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
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.
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 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.
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.
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
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Published by the Department of the Parliamentary Library,
1996.
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Last updated: 14 May 1996
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