13062  Cat. No. 97 2653 5  ISBN 0644 516844

1998

THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA

HOUSE OF REPRESENTATIVES

NATIONAL RESIDUE SURVEY (CUSTOMS) LEVY BILL 1998

EXPLANATORY MEMORANDUM

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

NATIONAL RESIDUE SURVEY LEVY (CUSTOMS) BILL 1998

OUTLINE

This Bill is part of a package of three Bills designed to correct technical faults in the National Residue Survey legislation and to consolidate 22 levy imposition Acts into two Acts.  The package is designed to correct the apparent dependence of liability to pay NRS levies on liability to pay other primary industry levies.

The Bill imposes levies that are duties of customs on five commodity groups to replace the relevant imposition Acts repealed by the National Residue Survey Administration Amendment Bill 1998.

FINANCIAL IMPACT STATEMENT

The proposed amendments will have no financial implications for the Commonwealth.  
NOTES ON CLAUSES

Clause 1:	Short title

This clause provides for the short title of the Act to be the National Residue Survey (Customs) Levy Act 1998.

Clause 2:	Commencement

This clause provides that the Act comes into effect on its proclamation date or, if proclamation has not occurred within six months of Royal Assent, the day after that six months.

Clause 3:	Simplified outline

This clause provides a simplified outline of the contents of the Bill indicating that it imposes levies that are duties of customs and provides for specification of the maximum and operative rates of levies, the person liable to pay levies and exemptions from levy.

Clause 4:	Definitions

This clause provides for terms in this Act to have the same meaning as in the Primary Industries Levies and Charges Collection Act 1991 unless specifically stated otherwise.

Clause 5:	Act to bind Crown

This clause provides for all Australian States, the ACT, Northern Territory and Norfolk Island to be bound by the legislation, but for the Commonwealth not to be bound by the legislation as the Commonwealth cannot tax itself.

Clause 6:	Duties of customs

This clause provides that the levies imposed are duties of customs within the meaning of section 55 of the Constitution.

Clause 7:	Imposition of levy

This clause provides that the levies are imposed by the Schedules to the Act.

Clause 8:	Regulations

This clause provides for the Governor-General to make regulations for the purposes of this Act.

Schedule 1Aquatic animal export

Clause 1:	Definitions

This clause defines aquatic animal, and aquatic animal product for the purposes of this Act.

Clause 2:	Imposition of levy

This clause imposes a National Residue Survey levy on the export of aquatic animals or aquatic animal products except in cases where a regulation is made providing that a levy is not imposed.

Clause 3:	Rate of levy

This clause includes a table setting out the operative rate of levy and the maximum rate of levy that can be prescribed for particular classes of aquatic animals and aquatic animal products;  and provides for the amendment of operative rates by regulation.  It also provides for differing rates for different products to be set by regulations.

Allowing the operative rate to be amended by regulation avoids imposing an unreasonable burden on the Parliament as the operative rate is open to frequent changes.  In addition, delays in amending legislation can hamper industry programs.  Any changes to operative or maximum rates will only be made on the agreement of the representative industry organisation following full consultation with industry.

Clause 4:	Who pays the levy

This clause provides that the producer of the aquatic animals or aquatic animal products is liable to pay the levy.  In accordance with the relevant definition of producer in the Collection Act the producer is the exporter.

Schedule 2Cattle export

Clause 1:	Definitions

This clause defines cattle and dairy cattle as having the same meanings as in the Cattle (Producers) Export Charges Act 1997.

Clause 2:	Imposition of levy

This clause imposes a levy on the export of non-dairy cattle unless levy has already been paid under the National Residue Survey (Excise) Act 1998 and defines the circumstances in which levy liability is incurred.

Clause 3:	Rate of levy

This clause imposes an operative rate of National Residue Survey levy on cattle at 
32 cents per head and bobby calves at 26 cents per head;  sets the maximum rate that can be prescribed at 35 cents per head;  and provides for the amendment of operative rates by regulation.  It also provides that a cow with a calf at foot is considered a single head of cattle and defines chargeable bobby calf and intermediary.

Allowing the operative rate to be amended by regulation avoids imposing an unreasonable burden on the Parliament as the operative rate is open to frequent changes.  In addition, delays in amending legislation can hamper industry programs.  Any changes to operative or maximum rates will only be made on the agreement of the representative industry organisation following full consultation with industry.

Clause 4:	Who pays the levy

This clause provides that the producer of the cattle is liable to pay the levy.  In accordance with the relevant definition of producer in the Collection Act the producer is the person who owned the cattle immediately before the export in respect of which the charge is imposed.

Schedule 3Honey export

Clause 1:	Definitions

This clause defines honey for the purposes of this Act.

Clause 2:	Imposition of levy

This clause imposes National Residue Survey Levy on honey exported from Australia and identifies circumstances in which levy is not payable.  It also provides for regulations to exempt a specified class of honey from the levy.

Clause 3:	Rate of levy

This clause imposes an operative rate of National Residue Survey levy on honey of 0.25 cents per kilogram;  sets the maximum rate that can be prescribed at 0.3 cents per kilogram;  and provides for the amendment of operative rates by regulation.

Allowing the operative rate to be amended by regulation avoids imposing an unreasonable burden on the Parliament as the operative rate is open to frequent changes.  In addition, delays in amending legislation can hamper industry programs.  Any changes to operative or maximum rates will only be made on the agreement of the representative industry organisation following full consultation with industry.

Clause 4:	Who pays the levy

This clause provides that the producer of the honey is liable to pay the levy.  In accordance with the relevant definition of producer in the Collection Act the producer is the exporter.

Schedule 4Horticultural products export

Clause 1:	Definitions

This clause defines apples, box, eligible horticultural products, horticultural products, leviable horticultural products, onion, and pears for the purposes of this Act.

Clause 2:	Imposition of levy

This clause imposes National Residue Survey levy on apples, pears, onions and other horticultural products prescribed in the regulations, unless the producer has already paid levy on these products under the National Residue Survey (Excise) Act 1998.  Regulations may exempt horticultural products exported by a specified class of persons or specified sub-classes or classes of products.

Clause 3:	Rate of levyonions

This clause imposes a National Residue Survey levy of 40 cents per tonne on onions;  sets the maximum rate that can be prescribed at $5.00 per tonne;  and provides for the amendment of operative rates by regulation.

Allowing the operative rate to be amended by regulation avoids imposing an unreasonable burden on the Parliament as the operative rate is open to frequent changes.  In addition, delays in amending legislation can hamper industry programs.  Any changes to operative or maximum rates will only be made on the agreement of the representative industry organisation following full consultation with industry.

Clause 4:	Rate of levyapples and pears

This clause imposes a National Residue Survey levy of 1 cent per box on apples and pears;  sets the maximum rate that can be prescribed at 1.1 cents per box;  and provides for the amendment of operative rates by regulation.

Allowing the operative rate to be amended by regulation avoids imposing an unreasonable burden on the Parliament as the operative rate is open to frequent changes.  In addition, delays in amending legislation can hamper industry programs.  Any changes to operative or maximum rates will only be made on the agreement of the representative industry organisation following full consultation with industry.

Clause 5:	Rate of levyeligible horticultural products

This clause provides for the operative rate of levy on eligible horticultural products at a rate set by regulation; and sets the maximum rate that can be prescribed based on a formula relating to the average of gross value of production over a number of years.  The clause also provides for differing rates for different classes of products to be set by regulation.

Allowing the operative rate to be set by regulation will allow additional horticultural products to be introduced into the residue monitoring system at short notice on industry request.  However, any levy on additional products will be capped by the maximum rate formula set in this Act.

Allowing the operative rate to be amended by regulation avoids imposing an unreasonable burden on the Parliament as the operative rate is open to frequent changes.  In addition, delays in amending legislation can hamper industry programs.  Any changes to operative or maximum rates will only be made on the agreement of the representative industry organisation following full consultation with industry.

Clause 6:	Who pays the levy

This clause provides that the producer of the products is liable to pay the levy.  In accordance with the relevant definition of producer in the Collection Act the producer is the exporter.

Clause 7:	Regulations

This clause identifies the ways in which leviable horticultural products may be described in the regulations.

Schedule 5Sheep, lambs and goats export

Clause 1:	Definitions

This clause defines lamb and sheep as having the same meanings as in the Live-stock (Producers) Export Charges Act 1997.

Clause 2:	Imposition of levy

This clause imposes a levy on the export of sheep, lambs or goats unless levy has already been paid under the National Residue Survey (Excise) Act 1998 and defines the circumstances in which levy liability is incurred.

Clause 3:	Rate of levy

This clause sets an operative levy rate of 2 cents per head for the export of sheep and lambs and 3 cents per head for goats;  sets the maximum rate at which levy can be prescribed as 8 cents per head for sheep, lambs and goats;  and provides for the amendment of operative rates by regulation.

Allowing the operative rate to be amended by regulation avoids imposing an unreasonable burden on the Parliament as the operative rate is open to frequent changes.  In addition, delays in amending legislation can hamper industry programs.  Any changes to operative or maximum rates will only be made on the agreement of the representative industry organisation following full consultation with industry.

Clause 4:	Who pays the levy

This clause provides that the producer of the sheep, lambs or goats is liable to pay the levy.  In accordance with the relevant definition of producer in the Collection Act the producer is the person who owned the livestock immediately before the export in respect of which the charge is imposed.