Banana levy

The banana levy was first introduced 1 July 2008. Bananas that are produced in Australia and sold by a producer will attract a levy.

Horticulture Innovation Australia Limited and Plant Health Australia (PHA) manage banana levy investments.

Bananas levy rates

Bananas means a fruit of any species of the genus Musa.

A process in relation to bananas does not mean the cleaning, sorting, grading, packing and fruit conditioning operations, including storage and ripening.

Retail sale means any sale of bananas by a producer that is not a sale to a first purchaser or through a buying agent or selling agent or at a wholesale produce market.

The banana levy rate comprises Emergency Plant Pest Response (EPPR), marketing, PHA membership and research and development (R&D), as shown in the table below:

The banana levy rate is calculated per kilogram. GST is not applied to Australian Government levies.

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

A producer of bananas, the person who owns the bananas immediately after harvest is liable to pay the levy.

If you produce bananas and sell your bananas by retail sale and the total quantity that you have sold amounts to $100 or more of levy in a financial year, you must lodge a return and make a payment to the department.

If you produce bananas and sell your produce through an intermediary, including a first purchaser, buying agent or selling agent, the amount of levy they pay to the department on your behalf can be recovered from you by offset or otherwise.

If you are an intermediary, including as a first purchaser, buying agent or selling agent, you must lodge a return and make a payment to the department. You can recover from the producer the amount of levy paid to the department, by offset or otherwise.

Exemptions from paying the bananas levy

A producer of bananas is not liable to pay the banana levy if in a financial year the total quantity of bananas sold by retail sale amounts to less than $100 of levy.

A producer of bananas is also not liable to pay the banana levy if in a financial year the producer sold or used bananas for processing.

How do I lodge a bananas return?

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

To lodge your return online, access Levies Online. Alternatively, you can complete a manual horticulture 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 bananas levy is based on a financial year.

Quarterly returns and payments

Quarterly returns and payments must be lodged with the department within 28 days of the end of the quarters of March, June, September and December.

Example: for the quarter ending 30 September—if you bought or sold bananas in the months of July, August and September— your quarterly return and payment is due to the department on or before 28 October.

Annual return and payment

As a banana levy payer you may be eligible to lodge your return and make a payment to the department once a year, that is on or before 28 August in the next financial year.

Example: the 2018-19 annual return and payment must be made on or before 28 August 2019.

To be eligible for an annual return and payment you must have reasonable grounds to believe that the total quantity of bananas which you are likely to deal in, in a financial year, amounts to less than $500 of levy. You must also make an application to the Secretary of the Department of Agriculture and Water Resources. If you would like to make an application please contact the department’s levies office in your state or territory.

What must be included in my return?

As a producer of bananas, your return for a quarter or levy year must set out for that quarter or levy year:

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. Quantity of bananas sold
4. Amount of levy payable for each of those quantities
5. Total amount of levy payable, and
6. Total amount of levy paid.

As an intermediary of bananas, including as a first purchaser, buying agent or selling agent, your return for a quarter must set out for that quarter:

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. Quantity of bananas bought or sold
4. Amount of levy payable for each of those quantities
5. Total amount of levy payable, and
6. Total amount of levy paid.

What records do I need to keep?

As a producer of bananas, you must keep records for five (5) years showing for each quarter, the:

1. Quantity of bananas sold
2. Amount of levy payable for the bananas, and
3. Amounts of levy paid by the producer for the bananas.

As an intermediary of bananas, including as a first purchaser, buying agent, selling agent or exporting agent, you must keep records for five (5) years showing for each quarter, the:

1. Quantity of bananas bought or sold
2. Amounts of levy payable for the bananas, and
3. Amounts of levy paid for the bananas.

Primary Industries Legislation

The bananas levy is legislated 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.