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Dairy Adjustment Levy (General) Bill 2000

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1998-1999-2000

 

 

 

 

 

THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA

 

 

 

 

 

HOUSE OF REPRESENTATIVES

 

 

 

 

 

 

DAIRY ADJUSTMENT LEVY (GENERAL) BILL 2000

 

 

 

 

 

 

 

 

EXPLANATORY MEMORANDUM

 

 

 

 

 

 

 

 

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

the Hon Warren Truss MP)

 



 

DAIRY ADJUSTMENT LEVY (GENERAL) BILL 2000

 

GENERAL OUTLINE

 

1.         The Dairy Adjustment Levy (General) Bill 2000 provides for the imposition of the Dairy Adjustment Levy to the extent that the levy is neither a duty of excise or a duty of customs. 

 

2.         This Bill is one of a package of three Bills that impose the Dairy Adjustment Levy.  The other Bills are the  Dairy Adjustment Levy (Excise) Bill 2000 and the Dairy Adjustment Levy (Customs) Bill 2000,

 

3.         This Bill provides for:

 

·           the imposition of the Dairy Adjustment Levy to the extent that the levy is neither a duty of excise or a duty of customs; and

·           the rate at which the Dairy Adjustment Levy will apply; and

·           the Governor-General to be able to make Regulations regarding the Dairy Adjustment Levy.

 

FINANCIAL IMPACT STATEMENT

 

4.         The Dairy Adjustment Levy will be established to raise sufficient Commonwealth revenue to pay for the Dairy Industry Adjustment Package.

 

5.         The Dairy Adjustment Levy is expected to raise $1.74 billion over a target period of eight years.

 

6.         All money raised by the Dairy Adjustment Levy will be used to fund the Dairy Industry Adjustment Package, including the cost of collecting the levy.  The imposition of the Dairy Adjustment Levy will have no net impact on the Commonwealth Budget.

 

7.         The Dairy Industry Adjustment Bill 2000 provides for the Dairy Adjustment Levy to be terminated by the Minister publishing a notice in the Gazette once the Minister is satisfied that all costs associated with the Dairy Industry Adjustment Package have been met.  This includes the cost to the Commonwealth of collecting the Levy.

 

REGULATION IMPACT STATEMENT

 

8.         This Bill imposes a levy to raise sufficient funds to pay for the Dairy Industry Adjustment Package as established under the Dairy Industry Adjustment Bill 2000 .

 

9.         The regulation impact of the Dairy Adjustment Levy is discussed in the Explanatory Memorandum of the Dairy Industry Adjustment Bill 2000 .

 

NOTES ON CLAUSES

 

Clause 1 - Short Title

 

10.       The Act will be called the Dairy Adjustment Levy (General) Act 2000 .

 

Clause 2  - Commencement

 

11.       The Act will commence on 8 July 2000.  This is the same day as commencement of the Dairy Adjustment Levy (see clause 76BA of the Dairy Industry Adjustment Bill 2000 ).

 

Clause 3 - Act to bind Crown

 

12.       Clause 3 binds the Crown in right of each of the States and Territories. 

 

Clause 4 - Definition

 

13.       In the Act, a leviable milk product has the same meaning as Part 4 of Schedule 2 of the Dairy Produce Act 1986 .  The expression leviable milk product is used in clause 6.

 

Clause 5 - Imposition of Levy

 

14.       This clause imposes the Dairy Adjustment Levy to the extent that the levy is neither a duty of excise or a duty of customs.

 

Clause 6 - Rate of levy

 

15.       Subclause 6(1)(a) sets the maximum rate of levy at 0.011 cents per millilitre (ie. 11 cents per litre).  This will also be the initial operative rate.  

 

16.       Subclause 6(1)(b) allows for a lower operative rate to be set by regulation.

 

17.       Subclause 6(2) refers to imposition of the levy on those products, which are not a liquid at 20 ° C (for example powdered milk).  It is not intended that milk powder will initially be subject to the levy.  However, in the event that milk powder becomes subject to the levy in the future, this subclause provides a mechanism to calculate the volume of the product for the purpose of applying the levy.  The formula for calculating the volume of the product will be specified in the Regulations.

 

18.       Subclause 6(3) refers to the imposition of the levy on milk concentrates.  It is not intended that milk concentrates will initially be subject to the levy.  However, in the event that milk concentrates become subject to the levy in the future, this subclause provides a mechanism to calculate the volume of the product for the purpose of applying the levy.  The formula for calculating the volume of the product will be specified in the Regulations. 

 

Clause 7 - Act does not impose a tax on property of a State

 

19.       Subclause 7(1) ensures this Bill complies with Section 114 of the Constitution.

 

20.       Subclause 7(2) specifies that property of any kind belonging to a State has the same meaning as in section 114 of the Constitution.

 

21.       Subclause 7(3) extends this clause to include the property of the Australian Capital Territory and the Northern Territory. 

 

Clause 8 - Regulations

 

22.       Subclause 8(1) provides for the Governor-General to make Regulations for the purposes of clause 6.

 

23.       Subclause 8(2) specifies that before making a regulation specifying a lower operative rate of levy under subclause 6(1)(b) the Governor-General must consider any relevant recommendations made to the Minister by the Dairy Adjustment Authority.