1997

THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA

HOUSE OF REPRESENTATIVES

DAIRY PRODUCE LEVY (No. 1) AMENDMENT BILL 1997

EXPLANATORY MEMORANDUM

(Circulated by authority of the Minister for Primary Industries and Energy,
the Hon John Anderson MP)

80630—Cat. No. 96 5921 8—ISBN 0644 496835

DAIRY PRODUCE LEVY (No. 1) AMENDMENT BILL 1997

GENERAL OUTLINE

1.	The purposes of this Bill are to establish a statutory levy mechanism to 
fund the dairy industryÕs contribution to the Australian Animal Health 
Council Ltd (AAHC) and to double the maximum research levy rate 
specified in the Dairy Produce Levy (No. 1) Act 1986.

2.	This Bill works in conjunction with the Australian Animal Health 
Council (Live-stock Industries) Funding Amendment Bill 1997.

3.	AAHC has been established as AustraliaÕs peak animal health body.  It is 
jointly owned and funded by the Commonwealth, state and Northern 
Territory governments and the peak representative bodies of AustraliaÕs 
livestock industries, including dairy.  The Dairy Produce Levy (No. 1) 
Amendment Bill 1997 establishes a new levy, the Australian Animal 
Health Council levy, which is to be imposed on milk producers to fund 
the dairy industryÕs contribution to the AAHC.  This levy is to be applied 
in the same manner as the Corporation, promotion and research levies, 
that is, on the milk fat and protein content of manufacturing and 
market milk as determined on-farm.

4.	This Bill also doubles the maximum milk fat and protein rates of 
research levy.  The current operational research levy rates, which are 
specified in Regulations, are close to the legislated maximums.  This 
increase in the maximum research levy rate will provide scope for 
operational levy rates, which are set by regulations, to be increased, as 
the need arises.

FINANCIAL IMPACT STATEMENT

5.	There are no direct financial implications of this Bill for the 
Commonwealth.  The Australian Animal Health Council levy will be 
paid by milk producers and appropriated to the Council.  As the 
Commonwealth is required by legislation to match research levy funds 
collected from milk producers, changes to the operational research levy 
rates have a financial impact on the Commonwealth.  However, raising 
the maximum research levy rate does not automatically result in a 
change to the operational levy rate.  Rather, it provides scope for the 
dairy industry to approach Government, as the need arises in the future, 
to seek an increase to the operational levy rate.  Changes to the 
operational rate will need to be considered on their merits, prior to the 
making of Regulations.  

NOTES ON INDIVIDUAL CLAUSES

Clause 1 - Short title

6.	This Act will be called the Dairy Produce Levy (No. 1) Amendment Act 
1997.

Clause 2 - Commencement

7.	The Dairy Produce Levy (No. 1) Amendment Act 1997 will apply from 
the day on which the Bill receives the Royal Assent.  If the Royal Assent 
is received before 1 July 1997, the Australian Animal Health Council 
levy will be imposed on relevant dairy produce from 1 July 1997.  If the 
Royal Assent is received on or after 1 July 1997, the Australian Animal 
Health Council levy will not be imposed on relevant dairy produce until 
1 July 1998.

Clause 3 - Amendments

8.	Subject to section 2, the Dairy Produce Levy (No. 1) Act 1986 is 
subsequently amended as set out in Schedule 1.

SCHEDULE 1

AMENDMENT OF THE DAIRY PRODUCE LEVY (NO. 1) ACT 1986

Subsection 4(1)

9.	The definition of ÒFederationÓ, as set out in the schedule, is inserted. 

At the end of subsection 5(1)

10.	Paragraph 5 (1) is amended to include a levy, which will be known as the 
Australian Animal Health Council levy.  As with the promotion, 
research and Corporation levies, the Australian Animal Health Council 
levy is to be imposed on all milk produced (milk on which a market 
milk levy and a manufacturing milk levy is imposed).  This paragraph 
will only apply if the Royal Assent is received before 1 July 1997, 
meaning that the Australian Animal Health Council levy will be 
imposed on relevant dairy produce from 1 July 1997.

At the end of subsection 5(1)

11.	Paragraph 5 (1) is amended to include a levy, which will be known as the 
Australian Animal Health Council levy.  As with the promotion, 
research and Corporation levies, the Australian Animal Health Council 
levy is to be imposed on all milk produced (milk on which a market 
milk levy and a manufacturing milk levy is imposed).  This paragraph 
will only apply if the Royal Assent is received on or after 1 July 1997, 
meaning that the Australian Animal Health Council levy will be 
imposed on relevant dairy produce from 1 July 1998.

Section 9

12.	Section 9 is amended to state that the amount of Australian Animal 
Health Council levy payable for a particular quantity of dairy produce is 
the prescribed rate at that time in cents per kilograms multipled by the 
relevant milk fat and protein content on that quantity of relevant dairy 
produce. 

Section 10 (table item 5, column 2)

13.	Section 10 is amended to double the maximum milk fat rate for the 
research levy in cents per kilogram of milk fat.

Section 10 (at the end of the table)

14.	Section 10 is amended to specify the the maximum milk fat rate for the 
Australian Animal Health Council levy in cents per kilogram of milk 
fat.

Section 11 (table item 5, column 2)

15.	Section 11 is amended to double the maximum protein rate for the 
research levy in cents per kilogram of protein.

Section 11 (at the end of the table)

16.	Section 11 is amended to specify the maximum protein rate for the 
Australian Animal Health Council levy in cents per kilogram of 
protein.   

At the end of subsection 12(4)

17.	Subsection 12(4) is amended to include the Australian Animal Health 
Council levy and, in doing so, states that this levy is to be paid by milk 
producers.

Subsection 14(2)

18.	Section 14(2) is amended to remove the need for the Governor-General 
to consider any recommendation on the setting of levy rates for the 
Australian Animal Health Council levy made to the Minister by the 
executive of the Australian Dairy Industry Council.

After subsection 14(2)

19.	Section 14(2A) is inserted so that the Governor-General is required to 
consider any recommendation on the setting of levy rates for the 
Australian Animal Health Council levy made to the Minister by the 
executive of the Australian Dairy FarmersÕ Federation.