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EXPORT INSPECTION (ESTABLISHMENT REGISTRATION CHARGES) AMENDMENT REGULATIONS 2009 (NO. 2) (SLI NO 344 OF 2009)
EXPLANATORY STATEMENT
Select Legislative Instrument 2009 No. 344
Issued by the authority of the Minister for Agriculture, Fisheries and Forestry
Export Inspection (Establishment Registration Charges) Act 1985
Export Inspection (Establishment Registration Charges)
Amendment Regulations 2009 (No. 2)
The Export Inspection (Establishment Registration Charges) Act 1985 (the Act) provides for the imposition of charges in relation to the registration of an export establishment.
Subsection 6(1) of the Act permits charges to be imposed for the registration of an establishment which is associated with the preparation of a prescribed commodity, as specified in the regulations. Section 7 of the Act provides that the rate of charge in relation to the registration of an establishment is the rate applicable under the regulations. Section 8 provides that the charge is payable by the person who is the registered occupier of the establishment when the amount of the charge is due for payment.
Section 9 of the Act provides that the Governor-General may make regulations, not inconsistent with the Act, prescribing matters required or permitted by the Act to be prescribed, or necessary or convenient to be prescribed for carrying out or giving effect to the Act. The Act is part of a legislative scheme which includes the Export Inspection and Meat Charges Collection Act 1985.
The Export Inspection (Establishment Registration Charges) Regulations 1985 (the Regulations) are made under the Act and specify prescribed commodities for the purposes of subsection 6(1) of the Act. Immediately prior to the making of these Export Inspection (Establishment Registration Charges) Amendment Regulations 2009 (No. 2) (the Amendment Regulations) only fish and fish products were specified as prescribed commodities and the Regulations only imposed registration charges on fish products establishments. However, in the past, establishment registration charges have also applied to dairy and meat establishments. These charges were removed from the Regulations in 2001 (meat) and in 2007 (dairy). Fees for registration of milk products establishments were contained in the Export Control (Fees) Orders 2001 since 2007.
The Amendment Regulations return dairy and meat establishments (which include establishments that deal with game and poultry) to the list of prescribed commodities and prescribe registration charges for these establishments. These amendments are part of a package which included amendments to the Export Control (Fees) Orders 2001 removing the fees imposed for registration of milk products establishments. This returns the amounts payable for registration for dairy establishments to the Regulations.
Registration charges recover the costs of the development and monitoring of operational policy, strategic enhancement and costs associated with general program administration. Strategic enhancement refers to the projects developed and delivered by the program that serve to improve the effectiveness and/or efficiency of the Australian Quarantine and Inspection Service’s (AQIS’s) regulatory responsibilities. These costs are fixed in the short to medium term, but may vary with the level of industry activity over the long term.
From 2001 to 30 June 2009, the Australian Government (the Government) provided a 40 per cent contribution toward the cost of providing export inspection and certification services to the meat, grain, fish, dairy, live animal, horticulture and organic export industries. Under the revised charging structure brought into effect in 2001, establishment registration charges for all commodities were either reduced or removed entirely. However, this 40 per cent Government contribution lapsed on 30 June 2009.
Previously, an amendment was made to the Regulations which commenced on 1 July 2009 to support a return to full cost recovery. On 15 September 2009 the Senate passed a motion to disallow the Export Control (Fees) Amendment Orders 2009 (No. 1), the Australian Meat and Live-stock Industry (Export Licensing) Amendment Regulations 2009 (No. 1), the Export Inspection (Establishment Registration Charges) Amendment Regulations 2009 (No. 1), and the Export Inspection (Quantity Charge) Amendment Regulations 2009 (No. 1). The disallowance decision by the Senate was in line with the recommendation of the Rural and Regional Affairs and Transport References Committee inquiry into the Government’s management of the removal of the 40 per cent fee rebate for the AQIS export certification functions. The Committee recommended that the Senate move to disallow the export fees and charges in its report released to the Senate on 14 September 2009.
Following disallowance, AQIS export fees and charges immediately reverted to those that were in place prior to 1 July 2009. The disallowance of the export fees and charges did not reinstate the 40 per cent contribution which was in place prior to 1 July 2009. Consequently, significant shortfalls in revenue have been experienced by all export programs.
Section 48 of the Legislative Instruments Act 2003 provides that if a legislative instrument is disallowed then another legislative instrument, that is the same in substance, must not be made within six months of the disallowance unless the disallowance has been rescinded.
The Minister for Agriculture, Fisheries and Forestry reached an agreement with the Opposition and Greens senators to facilitate Senate passage of a $127.4 million industry reform program. Agreement to this package enabled the Senate to reverse its previous decision from 15 September 2009 to block new export certification fees and charges to return industry to full cost recovery. On 25 November 2009 the Senate passed a rescission motion which allows an instrument that is same in substance to be made within six months of the disallowance. The Amendment Regulations support a return to full cost recovery and make a number of other minor amendments to:
o restructure some existing provisions to provide for new fees and revise some fee structures in relation to meat, fish and dairy establishments;
o increase certain registration charges for fish establishments by approximately 79 per cent, for dairy establishments by approximately 191 per cent and to reintroduce registration charges for meat establishments, primarily to resolve the shortfall left by the lapsing of the 40 per cent contribution to export services; and
o improve consistency in the application of the charging arrangements for meat, fish and dairy establishments.
The Amendment Regulations are part of a package of amendments that related to fees and charges associated with export related activities. The ‘package’ included amendments to the following instruments:
The amendments to the Export Control (Fees) Orders 2001 were made by the Minister on 26 November 2009. Amendments to all the regulations were made on the same day as these Amendment Regulations.
AQIS, part of the Department of Agriculture Fisheries and Forestry, commenced consultation with its Industry Consultative Committees (ICCs) following the Government’s decision to allow the 40 per cent contribution to lapse. Further to this, joint AQIS/Industry Ministerial Taskforces were specifically established for the fish, grain, dairy, meat, horticulture and live animal export industries. These Ministerial Taskforces were consulted regarding the revised fees and charges as a result of the lapsing of the 40 per cent Government contribution.
The membership of the Ministerial Taskforces was determined by industry, to ensure broad industry representation. All taskforces endorsed the new fees and charges resulting from the lapsing of the 40 per cent Government contribution. The Meat Taskforce endorsement was subject to approval by their industry members. Each Taskforce also developed a reform agenda that explores efficient and effective structural arrangements for the delivery of government inspection activities.
Through the ICCs, consultation was also undertaken with the meat, seafood, dairy, horticulture, grain and live animal export sectors. The following paragraphs set out in more detail the consultation process that was undertaken for each industry sector.
Consultation with the meat export industry on these changes occurred through the Export Meat Industry Advisory Committee (EMIAC). The EMIAC is the principal advisory forum for AQIS and the meat export industry to consult on all issues arising from the management of Australia’s export strategies for meat and meat products. The membership of EMIAC comprises representatives from the following key industry sectors:
Consultation with the dairy export industry on these changes occurred through the Dairy Exports Industry Consultative Committee (DEICC). The DEICC comprises representatives from key industry sectors and is the principal consultative forum for AQIS and the Dairy Export Industry to consult on all issues arising from the management of Australia’s export strategies for milk and milk products.
Consultation with the seafood export industry on these changes occurred through the Seafood Exports Consultative Committee (SECC) which comprises representatives from key industry sectors. The SECC is the principal advisory forum for AQIS and the seafood export industry to consult on all issues arising from the management of Australia’s export strategies for fish and fish products.
As these amendments make changes in relation to cost recovery, a Cost Recovery Impact Statement was prepared.
The Amendment Regulations are a legislative instrument for the purposes of the Legislative Instruments Act 2003.
The Amendment Regulations commence on the day after they are registered on the Federal Register of Legislative Instruments.
Details of the Amendment Regulations are set out below.
Regulation 1 specifies the name of the Amendment Regulations as the Export Inspection (Establishment Registration Charges) Amendment Regulations 2009 (No. 2).
Regulation 2 provides that the Amendment Regulations commence the day after registration on the Federal Register of Legislative Instruments.
Regulation 3 provides that Schedule 1 amends the Regulations.
Schedule 1 – Amendments
Item 1 substitutes a new regulation 3 with new, retained and amended definitions. The notes have also been replaced.
The terms ‘Act’, ‘AQIS’, ‘co-operative’, ‘orders’, ‘prescribed day’ and ‘prescribed month’ do not substantially change and are reinserted by this item in the correct alphabetical order. However, some of these definitions are reinserted with minor amendments to bring them up-to-date and ensure they are in line with current drafting practice.
The item also inserts definitions for the terms ‘charge day’, ‘charge period’, ‘dairy establishment’ and ‘meat establishment’. The definitions are based on those that existed in the Regulations prior to the amendments made by the Export Inspection (Establishment Registration Charges) Amendment Regulations 2007 (No.1). The amendments in 2007 removed charges for dairy establishments from the Regulations. The need for these definitions to be reinstated was brought about by the reinsertion of provisions into the Regulations that deal with these terms (see below). However, some of these definitions are inserted with minor amendments to bring them up to date and ensure they are in line with current drafting practice.
The term ‘dairy establishment’ has been revised to reference milk or milk products instead of dairy products. This reflects a change in terminology that has occurred since 2001. The term ‘dairy establishment’ also clarifies that the definition relates to establishments associated with milk and milk products ‘for export’.
The term ‘meat establishment’ has been expanded to capture poultry meat or poultry meat products, and game meat or game meat products. The term also clarifies that the definition relates to establishments associated with poultry meat or poultry meat products, game meat or game meat products, or meat or meat products ‘for export’. This term is intended to capture an establishment registered for any operations associated with the preparation of any, or multiple, of the commodities listed. That is, an establishment associated with only poultry meat export falls within the definition, as does an establishment associated with, for example, poultry meat and game meat products.
The item also inserts a definition for ‘corporation’. The effect of this is to reinstate the definition that existed in the Regulations immediately prior to the amendments made by the Export Inspection (Establishment Registration Charges) Amendment Regulations 2001 (No. 1). This definition and the corresponding provisions that used it were removed from the Regulations after the introduction of the 40 per cent export contribution in 2001, which had the effect of reducing charges for fish and dairy establishments and removed charges for meat establishments altogether.
The terms ‘fish’ and ‘fish product’ have been inserted so that the meaning of fish and fish product is consistent with suborder 8.1 of the Export Control (Fish and Fish Products) Orders 2005, as applied by Part 2 of those Orders. The Export Control (Fish and Fish Products) Orders 2005 deals with the registration of fish establishments and is best placed to define the terms ‘fish’ and ‘fish product’.
The term ‘fish establishment’ replaces the term ‘fish products establishment’. The removal of the word ‘products’ only clarifies the term and has no impact or effect on the meaning of the term. The term ‘fish products establishment’ was considered unnecessarily narrow and potentially confusing, as the establishment registration charges cover both fish and fish products. The new term also clarifies that the term relates to establishments associated with fish and fish products ‘for export’. This change has no impact or effect on the meaning of the term.
The terms ‘game meat’ and ‘game meat product’ have been inserted so that the meaning of game meat and game meat product is consistent with the meaning given in suborder 5.1 of the Game, Poultry and Rabbit Meat Orders 1985. The Game, Poultry and Rabbit Meat Orders 1985 deal with the registration of meat establishments associated with the export of game meat or game meat products and, as such, is best placed to define the terms ‘game meat’ and ‘game meat product’.
The terms ‘meat’ and ‘meat product’ have been inserted so that the meaning of meat and meat product is consistent with the meaning given in suborder 8.1 of the Export Control (Meat and Meat Products) Orders 2005, as applied by Part 2 of those Orders. The Export Control (Meat and Meat Products) Orders 2005 deals with the registration of meat establishments associated with the export of meat or meat products registration and as such is best placed to define the term ‘meat’ and ‘meat product’.
The terms ‘milk’ and ‘milk product’ have been inserted so that the meaning of milk and milk product is consistent with the meaning given in order 7 of the Export Control (Milk and Milk Products) Orders 2005, as applied by Part 2 of those Orders. The Export Control (Milk and Milk Products) Orders 2005 deals with the registration of dairy establishments associated with the export of milk or milk products registration and, as such, is best placed to define the terms ‘milk’ and ‘milk product’.
The terms ‘poultry meat’ and ‘poultry meat product’ have been inserted so that the meaning of poultry meat and poultry meat product is consistent with the meaning given in suborder 5.1 of the Game, Poultry and Rabbit Meat Orders 1985. The Game, Poultry and Rabbit Meat Orders 1985 deals with the registration of meat establishments associated with the export of poultry meat or poultry meat products and, as such, is best placed to define the term ‘poultry meat’ and ‘poultry meat product’.
The need for the definitions to be reinstated was brought about by the reinsertion of provisions by these Amendment Regulations that use these terms. The definitions that have been inserted have minor amendments made to them to bring them up to date. The definitions have also been amended to ensure they are in line with current drafting practice.
As a consequence of the introduction of the terms ‘fish’ and ‘fish product’, the reference to find the definitions of ‘fish’ and ‘fish product’ has been removed from Note 1.
Note 2 has also been amended to insert references for the registration of dairy and meat establishments, being the Export Control (Milk and Milk Products) Orders 2005, the Export Control (Meat and Meat Products) Orders 2005, the Export Control (Prescribed Goods –General) Order 2005 and the Game, Poultry and Rabbit Meat Orders 1985.
Note 3 has been reinserted without amendment.
Item 2 substitutes a new regulation 4 which specifies a broader range of commodities for the purposes of subsection 6(1) of the Act. The new regulation 4 also imposes a charge in relation to an application for the registration of an establishment for the expanded range of commodities, and specifies the charge periods in relation to which charges are imposed.
Specifically, the new subregulation 4(1) increases the list of commodities that are prescribed for the purposes of subsection 6(1) of the Act. This extends the application of the Regulations to all of the following commodities: game meat; game meat products; meat; meat products; milk; milk products; poultry meat; and poultry meat products.
New subregulation 4(2) encompasses the provisions that were contained in subregulation 4(1A) immediately prior to the making of the Amendment Regulations and provides for an expanded application to all specified commodities under subregulation 4(1). New subregulation 4(2) provides that the charge payable, in relation to the application for the registration of an establishment for the processing, packing and storage of a commodity mentioned in subregulation 4(1), is $600. This is an increase of 80 per cent on the existing charge in subregulation 4(1A) that only operates in relation to fish and fish products. This is a new fee imposed on dairy and meat establishments.
It is intended that the fee in subregulation 4(2) is payable for an application regardless of the number of commodities the application relates to, as listed in subregulation 4(1). That is, if the application relates to fish, fish products, and game meat the fee payable is $600.
This fee increase reflects the restructured responsibilities for the administration of the establishment registration process. These responsibilities have been disaggregated from the individual commodities and are now consolidated into a single unit within the AQIS Food Division. These responsibilities are now undertaken consistently across the commodities giving rise to a consistent charge which applies across the commodities of fish, dairy and meat.
The new subregulation 4(3) sets out the periods for which a charge is imposed for the registration of an establishment for the processing, packing or storage of a commodity mentioned in subregulation 4(1). This new subregulation provides that these periods apply to all the commodities specified in new subregulation 4(1), which extends the charge periods beyond the commodities of fish and fish products.
Item 3 provides a new heading for regulation 6. It removes the word ‘products’ from the heading as well as the letter ‘s’ from the end of the word ‘establishments’. This has no substantive effect on the provision. It is consistent with the amendment made by item 1 above to amend the defined term in regulation 3 of ‘fish products establishment’ by substituting ‘fish establishment’. The purpose of this amendment is to clarify the language being used in the Regulations. The term ‘fish products establishment’ was considered unnecessarily narrow and potentially confusing, as establishment registration covers both fish and fish products.
Items 4 and 5 omit the term ‘fish products establishment’ in subregulations 6(1) and 6(2) and inserts in their place ‘fish establishment’. This has no substantive effect on the provisions. It is consistent with the amendments made by items 1 and 3. The purpose of this amendment is to clarify the language being used in the Regulations. The term ‘fish products establishment’ was considered unnecessarily narrow and potentially confusing, as establishment registration covers both fish and fish products.
Item 6 inserts a new regulation 7 to provide the rates of charge for dairy establishments. This provision was modelled on the previous regulation 6A that existed in the Regulations immediately prior to the amendments made by the Export Inspection (Establishment Registration Charges) Amendment Regulations 2007 (No.1).
However, the new regulation 7 does not create a new impost on dairy establishments. Since the removal of the old regulation 6A from the Regulations in 2007, a provision was operating under the Export Control (Fees) Orders 2001 to require milk and milk products establishments to pay a registration fee (Order 4G). Accordingly, there is no change to the requirement for dairy establishments to pay for registration, it was just moved from the Export Control (Fees) Orders 2001 to the Regulations. The rates set by this regulation (in conjunction with Schedule 2) represent an increase in the rates applicable previously under the Export Control (Fees) Orders 2001.
The removal of these charges from the Export Control (Fees) Orders 2001 and insertion back into the Regulations results in better management of equity considerations across the industry and ensures consistency with the approach taken with fish and meat establishments. Registration fees for dairy establishments are now payable under the Regulations instead of the Export Control (Fees) Orders 2001. The increases in charges were necessary to recover the shortfall that has resulted from the lapsing of the 40 per cent export contribution and increased costs in respect of the management and administration of the Dairy Export Program. While this reinsertion of dairy registration charges resulted in the charges and fees for dairy establishments being spread across the Regulations and the Export Control (Fees) Order 2001, the convenience aspect of having all the fees and charges in one place support exporters by having a single document and location that specifies the fees and charges applicable. The fees and charges for the Dairy Export Program are presented in a consolidated format on the relevant webpage of the AQIS website (www.aqis.gov.au) and in the document titled ‘AQIS Charging Guidelines - Food Inspection Services’, which is also available from the webpage. The information that is published on the Program’s webpage is the first point of access for a majority of clients seeking information regarding the Dairy Export Program, so this change is not expected to result in a great inconvenience.
New subregulation 7(4) provides that where a dairy establishment is of a kind specified in more than one item in Schedule 2, the rate that applies is the higher or highest of the rates specified for those items. This is consistent with the approach taken in the previous subregulation 6(2) in relation to fish and fish products and remains consistent with the way in which the Dairy Export Program’s registration charges have traditionally applied.
The rate of charge for a dairy establishment depends on whether the day it was registered was 1 July. If the establishment was registered on 1 July, the rate specified in Schedule 2 for dairy applies (see the new subregulation 7(2)). Where the establishment was registered on a day other than 1 July, the charge is determined according to a formula which calculates the proportion of the annual rate equivalent to the number of days the establishment was registered in that financial year (see new subregulation 7(3)).
Item 6 also inserts new regulations 8 and 9 to provide the rates of charge for meat establishments. These rates of charge are annual charges and divided into a base registration charge, provided under the new regulation 8 and per capita registration charge, provided under regulation 9. Meat establishments are liable for both types of charges. Prior to the introduction of the 40 per cent export contribution, registration charges for meat establishments were based on volumes produced by an establishment. As a result of the amendments smaller establishments will be able to increase volume substantially without necessarily requiring the presence of more inspectors, and therefore this does not increase their registration charge.
Under the new structure, a ‘base registration charge’ applies to all meat establishments. This charge covers the costs associated with maintaining the integrity of the export system and continued access to export markets. An additional ‘per capita charge’ applies to meat establishments requiring the presence of authorized officers, which includes AQIS meat inspectors and veterinary officers. This charge recovers the remaining costs of management and administration for the Meat Export Program. The total per capita charge is based on the number of authorized officers required by an establishment and necessarily varies depending on the number of authorized officers required by particular establishments. The number of authorized officers required is a much better reflection of the food safety risk presented by the production at an establishment and associated resources drawn from AQIS to support the export of products. The per capita charge also allows smaller exporters to increase their production without incurring further, and in some cases, prohibitive charges by removing the hard volume barriers included in the previous approach to registration charges.
The base registration charge provided under the new regulation 8 applies an annual charge of $2,817 calculated according to the number of days that the establishment is registered in the year. The formulas vary depending on whether the charge period is the 2009-10 financial year or later financial years, whether the establishment was registered before or after the commencement of these Amendment Regulations, and whether the establishment was registered on 1 July in a charge period (see below for detail). ‘Charge period’ is defined in regulation 3 to be, in relation to a meat establishment, a financial year beginning after 30 June 2009 (see Item 1).
New subregulation 8(1) provides that, for section 7 of the Act, the regulation sets out the rate of charge for the registration of a meat establishment for a charge period.
New subregulation 8(2) determines the base registration charges for the 2009-10 charge period where the establishment is registered before the commencement of these Amendment Regulations. The subregulation provides that a pro-rata rate applies from the date of commencement of these new Amendment Regulations to the end of the charge period (30 June 2010). The charge is determined according to a formula which calculates the proportion of the annual rate ($2,817) equivalent to the number of days from commencement of the Amendment Regulations to the end of the charge period. Therefore, the number of days that the establishment is registered will not be more than the number between commencement and the end of the charge period. This ensures that the new charges do not apply retrospectively.
New subregulation 8(3) determines the base registration charges for the 2009-10 charge period where the establishment is registered on or after the commencement of these Amendment Regulations. The subregulation provides that a pro rata rate applies from the date of registration to the end of the charge period. This charge is determined according to formulas which calculate the proportion of the annual rate ($2,817) equivalent to the number of days the establishment is registered in that financial year.
New subregulations 8(4) and 8(5) determine the base registration charges for a charge period other than the 2009-10 financial year (that is, any financial year after 2009-10). If the establishment is registered on 1 July, the base registration charge is $2,817 (see new subregulation 8(4)). Where the establishment is registered on a day other than 1 July, the charge is determined according to a formula which calculates the proportion of the annual rate equivalent to the number of days the establishment was registered in that financial year (see new subregulation 8(5)). In practice, this applies to newly registered establishments in that charge period. For establishments that were registered in the previous charge period and wish to continue their registration, the charge day in the next charge period will be 1 July.
New subregulation 8(6) defines terms used in regulation 8.
Regulation 9 provides for a per capita charge to be applied according to the number of authorized officers allocated to the establishment for provision of export services under an ‘agreed allocation arrangement’. The ‘agreed allocation arrangement’ is the written agreement between the occupier of a meat establishment and AQIS for the allocation of authorized officers to an establishment (subregulation 9(9)). Such agreed allocation arrangements are determined upon registration of an establishment and revised from time to time. The formulas for calculating the per capita charge under regulation 9 vary depending on whether the charge period begins on 1 July 2009 (the 2009-10 financial year) or after 1 July, and whether there is a ‘subsequent agreed allocation’ or an ‘agreed allocation’ under the agreed allocation arrangement. These concepts are explained below where applicable.
New subregulations 9(2) and 9(3) determine the per capita charge for the 2009-10 financial year.
Subregulation 9(2) provides the calculations for the per capita charge where the establishment is registered prior to the commencement date of these Amendment Regulations. For this subregulation, the calculation of the per capita charge is provided by a formula based on the multiplication of the ‘2009 agreed allocation’ by the individual charge for each authorized officer ($14,985) at a pro rata rate equivalent to the proportion of the number of days from the commencement of these Amendment Regulations to the end of the charge period (30 June 2010). Therefore, the number of days that the establishment is registered will not be more than the number of days between commencement and the end of the charge period. This ensures that the new charges do not apply retrospectively.
Subregulation 9(3) provides the calculations for the per capita charge where the establishment is registered on or after the commencement of these Amendment Regulations. For this subregulation, the per capita charge is provided by a formula based on the multiplication of the ‘2009 agreed allocation’ and the individual charge for each authorized officer ($14,985) at a pro rata rate equivalent to the proportion of the number of days from the date the establishment is registered to the end of the charge period (30 June 2010).
For subregulations 9(2) and 9(3), the ‘2009 agreed allocation’ is the total number of authorized officers allocated to the establishment under an agreed allocation arrangement at the commencement date, or the first agreed allocation arrangement entered into after the establishment is registered if the registration is after commencement (subregulation 9(9)).
New subregulations 9(4) and 9(5) determines the per capita charge where the charge period begins after 1 July 2009 (that is, where the charge period is the 2010-11 financial year or any later financial year) and where the establishment has a ‘subsequent agreed allocation’. The ‘subsequent agreed allocation’ is the total number of authorized officers allocated to the establishment in the previous charge period under an agreed allocation arrangement, each allocation extrapolated as a yearly allocation. The term ‘subsequent agreed allocation’ is defined in subregulation 9(9).
Subregulation 9(4) provides the calculations for the per capita charge where the establishment is registered on 1 July. For this subregulation, the per capita registration charge is provided by the multiplication of the ‘subsequent agreed allocation’ and the individual charge for each authorized officer ($14,895).
Subregulation 9(5) provides the calculations for the per capita charge where the establishment is registered after 1 July in a charge period and where the operations of the meat establishment in a previous charge period provide a ‘subsequent agreed allocation’. For this subregulation, the per capita charge applies for the first charge period after registration and is provided by the multiplication of the ‘subsequent agreed allocation’ and the individual charge for each authorized officer ($14,985). The charge applies at a pro rata rate equivalent to the proportion of the number of days from the date the establishment is registered to the end of the charge period. For each subsequent charge period the per capita charge is provided by subregulation 9(4).
New subregulations 9(6) and 9(7) determine the per capita registration charge where the charge period begins after 1 July 2009 (that is, where the charge period is the 2010-11 financial year or any later financial year) and the establishment does not have a ‘subsequent agreed allocation’. Where an establishment does not have a ‘subsequent agreed allocation’, the per capita charge is calculated using the ‘agreed allocation’ where the ‘agreed allocation’ is the total number of authorized officers allocated to the establishment under an agreed allocation arrangement, extrapolating as a yearly allocation (see subregulation 9(9)). In practice, these subregulations operate for newly registered establishments, as such establishments do not have a ‘subsequent agreed allocation’ to inform the calculation of the charges.
Subregulation 9(6) provides the calculation for the per capita registration charge where the establishment is registered on 1 July in the charge period. The per capita registration charge under subregulation 9(6) applies for the first charge period following registration and is calculated by the multiplication of the ‘agreed allocation’ and the charge for each authorized officer ($14,895). For subsequent charge periods, the per capita charge is calculated in accordance with subregulation 9(4), as the establishments will then have a ‘subsequent agreed allocation’.
Subregulation 9(7) provides the calculations for the per capita registration charge where the establishment is registered after 1 July in the charge period. For this subregulation, the per capita charge applies for the first charge period after registration and is provided by the multiplication of the ‘agreed allocation’ and the individual charge for each authorized officer ($14,985). The charge applies at a pro rata rate equivalent to the proportion of the number of days from the date the establishment is registered to the end of the charge period. For each subsequent charge period the per capita charge is provided by subregulation 9(4).
Paragraph 9(8)(a) provides that the ‘2009 agreed allocation’, ‘subsequent agreed allocation’ and ‘agreed allocation’ is determined to 1 decimal point rounding up or down. This is rounded up or down to the nearest 1 decimal point (rounded up if the second decimal point is 5).
Paragraph 9(8)(b) provides that the number of authorized officers allocated to an establishment as determined by the ‘2009 agreed allocation’, the ‘subsequent agreed allocation’ and the ‘agreed allocation’ must be a minimum of 0.5. Therefore, a minimum of 0.5 authorized officers applies even where this is determined to be lower than 0.5. The minimum cap does not result in the imposition of charges that are higher than those that applied under the previous structure for registration charges (that is the charges that were previously based on throughput at the establishment).
This item creates a new impost on meat establishments. Since the introduction of the 40 per cent export contribution and the subsequent removal of the old regulation 7 from the Regulations in 2001, no provision has been operating to require meat establishments to pay a registration charge. The lapsing of the 40 per cent export contribution required the reestablishment of registration charges in the Regulations.
Meat registration charges recover the costs of the development and monitoring of operational policy, strategic enhancement and costs associated with general Meat Export Program administration. These costs are fixed in the short to medium term, but may vary with the level of industry activity over the long term.
New subregulation 9(9) defines a number of terms used for the purpose of regulation 9.
Item 7 substitutes a new Schedule 1 for the existing Schedule 1 and also inserts a new Schedule 2 and Schedule 3 into the Regulations.
Schedule 1 – Registration charges for fish establishments
This substituted Schedule continues to specify the registration charges to be imposed for fish establishments pursuant to regulation 6. The items that are part of this Schedule have been updated and amended to consolidate like charges into single items where possible. This approach is consistent with Recommendation 76 of the final report, One Biosecurity: A Working Partnership (September 2008) (the Beale Report), which stated that fees for like activities should be aggregated to reduce the number of individual charges where possible.
The fees and charges for Fish Exports were last reviewed in 2006-07. Dairy fees and charges were reviewed in 2007-08, at which time the shift was made to remove the dairy establishment registration charges from the Regulations. The issue of the removal of the fish establishment registration charges was considered in the reviews of 2008-09. Following those reviews, it was concluded that registration charges for fish should remain in the Regulations and that the registration charges for dairy and meat establishments should be reinserted. These charges for dairy and meat establishments are reinserted by these Amendment Regulations.
Registration charges recover the costs of the development and monitoring of operational policy, strategic enhancement and costs associated with general Program administration. These costs are fixed in the short to medium term but may vary with the level of industry activity over the long term.
Amendments were made to the Regulations in 2001 after a change in Government policy which resulted in the Government funding 40 per cent of the cost of providing export inspection and certification services to the meat, grain, fish, dairy, live animal and horticulture export industries. Under the revised structure brought into effect in 2001, registration charges for all commodities were either reduced or removed.
The 40 per cent Government contribution lapsed on 30 June 2009. The previous amendments to the Regulations to enable full cost recovery from 1 July 2009 were disallowed by the Senate on 15 September 2009. The disallowance did not reinstate the 40 per cent contribution. As a result, the Fish Export Program has suffered a large under-recovery with respect to its registration activities. This is the primary reason registration charges for fish establishments have been increased.
Other factors that are reflected in the modelling and charges are:
The above explanation is applicable to all new and increased charges that are imposed by Schedule 1. This justification has not been repeated below under each item.
The heading to the Schedule has been amended to remove the word ‘products’. This has no substantive effect on the provision. It is consistent with the amendment made by items 1, 3, 4 and 5 above to amend the defined term ‘fish products establishment’ by substituting ‘fish establishment’. The purpose of this amendment is to clarify the language being used in the Regulations. The term ‘fish products establishment’ was considered unnecessarily narrow and potentially confusing, as establishment registration covers both fish and fish products.
Item 1 of Schedule 1 is amended to restructure the item, remove the phrase ‘used solely for’ and replace it with ‘registered for’, and provide for a new kind of establishment. The replacement of the phrase ‘used solely for’ with ‘registered for’ has no significant effect on the meaning of the existing item and brings it into line with the other items in the Schedule that already refer to ‘registered for’.
The restructured item provides for two kinds of establishments which attract the charge. The first kind is an establishment that is either land-based or a vessel, and is registered for the storage of fish or fish products for export. The second kind is an establishment that is entirely land-based and registered for preparing live fish or partial processing of fish or fish products (otherwise than by freezing or final packing). This second kind of establishment was dealt with in previous item 5. It has been consolidated here in line with recommendation 76 of the Beale Report. The item also increases the rate per charge period for this item from $949 to $1,703.
Item 2 of Schedule 1 has been amended to restructure the item, remove the phrase ‘used for’ and replace it with ‘registered for’, provide a new kind of establishment and increase the rate payable. The replacement of the phrase ‘used for’ with ‘registered for’ has no significant effect on the meaning of the existing item and simply brings it into line with the other items that already refer to ‘registered for’.
This amendment also provides for a new kind of establishment to which the rate per charge period in item 2 applies. The new kind of establishment is one that is land based, registered for single-line processing or packing of fish or fish products for export and not described in new item 1. This kind of establishment was previously dealt with in previous item 4. It has been consolidated here in line with recommendation 76 of the Beale Report. The rate per charge period for this item has also been increased from $1,281 to $2,298.
Item 3 of Schedule 1 has been amended to restructure the item and increase the rate payable. The cross reference to item 5 has been removed as item 5 has been deleted by the insertion of this new Schedule. The rate per charge period for this item has increased from $1,469 to $2,636 and the item has been amended to provide an exclusion where the land-based establishment is listed in items 1 or 2.
Item 4 of Schedule 1 is a revised and restructured version of the old item 6. This picks up on the revised formatting of the previous 3 items and updates the cross references in light of the changes made by items 1 to 3 of Schedule 1 above. The rate per charge period for this item has increased from $543 to $974.
Previous items 4 and 5 of Schedule 1 have been deleted by the substitution of this new Schedule. They were no longer necessary as they have been consolidated into new items 1 and 2 above, consistent with recommendation 76 of the Beale Report.
The revenue for registration charges for fish establishments collected in 2008-09 was $1,611,916. $965,219 was derived from fish establishment registration charges, while $643,479 was received from the 40 per cent Government contribution. The projected revenue for registration charges for fish establishments in 2009-10 is expected to be $1,970,050. All of this is to be derived from fish establishment registration charges in line with the return to 100 per cent cost recovery. The figures represent an increase in total revenues of $358,314.
Schedule 2 – Registration charges for dairy establishments
This new Schedule specifies the registration charges for dairy establishments pursuant to regulation 7.
Registration charges recover the costs of development and monitoring of operational policy, strategic enhancement and costs associated with general Program administration. These costs are fixed in the short to medium term, but may vary with the level of industry activity over the long term.
Amendments were made to the Regulations in 2001 after a change in Government policy which resulted in the Government funding 40 per cent of the cost of providing export inspection and certification services to the meat, grain, fish, dairy, live animal and horticulture export industries. Under the revised structure brought into effect in 2001, registration charges for all commodities were either reduced or removed. The registration charges for dairy establishments were heavily reduced.
The 40 per cent Government contribution lapsed on 30 June 2009. The previous amendments to the Regulations to enable full cost recovery from 1 July 2009 were disallowed by the Senate on 15 September 2009. The disallowance did not reinstate the 40 per cent contribution. As a result, the Dairy Export Program has been under‑recovering. This is the reason registration charges for dairy have been increased. Reasons for the reintroduction of these charges to the Principle Regulations have been discussed above.
Other factors that are reflected in the modelling and charges are:
The above explanation is applicable to all new charges that are imposed by Schedule 2. This justification has not been repeated below under each item.
This Schedule reinstates the three items from the previous Schedule 1A that existed in the Regulations prior to the amendments made by the Export Inspection (Establishment Registration Charges) Amendment Regulations 2007 (No.1).
Item 1 of Schedule 2 applies to an establishment used for the storage of milk or milk products and provides for a rate per charge period of $1,820. Where an establishment stores multiple commodities or commodity products, including milk or milk products, the establishment is be liable for registration charges for each type of establishment. For example, registration charges for dairy establishments and fish establishments apply where an establish stores both milk products and fish. The application of charges for each commodity recognises the resources drawn from each of the AQIS Export Programs involved in the management and administration of the export of those commodities, and ensures that contributing programs are recovering the costs of those resources. This charge does not apply where items 2 or 3 apply as the resources required from AQIS to support the registration of an establishment in item 1 are completely satisfied by the resources required from AQIS to support the registration of an establishment in item 2 or item 3.
Item 2 of Schedule 2 applies to an establishment engaged in the processing or packing of milk or milk products for export where the establishment exported less than 2,000 tonnes of milk or milk products in the preceding financial year and is either owned by a corporation or is owned by, or is part of, a co-operative. This item provides for a rate of charge per period of $4,275. This charge does not apply where item 3 applies as the resources required from AQIS to support the registration of an establishment in item 2 are completely satisfied by the resources required from AQIS to support the registration of an establishment in item 3.
Item 3 of Schedule 2 applies to an establishment engaged in the processing or packing of milk or milk products for export where the establishment exported 2000 tonnes or more of milk or milk products in the preceding financial year and either is owned by a corporation or is owned by, or is part of, a co-operative. This item provides for a rate of charge per period of $7,729.
The revenue for milk establishment registration fees in 2008-09 was $820,064. $491,056 was derived from fees paid by industry under the Export Control (Fees) Orders 2001, while $327,371 was received from the 40 per cent Government contribution. The projected revenue for dairy establishment registration charges in 2009-10 is $1,220,101. All of this is to be derived from dairy establishment registration charges in line with the return to 100 per cent cost recovery. The figures represent an increase in total revenue of $400,037.