Eggs (promotion) levy

The eggs levy was first introduced 1 February 2003. Eggs that are produced in Australia and are sold by the producer or used by the producer in the production of other goods will attract the eggs levy. The eggs levy, however, is payable on laying chickens that are bred or purchased for use in the commercial production of eggs. The Australian Egg Corporation Limited, now trading as Australian Eggs, is responsible for the expenditure of the egg promotion levy.

Eggs levy rate

A laying chicken means a female chicken that is to be raised for the production of eggs.

Laying chickens are taken to be purchased when the first payment for the chickens, whether the payment represents the whole, or part only, of the purchase price for the chickens, is made.

Laying chickens are taken to be kept for use in the commercial production of eggs when they are released from the hatchery into a commercial egg production facility by the integrated enterprise operator.

Integrated enterprise operator means a person who conducts a hatchery and keeps laying chickens for use in the commercial production of eggs.

The egg promotion levy rate is:

Levy componentLevy rate
Marketing32.5 cents per chick

The egg promotion levy rate is calculated per laying chick. GST is not applied to Australian Government levies.

Do I need to lodge a return and make a payment?

A 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.

A producer must lodge a return and make a payment to the department.

If the producer is an integrated enterprise operator where chickens are hatched for commercial purposes in their own hatchery and the producer does not purchase laying chickens, they must pay levy when they place the chicks in an egg production facility.

If the proprietor of a hatchery, in accordance with the practice of the poultry industry, treats a number of chickens (not exceeding 106) as 100 chickens, that number of chickens is taken to be 100 chickens.

As a seller of laying chickens, before levy becomes due to be paid you must inform the buyer, either on the invoice for the sale of the laying chickens or in some other way that the buyer of the laying chickens must pay you an amount on account of levy.

However, if the buyer informs the seller that they do not intend to use the laying chickens in the commercial production of eggs, 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 the chickens in the commercial production of eggs, an amount of levy will be payable on the eggs presumed to be produced by the laying chickens.

As a buyer of laying chickens, you must pay the seller an amount on account of levy when the first payment for the laying chickens is made, or 21 days after the first payment is due, whichever is the earliest, whether the payment represents the whole, or part only, of the purchase price for the chickens.

Exemptions from paying the eggs levy

A producer of laying chickens is not liable to pay the egg promotion levy if the laying chickens are purchased for personal egg production and not for the commercial production of eggs.

The purchaser of laying chickens 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.

How do I lodge a return and make a payment?

You must register with the department to receive a unique LRS number before you can lodge your first return.

To lodge your return you must complete an eggs (promotion) return form.

Return and payment dates

IMPORTANT: If you pay your levy late you will incur a penalty that is calculated daily at a compounding rate of 2 per cent of the unpaid amount each month, including any penalties you have already accrued until you have paid the outstanding amount in full.

The eggs levy is based on a financial year.

Monthly returns and payments

Monthly returns and payments must be lodged with the department within 28 days of the end of that month.

Example: for the month of July, the return and payment is due to the department on or before 28 August.

What must be included in my return?

As a seller of laying chickens in a month, your return for a month must state, in respect of the month:

  1. Your personal details, including:
    1. Full name
    2. Business or residential address, not the address of a post office box or post office bag
    3. Post office box or post office bag, and
    4. Australian Business Number (ABN), or if you are a company the Australian Company Number (ACN)
  2. Period to which the return relates
  3. Total number of laying chickens sold
  4. Total number of leviable laying chickens sold
  5. Amount of levy received by the seller from buyers of laying chickens, and
  6. Amount for each sale on account of levy due to have been paid to but not received by the seller, the:
    1. Amount on account of levy owing
    2. Date when the amount was due to have been paid, and
    3. Personal details for the person from whom the amount was due.

As an integrated enterprise operator of laying chickens, your return for a month must state, in respect of the month:

  1. Your personal details, including:
    1. Full name
    2. Business or residential address, not the address of a post office box or post office bag
    3. Post office box or post office bag, and
    4. ABN, or if you are a company the ACN
  2. Period to which the return relates
  3. Number of laying chickens released from the hatchery into the commercial egg production facility, and
  4. Amount of levy payable on the eggs presumed to be produced by that number of laying chickens.

As a producer of laying chickens, other than as an integrated enterprise operator, your return for a month must state, in respect of the month :

  1. Your personal details, including:
    1. Full name
    2. Business or residential address, not the address of a post office box or post office bag
    3. Post office box or post office bag, and
    4. ABN, or if you are a company the ACN
  2. Period to which the return relates
  3. Number of laying chickens purchased for use in the commercial production of eggs, and
  4. Amount of levy payable on the eggs presumed to be produced by that number of laying chickens.

What records do I need to keep?

As a seller of laying chickens in a month, you must keep records for five (5) years, setting out for each month, the:

  1. Total number of laying chickens sold, and
  2. For each sale of leviable laying chickens, the:
    1. Number of laying chickens sold, and
    2. For each amount on account of levy received, the:
      1. Date when the amount was due
      2. Date when the amount was received, and
      3. Personal details for the person from whom the amount was received.
  3. For sales of laying chickens to which levy is not applied, the:
    1. Total number of laying chickens sold, and
    2. Personal details of each buyer.

Note: For each sale of laying chickens to a buyer who does not pay to the seller an amount on account of levy because the buyer informs the seller that the buyer does not intend to use the chickens in the commercial production of eggs, the seller must keep the written advice provided by the buyer.

As a buyer of laying chickens in a month, you must keep records for five (5) years, setting out for each month, the:

  1. Total amount paid for the leviable laying chickens
  2. Each amount on account of levy paid to the seller, and
  3. For purchases of laying chickens to which levy is not applied, the:
    1. Total amount paid for the laying chickens, and
    2. The purposes for which the laying chickens are not intended to be used.

As an integrated enterprise operator who releases laying chickens from a hatchery into a commercial egg production facility in a month without a sale of the laying chickens occurring, you must keep records for five (5) years, setting out for each month, the:

  1. Number of laying chickens released from the hatchery into the commercial egg production facility, and
  2. Amount of levy payable on the eggs presumed to be produced by that number of laying chickens.

Primary Industries legislation

The eggs levy is provided for under the:

Primary Industries (Excise) Levies Act 1999, and

Primary Industries Levies and Charges Collection Act 1991.

This information is a guide only. If you are required to lodge a return and make a payment to the department it is your responsibility to remain aware of your obligations under legislation.

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