Why is there a levy on wheat?
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 wheat levy funds Grains Research and Development Corporation (GRDC) grain legumes research and development (R&D), Plant Health Australia (PHA) plant health and emergency plant pest response (EPPR) programs and National Residue Survey (NRS) testing. To find out more, visit Grains Research and Development Corporation, Plant Health Australia website and Department of Agriculture - National Residue Survey website.
What is the levy payable on?
Levy is payable on wheat produced in Australia where the producer delivers the wheat to another person (other than for storage) or where the wheat is processed by or for the producer.
Who pays the levy? Who submits returns?
The producer (the person who owns the wheat immediately after harvest) is liable to pay the levy.
If the producer sells their produce through an intermediary, such as a first purchaser, buying agent, selling agent, receiver or processor, the intermediary must pay levy and submit all return forms on behalf of the producer. The intermediary can recover from the producer the amount of levy paid, by offset or otherwise.
If the producer grows and uses their own grain commercially—for example, in feedlotters and piggeries—they must pay levy and submit return forms to the Department of Agriculture - Levies as they use the grain.
If the producer processes and sells their own grain—for example, if they are a registered or certified seed grower—they must pay levy and submit return forms to the Department of Agriculture - Levies as the grain is used. See 'seed grain' under 'General information and definitions'.
Download a return form or contact your Department of Agriculture - Levies state office.
What is the levy rate on wheat?
The levy rates are calculated as a percentage of ‘farm gate value’ (for example, sale value less storage, handling, freight and ‘free on board’ costs):
Wheat: 1.02% of the farm gate value of the grain.
Levy rates are current as at 1 November 2010.
Australian Government levies exclude GST.
Are there any exemptions from this levy?
Levy is not payable if:
- grain is processed# by or for the producer, where the producer uses the grain or all of the products and by-products of the processing for domestic and not commercial purposes
- grain is delivered for storage on behalf of the producer and no person is liable to pay the producer for the grain
- a producer delivers wheat to a particular person and the total amount of levy imposed in a levy (financial) year would be less than $25.
When is the payment due?
The return together with payment must be submitted to the Department of Agriculture - Levies within 28 days of the end of the quarters of March, June, September and December. For example, the return and payment for the quarter ending 30 June—that is, for the months of April, May and June—are due on or before 28 July.
General information and definitions
The levy rate is calculated as a percentage of ‘farm gate value’—that is, sale value less storage, handling, freight and ‘free on board’ costs.
# 'Processing' does not mean:
- treatment with a pesticide or other preserving agent before or during storage
- grading solely for seed purposes.
- Grain produced and sold as certified or registered seed grain is leviable. The farm gate value of this grain is determined as if it were not seed grain for sowing and had been sold at the market price of the day the grain was delivered. Check the rural press for sales prices in different locations.
- The industry representative body advised that, where a producer retains seed on farm (including seed that is cleaned, graded and pickled) for their own use as seed for sowing, the seed will not attract a levy.
The 'sale value' is:
- the amount of each pool payment, or
- in any other case, the sale price of the grain
- from sales invoices or other documents, or
- in the absence of documents the ruling price when the grain was sold.
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
National Residue Survey (Excise) Levy Act 1998
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.