When levies apply
Levy applies to sheep and lambs transactions in the following 4 scenarios.
1. Transfer of ownership
Levy applies to each transfer of ownership of sheep or lambs from one person to another, where the sheep or lambs are in Australia when the transfer of ownership occurs.
2. Delivery and slaughter at an abattoir
Levy applies to the slaughter of sheep and lambs at an abattoir in Australia, where the sheep or lambs were delivered to the abattoir other than because of a sale to the proprietor of the abattoir.
3. Slaughter at an abattoir more than 30 days after purchase
Levy applies to the slaughter of sheep or lambs at an abattoir in Australia if they are:
- purchased by the proprietor of the abattoir, and
- held by that proprietor for more than 30 days after the day of the purchase and before the day of the slaughter.
4. Slaughter where no other transaction levy applies
Levy applies to the slaughter of sheep or lambs at an abattoir in Australia if:
- prior to slaughter no transaction was entered into that transferred ownership from one person to another, and
- neither of the above slaughter transaction levies apply.
Exemptions
Records must be maintained to confirm that an exemption applies.
Exemptions apply to sheep and lambs transactions in the following 2 scenarios.
1. Transfer of ownership
Related bodies corporate
Levy does not apply to sheep or lambs where the transfer of ownership is:
- between related bodies corporate, and
- the body acquiring the sheep or lambs is not a proprietor of an abattoir.
Sheep or lambs not fit for human consumption
Levy does not apply where there is a transfer of ownership if:
- the person acquiring the sheep or lambs is the proprietor of an abattoir, and
- the sheep or lambs are not fit for human consumption at the time of the transfer of ownership under a law of the Commonwealth, a State or a Territory.
Export licence holders
Levy does not apply to sheep or lambs where the levy has already been paid on the transfer of ownership to the holder of an export licence granted under section 191 of the Export Control Act 2020 (the first licence holder), and there is a transfer of ownership to another licence holder where the sheep or lambs are:
- exported from Australia, and
- exported 30 days or less after being acquired by the first licence holder.
Sale price per head is less than $5
Levy does not apply on the sale of sheep or lambs if the sale price per head is less than $5.
Sheep or lambs intended for export
Levy does not apply if a transfer of ownership occurs:
- immediately before the sheep or lambs are loaded, or during loading, on a ship or aircraft in which they are intended to be exported, or
- while the sheep or lambs are on board a ship or aircraft in which they are intended to be exported.
General exclusions
Levy does not apply if a transfer of ownership of sheep or lambs is:
- a result of a sale or transfer ordered by a court in proceedings under the Family Law Act 1975
- as a result of a gift of the sheep or lambs
- by devolution on the death of the owner of the sheep or lambs, or
- on the happening of events referred to in subsection 70-100(1) of the Income Tax Assessment Act 1997, for example changes to a partnership structure.
2. Slaughter at an abattoir other than because of a sale to the proprietor
Continuing ownership
Levy does not apply to the slaughter of sheep or lambs if:
- they were delivered to an abattoir on behalf of the owner of the sheep or lambs, and
- the delivery occurs within 14 days after the owner acquires the sheep or lambs, and
- the owner continues to own the carcases immediately after the hot carcase weight is determined by the proprietor of the abattoir or if not determined, immediately after the slaughter.
Sheep or lambs not fit for human consumption
Levy does not apply to the slaughter of sheep or lambs if they, at the time of the delivery to the abattoir, are not fit for human consumption under a law of the Commonwealth, a State or Territory.
Personal consumption
Levy does not apply to the slaughter of sheep or lambs at an abattoir for consumption by the owner of the sheep or lambs, members of the owner’s family or the owner’s employees.
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 transfer of ownership or slaughter of the sheep or lambs.
Collected and paid via a third party (collection agent)
The levy is collected by a person associated with the transfer of ownership or slaughter of sheep or lambs on the levy payer’s behalf. We call this person the collection agent.
The collection agent can be:
- in the case of a sale to a business purchaser, the selling agent, buying agent (if no selling agent is involved), or business purchaser (if no selling or buying agent is involved), or
- the proprietor of the abattoir, where the levy payer is not the proprietor of the abattoir.
This person deducts or recovers the transaction 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 owner of the sheep or lambs immediately before the transaction is entered into
- the owner of the sheep or lambs immediately before delivery for slaughter at an abattoir where sheep or lambs are delivered other than because of a sale to the proprietor
- the proprietor of the abattoir if the slaughter is more than 30 days after purchase by the proprietor of the abattoir, or
- the owner of the sheep or lambs at the time of slaughter where no other transaction levy applies.
We call this person the levy payer.
The levy payer pays directly to us as part of a return if:
- they are the proprietor of the abattoir, or
- there is a transfer of ownership that is:
- not a sale (for example, a gift), or
- a sale to a person who is not a business purchaser, or
- a sale from one producer to another producer.
Rates
| Product | Levy rate |
|---|---|
| Lambs Sale price $5 to $75 per head | 2% of the sale price |
| Lambs Sale price over $75 per head | $1.50 per head |
| Lambs With no sale price | 80 cents per head |
| Sheep Sale price $5 to $10 per head | 2% of the sale price |
| Sheep Sale price over $10 per head | 20 cents per head |
| Sheep With no sale price | 20 cents per head |
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 sheep or lambs sold to a business purchaser or slaughtered.
Return and payment must be received by:
- Last day of the second month
Example: For sheep or lamb transactions involving a sale to a business purchaser or a slaughter in July in a financial year, the return and payment must be received by 30 September in the same financial year.
Annual
Annual returns and payments are only for levy payers where a transfer of ownership occurs that is:
- not a sale of the sheep or lambs, or
- a sale of sheep or lambs to a person who is not a business purchaser, or
- a sale of sheep or lambs from one producer to another producer.
Return and payment must be received by:
- 31 October each year (for the previous financial year)
For sheep or lambs ownership transferred between producers in a financial year, the returns and payments must be received by 31 October 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 with us
- 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 cattle, goats, sheep and lambs transaction return form
- email or post your return to us
- make payment to us by electronic funds transfer (EFT) or cheque.
Return information
Sheep and lambs transaction is part of the:
- Cattle, goats, sheep and lambs transaction monthly return
- Cattle, goats, sheep and lambs transaction annual return
To lodge a return, you will need to know the:
- quantity (number) of sheep or lambs sold, transferred or slaughtered
- quantity (number) of sheep or lambs exempt
- amount of levy payable for each type
- levy payer information and business details (name, address, phone or email, ABN/ACN).
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 levy transaction.
Heavy penalties could apply if you fail to meet the record keeping requirements.
Who uses this levy
Recipient bodies for the sheep and lambs transaction levy are:
Definitions
Abattoir
Abattoir includes mobile abattoir.
Business purchaser
A person who buys products, goods or services from levy payers while carrying on a business, (including as a processor or a feedlot operator).
Cold carcase weight
The weight of the carcase weighed 2 hours or more after slaughter.
Hot carcase weight
The weight of the carcase weighed within 2 hours after slaughter.
Lamb
An animal of the species Ovis aries that is under 12 months of age or does not have any permanent incisor teeth in wear.
Premises
Includes a structure, building, vehicle, vessel or aircraft; a place (whether enclosed or built on), or a part of any of these things.
Proprietor
In relation to an abattoir:
- if a licence is required under any law of the Commonwealth, a State, the Australian Capital Territory or the Northern Territory to carry on abattoir activities, the person who holds the licence, or
- if no licence is required under any such law, the person carrying on the business of operating the abattoir.
Sheep
An animal of the species Ovis aries but does not include lambs.
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.