Commonwealth Numbered Regulations - Explanatory Statements

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PRIMARY INDUSTRIES (EXCISE) LEVIES AMENDMENT (SWEET POTATOES, CHESTNUTS AND OLIVES) REGULATION 2015 (SLI NO 222 OF 2015)

EXPLANATORY STATEMENT

SELECT LEGISLATIVE INSTRUMENT No. 222, 2015

Issued by Authority of the Parliamentary Secretary to Minister for Agriculture and Water Resources

Primary Industries (Excise) Levies Act 1999

Primary Industries (Excise) Levies Amendment (Sweet Potatoes, Chestnuts and Olives) Regulation 2015

Section 8 of the Primary Industries (Excise) Levies Act 1999 (the Act) provides that the Governor-General may make regulations prescribing matters required or permitted by the Act to be prescribed or that are necessary or convenient for carrying out or giving effect to the Act.

The purpose of the Primary Industries (Excise) Levies Amendment (Sweet Potatoes, Chestnuts and Olives) Regulation 2015 (the Regulation) is to introduce a new Australian Government statutory levy on sweet potato growers for the purpose of undertaking marketing through Horticulture Innovation Australia Limited (HIA Ltd), increase the Emergency Plant Pest Response (EPPR) levy on chestnuts and name the Australian Olive Association as the eligible industry body for olives.

Previously, there was no Australian Government marketing levy or charge on sweet potatoes. Part 17 of Schedule 15 of the Primary Industries (Excise) Levies Regulations 1999 had already provided for a vegetable research and development (R&D), a Plant Health Australia (PHA) and an Emergency Plant Pest Response (EPPR) component of levy/export charge, which applies to sweet potatoes as a leviable vegetable. Sweet potatoes are now a separate leviable horticultural commodity with R&D and marketing component of levy and with scope for a PHA and an EPPR component of levy (Part 30 of Schedule 15 of the Regulation).

HIA Ltd is the relevant industry services body for the administration of the sweet potato industry levies and charges for marketing and is the body to manage money collected from this levy and charge imposed on sweet potato growers.  HIA Ltd co-ordinates marketing programs for most horticultural industries. The Regulation implements a levy component to be paid to HIA Ltd on fresh sweet potatoes at a marketing rate of levy of one per cent (1%) of the value of the sweet potato at the first domestic point of sale. The sweet potato marketing levy and export charge is expected to raise approximately $800 000 annually.

The Regulation specifies that the Australian Sweetpotato Growers (ASPG) is the eligible peak industry body with which HIA Ltd, the relevant industry services body, must consult in relation to sweet potato marketing component of levy.

The Regulation also implements two minor machinery of government amendments for chestnuts and olives. The changes to the chestnut levy increases the rate of the EPPR component of the export charge from zero to $10 per tonne of chestnuts. Chestnuts Australia Incorporated (CAI), the peak national industry body for the chestnut industry, is a signatory to the Emergency Plant Pest Response Deed (EPPRD). The EPPRD is a legally binding agreement between the Australian Government, state and territory governments and industry signatories, for the management and funding of emergency response to plant pest incursions.

The Regulation specifies that the Australian Olive Association (AOA) is the eligible peak industry body with which HIA Ltd, the relevant industry services body, must consult in relation to olives for the research and development and special purpose components of levy.

ASPG undertook a thorough consultation process for the new levy component on sweet potatoes to fund marketing activities. A ballot was conducted by the Australian Electoral Commission and the ballot resulted in a strong vote in favour of the proposal (80 per cent of potential levy payers participated and 92.5 per cent (62 votes) of these were in support put to ballot).

EPPR levies provide a mechanism for industry to meet its financial obligations for national cost-shared emergency responses under that agreement if the need arises. CAI requested the increase to the EPPR levies on chestnut in order to repay costs incurred as part of an emergency response to chestnut blight in Victoria. Majority industry support was demonstrated for the increase.

The Department of Agriculture and Water Resources consulted the departments of the Prime Minister and Cabinet, Treasury, and Finance and Deregulation in preparing the Regulation. The Office of Best Practice Regulation (OPBR) approved a Regulation Impact Statement (ID 14851). A copy is available from OBPR's website at ris.dpmc.gov.au/category/primary-industries/.

Details of the Regulation are set out in Attachment A.

The Regulation is compatible with the human rights and freedoms recognised or declared under section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011. A full statement of compatibility is set out in the Attachment B.

The Regulation is a legislative instrument for the purposes of the Legislative Instruments Act 2003.

Attachment A

Details of the Primary Industries (Excise) Levies Amendment (Sweet Potatoes, Chestnuts and Olives) Regulation 2015)

Section 1 - Name of Regulation

This Section provides that the name of the Regulation is the Primary Industries (Excise) Levies Amendment (Sweet Potatoes, Chestnuts and Olives) Regulation 2015.

Section 2 - Commencement

This Section provides for the Regulation to commence on 1 January 2016.

Section 3 - Authority

This Section provides that the Regulation is made under as the Primary Industries (Excise) Levies Act 1999.

Section 4 - Schedules

This Section provides that the Regulation is amended as set out in the Schedules.

Schedule 1 - Amendments relating to sweet potatoes

This Section provides for the Primary Industries (Excise) Levies Regulations 1999 to be amended as set out in Schedule 1.

(Sweet potatoes)

Item 1 inserts in clause 1.1 of Schedule 15 a definition for "sweet potato" to mean the starchy, tuberous roots of the genus and species known as Ipomoeta batatas.

Item 2 deletes "(other than sweet potatoes)" from the definition of what horticulture produce are not vegetables at paragraph 17.1(g) of Schedule 15, after potatoes.

Item 3 inserts "(ha) sweet potatoes; or" to the definition of vegetables after paragraph 17.1(h) of Schedule 15.

Item 4 removes the out dated reference to two accounting standards (at paragraph 17.5(4) of schedule 15) and replaces "with accepted accounting principles", for calculating the value of vegetables for the research and development component of levy.

Item 5 inserts a new Part 30 about sweet potatoes into Schedule 15.

Subclause 30.1 provides that sweet potatoes are a leviable horticultural product for the purposes of the definition in clause 1 of Schedule 15.

Subclause 30.2 sets an initial operative rate of marketing levy on sweet potatoes of one per cent (1%) of the amount paid for the sweet potatoes at the first point of sale, or the amount that would have been paid if the sweet potatoes had been first been sold before processing.

Subclause 30.3 sets an operative rate of research and development component of the levy on sweet potatoes of 0.485 per cent (0.485%) of the amount paid for the sweet potatoes at the first point of sale, or the amount that would have been paid if the sweet potatoes had been first been sold before processing.

Subclause 30.4(1) provides for the marketing component of levy for sweet potatoes Australian Sweetpotato Growers Inc would be the eligible industry body.

Subclause 30.4(2) provides for the research and development, Plant Health Australia and EPPR components of levy for sweet potatoes, Ausveg Limited would be the eligible industry body.

Subclause 30.5 would set an operative rate of Plant Health Australia component of the levy on sweet potatoes of 0.0150% of the amount paid for the sweet potatoes at the first point of sale, or the amount that would have been paid if the sweet potatoes had been first been sold before processing.

Subclause 30.6 would set an operative rate of Emergency Plant Pest Response component of the levy on sweet potatoes of nil (0%) of the amount paid for the sweet potatoes at the first point of sale, or the amount that would have been paid if the sweet potatoes had been first been sold before processing.

Schedule 2 - Amendments relating to Chestnuts and Olives

This Section provides for the Primary Industries (Excise) Levies Regulations 1999 to be amended as set out in Schedule 2.

(Chestnuts)

Item 1 deletes "nil" and substitutes "$10 per tonne of chestnuts" at subclause 6.7(2) of Schedule 15.

The change to the chestnut levy would increase the rate of the EPPR component of the levy from zero to $10 per tonne of chestnuts.

(Olives)

Item 2 inserts subclause 29.5A after the end of Division 29.1 of schedule 15.

Subclause 29.5A provides the Australian Olive Association Ltd is the eligible industry body for the marketing, research and development and special purpose components of levies for olives.

Attachment B

Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

Primary Industries (Excise) Levies Amendment (Sweet Potatoes and Olives) Regulation 2015

This Legislative Instrument 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 Legislative Instrument

The purpose of the Regulation is to introduce a new Australian Government statutory levy on sweet potato growers for the purpose of undertaking marketing as proposed by the Australian Sweetpotato Growers Association Inc (ASPG), increases the operative rate of EPPR levy on chestnuts and to provide that the Australian Olive Association Ltd is the eligible industry body for the marketing, research and development and special purpose components of levies for olives.

Human rights implications

This Legislative Instrument does not engage any of the applicable rights or freedoms.

Conclusion

This Legislative Instrument is compatible with human rights as it does not raise any human rights issues.

Senator the Hon. Anne Ruston

Parliamentary Secretary to the Minister for Agriculture and Water Resources

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