Bills Digest No. 66 2003-04
National Residue Survey Excise Levy Rate Correction
(Lamb Transactions) Bill
2003
WARNING:
This Digest was prepared for debate. It reflects the legislation as
introduced and does not canvass subsequent amendments. This Digest
does not have any official legal status. Other sources should be
consulted to determine the subsequent official status of the
Bill.
CONTENTS
Passage History
Purpose
Background
Main Provisions
Concluding Comments
Endnotes
Contact Officer & Copyright Details
Passage History
National Residue Survey Excise Levy Rate
Correction (Lamb Transactions) Bill
2003
Date Introduced:
26 November 2003
House: House of Representatives
Portfolio: Agriculture, Fisheries and
Forestry
Commencement:
Royal
Assent
To amend the
National Residue Survey (Excise) Levy Act 1998 (the Act)
so as to validate levy already collected under the Primary
Industries Levies and Charges (National Residue Survey Levies)
Regulations 1998 (the Regulations) in respect of lambs with a
sale price of more than $75 a head.
This Bill is complementary to the National
Residue Survey Customs Levy Rate Correction (Lamb Exports) Bill
2003. Two bills are required to satisfy section 55 of the
Constitution which in part provides that laws imposing duties of
customs shall deal with duties of customs only, and laws imposing
duties of excise shall deal with duties of excise only . This bill
ensures that lamb sold on the domestic market is subject to the
same levy arrangements as lamb that is exported from Australia.
The National Residue Survey (NRS) is a program
that monitors chemical residues and environmental contaminants in
the products of participating Australian industries. Residue
monitoring is part of a national strategy that seeks to minimise
unwanted residues and environmental contaminants in food for health
and other reasons. Monitoring activities are limited to chemical
residues in raw food commodities. The Residues and Standards Branch
in the Department of Agriculture, Fisheries and Forestry Australia
implements the program.(1)
The NRS was set up in the early 1960s in
response to growing concerns by major export markets about
pesticide residues in meat. Since that time, the number of
commodities covered by NRS monitoring has grown so that now about
15 animal, 14 plant and selected fisheries and aquaculture products
are monitored regularly.(2) The data collected by the
surveys helps both certification of commodities for export when
this is required, and compliance with requirements for domestic
consumption.
The main source of funding for the NRS is
levies on participating industries raised and collected under the
National Residue Survey (Customs) Levy Act 1998, the
National Residue Survey (Excise) Levy Act 1998, and the
National Residue Survey Administration Act 1992. Other
sources of revenue include direct payments received for survey work
undertaken under contract, and payments for proficiency testing,
sale of services and fees charged for the supply of
information.(3) The NRS operates on a cost recovery
basis. NRS funds are not used to cross-subsidise between
participating industries and each industry program is operated as a
separate cost-centre.
The legislation provides for both a maximum
rate of the levy and an operative rate of the levy. The operative
rate may be varied by regulations, but the maximum rate may only be
amended by legislation. The legislation also provides for a
different operative rate of levy depending on the sale price per
head of sheep or lambs.(4) In June 1998 the operative
levy for lambs with a sale price of more than $75 was agreed by
producers and their peak industry body, the Sheep Meat Council of
Australia, and set at 8 cents per head. The operative rate of the
levy has been varied several times by regulation since June 1998.
Between 1 July 2000 and 15 November 2001 inclusive, the operative
rate of levy was halved.(5) According to the
Explanatory Memorandum a drafting fault in the Regulations
has apparently made it appear as though the operative rate of levy
for lambs selling at more than $75 a head was only 4.7 cents
instead of the agreed 8 cents.(6) This fault was
corrected by amendments included in regulations that commenced on
30 May 2003.(7) The Minister said in his second reading
speech that the Sheep Meat Council of Australia has formally
requested that this drafting fault be amended so as to validate the
levy already collected.(8)
The amendments proposed by this Bill will have
an effect retrospectively and validate the rate of levy already
paid. The retrospective amendments cannot be made by regulation
because of the Acts Interpretation Act 1901 which
invalidates any regulation that is expressed to take effect at a
time before it is gazetted, and operates to impose a liability on a
person (other than the Commonwealth) in respect of anything done or
omitted to be done before the date of
notification.(9)
Clause 3 provides for
definitions of certain terms to have the same meaning as those in
the Act and the Regulations that were in force prior to 30 May
2003. On 30 May 2003 Schedule 1 of the Primary Industries
Levies and Charges (National Residue Survey Levies) Amendment
Regulations (No. 2), 2003 commenced and corrected the drafting
fault in the Regulations from that date.
Clause 4 has the effect of
correcting retrospectively the operative rate of levy on lambs
where the sale price exceeds $75 a head. Subsection
4(1) provides that the period to which this correction
applies is between 1 July 2000 and ending immediately before 30 May
2003. Paragraph 4(2)(a) allows for a levy rate of
4 cents per head to have applied between 1 July 2000 and ending
before 16 November 2001. This period corresponds to that when the
levy was halved. Paragraph 4(2)(b) allows for a
levy rate of 8 cents to have applied for the period starting on or
after 16 November 2001 and ending before 30 May 2003.
Subsection 4(3) gives effect to the corrected levy
rates in subsection 4(2) despite the provisions of
the Act and the Regulations in force before 30 May 2003.
-
Information about the National Residue Survey is available
online at:
www.affa.gov.au. Go to:
'Product Integrity/Animal and Plant Health', then choose National
Residue Survey, (NRS) (28/11/03).
-
ibid., Information under 'History'.
-
ibid., Information under 'Sources of funding'.
-
Subsection 3(1) of the National Residue Survey (Excise) Levy
Act 1998.
-
Primary Industries Levies and Charges (National Residue
Survey Levies) Regulation. Subregulation 240(3) as in force on
15 November 2001.
-
Explanatory Memorandum, National Residue Survey Excise
Levy Rate Correction (Lamb Transactions) Bill 2003, p. 2.
-
Primary Industries Levies and Charges (National Residue
Survey Levies) Amendment Regulations (No. 2), 2003 No. 99.
Schedule 1 Amendments commenced on gazettal, that is, on 30 May
2003.
-
Hon Warren Truss, Minister for Agriculture, Fisheries and
Forestry, 'Second Reading Speech', National Residue Survey Excise
Levy Rate Correction (Lamb Transactions) Bill 2003, House of
Representatives, Debates, 26 November 2003, p. 22731.
-
Subsection 48(2) of the Acts Interpretation Act
1901provides that regulations have no effect if they take
effect before the date of notification and have an adverse effect
on a person other than the Commonwealth.
Rosemary Bell
2 December 2003
Bills Digest Service
Information and Research Services
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ISSN 1328-8091
© Commonwealth of Australia 2003
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2003.
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