Federal Register of Legislation - Australian Government

Primary content

A Bill for an Act to amend the Primary Industries (Customs) Charges Act 1999, and for related purposes
Administered by: Agriculture, Water and the Environment
For authoritative information on the progress of bills and on amendments proposed to them, please see the House of Representatives Votes and Proceedings, and the Journals of the Senate as available on the Parliament House website.
Registered 14 May 2020
Introduced HR 13 May 2020

2019–2020

THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA

HOUSE OF REPRESENTATIVES

primary industries (customs) charges amendment (dairy Cattle export charge) bill 2020

EXPLANATORY MEMORANDUM

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

 


PRIMARY INDUSTRIES (CUSTOMS) CHARGES AMENDMENT (DAIRY CATTLE EXPORT CHARGE) BILL 2020

GENERAL OUTLINE

The Primary Industries (Customs) Charges Act 1999 (the Act) authorises the imposition of primary industries charges that are duties of customs. Charges are generally imposed at the request of an industry to allow primary producers to manage their own investment in research and development (R&D) and marketing. Each R&D and marketing charge is attached to one of the 15 rural research and development corporations (RDCs). The Act currently provides for export charges to be imposed on the export of cattle other than dairy cattle. To enable the imposition of a statutory Dairy Cattle Export Charge, as requested by industry, amendments to the Act are required.

The Primary Industries (Customs) Charges Amendment (Dairy Cattle Export Charge) Bill 2020 (the Bill) will make amendments to the Act to provide for the imposition of an export charge on the export of dairy cattle, and amend the rate provision to provide for two different rates of charges – a per head charge on dairy cattle and a per kilogram charge on cattle other than dairy cattle.

In 2006, Australian Livestock Exporters’ Council (ALEC) members voted to introduce a voluntary export charge on dairy cattle, payable to the Australian Livestock Export Corporation Limited (LiveCorp), as the declared livestock export marketing and research body, at a rate of $3 per head of dairy cattle exported. The voluntary charge was established by industry to enable the implementation of the Dairy Cattle Export Program (the Program). The Program aims to improve R&D specific to dairy cattle exports, focusing on animal health and welfare; supply chain efficiency and regulatory performance; and market access for dairy cattle exports. In 2014, ALEC members agreed to increase the voluntary charge to $6 per head of dairy cattle exported.

Due to the voluntary characteristic of the current export charge on dairy cattle, the existing export charge is significantly under-collected and not sufficient to meet the R&D and marketing needs of the dairy cattle export sector. Continued under-collection of the charge has led to the temporary suspension of the Program.

ALEC, as the peak industry body representing Australia’s livestock export sector, requested the government consider implementing a statutory Dairy Cattle Export Charge. Stakeholder consultation on a statutory Dairy Cattle Export Charge, of $6 per head of dairy cattle, was undertaken by ALEC from 31 May to 13 October 2017. In December 2017, ALEC held a ballot, with the majority of eligible registered voters voting in support of a statutory Dairy Cattle Export Charge.

At the request of government, ALEC undertook a further six-week objection period with industry, commencing 5 October and concluding 16 November 2018, to ensure all charge payers and interested stakeholders had an opportunity to express their views on the implementation of a statutory Dairy Cattle Export Charge. There were no objections received to the implementation of the Dairy Cattle Export Charge.  The Bill will:

·         provide for export charges to be imposed on dairy cattle

·         set the rate of provision on a per head basis on the export of dairy cattle, and

·         enable the full funding of the Dairy Cattle Export Program, to meet specific R&D and marketing activities for the dairy cattle export sector.  

 

Consultation on the Bill occurred with appropriate Commonwealth agencies, including the Department of the Prime Minister and Cabinet, the Department of the Treasury, and the Department of Finance.

FINANCIAL IMPACT STATEMENT

This measure is estimated to have a nil net financial impact over the forward estimates period.

Costs associated with the collection and administration of the Dairy Cattle Export Charge are to be cost-recovered from industry by the Department of Agriculture, Water and the Environment.

STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS

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.

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


ACRONYMS, ABBREVIATIONS AND COMMONLY USED TERMS

the Act

Primary Industries (Customs) Charges Act 1999

ALEC

Australian Livestock Exporters’ Council

ALEC is a prescribed industry body representing Australia’s livestock export sector under the AMLI Act

the AMLI Act

Australian Meat and Live-stock Industry Act 1997

the Department

the Department administered by the Minister administering the Primary Industries (Customs) Charges Act 1999

LiveCorp

Australian Livestock Export Corporation Limited

LiveCorp is a declared livestock export marketing and research body under the AMLI Act

the Minister

the Minister administering the Primary Industries (Customs) Charges Act 1999

MLA

Meat and Livestock Australia Limited

MLA is a declared industry marketing and research body under the AMLI Act

the Privacy Act

Privacy Act 1988

R&D

research and development

RDC

rural research and development corporation

the Secretary

the Secretary of the Department administered by the Minister administering the Primary Industries (Customs) Charges Act 1999


NOTES ON AMENDMENTS

Preliminary

Clause 1              Short Title

Clause 1 provides for the short title of the Act to be the Primary Industries (Customs) Charges Amendment (Dairy Cattle Export Charge) 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 clauses 1, 2 and 3, which concern the formal aspects of the Act, as well as anything in the Act not elsewhere covered by the table, will commence on the day on which the Act receives the Royal Assent.

Item 2 in the table provides that Schedule 1 to the Act will commence on a single day to be fixed by Proclamation. However, if any of the proposed provisions do not commence within the period of 6 months beginning on the day the Act receives the Royal Assent, then they will commence on the day after the end of that period. Deferring commencement of Schedule 1 to the Act is necessary to enable the commencement of the Act to align with amendments to the regulations.

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

Overview

Schedule 1 to the Bill will amend the Act to impose an export charge on dairy cattle and provide for the rate of that charge.

Primary Industries (Customs) Charges Act 1999

Item 1                  After subclause 2(1) of Schedule 2

Item 1 amends Schedule 2 to the Act to insert subclause 2(1A) to state that a charge on the export of dairy cattle from Australia is imposed on commencement of the subclause.

Subclause 2(1) of Schedule 2 to the Act currently imposes export charges on the export of cattle other than dairy cattle. Item 1 inserts new subclause 2(1A) to impose an export charge on dairy cattle and provides that the export charge on dairy cattle will be imposed from the commencement of the subclause. 

Item 2                  Subclause 3(1) of Schedule 2

Item 2 omits reference to ‘the following amounts per kilogram of cattle so exported’ from subclause 3(1) of Schedule 2. 

Subclause 3(1) of Schedule 2 to the Act currently only provides for a rate of charge on cattle on a per kilogram basis. This item amends that subclause to permit a rate of charge to be set other than on a per kilogram of cattle basis.

Item 2 is necessary to facilitate the amendments made by item 3 below, to allow for two rate provisions – one for cattle other than dairy cattle and one for dairy cattle. 

Item 3                  Paragraphs 3(1)(a) and (b) of Schedule 2

Item 3 amends Schedule 2 to the Act to repeal paragraphs 3(1)(a) and (b) and substitute new paragraphs providing for regulations to prescribe the rate of charge on the export of cattle other than dairy cattle and dairy cattle.

Paragraphs 3(1)(a) and (b) of Schedule 2 to the Act currently provide for regulations to be made which prescribe the rate of charge on the export of cattle other than dairy cattle.

This item amends these paragraphs to enable the regulations to also prescribe the rate of charge on the export of dairy cattle as well.

The prescribed amount of charge in paragraphs 3(1)(a) and (b) are ultimately paid to the livestock export marketing body and the livestock export research body through paragraphs 64A(1)(a) and 64B(1)(a) of the Australian Meat and Live-stock Industry Act 1997. At present, the Australian Livestock Export Corporation Limited is the declared livestock export marketing and research body.

Item 3 is consequential to the amendments made by item 1 above, which imposes an export charge on dairy cattle. It is necessary to amend paragraphs 3(1)(a) and (b) of the Act to reflect that there are two rate provisions – one for cattle and one for dairy cattle. 

Item 4                  Subclause 5(1) of Schedule 2

Item 4 omits reference to the repealed paragraphs 3(1)(a) and (b) and substitutes with reference to the new subparagraphs 3(1)(a)(i) or (ii) and 3(1)(b)(i) or (ii).

Subclause 5(1) of Schedule 2 to the Act currently provides that the Minister may declare a body whose recommendations must be taken into consideration in relation to regulations made under paragraphs 3(1)(a) and 3(1)(b) which prescribe a rate of charges on the export of cattle.

Item 4 is consequential to the amendments made by items 2 and 3 above, which amend paragraphs 3(1)(a) and (b) of Schedule 2 to insert subparagraphs to these paragraphs. Those amendments enable the regulations to also prescribe the rate of charge for the export of dairy cattle while retaining the current power to prescribe the rate of charge for the export of cattle other than dairy cattle to be retained.

Item 5                  Subclause 5(2) of Schedule 2

Item 5 omits references to paragraph and substitutes references to subparagraph. This is a technical amendment consequential to item 4.

Item 6                  Subclause 5(3) of Schedule 2

Item 6 omits reference to the repealed paragraphs 3(1)(a) and (b) and substitutes with reference to the new subparagraphs 3(1)(a)(i) or (ii) and 3(1)(b)(i) or (ii).

Subclause 5(3) of Schedule 2 to the Act currently requires the Minister, in the absence of a declared body, to take into account recommendations from the livestock export marketing body and the livestock export research body in relation to regulations which prescribe a rate of marketing and R&D charges (respectively) on exported cattle.

Item 6 is consequential to the amendments made by items 2 and 3 above, which amend paragraphs 3(1)(a) and (b) of Schedule 2 to insert subparagraphs to these paragraphs. Those amendments enable the regulations to also prescribe the rate of charge for the export of dairy cattle while retaining the current power to prescribe the rate of charge for the export of cattle other than dairy cattle to be retained.

Item 7                  Paragraph 5(3)(a) of Schedule 2

Item 7 omits the reference to paragraph 3(1)(a) and substitutes it for a reference to subparagraph 3(1)(a)(i) or (ii). This is a technical amendment consequential to item 6.

Item 8                  Paragraph 5(3)(b) of Schedule 2

Item 8 omits the reference to paragraph 3(1)(b) and substitutes it for a reference to subparagraph 3(1)(b)(i) or (ii). This is a technical amendment consequential to item 6.

Item 9                  Subclause 5(5) of Schedule 2

Item 9 omits reference to the repealed paragraphs 3(1)(a) and (b) and substitutes with reference to the new subparagraphs 3(1)(a)(i) or (ii) and 3(1)(b)(i) or (ii).

Subclause 5(5) of Schedule 2 to the Act currently prevents the regulations from prescribing a charge rate for marketing and R&D for exported cattle that is higher than the rate recommended by a declared body, or in the absence of a declared body, the livestock export marketing body or the livestock export research body.

Item 9 is consequential to the amendments made by items 2 and 3 above, which amend paragraphs 3(1)(a) and (b) of Schedule 2 to insert subparagraphs to these paragraphs. Those amendments enable the regulations to also prescribe the rate of charge for the export of dairy cattle while retaining the current power to prescribe the rate of charge for the export of cattle other than dairy cattle to be retained.

Item 10                Subclause 5(5) of Schedule 2

Item 10 omits the reference to “that paragraph” and substitutes it for a reference to “that subparagraph”. This is a technical amendment consequential to item 9.

 


STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS

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

Primary Industries (Customs) Charges Amendment (Dairy Cattle Export Charge) 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.

Overview of the Bill

The Primary Industries (Customs) Charges Act 1999 (the Act) authorises the imposition of primary industries charges that are duties of customs. Charges are generally imposed at the request of an industry to allow primary producers to manage their own investment in research and development (R&D) and marketing. Each R&D and marketing charge is attached to one of the 15 rural research and development corporations (RDCs). The Act currently provides for export charges to be imposed on the export of cattle other than dairy cattle. To enable the imposition of a statutory Dairy Cattle Export Charge, as requested by industry, amendments to the Act are required.

The Primary Industries (Customs) Charges Amendment (Dairy Cattle Export Charge) Bill 2020 (the Bill) will make amendments to the Act to provide for the imposition of an export charge on the export of dairy cattle, and amend the rate provision to provide for two different rates of charges – a per head charge on dairy cattle and a per kilogram charge on cattle other than dairy cattle.

In 2006, Australian Livestock Exporters’ Council (ALEC) members voted to introduce a voluntary export charge on dairy cattle, payable to the Australian Livestock Export Corporation Limited (LiveCorp), as the declared livestock export marketing and research body, at a rate of $3 per head of dairy cattle exported. The voluntary charge was established to enable the implementation of the Dairy Cattle Export Program (the Program). The Program aims to improve R&D specific to dairy cattle exports, focusing on animal health and welfare; supply chain efficiency and regulatory performance; and market access for dairy cattle exports. In 2014, ALEC members agreed to increase the voluntary charge to $6 per head of dairy cattle exported.

Due to the voluntary characteristic of the current export charge on dairy cattle, the existing export charge is significantly under-collected and is not sufficient to meet the R&D and marketing needs of the dairy cattle export sector. Continued under-collection of the charge has led to the temporary suspension of the Program.

ALEC, as the peak industry body representing Australia’s livestock export sector, requested the government consider implementing a statutory Dairy Cattle Export Charge. Stakeholder consultation on a statutory Dairy Cattle Export Charge, of $6 per head of dairy cattle, was undertaken by ALEC from 31 May to 13 October 2017. In December 2017, ALEC held a ballot, with the majority of eligible registered voters voting in support of a statutory Dairy Cattle Export Charge.

At the request of government, ALEC undertook a further six-week objection period with industry, commencing 5 October and concluding 16 November 2018, to ensure all charge payers and interested stakeholders had an opportunity to express their views on the implementation of a statutory Dairy Cattle Export Charge. There were no objections received to the implementation of the Dairy Cattle Export Charge. 

The Bill will:

·         provide for export charges to be imposed on dairy cattle

·         set the rate of provision on a per head basis on the export of dairy cattle, and

·         enable the full funding of the Dairy Cattle Export Program, to meet specific R&D and marketing activities for the dairy cattle export sector. 

 

Consultation on the Bill occurred with appropriate Commonwealth agencies, including the Department of the Prime Minister and Cabinet, the Department of the Treasury, and the Department of Finance.

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, 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)