Commonwealth of Australia Explanatory Memoranda Commonwealth of Australia Explanatory Memoranda[Index] [Search] [Download] [Bill] [Help]
1997
THE PARLIAMENT OF THE
COMMONWEALTH OF AUSTRALIA
HOUSE OF
REPRESENTATIVES
DAIRY PRODUCE LEVY (No. 1) AMENDMENT BILL
1997
EXPLANATORY
MEMORANDUM
(Circulated
by authority of the Minister for Primary Industries and Energy,
the Hon John
Anderson MP)
80630—Cat. No. 96 5921 8—ISBN 0644
496835
DAIRY PRODUCE LEVY (No. 1) AMENDMENT BILL 1997
GENERAL
OUTLINE
1. The purposes of this Bill are to establish a statutory levy
mechanism to
fund the dairy industryÕs contribution to the Australian
Animal Health
Council Ltd (AAHC) and to double the maximum research levy
rate
specified in the Dairy Produce Levy (No. 1) Act 1986.
2. This
Bill works in conjunction with the Australian Animal Health
Council
(Live-stock Industries) Funding Amendment Bill 1997.
3. AAHC has been
established as AustraliaÕs peak animal health body. It is
jointly
owned and funded by the Commonwealth, state and Northern
Territory
governments and the peak representative bodies of AustraliaÕs
livestock industries, including dairy. The Dairy Produce Levy (No. 1)
Amendment Bill 1997 establishes a new levy, the Australian Animal
Health
Council levy, which is to be imposed on milk producers to fund
the dairy
industryÕs contribution to the AAHC. This levy is to be applied
in
the same manner as the Corporation, promotion and research levies,
that is,
on the milk fat and protein content of manufacturing and
market milk as
determined on-farm.
4. This Bill also doubles the maximum milk fat and
protein rates of
research levy. The current operational research levy
rates, which are
specified in Regulations, are close to the legislated
maximums. This
increase in the maximum research levy rate will provide
scope for
operational levy rates, which are set by regulations, to be
increased, as
the need arises.
FINANCIAL IMPACT
STATEMENT
5. There are no direct financial implications of this Bill for
the
Commonwealth. The Australian Animal Health Council levy will be
paid by milk producers and appropriated to the Council. As the
Commonwealth is required by legislation to match research levy funds
collected from milk producers, changes to the operational research levy
rates have a financial impact on the Commonwealth. However, raising
the
maximum research levy rate does not automatically result in a
change to the
operational levy rate. Rather, it provides scope for the
dairy industry to
approach Government, as the need arises in the future,
to seek an increase
to the operational levy rate. Changes to the
operational rate will need to
be considered on their merits, prior to the
making of Regulations.
NOTES ON INDIVIDUAL CLAUSES
Clause 1 - Short
title
6. This Act will be called the Dairy Produce Levy (No. 1) Amendment
Act
1997.
Clause 2 - Commencement
7. The Dairy Produce Levy
(No. 1) Amendment Act 1997 will apply from
the day on which the Bill
receives the Royal Assent. If the Royal Assent
is received before 1 July
1997, the Australian Animal Health Council
levy will be imposed on relevant
dairy produce from 1 July 1997. If the
Royal Assent is received on or after
1 July 1997, the Australian Animal
Health Council levy will not be imposed
on relevant dairy produce until
1 July 1998.
Clause 3 -
Amendments
8. Subject to section 2, the Dairy Produce Levy (No. 1) Act
1986 is
subsequently amended as set out in Schedule 1.
SCHEDULE
1
AMENDMENT OF THE DAIRY PRODUCE LEVY (NO. 1) ACT 1986
Subsection
4(1)
9. The definition of ÒFederationÓ, as set out in the
schedule, is inserted.
At the end of subsection
5(1)
10. Paragraph 5 (1) is amended to include a levy, which will be
known as the
Australian Animal Health Council levy. As with the promotion,
research and Corporation levies, the Australian Animal Health Council
levy is to be imposed on all milk produced (milk on which a market
milk
levy and a manufacturing milk levy is imposed). This paragraph
will only
apply if the Royal Assent is received before 1 July 1997,
meaning that the
Australian Animal Health Council levy will be
imposed on relevant dairy
produce from 1 July 1997.
At the end of subsection
5(1)
11. Paragraph 5 (1) is amended to include a levy, which will be
known as the
Australian Animal Health Council levy. As with the promotion,
research and Corporation levies, the Australian Animal Health Council
levy is to be imposed on all milk produced (milk on which a market
milk
levy and a manufacturing milk levy is imposed). This paragraph
will only
apply if the Royal Assent is received on or after 1 July 1997,
meaning that
the Australian Animal Health Council levy will be
imposed on relevant dairy
produce from 1 July 1998.
Section 9
12. Section 9 is amended to
state that the amount of Australian Animal
Health Council levy payable for a
particular quantity of dairy produce is
the prescribed rate at that time in
cents per kilograms multipled by the
relevant milk fat and protein content
on that quantity of relevant dairy
produce.
Section 10 (table item
5, column 2)
13. Section 10 is amended to double the maximum milk fat
rate for the
research levy in cents per kilogram of milk fat.
Section
10 (at the end of the table)
14. Section 10 is amended to specify the the
maximum milk fat rate for the
Australian Animal Health Council levy in cents
per kilogram of milk
fat.
Section 11 (table item 5, column
2)
15. Section 11 is amended to double the maximum protein rate for the
research levy in cents per kilogram of protein.
Section 11 (at the
end of the table)
16. Section 11 is amended to specify the maximum
protein rate for the
Australian Animal Health Council levy in cents per
kilogram of
protein.
At the end of subsection
12(4)
17. Subsection 12(4) is amended to include the Australian Animal
Health
Council levy and, in doing so, states that this levy is to be paid by
milk
producers.
Subsection 14(2)
18. Section 14(2) is amended
to remove the need for the Governor-General
to consider any recommendation
on the setting of levy rates for the
Australian Animal Health Council levy
made to the Minister by the
executive of the Australian Dairy Industry
Council.
After subsection 14(2)
19. Section 14(2A) is inserted so
that the Governor-General is required to
consider any recommendation on the
setting of levy rates for the
Australian Animal Health Council levy made to
the Minister by the
executive of the Australian Dairy FarmersÕ
Federation.