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Excise Levies Legislation Amendment (Sheep and Lamb) Bill 2020

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2019-2020

THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA

HOUSE OF REPRESENTATIVES

Excise Levies Legislation Amendment (sheep and Lamb) Bill 2020

Customs Charges and Levies Legislation Amendment

(sheep and Lamb) Bill 2020





 

EXPLANATORY MEMORANDUM

 

(Circulated by authority of the Minister for Agriculture, Drought and Emergency Management, the Hon. David Littleproud MP)

Excise Levies Legislation Amendment (sheep and Lamb) Bill 2020

Customs Charges and Levies Legislation Amendment

(sheep and Lamb) Bill 2020

GENERAL OUTLINE                                  

The Primary Industries (Excise) Levies Act 1999 and the Primary Industries (Customs) Charges Act 1999 authorise the imposition of levies and charges on primary producers, processors and exporters. The National Residue Survey (Excise) Levy Act 1998 and the National Residue Survey (Customs) Levy Act 1998 authorise the imposition of levies for the purposes of residue testing.

Primary industry levies and charges are imposed by the Australian Government at the request of an industry to allow producers, processors and exporters to collectively invest in research and development (R&D), marketing, animal health, emergency biosecurity response and residue testing for the benefit of their industry. Levies and charges are collected by the Department of Agriculture, Water and the Environment and equivalent amounts are disbursed to a levy recipient body, such as one of the 15 rural research and development corporations.

The Acts currently provide for levies and charges to be imposed on sheep and lamb sale transactions, slaughter and export, and define sheep and lamb for these purposes. Amounts equivalent to the levy and charge funds raised through these arrangements are disbursed to levy recipient bodies Meat and Livestock Australia, the Australian Meat Processor Corporation, the Australian Livestock Export Corporation Limited, Animal Health Australia, and the National Residue Survey.

The Excise Levies Legislation Amendment (Sheep and Lamb) Bill 2020 and the Customs Charges and Levies Legislation A mendment (Sheep and Lamb) Bill 2020 (the Bills) amend the definition in the Acts to align with the new definition of lamb used for export purposes and by industry. 

The definition of lamb used in Australia for export and industry purposes was changed in July 2019 following a proposal from and extensive consultation undertaken by the sheep and meat processing sectors.

Sheep Producers Australia (SPA), the national representative organisation for the sheep industry, and the Australian Meat Industry Council (AMIC), the national representative organisation for the meat processing sector, conducted comprehensive consultation with stakeholders over two years on the change to the definition of lamb. This included engagement with SPA member state farming organisations and a public survey. The public survey received 509 responses with 83 per cent in support of the new definition of lamb as well as majority support from state farming bodies.

The new definition of lamb is an ovine animal that is under 12 months of age; or does not have any permanent incisor teeth in wear. The new definition is designed to bring Australia’s definition in line with our international competitors and provide a definitive signal for producers about when a sheep is no longer a lamb.

The change to the definition of lamb has been given effect through amendments to the Export Control (Meat and Meat Products) Orders 2005 and changes to the industry’s AUSMEAT trade description language, as well as amendments to state legislation where relevant.

Updating the definition of lamb used for the purposes of imposing levies and charges to align with the new industry definition reflects the intent of the industry and has the support of AMIC and SPA. It will provide administrative clarity for levy payers and support compliance with the levies system, through ensuring consistency across relevant legislation in the definition of the animal upon which levies and charges are imposed.

FINANCIAL IMPACT STATEMENT

These Bills are estimated to have a nil net financial impact over the forward estimates period.

STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS

The measures in these Bills are 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 .

The full statement of compatibility with human rights for each Bill is attached to this explanatory memorandum.

 

 

 



ACRONYMS, ABBREVIATIONS AND COMMONLY USED TERMS

the Department

the Department administered by the Minister administering the Primary Industries (Excise) Levies Act 1999 , the Primary Industries (Customs) Charges Act 1999 , the  National Residue Survey (Excise) Levy Act 1998 and the National Residue Survey (Customs) Levy Act 1998

the Minister

the Minister administering the Primary Industries (Excise) Levies Act 1999 , the Primary Industries (Customs) Charges Act 1999 , the National Residue Survey (Excise) Levy Act 1998 and the National Residue Survey (Customs) Levy Act 1998

AMIC

SPA

Australian Meat Industry Council

Sheep Producers Australia

 

 

 



 

Excise Levies Legislation Amendment (Sheep and Lamb) Bill 2020

NOTES ON AMENDMENTS

Preliminary

Clause 1              Short Title

Clause 1 provides for the short title of the Act to be the Excise Levies Legislation Amendment (Sheep and Lamb) Act 2020 .

Clause 2              Commencement

Clause 2 provides for the commencement of each provision in the Act, as set out in the table.

Item 1 in the table provides that the whole of the Act will commence on 1 January 2021. Deferring commencement until 1 January 2021 is necessary to provide certainty to industry about the date from which the new definition will apply. 

Subclause 2(2) provides that any information in column 3 of the table is not part of the Act. It also clarifies that information may be inserted in column 3 of the table, or information in it may be edited, in any published version of the Act.

Clause 3              Schedules

Clause 3 provides that legislation that is specified in a Schedule to the Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule has effect according to its terms. This is a technical provision to give operational effect to the amendments contained in the Schedules.



 

Schedule 1—Amendments

National Residue Survey (Excise) Levy Act 1998

Item 1                         Subclause 1(1) of Schedule 15

Subclause 1(1) of Schedule 15 to the National Residue Survey (Excise) Levy Act 1998 sets out the definitions of lamb, sheep and slaughter for the purposes of imposing sheep and lamb transactions levies that are duties of excise, for the purposes of investment in residue testing. It defines these terms so that they have the same respective meanings as in Schedule 18 of the Primary Industries (Excise) Levies Act 1999 .

Item 1 repeals subclause 1(1) of Schedule 15 and substitutes it with a new subclause which defines each of those terms as follows:

·          ‘lamb’ means an ovine animal that is under 12 months of age; or does not have any permanent incisor teeth in wear;

·          ‘sheep’ does not include lambs;

·          ‘slaughter’ means slaughter at an abattoir for human consumption.

This is to ensure clarity in the application of the new definitions in residue testing legislation.

Primary Industries (Excise) Levies Act 1999

Item 2                         Clause 1 of Schedule 17 (definition of lamb )

Clause 1 of Schedule 17 to the Primary Industries (Excise) Levies Act 1999 sets out the definition of lamb for the purposes of imposing sheep and lamb slaughter levies that are duties of excise.

Item 2 repeals the definition of lamb and substitutes the following definition: lamb means an ovine animal that is under 12 months of age; or does not have any permanent incisor teeth in wear. This is to align the definition of lamb for the purposes of imposing primary industry levies and charges with the new definition used for export and industry purposes.

Item 2 does not amend the existing definition of sheep. However, as the term sheep is defined to exclude lambs, the amendment to the definition of lamb may affect which animals come within that definition.

Item 3                         Clause 1 of Schedule 18 (definition of lamb )

Clause 1 of Schedule 18 to the Primary Industries (Excise) Levies Act 1999 sets out the definition of lamb for the purposes of imposing sheep and lamb transactions levies that are duties of excise.

Item 3 repeals the definition of lamb and substitutes the following definition: lamb means an ovine animal that is under 12 months of age; or does not have any permanent incisor teeth in wear. This is to align the definition of lamb for the purposes of imposing primary industry levies and charges with the new definition used for export and industry purposes.

Item 3 does not amend the existing definition of sheep. However, as the term sheep is defined to exclude lambs, the amendment to the definition of lamb may affect which animals come within that definition.

Item 4             Application provisions

Item 4 provides that the amendments made by items 1 and 3 of Schedule 1 apply in relation to:

·          a transaction entered into on or after 1 January 2021 by which the ownership of sheep or lambs is transferred from one person to another;

·          the delivery on or after 1 January 2021 of sheep or lambs to a processor;

·          the slaughter by a processor on or after 1 January 2021 of sheep or lambs.

Item 4 also provides that the amendment made by item 2 of Schedule 1 applies in relation to the slaughter of sheep or lambs on or after 1 January 2021.



 

Customs Charges and Levies Legislation Amendment (Sheep and Lamb) Bill 2020

NOTES ON AMENDMENTS

Preliminary

Clause 1              Short Title

Clause 1 provides for the short title of the Act to be the Customs Charges and Levies Legislation Amendment (Sheep and Lamb) Act 2020.

Clause 2              Commencement

Clause 2 provides for the commencement of each provision in the Act, as set out in the table.

Item 1 in the table provides that the whole of the Act will commence on 1 January 2021. Deferring commencement until 1 January 2021 is necessary to provide certainty to industry about the date from which the new definition will apply. 

Subclause 2(2) provides that any information in column 3 of the table is not part of the Act. It also clarifies that information may be inserted in column 3 of the table, or information in it may be edited, in any published version of the Act.

Clause 3              Schedules

Clause 3 provides that legislation that is specified in a Schedule to the Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule has effect according to its terms. This is a technical provision to give operational effect to the amendments contained in the Schedules.



 

Schedule 1—Amendments

National Residue Survey (Customs) Levy Act 1998

Item 1                         Clause 1 of Schedule 5

Clause 1 of Schedule 5 to the National Residue Survey (Customs) Levy Act 1998 sets out the definitions of sheep and lamb for the purposes of imposing sheep and lamb levies that are duties of customs, for the purposes of investment in residue testing. It defines these terms so that they have the same respective meanings as in Schedule 12 to the Primary Industries (Customs) Charges Act 1999 .

Item 1 repeals clause 1 of Schedule 5 and substitutes it with a new clause which defines each of those terms as follows:

·          ‘lamb’ means an ovine animal that is under 12 months of age; or does not have any permanent incisor teeth in wear;

·          ‘sheep’ does not include lambs.

This is to ensure clarity in application of the new definitions in residue testing legislation.

Primary Industries (Customs) Charges Act 1999

Item 2                         Clause 1 of Schedule 11 (definition of lamb )

Clause 1 of Schedule 11 to the Primary Industries (Customs) Charges Act 1999 sets out the definition of lamb for the purposes of imposing the live-stock (exporters) charge that is a duty of customs.

Item 2 repeals the definition of lamb and substitutes the following definition: lamb means an ovine animal that is under 12 months of age; or does not have any permanent incisor teeth in wear. This is to align the definition of lamb for the purposes of imposing primary industry levies and charges with the new definition used for export and industry purposes.

Item 2 does not amend the existing definition of sheep. However, as the term sheep is defined to exclude lambs, the amendment to the definition of lamb may affect which animals come within that definition.

Item 3                         Clause 1 of Schedule 12 (definition of lamb )

Clause 1 of Schedule 12 to the Primary Industries (Customs) Charges Act 1999 sets out the definition of lamb for the purposes of imposing the live-stock (producers) charge that is a duty of customs.

Item 3 repeals the definition of lamb and substitutes the following definition: lamb means an ovine animal that is under 12 months of age; or does not have any permanent incisor teeth in wear. This is to align the definition of lamb for the purposes of imposing primary industry levies and charges with the new definition used for export and industry purposes.

Item 3 amends the existing definition of sheep. However, as the term sheep is defined to exclude lambs, the amendment to the definition of lamb may affect which animals come within that definition.

Item 4                         Application provision

Item 4 provides that the amendments made by Schedule 1 apply in relation to the export of sheep or lambs from Australia on or after 1 January 2021.

STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS

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

Excise Levies Legislation Amendment (sheep and Lamb) Bill 2020



This Bill 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 Bill

The Primary Industries (Excise) Levies Act 1999 and the Primary Industries (Customs) Charges Act 1999 authorise the imposition of levies and charges on primary producers, processors and exporters. The National Residue Survey (Excise) Levy Act 1998 and the National Residue Survey (Customs) Levy Act 1998 authorise the imposition of levies for the purposes of residue testing.

Primary industry levies and charges are imposed by the Australian Government at the request of an industry to allow producers, processors and exporters to collectively invest in research and development (R&D), marketing, animal health, emergency biosecurity response and residue testing for the benefit of their industry. Levies and charges are collected by the Department of Agriculture, Water and the Environment and equivalent amounts are disbursed to a levy recipient body, such as one of the 15 rural research and development corporations.

The Acts currently provide for levies and charges to be imposed on sheep and lamb sale transactions, slaughter and export, and define sheep and lamb for these purposes. Amounts equivalent to the levy and charge funds raised through these arrangements are disbursed to levy recipient bodies Meat and Livestock Australia, the Australian Meat Processor Corporation, the Australian Livestock Export Corporation Limited, Animal Health Australia, and the National Residue Survey.

The Excise Levies Legislation Amendment (Sheep and Lamb) Bill 2020 aligns the definition of lamb for the purposes of imposing sheep and lamb levies that are duties of excise with the new definition of lamb used for export purposes and by industry. 

The definition of lamb used in Australia for export and industry purposes was changed in July 2019 following a proposal from and extensive consultation undertaken by the sheep and meat processing sectors.

The new definition of lamb is an ovine animal that is under 12 months of age; or does not have any permanent incisor teeth in wear. The new definition is designed to bring Australia’s definition in line with our international competitors and provide a definitive signal for producers about when a sheep is no longer a lamb.

The change to the definition of lamb has been given effect through amendments to the Export Control (Meat and Meat Products) Orders 2005 and changes to the industry’s AUSMEAT trade description language, as well as amendments to legislation in jurisdictions where relevant.

Updating the definition of lamb used for the purposes of imposing levies and charges to align with the new definition reflects the intent of the industry and has the support of the Australian Meat Industry Council and Sheep Producers Australia. It will provide administrative clarity for levy payers and support compliance with the levies scheme through ensuring consistency across relevant legislation in the definition of the animal upon which levies and charges are imposed.

Conclusion

The measures in the Bill are 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, as the Bill does not engage any human rights issues.

(Circulated by authority of the Minister for Agriculture, Drought and Emergency Management, the Hon. David Littleproud MP)



 

STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS

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

Customs Charges and Levies Legislation Amendment

(sheep and Lamb) Bill 2020



This Bill 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 Bill

The Primary Industries (Excise) Levies Act 1999 and the Primary Industries (Customs) Charges Act 1999 authorise the imposition of levies and charges on primary producers, processors and exporters. The National Residue Survey (Excise) Levy Act 1998 and the National Residue Survey (Customs) Levy Act 1998 authorise the imposition of levies for the purposes of residue testing.

Primary industry levies and charges are imposed by the Australian Government at the request of an industry to allow producers, processors and exporters to collectively invest in research and development (R&D), marketing, animal health, emergency biosecurity response and residue testing for the benefit of their industry. Levies and charges are collected by the Department of Agriculture, Water and the Environment and equivalent amounts are disbursed to a levy recipient body, such as one of the 15 rural research and development corporations.

The Acts currently provide for levies and charges to be imposed on sheep and lamb sale transactions, slaughter and export, and define sheep and lamb for these purposes. Amounts equivalent to the levy and charge funds raised through these arrangements are disbursed to levy recipient bodies Meat and Livestock Australia, the Australian Meat Processor Corporation, the Australian Livestock Export Corporation Limited, Animal Health Australia, and the National Residue Survey.

The Customs Charges and Levies Legislation Amendment (Sheep and Lamb) Bill 2020 aligns the definition of lamb for the purposes of imposing sheep and lamb levies that are duties of customs with the new definition of lamb used for export purposes and by industry. 

The definition of lamb used in Australia for export and industry purposes was changed in July 2019 following a proposal from and extensive consultation undertaken by the sheep and meat processing sectors.

The new definition of lamb is an ovine animal that is under 12 months of age; or does not have any permanent incisor teeth in wear. The new definition is designed to bring Australia’s definition in line with our international competitors and provide a definitive signal for producers about when a sheep is no longer a lamb.

The change to the definition of lamb has been given effect through amendments to the Export Control (Meat and Meat Products) Orders 2005 and changes to the industry’s AUSMEAT trade description language, as well as amendments to legislation in jurisdictions where relevant.

Updating the definition of lamb used for the purposes of imposing levies and charges to align with the new definition reflects the intent of the industry and has the support of the Australian Meat Industry Council and Sheep Producers Australia. It will provide administrative clarity for levy payers and support compliance with the levies scheme through ensuring consistency across relevant legislation in the definition of the animal upon which levies and charges are imposed.

Conclusion

The measures in the Bill are 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 , as the Bill does not engage any human rights issues.

(Circulated by authority of the Minister for Agriculture, Drought and Emergency Management, the Hon. David Littleproud, MP)