Why is there a levy on egg promotion?
The Australian Government introduces levies and export charges at the request of industry. These levies variously fund research and development, marketing, residue testing, plant and animal biosecurity programs and emergency responses for industry.
The egg promotion levy funds the Australian Egg Corporation Limited (AECL) marketing. To find out more, visit Australian Egg Corporation Limited.
What is the levy payable on?
Levy is payable on the commercial production of eggs in Australia where the producer either sells the product or uses it in the production of other goods. However, for ease of collection, the Department of Agriculture - Levies collects the levy on laying chickens bred or purchased for use in the commercial production of eggs.
Who pays the levy? Who submits returns?
The producer (the person who keeps laying chickens, whether as an integrated enterprise operator or as a buyer, for use in the commercial production of eggs) is liable to pay the levy. The producer must pay levy to the seller of the laying chickens, who must pay levy and submit all return forms to the Department of Agriculture - Levies.
If the producer does not purchase laying chickens, they must pay levy when they place the chicks in an egg production facility.
Download a return form or contact your Department of Agriculture - Levies state office.
What is the levy rate on egg promotion?
The levy rate is 32.5 cents per laying chicken used in the commercial production of eggs.
Rates are current as at 1 October 2013.
Australian Government levies exclude GST.
Are there any exemptions from this levy?
Levy is not payable on laying chickens not purchased for the commercial production of eggs.
Note: The purchaser must provide the seller with a written notice claiming the exemption and stating that the laying chickens will not be used for the commercial production of eggs. The seller must retain this notice for examination. The seller must inform the buyer—in writing or otherwise—that, if the buyer later sells the chickens to a person who intends to use them in the commercial production of eggs, levy will be payable on the eggs presumed to be laid.
When is the payment due?
Purchasers must pay sellers when the first payment for the laying chickens is made, or 21 days after the first payment is due, whichever is the earliest.
The return together with payment must be submitted to the Department of Agriculture - Levies within 28 days of the end of the month to which it relates. For example, the return and payment for the month of June are due on or before 28 July.
General information and definitions
The levy rate is calculated per chicken.
What legislation covers this levy?
A legislative framework of imposition, collection and disbursement legislation authorises and supports Australia’s primary industries levies system. These are the relevant Acts:
Primary Industries (Excise) Levies Act 1999
Primary Industries Levies and Charges Collection Act 1991
Please note that, under section 27 of the Primary Industries Levies and Charges Collection Act 1991, an authorised Department of Agriculture officer can release the names and addresses of levy payers to industry bodies and levy recipient organisations.
Download the legislation from ComLaw or call CanPrint Information Services on 02 6293 8383 to purchase a copy.
This information sheet is a guide only and does not substitute for the relevant legislation.