When levies apply
Levy applies to whole milk produced in Australia if the person who owns the milk immediately after it is produced:
- delivered the milk to a processing establishment in Australia themselves
- had the milk delivered to a processing establishment by another person
- sold the milk to a business purchaser (directly, via a selling or buying agent, or both), or
- processed the milk themselves.
Exemptions
Levy does not apply to whole milk if the levy has already been applied.
Records must be maintained to confirm that the exemption applies.
Who collects and pays
The levy 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 delivery or sale of the whole milk.
Collected and paid via a third party (collection agent)
The levy is collected by the person associated with the delivery or sale of the whole milk. We call this person the collection agent.
The collection agent can be the:
- selling agent, buying agent (if no selling agent is involved), or business purchaser (if no selling or buying agent is involved) where the whole milk is sold to a business purchaser, or
- the proprietor of the processing establishment where the whole milk is delivered by or for the levy payer.
This person deducts or recovers the levy from the levy payer and then pays that amount to us as part of a return.
Paid directly to us (levy payer)
The levy is paid by the person who owns the whole milk immediately after it is produced. We call this person the levy payer.
The levy payer pays directly to us as part of a return if they processed the whole milk themselves.
Rates
| Product | Levy rate |
|---|---|
| Whole milk (milk fat content) | 2.9263 cents per kilogram |
| Whole milk (protein content) | 7.1299 cents per kilogram |
GST is not applied to Australian Government levies.
See full details of the levy and export charge rates.
Return and payment dates
Monthly
Monthly returns and payments are for whole milk delivered, sold or processed.
Return and payment must be received by:
- Last day of the second month
Example: For whole milk delivered, sold or processed in July this financial year, the return and payment must be received by 30 September in the same financial year.
Annual
Annual returns are for collecting information about each levy payer that had delivered, sold or processed whole milk in a financial year.
Return must be received by:
- 31 July each year (for the previous financial year)
For whole milk delivered, sold or processed in a month in this financial year, the return must be received by 31 July in the next 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 dairy produce return form
- email or post your return
- make payment to us by electronic funds transfer (EFT) or cheque.
Return information
Dairy produce is part of the:
- Dairy Produce Monthly Return
- Dairy Produce Annual Return
To lodge a return, you will need to know the:
- quantity (kilograms) of milk fat content and protein content of whole milk delivered, sold or processed
- quantity (litres) of whole milk
- amount of levy payable for each type
- levy payer information and business details (name, address, phone or email, ABN/ACN)
- for an annual return, dairy licence and farm details (dairy license number, share-farmer split, address).
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
Recipient bodies for the dairy produce levy are:
Definitions
Business purchaser
A person who buys products, goods or services from levy payers while carrying on a business (including as a processor or feedlot operator).
Milk fat content of the whole milk
Equal to the milk fat content determined from the most recent sample of that milk that was taken:
- before that milk was delivered to the processing establishment, was sold or began to be processed, and
- for the purposes of determining the milk fat content of that milk.
Taken to be 3.2%, if a sample was not taken to determine the milk fat content.
Protein content of the whole milk
Equal to the protein content determined from the most recent sample of that milk that was taken:
- before that milk was delivered to the processing establishment, was sold or began to be processed, and
- for the purposes of determining the protein content of that milk.
Taken to be 3%, if a sample was not taken to determine the protein content.
Whole milk
The lacteal fluid product of a dairy cow, where that product contains all its constituents as received from the dairy cow.
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 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.