Streamlining and modernising levies legislation

We are working to streamline and modernise the agricultural levies and charges (levies) legislation. A modernised package of levies legislation is expected to:

• reduce complexity and inconsistencies compared with the current legislation
• make changing to levy settings in the legislation simpler in future.

Refer to About levies and the levy system to find out more about agricultural levies.

Why we are making changes

The current legislative framework has grown over time, and become more complex, making it difficult to understand and comply with. In 2017-18, we conducted a review of the agricultural levies legislative framework. The review found that the legislative framework:

• serves the objectives of the levy system, and
• is necessary to the successful industry-led arrangement, but
• is inconsistent, difficult to understand and has some redundant instruments.

What is changing

On 18 October 2023 the Australian Government introduced six Bills to make agricultural levies legislation simpler and more consistent:

• three Bills that impose levies—the Primary Industries (Excise) Levies Bill 2023; the Primary Industries (Customs) Charges Bill 2023 and the Primary Industries (Services) Levies Bill 2023,
• two Bills to enable the collection and disbursement of levies—the Primary Industries Levies and Charges Collection Bill 2023 and the Primary Industries Levies and Charges Disbursement Bill 2023, and
• a Bill to manage the transition from the old to the new legislation—the Primary Industries (Consequential Amendments and Transitional Provisions) Bill 2023.

These Bills, if passed by Parliament, will modernise the legislation for:

• research and development (R&D) levies
• marketing levies
• Animal Health Australia and Plant Health Australia levies
• biosecurity response levies
• National Residue Survey levies.

We propose to put operational provisions in the subordinate legislation (rules or regulations) rather than the primary Bills. This includes:

• levy rates
• detail of when returns are due
• record keeping requirements.

What is not changing

We will not be changing individual levy settings. The focus is on improving the legislation overall. Similarly, the government continues to be committed to providing matching funding to research and development corporations (RDCs) for eligible research and development (R&D) activities. However the legislative provisions will be streamlined and simplified under the proposed Bills.

If an industry would like to establish or change a levy setting, they should submit a proposal to the Minister following the instructions and principles set out in the Levy Guidelines.

About the process

The levy system is a long-standing partnership between industry and government.

To help us modernise levies legislation, it is important for us to hear from people who interact with:

• levies legislation
• activities that the levies fund.

The department has, over many years, consulted with industry representative bodies, levy payers, collection agents, RDCs, and other key stakeholders to inform our drafting of the legislation.

In 2017, we consulted with industry stakeholders on levy processes. Most of the feedback supported changes to the legislation.

In 2019-20, we consulted on the ‘Streamlining and modernising agricultural levies legislation - early assessment regulation impact statement’ via a Have Your Say survey.

In 2021-22, we consulted with industry representative bodies and RDCs to understand their needs and indicate how we were proposing to modernise the legislation.

From 1 May – 5 June 2023 we undertook public consultation on the draft Bills and some of the draft rules and regulations. We invited stakeholders to provide feedback via the Have Your Say webpage to help ensure the legislation will operate as intended. The draft rules and regulations included provisions for 21 existing levies and charges.

Feedback received from that consultation has informed the finalisation of the Bills. The Bills were introduced to Parliament on 18 October 2023.

Consultation on the complete draft regulations and rules is expected to take place in early 2024.

Background on levies legislation

The levy system is a long-standing partnership between industry and government.

Levies are imposed on all producers, processors and exporters in an industry, at the request of that industry. Levies support investment in activities that maintain and strengthen industries’ productivity and position in international markets.

The levy system is enabled by a legal framework. The agricultural levy legislation:

• imposes statutory levies
• governs the collection of levies
• enables the investment of funding in activities on industries’ behalf.

There are currently more than 110 levies and charges collected on over 70 commodities across the agriculture, fisheries and forestry sectors.

The department is responsible for collecting levies on behalf of industry. We also pay out the levy funds to levy recipient bodies. The 18 levy recipient bodies include:

• 15 research and development corporations (RDCs)
• Animal Health Australia
• Plant Health Australia
• National Residue Survey (within the department).