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Dairy Produce Legislation Amendment (Supplementary Assistance) Bill 2001

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1998 - 1999 - 2000 - 2001

 

 

 

THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA

 

 

 

 

HOUSE OF REPRESENTATIVES

 

 

 

 

DAIRY PRODUCE LEGISLATION AMENDMENT

(SUPPLEMENTARY ASSISTANCE) BILL 2001

 

 

 

 

 

SUPPLEMENTARY EXPLANATORY MEMORANDUM

 

 

 

 

 

Amendments to be Moved on Behalf of the Government

 

 

 

 

 

 

 

 

 

 

(Circulated by Authority of the Minister for Agriculture, Fisheries and Forestry,

the Hon Warren Truss MP)

 



AMENDMENTS TO THE DAIRY PRODUCE LEGISLATION AMENDMENT (SUPPLEMENTARY ASSISTANCE) BILL 2001

 

GENERAL OUTLINE

 

1.                   The amendments to the Dairy Produce Legislation Amendment (Supplementary Assistance) Bill 2001 provides for an additional SDA payment right, a basic market milk payment right, which delivers a minimum payment entitlement to producers with a dependency on market milk production of at least 25.1%.

 

FINANCIAL IMPACT STATEMENT

 

2.                   The proposed Dairy Produce Legislation Amendment (Supplementary Assistance) Bill 2001 has no budgetary impact as it is fully funded by levy revenue raised through the Dairy Adjustment Levy (General) Act 2000 , Dairy Adjustment Levy (Excise) Act 2000 , and Dairy Adjustment Levy (Customs) Act 2000 .

 

3.                   An additional application of this levy, expected to be up to 12 months, will generate Commonwealth revenue to fund the payment rights, including the basic market milk payment right and regional grants under the supplementary dairy assistance measures, including administrative and financing costs.

 



 

NOTES ON AMENDMENTS

 

Amendment 1

 

4.                   This amendment inserts into the simplified outline of the Schedule a third type of SDA payment right known as basic market milk payment rights .

 

Amendment 2

 

5.                   This amendment inserts into the simplified outline of the SDA scheme inclusion of basic market milk payment rights as a type of payment right to be granted.

 

Amendment 3

 

6.                   This amendment specifies that there are three types of payment rights.

 

Amendment 4

 

7.                   This amendment inserts a type of payment right called basic market milk payment rights .

 

Amendment 5

 

8.                   This amendment provides that an entity who is eligible for a basic market milk payment right and an additional market milk payment right will be granted only the higher amount.

 

Amendment 6

 

9.                   This amendment provides that for an entity to be eligible for a basic market milk payment right the entity must has been granted a payment right under the Dairy Structural Adjustment Program (DSAP) Scheme in respect of a qualifying enterprise .  The entity must also have held an interest, as defined in the SDA scheme, at a time referred to in the Scheme. 

 

10.               Subclause 37DA(1)(c) provides for the calculation of a market milk number to determine that an entity is eligible for a basic market milk payment .  A qualifying enterprise must have had a dependency on market milk in 1998-1999 of at least 25.1% which is reflected as the minimum market milk number.

 

11.               Subclauses 37DA(2) to 37DA(5) outline the calculation of the face value of a basic market milk payment right in accordance with the overall amount of market milk taken by the DAA to have been delivered in 1998-1999 by the qualifying enterprise. 

 

12.               Subclause 37DA(2) provides that an entity's basic market milk payment right is to be a share of the overall market milk amount taken to have been delivered by the qualifying enterprise and will be worked out in accordance with the SDA scheme. 

 

13.               Subclauses 37DA(3) provides that the overall market milk amount in respect of a qualifying enterprise with a market milk number of 25.1 and less than 30.1 is $10,000.  The overall market milk amount in respect of a qualifying enterprise with a market milk number of at least 30.1 is $15,000.

 

Amendment 7

 

14.               This amendment alters the heading to provide for consideration of both basic market milk payment rights and additional market milk payment rights under the offsetting provisions.

 

Amendment 8

 

15.               This amendment provides for the DAA to reduce the face value of an entity's basic market milk payment right by an amount equal to the value of the entity's payment under the DSAP scheme that was in excess of their eligible amount.

 

Amendment 9

 

16.               This amendment provides for the DAA to reduce the face value of an entity's basic market milk payment right to zero if the reduction in the value of the entity's payment under the DSAP scheme exceeds the value of their basic market milk payment right .