Bills Digest 78 1995-96 Dairy Produce Levy (No. 1) Amendment Bill 1996


Numerical Index | Alphabetical Index

WARNING:
This Digest is prepared for debate. It reflects the legislation as introduced and does not canvass subsequent amendments.

This Digest was available from 14 May 1996

CONTENTS

Passage History

Date introduced: 1 May 1996
House: House of Representatives
Portfolio: Primary Industries and Energy
Commencement: 1 July 1995, immediately after the commencement of the Dairy Produce Levy (No.1) Amendment Act 1995.

Purpose

This Bill amends the Dairy Produce Levy (No.1) Act (the Principal Act) retrospectively from 1 July 1995 to make the milk levy scheme consistent with existing industry practices and dairy market support arrangements under the Dairy Produce Act 1986 administered by the Australian Dairy Corporation (the Corporation).

The amendments implement Australia's commitments following the Uruguay round of GATT trade negotiations by making assistance to dairy producers operate in a clearly defined and transparent scheme.

This Bill should be read in conjunction with the Dairy Produce Amendment Bill 1996, Dairy Produce Act 1986, the Dairy Produce Levy (No.2) Act 1986 and the Primary Industries Levies and Charges Collection Act 1991.

Background

Background to the dairy market support scheme is contained in Bills Digest No 60/1995 - Dairy Produce Amendment Bill 1995, Bills Digest No. 61/1995 - Dairy Produce Levy (No.1) Amendment Bill 1995 and Bills Digest No. 62/1995 - Dairy Produce Levy (No.2) Amendment Bill 1995. These are available on the PDBS.

Background

Background to the dairy market support scheme is contained in Bills Digest No 60/1995 - Dairy Produce Amendment Bill 1995, Bills Digest No. 61/1995 - Dairy Produce Levy (No.1) Amendment Bill 1995 and Bills Digest No. 62/1995 - Dairy Produce Levy (No.2) Amendment Bill 1995. These are available on the PDBS.

Main provisions

Item 1 amends the title of the Principal Act by omitting the words 'of certain dairy produce produced in Australia and a levy upon certain dairy products produced in Australia' and substituting 'the protein content of certain dairy produce produced in Australia'.

Item 2 redefines 'market milk' as milk in respect of which a dairy producer receives a market milk payment. 'Manufacturing milk' is therefore the total leviable milk less market milk. (This definitional change is achieved by omitting existing para 5(1)(a) and substituting a new para which changes the basis of calculating the market milk levy on relevant dairy produce supplied by the producer during a month ending before 1 July 2000 to liquid milk for human consumption in Australia in respect of which the producer receives or is entitled to receive a market milk payment).

Item 3 amends paras 5(1)(d), (e) and (f) to provide Corporation, promotion and research levies apply only to milk subject to a manufacturing levy or market levy and are not imposed on milk consumed, disposed of or lost on-farm.

Amount of market milk levy

Section 6 specifies the amount of market milk levy imposed by s.5 on relevant dairy produce processed during a month based on milk fat and milk protein rates for the specified month. Items 4-6 amend s.6 by omitting 'processed during' and substituting 'in relation to which the producer has received, or is entitled to receive, a payment relating to' a month.

Para 6(a) is amended by inserting the words 'before it leaves the farm where it was produced'. Para 6(b) is amended by omitting 'produce' and substituting 'produce before it leaves the farm where it was produced'. These changes will calculate the market milk levy on the basis of the market milk payment the producer receives or is entitled to receive and the specified milk fat and protein content of the milk ex farm. The calculation is not affected by any later treatment of the milk, for example processing of modified milk.

Amount of manufacturing milk levy

Items 7 and 8 amend paras 7(2)(a) and (b) by inserting after produce the words' before it was delivered or used'. This makes the manufacturing milk levy calculated on the specified milk fat and protein rates ex farm if delivered to a manufacturer, or immediately prior to on-farm manufacturing of milk.

Amount of other levies on relevant dairy produce

Item 9 inserts a new subsection (2) specifying the milk content fat content or the protein content of the relevant dairy produce is the content of the produce:

  • before it leaves the farm where it was produced; or
  • before it is delivered to or used by the manufacturer.

Further reading

Gleeson, T, 'Outlook for the Australian dairy industry', Outlook 96, Proceedings of the National Agricultural and Resources Outlook Conference, Canberra, 6-8 February 1996, Vol.2 Agriculture, ABARE, p.253.

Tonkin, G, 'The Australian Dairy Corporation's role in a deregulated world', Outlook 96, Proceedings of the National Agricultural and Resources Outlook Conference, Canberra, 6-8 February 1996, Vol.2 Agriculture, ABARE, p.263.

Hill, B, 'Competition, cooperatives and deregulation' Outlook 96, Proceedings of the National Agricultural and Resources Outlook Conference, Canberra, 6-8 February 1996, Vol.2 Agriculture, ABARE, p.272.

Contact Officer and Copyright Details

Sarah O'Brien Ph. 06 277 2433
13 May 1996
Bills Digest Service
Parliamentary Research Service

This Digest does not have any official legal status. Other sources should be consulted to determine whether the Bill has been enacted and, if so, whether the subsequent Act reflects further amendments.

PRS staff are available to discuss the paper's contents with Senators and Members and their staff but not with members of the public.

ISSN 1323-9032
© Commonwealth of Australia 1996

Except to the extent of the uses permitted under the Copyright Act 1968, no part of this publication may be reproduced or transmitted in any form or by any means, including information storage and retrieval systems, without the prior written consent of the Parliamentary Library, other than by Members of the Australian Parliament in the course of their official duties.

Published by the Department of the Parliamentary Library, 1996.

This page was prepared by the Parliamentary Library, Commonwealth of Australia
Last updated: 14 May 1996

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