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CONTENTS
Cattle Transactions Levy 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 levy on sales of cattle, delivery of cattle to a
processor and the slaughter of certain cattle.
Under existing law a levy is imposed by the Cattle
Transactions Levy Act 1995 on:
- each transaction, entered into on or after 1 February 1991,
involving the transfer of ownership of cattle from one person to
another;
- the delivery of cattle to a processor, on or after 1 February
1991, otherwise than because of a sale to the processor;
- the slaughter by a processor of cattle, on or after 1 February
1991, bought by the processor and held for more than 60 days before
slaughter; or
- the slaughter by a processor of cattle, on or after 1 February
1991, in respect of which levy would not be payable under the
circumstances specified above.
A number of exemptions from the levy apply, including:
- dairy cattle sold for dairying purposes;
- sale of cattle at auction to the vendor;
- sale or delivery of cattle to a processor where the cattle, at
the time of sale or delivery, are not fit for human consumption;
and
- bobby calves on which levy has already been paid.
The levy is payable by:
- in the case of cattle which have changed ownership, the person
owning the cattle immediately before the change of ownership;
- in the case of cattle delivered to a processor otherwise than
because of a sale to the processor, by the person owning the cattle
immediately before the delivery; and
- in the case of cattle slaughtered by a processor which were
bought by the processor and held for more than 60 days before
slaughter:
the processor, if the slaughter occurred before 1 July 1995,
or
otherwise by the person who owned the cattle at the time of
slaughter;
- in the case of cattle slaughtered by a processor in respect of
which levy would not be payable in the circumstances specified
above:
- the processor, if the slaughter occurred before 1 July 1995,
or
- or otherwise by the person who owned the cattle at the time 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 Meat Industry Council (MIC),
Australian Meat and Live-stock Corporation (AMLC), Meat Research
Corporation (MRC), the National Cattle Disease Eradication Trust
Account (NCDE) and Australian Animal Health Council Limited
(AAHC).
The Cattle Transaction Levy Act 1995 is being 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 councils.
In respect to this Bill, 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 Transaction
Levy Act 1995, that is:
The new Act replacing the Cattle Transaction Levy Act
1995 will provide for the imposition of separate levy
components for grass fed and grain fed cattle producers to support
their individual contributions to the new service delivery company,
as well as continued funding to the NCDE and AAHC.(3)
Clause 6 imposes a levy on:
- each transaction entered into involving the transfer of
ownership of cattle from one person to another;
- the delivery of cattle to a processor otherwise than because of
a sale to the processor;
- the slaughter by a processor of cattle bought by the processor
and held for more than 60 days before slaughter; or
- the slaughter by a processor of cattle in respect of which the
levy would not be payable under the circumstances specified
above.
Clause 6 also sets out a number of exemptions
from the levy, including:
- dairy cattle sold for dairying purposes;
- sale of cattle at auction to the vendor;
- sale or delivery of cattle to a processor where the cattle, at
the time of sale or delivery, are not fit for human consumption;
and
- on a bobby calf on which the levy has already been paid.
Clause 7 provides that the rate of levy on each
head of cattle, other than a head of lot-fed cattle or a
leviable 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 levy on each head of cattle that is a leviable
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 rate of levy on each head of lot-fed cattle will
be:
- $2.16, or a prescribed amount up to $6.50, for payment to the
marketing body;
- 72 cents, or a prescribed amount up to $2.00, for payment to
the research body;
- 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 term 'bobby calf' is defined by clause 3 to
mean a bovine animal, other than a buffalo or head of lot-fed
cattle, which:
- has been slaughtered and has a dressed carcase weight not
exceeding 40kg;
- which has not been slaughtered but at the time of the leviable
transaction or other dealing had or has a liveweight not exceeding
80kg; or
- which has not been slaughtered or had its liveweight determined
at the time of the leviable transaction or other dealing, but which
would if slaughtered at that time have a dressed carcase weight not
exceeding 40kg.
Clause 8 provides that the levy is payable
by:
- in the case of cattle which have changed ownership, the person
owning the cattle immediately before the change of ownership;
- in the case of cattle delivered to a processor otherwise than
because of a sale to the processor, by the person owning the cattle
immediately before the delivery; and
- in the case of cattle slaughtered by a processor, by the person
who owned the cattle at the time of slaughter.
- 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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