- Parliamentary Business
- Senators & Members
- News & Events
- About Parliament
- Visit Parliament
Note: Where available, the PDF/Word icon below is provided to view the complete and fully formatted document
Coarse Grains Levy Bill 1992
House: House of Representatives Portfolio: Primary Industries and Energy
Purpose To impose a levy on barley, cereal rye, oats and triticale produced in Australia to fund research.
Background Coarse grains comprise feed wheat, triticale, sorghum, feed oats, feed maize and feed barley. Together, coarse grains constitute Australia's second most important crop after wheat. Barley ($708 million in 1989- 90), oats ($178 million) and sorghum ($136 million) rank among Australia's top income earners. 1
In 1991- 92 world coarse grains production is forecast to fall by 27 million tonnes to 806 million tonnes, whilst Australian coarse grains production is forecast to increase by 0.1 million tonnes to 6.9 million tonnes. World coarse grains yields are forecast to fall by 0.09 tonnes per hectare in 1991- 92 to 2.52 tonnes per hectare, whilst Australian coarse grains yields are estimated to fall by 0.26 tonnes per hectare to 1.40 tonnes per hectare. The world price for coarse grains is forecast to rise by $US2 per tonne in 1991- 92. 3
Barley is the principal Australian course grain, accounting for approximately 60% of coarse grain production. Barley is grown in all States of Australia except Tasmania. The main producing State is South Australia. Barley is usually planted between May and July and harvested between November to January. Malting barley accounted for 40% of the Australian crop in 1990- 91 and approximately half of barley exports were in the form of either malt or malting barley grain. Malt and malting barley together currently represent approximately 40% of Australia's total coarse grains exports. 4 The value of Australian barley exports in 1989- 90 totalled $551 million. 5 China is Australia's largest customer for malting barley and in 1990- 91 accounted for 713 kilo tonnes of the total export volume of 1013 kilo tonnes. 6
Triticale is the name of a grain developed by crossing wheat and rye. Significant commercial production of triticale commenced in the 1970s. Australian triticale production fell by 35 kilo tonnes to 160 kilo tonnes in 1989- 80 and is forecast to total 84 kilo tonnes in 1991- 92. 7 The gross value of Australian triticale production fell by $3 million to $25 million in 1989- 90 and is forecast to fall to $12 million in 1991- 92. 8 The area of triticale sown in Australia in 1989- 90 totalled 89 000 hectares which yielded 1.80 tonnes per hectare. 9 Most of the triticale grown in Australia is used as animal feed, mainly for pigs and poultry. Present uses for human consumption are as flakes in muesli, for flour and whole grains in speciality breads and the manufacture of triticale macaroni. It has been claimed that triticale has an advantage over breadwheats in highland areas, in acid soils and in areas where drought tolerance is needed.
This Bill proposes to incorporate the existing barley and triticale levies, imposed by the Barley Research Levy Act 1980 and the Triticale Levy Act 1988, in a single Act, and impose new levies on oats and cereal rye (Note: the Barley Research Levy Act 1980 and the Triticale Levy Act 1988 will be repealed by the Coarse Grains Levy (Consequential Provisions) Bill 1992). In the Second Reading Speech to this Bill, the Minister states that the proposed levy arrangements are being made at the request of the Grains Council of Australia on behalf of coarse grain producers. Funds raised by the levies will be matched by the Commonwealth up to a maximum of 0.5% of the gross value of production of the relevant industry. It is estimated, in the Explanatory Memorandum to this Bill, that the Commonwealth's matching contribution for oats and cereal rye will total $270 000 per annum from 1993- 94, and $3.1 million for barley and $90 000 for triticale in 1992- 93.
Main Provisions This Bill will have effect from 1 October 1992 (clause 2).
`Leviable coarse grain' is defined in clause 3 to be grain harvested from barley, triticale, oats, cereal rye, or any kind of prescribed coarse grain.
`Leviable weight' is defined in clause 3 to be 15 tonnes, or a prescribed weight.
Subject to clauses 13 and 14 (see below), a levy will be imposed on leviable course grain produced in Australia by clause 9. Levy will not be payable unless the producer delivers the grain, other than for storage on behalf of him/herself, or processes the grain.
Clause 10 deals with the rates of levy for barley and triticale. The operative rate of levy for barley will be $0.75 per tonne and $0.75 per tonne for triticale. The maximum rate of levy which may be prescribed for either barley or triticale will be $5.00 per tonne.
Clause 11 deals with the rates of levy for oats and cereal rye. The operative rate of levy for oats and cereal rye will be 0.5% of sales value. The maximum rate of levy which may be prescribed for either oats or cereal rye will be 5% of sales value.
The levy will be payable by the producer of the leviable course grain (clause 12).
Clause 13 provides that levy will not be imposed on leviable coarse grain if: * it is produced by a producer and processed by or for him/herself; and * all products and by- products of processing that grain are used by the producer for domestic purposes. In addition, the regulations may exempt a specified class of leviable coarse grain from levy.
Clause 14 provides that levy will not be imposed on triticale delivered to a particular person, or processed by a producer, in a year, if the total weight of the triticale is less than the leviable weight.
References 1. Australian Bureau of Agricultural and Resource Economics (ABARE), Agriculture and Resources Quarterly, Vol. 3, No. 4, December 1991, p. 619. 2. ABARE, Agriculture and Resources Quarterly, Vol. 3, No. 4, December 1991, p. 472. 3. A. Linacre and C. Collimore, Outlook for course grains, National Agricultural and Resources Outlook Conference 1992, p. 4. 4. ABARE, Agriculture and Resources Quarterly, Vol. 3, No. 4, December 1991, p. 626. 5. A. Linacre and C. Collimore, Outlook for course grains, National Agricultural and Resources Outlook Conference 1992, p. 5. 6. ABARE, Agriculture and Resources Quarterly, Vol. 3, No. 4, December 1991, p. 617. 7. Ibid., at p. 619. 8. Ibid., at p. 621.
Bills Digest Service 5 March 1992 Parliamentary Research Service
For further information, if required, contact the Economics and Commerce Group on 06 2772460.
This Digest does not have any official legal status. Other sources should be consulted to determine the subsequent official status of the Bill.
Commonwealth of Australia 1992.
Except to the extent of the uses permitted under the Copyright Act 1968, no part of this publication may be reproduced or transmitted in any form or by any means, including information storage and retrieval systems, without the prior written consent of the Parliamentary Library, other than by Members of the Australian Parliament in the course of their official duties.
Published by the Department of the Parliamentary Library, 1992.