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2004 - 2005
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
HOUSE OF REPRESENTATIVES
PRIMARY INDUSTRIES (EXCISE) LEVIES AMENDMENT (RICE) BILL 2005
EXPLANATORY MEMORANDUM
(Circulated by authority of the Parliamentary Secretary to the Minister for Agriculture, Fisheries and
Forestry, Senator the Hon Richard Colbeck)
PRIMARY INDUSTRIES (EXCISE) LEVIES AMENDMENT (RICE) BILL 2005
GENERAL OUTLINE
Primary Industries (Excise) Levies Act 1999
The Primary Industries (Excise) Levies Amendment (Rice) Bill 2005 (the Bill) amends the Primary
Industries (Excise) Levies Act 1999 (the Levies Act) to: increase the maximum allowable rice
research and development levy rate; alter the way the rate is set; and make changes to Schedule 23 of
the Levies Act to allow for more effective administration of the rice levy.
Three changes will be enacted under the amendment. The first change is to increase the maximum
allowable level at which the operative rate of the levy can be set from $2 per tonne to $3 per tonne.
The second change will allow the setting of the rate to be made through regulation. The third
change will allow the leviable rice varieties to be declared in regulation. The setting of the rates for
each year, as well as the establishment of a variety as a leviable variety, are both currently made via a
declaration made by the Minister.
The rice industry requested the increase in the levy rate on rice. The main reason for this request is
that the impact of the drought has significantly reduced rice production and therefore reduced the
flow of revenue from the rice levy. The maximum allowable rate as stated in Subclause 3(2) of
Schedule 23 of the Levies Act, is currently set at $2 per tonne. The rice industry has requested this
be raised to $3 per tonne.
The transferring of leviable rice varieties and the rate setting method, to the regulations are changes
identified in a review of levies legislation by the Levies Revenue Service (LRS) as necessary to allow
for easier administration of the levy. These changes will bring the rice levy legislation into line with
the legislation for the levies of other commodities that are collected by the LRS.
FINANCIAL IMPACT STATEMENT
The proposed amendments to the Primary Industries (Excise) Levies Act 1999 have no financial
impact. The amendment changes the maximum rate that can be set by the regulations, but does not
change the operative rate.
As this will not constitute a real increase in levy collected, the amount of matching payments
contributed by the Australian Government will not be affected.
NOTES ON CLAUSES
Section 1 provides for the Bill, once enacted, to be cited as the Primary Industries (Excise) Levies
Amendment (Rice) Act 2005 (the Act).
Section 2 provides for the commencement date of all parts of the Act except Schedule 1 to be the
day on which the Act receives Royal Assent. Schedule 1 of the Act commences on a single day to be
fixed by Proclamation.
Section 3 provides that each Act that is specified in a Schedule to this Act is amended or repealed as
set out in the applicable items in the Schedule concerned and any other item in a Schedule to this Act
has effect according to its terms.
Schedule 1 - Primary Industries (Excise) Levies Act 1999
Item 1 repeals the definition of leviable rice in Clause 1 of Schedule 23 and substitutes another
definition that leviable rice means rice of a variety that is specified by the regulations as leviable rice
for the purposes of this Schedule.
Item 2 amends Subclause 3(1) of Schedule 23 so that the rate of levy imposed is an amount stated in
the associated regulations.
Items 3 and 4 amend Subclause 3(2) of Schedule 23 to refer to a levy rate set by regulations and
increase the maximum levy rate from $2 per tonne to $3 per tonne.
Item 5 amends Subclause 3(3) of Schedule 23 to allow the regulations to specify different levy rates
for different rice varieties and different seasons.
Items 6 and 7 amend Subclause 3(5) of Schedule 23 so that the regulations must not specify a levy
rate for rice harvested in a State with a State marketing authority unless the rate is recommended to
the Minister by that authority.
Item 8 amends Subclause 3(7) of Schedule 23 to allow levy rates set by regulations for a specific
season to apply to later seasons if another rate for those seasons has not been set.
Item 9 repeals Subclause 3(9) of Schedule 23.
Item 10 repeals Subclauses 3(5) and 3(8) of Schedule 23.
Item 11 is a transitional clause outlining the application of the amendments. Item 11 states that the
amendments made by Schedule 1 of the Bill apply to leviable rice that is produced in Australia
(whether before or after the commencement of this Schedule), and delivered to a processor after the
commencement of this Schedule.