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CONTENTS
Cattle (Producers) Export Charges 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.
To impose a charge, payable by the producer, on:
- cattle, other than dairy cattle, exported from Australia where
the levy under the proposed Cattle Transactions Levy Act
1997 has not been paid, and is not payable; and
- cattle purchased by an exporter and held by the exporter for a
period that is more than 60 days, or the period for which the
cattle are required to be held in quarantine, whichever is the
longer.
Under existing law section 5 of the Cattle Export Charges
Act 1990 imposes a charge on:
- cattle, other than dairy cattle, exported from Australia;
- cattle, other than dairy cattle, exported from Australia on or
after 1 February 1991 if the levy imposed by the Cattle
Transaction Levy Act 1995 has not been paid, and is not
payable in respect of an act or transaction relating to the cattle;
or
- cattle, other than dairy cattle, exported from Australia on or
after 1 July 1995 where: the cattle were bought by the exporter,
and the period between the date of purchase and export is longer
than 60 days, or the period for which the cattle are required to be
held in quarantine.
The charge is payable by the exporter of the cattle.
The Primary Industries Levies and Charges Collection Act
1991 provides for the collection of the charge. Proceeds
raised by the charge are disbursed between the Meat Industry
Council (MIC), Australian Meat and Live-stock Corporation (AMLC),
Meat Research Corporation (MRC), National Cattle Disease
Eradication Trust Account (NCDE) and the Australian Animal Health
Council Limited (AAHC).
The Cattle Export Charges Act 1990 will be repealed by
item 1 of Schedule 4 of the Australian Meat and Live-stock Industry
(Repeals and Consequential Provisions) Bill 1997.
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.(1)
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.(2)
Under the proposed arrangements, the Government intends that
decisions on levels of levies and charges be the responsibility of
peak industry council.
In respect to this Bill and the Cattle (Exporters) Export
Charges Bill 1997, the Minister in the Second Reading Speech to the
Australian Meat and Live-stock Industry Bill 1997 provides a
rationale for the repeal of the Cattle Export Charges Act
1990 and the proposed separate producer/exporter charge
arrangements, that is:
This allows for subsequent reduction of the export sector levy
components to zero, when that sector delivers on its funding
commitments under the new partnership arrangements.(3)
Clause 4 imposes a charge on:
- cattle, other than dairy cattle, exported from Australia where
the levy under the proposed Cattle Transactions Levy Act
1997 has not been paid, and is not payable; and
- cattle purchased by an exporter and held by the exporter for a
period that is more than 60 days, or the period for which the
cattle are required to be held in quarantine, whichever is the
longer.
The term 'cattle' is defined by clause 3 to
mean bovine animals other than buffalo.
Clause 5 provides that the rate of charge on
the export of each head of cattle (other than a chargeable bobby
calf) will be:
- $2.16, or a prescribed amount up to $6.50, for payment to the
marketing body (see clauses 60-66 of the
Australian Meat and Live-stock Industry Bill 1997);
- 72 cents, or a prescribed amount up to $2.00, for payment to
the research body (see clauses 60-66 of the
Australian Meat and Live-stock Industry Bill 1997);
- 17 cents, or a prescribed amount up to $4.00, for payment to
the NCDE; and
- 13 cents, or a prescribed amount up to 50 cents, for payment to
the AAHC.
The rate of charge on the export of each head of cattle that is
a chargeable bobby calf will be:
- 48 cents, or a prescribed amount up to $1.90, for payment to
the marketing body;
- 16 cents, or a prescribed amount up to 40 cents, for payment to
the research body;
- a prescribed amount up to 20 cents, if any, for payment to the
NCDE; and
- a prescribed amount up to 50 cents, if any, for payment to the
AAHC.
The term 'bobby calf' is defined by clause 3 to
mean a bovine animal, other than a buffalo, which at the time of
export with a liveweight not exceeding 80kg, or which has not had
its liveweight determined at export but which would if slaughtered
at that time have a dressed carcase weight not exceeding 40kg.
The charge will be payable by the producer of the cattle
(clause 6).
- Second Reading Speech, Australian Meat and Live-stock Industry
Bill 1997:10
- Ibid: 11
- Ibid: 16
Ian Ireland
4 November 1997
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ISSN 1328-8091
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Last updated: 12 November 1997
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