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Primary Industries (Excise) Levies Amendment (Rice) Bill 2005

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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.