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This Digest was prepared for debate. It reflects the legislation as
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CONTENTS
Beef Production Levy Amendment Bill 1997
Date Introduced: 1 October 1997
House: House of Representatives
Portfolio: Primary Industries and Energy
Commencement: On the same day as Part 3 of the
proposed Australian Meat and Live- stock Industry Act
1997, that is, on Proclamation or nine months and one day
after Royal Assent, whichever is first.
This Bill forms part of a package of 17 Bills restructuring the
regulatory framework of the Australian meat and live-stock
industry. The major provisions of this Bill:
- replace the Meat Industry Council (MIC), Australian Meat and
Live-stock Corporation (AMLC) and Meat Research Corporation (MRC)
with the proposed industry marketing and research bodies as levy
recipient bodies; and
- allow the levy rate to be set at zero.
Under existing law a levy is imposed by the Beef Production
Levy Act 1990 (the Principal Act) on the slaughter at an
abattoir of cattle for human consumption. The levy is payable by
the person who owns the carcase immediately after its hot carcase
weight is determined. The term 'cattle' is defined in the Principal
Act as bovine animals other than buffalo. The term 'hot carcase
weight' is defined in the Principal Act as the weight of a carcase
weighed within two hours of slaughter.
The Primary Industries Levies and Charges Collection Act
1991 provides for the collection of the levy. Proceeds raised
by the levy are disbursed between the MIC, AMLC and the MRC.
This Bill forms part of a package of 17 Bills restructuring the
regulatory framework of the Australian meat and live-stock
industry. Under existing levy and charge arrangements, funds raised
primarily go towards funding the MIC, AMLC and MRC. Under the
proposed arrangements the government intends that industry
contributions will be sourced on a statutory and non-statutory
basis. The collection of statutory levies is intended to be based
on the current system but with changes providing for a transaction
levy on sheep, lambs and goats, replacing the current livestock
slaughter levy, and a separate transaction levy on grain fed
cattle.
The rationale given by the Minister in the Second Reading Speech
to the Australian Meat and Live-stock Industry Bill 1997 for the
transaction levy approach is:
- The transaction levy approach for sheep, lambs and goats was
adopted at the request of a clear majority of industry whose
submission met all of the requirements of the government's levy
principles. A similar request was also submitted by the grain fed
cattle industry sector for a separate cattle transaction levy.
Again this submission met each of the Government's levy
principles.
- The existing levy and charge imposition Acts have been modified
to provide for clear sectoral ownership.i
In relation to non-statutory contributions, the government is
setting the processor and exporter levies at zero. It should be
noted that the Minister in the Second Reading Speech to the Bill
issues a warning in respect of such contributions, that is:
- Should the non-statutory contributions by processors and
livestock exporters fail to meet agreed funding levels for joint
industry functions, and as specifically agreed by these two
sectors, the Government has their prior agreement to maintain
levies at a required level to ensure there is adequate
funding.ii
Under the proposed arrangements, the government intends that
decisions on levels of levies and charges be the responsibility of
peak industry council.
The reader is also referred to the Digest for the Australian
Meat and Live-stock Industry Bill 1997.
Items 1-5 of Schedule 1 of the Bill repeal the
definitions of the Australian Meat and Live-stock Corporation
(AMLC), Meat Industry Council (MIC), Meat Research Corporation
(MRC) and insert new definitions of marketing body and research
body. The latter two bodies are replacing the MIC, AMLC and MRC as
levy recipient bodies. Clause 60 of the Australian Meat and
Live-stock Industry Bill 1997 provides the Minister with power to
declare a body to either the industry marketing body, industry
research body, or both a marketing and research body.
Section 5 of the Principal Act imposes a levy on the slaughter
at an abattoir of cattle for human consumption. A new section 5A is
inserted in the Principal Act by item 6 of Schedule
1 of the Bill which provides that the regulations may
provide that no amount of levy is payable by cattle owners under
the Principal Act.
Section 6 of the Principal Act sets out the rate of levy imposed
on the slaughter at an abattoir of cattle for human consumption.
Item 7 of Schedule 1 of the Bill repeals
paragraphs 6(1)(a)-(c) of the Principal Act which assign a portion
of the levy to the MIC, AMLC and MRC and inserts new paragraphs
6(1)(a)-(b) which assigns a portion of the levy to the proposed
marketing body (a prescribed amount not exceeding 6 cents per
kilogram), and proposed research body (a prescribed amount not
exceeding 1 cent per kilogram).
- Second Reading Speech, Australian Meat and Live-stock Industry
Bill 1997: 10
- Ibid: 11
Ian Ireland
4 November 1997
Bills Digest Service
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ISSN 1328-8091
© Commonwealth of Australia 1997
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