICESCR); and • the right to health - Article 12(1) of the ICESCR. Right to an adequate standard of living, in particular, the right to adequate food The Bill engages the right to an adequate standard of living under Article 11(1) of the ICESCR. This includes the right to adequate food, clothing, water and housing, and to ensure the continuous improvement of living conditions. States Parties have an obligation to ensure the availability and accessibility of the resources necessary for the progressive realisation of this right. Article 4 of the ICESCR provides that these rights may be subject to permissible limitation only where those limitations are provided by law and are for the purpose of promoting the general welfare in a democratic society. The imposition of the biosecurity protection charge will result in sustainable funding and expenditure on a strong biosecurity system which would directly benefit Australian producers, industry and individuals. By avoiding or reducing the impacts of exotic pests and diseases, an effective biosecurity system would support the sustainability, profitability and competitiveness of Australia's agriculture, fisheries and forestry industries and support stronger food security. The imposition of biosecurity protection charge is reasonable and proportionate to the objective of improving the standard of living of charge payers because it enhances their individual productivity, access to markets and environmental health through better functioning ecosystems and profitability. The activities intended to be funded by biosecurity protection charges are expected to provide long-term benefits for individual charge payers, industry as a whole, and the Australian public that exceed the cost to individuals. The Bill promotes the right to an adequate standard of living as it is intended to impose a charge to raise revenue to support controls and measures to manage and minimise the risk of pests, weeds and diseases entering Australia, while facilitating trade and the movement of plants, animals, people and products. This would increase beneficial farming, fisheries and forestry technologies and practices to help communities to achieve greater productivity, sustainability, climate resilience and food security. The Bill promotes the right to adequate food as provided by Article 11. The United Nations Committee on Economic, Social and Cultural Rights (UNCESCR) has stated (General Comment No. 12: The Right to Adequate Food (Art. 11) (May 1999)), that the right to adequate food should 'not be interpreted in a narrow or restrictive sense which equates it with a minimum package of calories, proteins and other specific nutrients', but implies it should be free from adverse substances and accessible, both economically and physically. The right to food is promoted by the Bill to the extent that the charge is specifically imposed to contribute to funding the costs of biosecurity protection to manage the risk of pests and diseases entering Australia. A strong biosecurity system is critical to protecting Australia's economy, environment and standard of living. It can also prevent or lessen the impact of these pests and diseases on human, animal and plant health. 37


The Bill promotes the right to adequate food by providing for the imposition of charges that are intended to contribute to the costs of an effective biosecurity system which supports the sustainability, profitability and competitiveness of Australia's agriculture, fisheries and forestry industries. The imposition of the biosecurity protection charge represents a reasonable and proportionate contribution by individual charge payers to the biosecurity system. Summary The Bill is compatible with the right to an adequate standard of living, including food, clothing, water and housing, under Article 11(1) of the ICESCR because it positively engages and promotes that right. Right to health Article 12 of the ICESCR recognises the right of all individuals to enjoy the highest attainable standards of physical and mental health. This includes the application of measures for the prevention, treatment, and control of epidemic, endemic, occupational, and other diseases (Article 12(2)). The UNCESCR has stated (General Comment No.14 The Right to the Highest Attainable Standard of Health (Art. 12 (2000)) that health is a fundamental human right indispensable for the exercise of other human rights and that the right to health is not to be understood as the right to be healthy, but rather entails 'right to a system of health protection which provides equality of opportunity for people to enjoy the highest attainable level of health'. The right may be understood as encompassing the prevention and reduction of the population's exposure to harmful substances such as harmful chemicals or other detrimental environmental conditions that directly or indirectly impact upon human health (at [15]). The Bill engages and promotes the right to health by imposing biosecurity protection charge to support a sustainable biosecurity system which will prevent or reduce harm to human health. The measures intended to be funded by the BPL system are expected to support access to food which is nutritionally adequate and safe for the Australian and international community. In summary, the Bill takes positive steps to promote the right to health through funding biosecurity protection measures which will support and underpin the sourcing and availability of safe food as well as improving, monitoring and managing new and emerging food safety and security risks. Summary The Bill is compatible with the right to health under Article 12 of the ICESCR because it positively engages and promotes that right. 38


Conclusion The Bill is compatible with the human rights outlined above because it engages and promotes those rights. (Circulated by authority of the Minister for Agriculture, Fisheries and Forestry, Senator the Hon. Murray Watt) 39


 


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