When levies and export charges apply
Levy
Levy applies to cotton fibre produced in Australia from seed cotton harvested in Australia.
Export charge
Export charge applies to seed cotton harvested in and exported from Australia.
Exemptions
Levy
No exemptions apply to the cotton levy.
Export charge
No exemptions apply to the seed cotton export charge.
Who collects and pays
The levy or export charge may be paid via a third party (collection agent) or directly to us. This depends on whether there is a collection agent involved in the production of cotton fibre or export of the seed cotton.
Collected and paid via a third party (collection agent)
The levy or export charge is collected by the person associated with the production of cotton fibre or export of the seed cotton. We call this person the collection agent.
The collection agent can be the:
- cotton gin proprietor if they produce cotton fibre for the levy payer, or
- exporting agent.
This person deducts or recovers the levy or export charge from the levy or export charge payer and then pays that amount to us as part of a return.
Paid directly to us (levy or export charge payer)
The levy is paid by the person who owns the seed cotton immediately before the cotton fibre is produced. If that person is the cotton gin proprietor, they will pay the levy. We call this person the levy payer.
The export charge is paid by the person who exports the seed cotton from Australia. We call this person the export charge payer.
The levy or export charge payer pays directly to us as part of a return if they:
- produced cotton fibre themselves, or
- exported the seed cotton themselves.
Rates
| Product | Levy/export charge rate |
|---|---|
| Cotton fibre | $2.25 per 227 kilograms |
| Seed cotton | $4.06 per tonne |
GST is not applied to Australian Government levies and export charges.
See full details of the levy and export charge rates.
Return and payment dates
Monthly
Monthly returns and payments are for cotton fibre produced or seed cotton exported.
Return and payment must be received by:
- Last day of the next month
Example: For cotton fibre produced and seed cotton exported in July in a financial year, the return and payment must be received by 31 August in the same financial year.
Late payment penalties apply
Penalties are calculated daily at a compounding rate of 2% of the unpaid amount each month, including any outstanding debt, until the amount is paid in full.
How to lodge a return
You can lodge your return via Levies Online.
After you log in:
- select the return type and period
- complete the information
- lodge your return
- make payment to us by electronic funds transfer (EFT) or cheque.
First time lodging with us
You will need to register with us before you can lodge your first return.
You will receive a unique LRS number that you need to include in your return.
If you can’t use Levies Online
To lodge a manual return:
- download and complete the cotton return form
- email or post your return
- make payment to us by electronic funds transfer (EFT) or cheque.
Return information
To lodge return, you will need to know the:
- quantity (number) of 227kg cotton bales
- quantity (tonnes) of seed cotton exported
- amount of levy or export charge payable for each type.
Record keeping
You must keep records relating to each return for five (5) years. The records must:
- be set out for each financial year
- include details of each transaction.
Heavy penalties could apply if you fail to meet the record keeping requirements.
Who uses this levy and export charge
Recipient bodies for the cotton levy and seed cotton export charge are:
Definitions
Cotton bale
A standard cotton bale is 227 kilograms of cotton fibre.
Cotton fibre
The natural fibrous hairs that are obtained from seed cotton by separating the hairs from the seeds.
Cotton plant
A plant of the genus Gossypium.
Proprietor
The person carrying on the business conducted at the premises.
Seed cotton
The seed with the natural fibrous hairs attached, harvested from the ripened bolls of the cotton plant.
Levies and related legislation
This information is a guide only. You must be aware of your obligations under relevant levy and export charge laws.
This includes:
- Primary Industries (Excise) Levies Act 2024
- Primary Industries (Customs) Charges Act 2024
- Primary Industries Levies and Charges Collection Act 2024
- Regulatory Powers (Standard Provisions) Act 2014
See more on levy and export charge laws.
Stay updated
Check latest updates in our levy notices.
Contact us
For more on levies and export charges, levies accounts or how to lodge your return, contact the Levies team.