Key points
The Bills covered in this Bills Digest replace a complex array of legislation that has enabled the collection and disbursement of levies and charges for the purposes of:
- agricultural research and development
- some agricultural marketing activities since 2013
- biosecurity activities
- the residue survey.
The intention of the suite of Bills is to provide a flexible framework of legislation where specifics are dealt with in subordinate legislation.
The six Primary Industry Levies and Charges Bills comprise:
- three imposition Bills that seek to establish a flexible framework for the levies and charges system
- a collection Bill that proposes a flexible framework for the collection of levies and charges under the imposition Bills
- a disbursement Bill that creates a flexible framework for the disbursement and spending of levies and charges collected under the collection Bill.
Introductory Info
Date introduced: 18 October 2023
House: House of Representatives
Portfolio: Agriculture, Fisheries and Forestry
Commencement: 1 January 2025 or as otherwise set out in this Bills Digest
Purpose and
content of the suite of Bills
The purpose of this suite of six Bills is to remove complexity
and inconsistencies, and to institute flexibility through subordinate
legislation for the imposition, collection, and disbursement of agricultural levies and charges.
Imposition
Bills
Three Bills, collectively called the Imposition Bills, seek
to establish a consistent framework under which the different aspects of the
levy system can operate. These Bills are as follows:
Collection
Bill
The Primary
Industries Levies and Charges Collection Bill 2023 (Collection Bill)
replaces the Primary
Industries Levies and Charges Collection Act 1991 by establishing a flexible
framework for the collection of agricultural levies and charges.
Disbursement
Bill
The Primary
Industries Levies and Charges Disbursement Bill 2023 (Disbursement Bill) consolidates
the provisions of the existing 13 funding Acts into a flexible framework for
the disbursement of money raised through levies and charges.
Consequential
Amendments Bill
The Primary
Industries (Consequential Amendments and Transitional Provisions) Bill 2023
(Consequential Amendments Bill) will facilitate the transition to the proposed
legislation by repealing 23 existing Acts and making consequential amendments
to several other Acts. The Consequential Amendments Bill repeals five levy and
charge imposition Acts, namely, the Primary Industries
(Excise) Levies Act 1999, the National Residue
Survey (Excise) Levy Act 1998, the Primary Industries
(Customs) Charges Act 1999, the National Residue
Survey (Customs) Levy Act 1998, and the Horse Disease
Response Levy Act 2011.
In addition, the Consequential Amendments Bill repeals a
number of Acts and amends others. These are set out in the Appendix to
this Bills Digest.
Item 1 of Schedule 3 to the Consequential Amendments Bill commences
on the day after Royal Assent. Schedule 1, items 1–122 of Schedule 2, items
2–14 of Schedule 3 and Schedule 4 of the Consequential Amendments Bill commence
on 1 January 2025. Item 123 of Schedule 3 to the Consequential Amendments Bill also
commences on 1 January 2025 unless items 16 and 17 of Schedule 1 to the Inspector-General
of Live Animal Exports Amendment (Animal Welfare) Act 2023 commence before
that date. If that occurs, item 123 will not commence at all.
The Explanatory
Memorandum to the Consequential Amendments Bill provides a concise summary
of the repeals and consequential amendments. A schedule of repeals is duplicated
in the Appendix to this Bills Digest.
Background
In 1989 the Research,
innovation and competitiveness statement (Kerin Statement) acted as the catalyst
for a process to reform the Rural Industries
Research Act 1985 in order to improve the efficiency of distributing Rural
Industry Research Fund money. The Kerin Statement set the scene for a new
‘corporate’ organisational structure. In addition, the Statement acknowledged
that it was essential to ‘restructure the incentives throughout the system to
improve its capacity to expand effort, manage itself well and properly
prioritise efforts’[1]:
Portfolio research councils, and to a lesser extent research
and development corporations, have been subject to direct government controls
over staffing, salary levels and fund management. In most cases, secretariat
services have been provided from within the public service environment.
The Government accepts that such restrictions can impede
efficiency and responsiveness. In further developing the research and
development corporation model, most of these direct controls will be
eliminated. Ministerial responsibility and parliamentary accountability will be
achieved through new arrangements.[2]
The Kerin Statement lists a number of key features
enabling the new organisations to achieve efficiency through its corporate
model.[3]
In response to the Kerin Statement,
the Primary
Industries and Energy Research and Development Act 1989 (as made, and amended
in 2013 to the Primary
Industries Research and Development Act 1989) provided the legislative
framework for the reform, that is:
To establish Research and Development (R&D) Corporations
and a Rural Industries Research and Development Corporation (RIRDC) to provide
for the funding and administration of R&D into agricultural industries.[4]
The [Primary Industries and Energy Research and
Development Act 1989] PIERD Act also provided for levies, and other research
and development funds, to be attached to RDCs and for these funds to be
transferred between RDCs or other research and development funds.
The Productivity
Commission Inquiry Report (2011) on rural research
and development corporations recommended that the broad model should be
retained but that:
The current cap on dollar for dollar matching of industry
contributions by the Government should be halved over a ten-year period.[5]
The Government rejected this recommendation.[6]
During 2013 the enactment of the Rural Research and
Development Legislation Amendment Act 2013, among other things,
allowed statutory research and development corporations to undertake marketing
activities, provided that the relevant funding levy includes a marketing
component.[7]
Over time, however:
The current agricultural levies legislation … has grown … as
industries have chosen to establish statutory levies on more commodities. There
are more than 50 pieces of legislation governing over 110 levies across over 75
commodities and 18 levy recipient bodies.[8]
Although the fundamentals of the reforms brought about by
the Kerin Statement are still fit for purpose, the agricultural levies and
charges system has become a rigid and complex system. The resulting system has placed
a burden on stakeholders.[9]
While retaining the fundamentals of the system, the suite
of Bills seeks to remove complexity and inconsistencies, and to institute
flexibility by enabling quicker changes to occur in subordinate legislation.
Committee
consideration
Senate Selection of Bills Committee
At the time of writing the Senate Selection of Bills Committee
(Report
No. 12 of 2023) deferred consideration of the suite of Bills until its next
meeting.
Senate
Standing Committee for the Scrutiny of Bills
At the time of writing the Senate Standing Committee for
the Scrutiny of Bills has not reported on the suite of Bills.
Policy
position of non-government parties/independents
At the time of writing there has been no commentary in the
press, or by interested parties, on the suite of Bills.
At the time of writing there has been no second reading
debate following the second
reading speech by Kristy McBain, Minister for Regional Development, Local
Government and Territories. The positions of non-Government parties and Independents
are thus not known.
Position of
major interest groups
According to the Explanatory
Memorandum to the Imposition Bills:
In 2019-20, public consultation was undertaken on the early
assessment regulation impact statement (RIS). 66 submissions were received from
levy payers, industry representative bodies (IRBs) and collection agents, and
the department held targeted discussions with research and development
corporations (RDCs), Animal Health Australia (AHA) and Plant Health Australia (PHA).
Stakeholders expressed a clear preference for streamlining and modernising the
legislation … rather than remaking the sunsetting instruments …. Stakeholders
also expressed support for:
- using the Commonwealth’s
regulatory powers framework in the design of the new legislation
- amending the calculation of the [Gross
Value of Production] GVP limit to include data from the three previous
financial years rather than the current and two previous financial years
- removing the total levies limit on
matching funding.
In 2021-22, the department conducted targeted consultation
with IRBs and RDCs to inform the development of the legislation and wrote to
around 7,500 collection agents to provide information about the proposed
approach to the new legislative framework. The main feedback received from the
majority of RDCs related to the definition of R&D. RDCs highlighted the
importance of R&D extension activities and suggested that the definition
should be modernised to ensure that the scope and priorities of the work undertaken
by RDCs are adequately reflected. IRBs provided input to assist with the
redrafting of their levies, including details on how their levies were working
in practice and feedback on proposals to improve consistency of key terms
across the new framework (pp. 22–23 of the Impact Analysis at Attachment A to
the Explanatory Memorandum).
Although the Department of Agriculture, Fisheries and
Forestry (DAFF) has undertaken consultations
as set out above, actual stakeholder submissions have not been published.
Financial
implications
The Explanatory
Memoranda to the Imposition Bills states that the Imposition Bills are estimated
to have no net financial impact on the Budget (p. 4).
The Explanatory
Memorandum to the Collection Bill states that the Collection Bill is estimated to have no net financial impact on the Budget
(p. 4).
The Explanatory
Memorandum to the Disbursement Bill states that because of removing the
total levies limit (clause 23 of the Disbursement Bill) there will be an impact
on the underlying cash balance to the Budget of $8.4 million over the forward
estimates to 2026–27 (p. 4).
The Explanatory
Memorandum to the Consequential Amendments Bill states that it is estimated
to have no net financial impact on the Budget (p. 4).
Special
appropriations
The National Residue Survey Account established in the National Residue
Survey Administration Act 1992 (Part 3) is renamed the National Residue
Survey Special Account by clause 64 of the Disbursement Bill. This will
have no impact on the underlying cash balance of the Budget.
The redundant National Cattle Disease Eradication Account
will be abolished on the repeal of the National Cattle
Disease Eradication Account Act 1991.[10]
This will have no impact on the Budget.
Statement of Compatibility with Human Rights
As required under Part 3 of the Human Rights
(Parliamentary Scrutiny) Act 2011 (Cth), the Government has assessed the
suite of Bills’ compatibility with the human rights and freedoms recognised or
declared in the international instruments listed in clause 3 of that Act. The
Government considers that the Bills are compatible.[11]
Key issues
and provisions
The Imposition
Bills
The Imposition Bills establish the framework for the
agricultural levy system. The changes brought about by the Imposition Bills are
meant to improve the agricultural levy system by providing a consistent
framework for all agricultural excise levies, customs charges, and services
levies.
Regulation-making power
Clause 27 of the Excise Bill, clause 24 of
the Customs Bill, and clause 21 of the Services Bill allow for the making
of regulations. With the repeal of existing levies and charges statutes by Schedule
1 to the Consequential Amendments Bill, ‘existing excise levies and charges in
the agricultural levy system’ will be ‘re-established, in regulations’.[12]
The purpose of the change is to enable quicker and easier adjustments to the
levies and charges system.
Imposing
levies and charges
Part 2 of the Excise Bill and the Customs Bill
allows for regulations to impose a levy (Excises Bill) or a charge (Customs
Bill) on ‘products that are produce of a primary industry’.[13]
Part 2 of the Services Bill allows for regulations to impose a levy on
‘the provision of a specified service that facilitates the production of a
specified product that is produce of a primary industry’.[14]
These parts also allow for the imposition of two or more levies or charges and
allow for regulations to provide exemptions from a levy or charge.[15]
The term produce of a primary industry is defined broadly in each
of the Imposition Bills as being products that result from any of the
following:
- agriculture
or the cultivation of land
- the
maintenance of animals for commercial purposes
- soilless
growing systems, including hydroponics, aeroponics and aquaponics
- controlled
environment cropping, including vertical farming, indoor farming and protected
cropping
- forest
operations
- fishing
- aquaculture
- hunting
or trapping
- picking
or harvesting from the wild
- horticulture
- viticulture
- the
cultivation of fungi or algae
- any
other primary industry activity.[16]
Part 3 of the Excise Bill and Part 3 of the Customs
Bill further provide for the imposition of levies and
charges respectively in relation to ‘goods that are of a kind consumed by, or
used in the maintenance or treatment of, animals, plants, fungi, or algae’, in
the circumstances specified in regulations.[17]
Part 4 of the Excise Bill also imposes a levy on goods
that are for use in the production or preparation of nursery products which are
for sale or use in the commercial production of other goods in circumstances
set out in regulations: clause 13.
Setting the
rate
Part 5 of the Excise Bill, Part 4 of the
Customs Bill, and Part 3 of the Services Bill each stipulate that the
levy rate or charge rate is worked out in accordance with the regulations and
that the components of the levy or charge are prescribed by regulation.[18]
Payer of
the levy or charge
Part 6 of the Excise Bill, Part 5 of the
Customs Bill and Part 4 of the Services Bill provide that a levy or
charge imposed under the Imposition Bills is payable by a person in accordance
with the regulations.[19]
Other
matters
Part 7 of the Excise Bill, Part 6 of the
Customs Bill, and Part 5 of the Services Bill deal with other matters
including provisions dealing with the property of states and GST, as well as
the treatment of partnerships, trusts, and unincorporated bodies and
associations.
Clause 23 of the Excise Bill, clause 20 of
the Customs Bill, and clause 17 of the Services Bill are in equivalent
terms. The clauses provide regulatory consistency across agricultural industry
sectors in the nomination of representative bodies and polling bodies, and
their powers to make recommendations about the rate of a levy or charge.
Representative bodies are made up of industry elected representatives that
advise the Research and Development Corporations (RDCs).
The
Collection Bill
The Collection Bill sets up the framework for the
collection of agricultural levies and charges. It also establishes procedures
for compliance by triggering the monitoring, investigation, and enforcement
powers of the Regulatory
Powers (Standard Provisions) Act 2014 (Regulatory Powers Act).
To reduce complexity and compliance costs, clause 59
empowers the Secretary to make rules by legislative instrument to better secure
the payment of levy or charge. Such rules are limited; for example, they cannot
create an offence or civil penalty, nor can they provide powers of arrest or
detention, nor allow powers of entry, search, and seizure: subclause 59(8).
Payment of
a levy or charge
Part 2 of the Collection Bill establishes the framework of
rules for the collection of levies and charges. The essential features are as
follows:
- Clause
8 stipulates that rules may be made about when a levy or charge is due and
payable and the circumstances in which it may be paid to another entity on
behalf of the Commonwealth.
- Clause
9 provides that where an amount of levy or charge remains unpaid at the end
of the due day, the levy payer or charge payer is liable for a late payment
penalty for the period from the day after the due day until the day before the
whole of the unpaid amount is paid.
- The
Secretary is empowered to remit the whole or part of the penalty having regard
to the matters listed in subclause 9(6).
- Subclause
10(1) allows for rules to be made to provide for collection agents
to pay an amount on behalf of levy or charge payers that is equal to the amount
of levy or charge due—that is, an equivalent amount. In addition,
the rules may specify the time that the equivalent amount is due and payable. According
to the Explanatory
Memorandum to the Collection Bill this ‘would enable the critical role of
collection agents, such as processors and wholesalers, who underpin the
efficient and cost-effective collection of a significant proportion of
agricultural levies and charges’ (p. 22).
- Clause
11 of the Collection Bill provides that a collection agent is liable to pay
to the Commonwealth a late payment penalty where the whole or a part of an
equivalent amount is unpaid at the end of the due day. The penalty period and
the ability of the Secretary to remit the penalty are in equivalent terms to
those relating to a payment by a levy payer or charge payer.
- Clause
12 allows the Commonwealth to make collection agreements with the states
and territories about both the collection by that state or territory of a levy
or charge payable by a levy payer or charge payer; and the collection of
equivalent amounts that a collection agent is liable to pay. In that case, the Secretary
must publish a copy of the collection agreement on its website and in the
Gazette, within 28 days of making the agreement: subclause 12(4).
Recovery
and refund of amounts
Clause 13 provides that unpaid amounts of a levy or
a charge, amounts that a collection agent is liable to pay, and late payment
penalties are debts due to the Commonwealth which are recoverable in a court of
competent jurisdiction. Where any of those amounts has been overpaid the
Commonwealth must refund the amount: clause 14. In the alternative, clause
15 of the Collection Bill allows the Commonwealth, or another entity on
behalf of the Commonwealth to offset the amount that a levy payer or charge
payer is liable to pay against previous overpayments which have not been
refunded.
Civil
penalties
Clauses 17 and 18 of the Collection Bill create
offences and civil penalties for persons who fail to:
- give
a return or notice under the rules or
- make
or keep records in accordance with the rules.
In each case the offence is one of strict liability.
Importantly, the imposition of strict liability means that a fault element does
not need to be satisfied, but the offence will not criminalise honest errors
and a person cannot be held liable if he, or she, had an honest and reasonable
belief that they were complying with relevant obligations.
The civil penalty provisions are framed in equivalent
terms to the strict liability offences. In every case the maximum penalty is 60
penalty units which is $18,780.[20]
Triggering
the Regulatory Powers Act
Part 4 of the Collection Bill deals with
compliance, enforcement, and investigation. Part 4 triggers the operation of
the Regulatory Powers Act, which was enacted to provide for uniformity
of enforcement, monitoring and investigation provisions across Commonwealth
statutes.
According to the Explanatory
Memorandum to the Collection Bill this will ‘provide a more flexible and
proportionate compliance system compared to the existing Primary Industries
Levies and Charges Collection Act 1991 (p. 38).[21]
Monitoring
powers
Under Part
2 of the Regulatory Powers Act, an authorised person
may enter premises for the purposes of monitoring, either with the consent of
the occupier or under a monitoring warrant. If entering the premises under a
monitoring warrant, the authorised person can exercise monitoring powers with
regards to compliance with a provision or the correctness of information given
in compliance with a provision. Monitoring powers include the power to search
premises, the power to examine or observe any activity conducted on the
premises, the power to inspect and examine anything on the premises, the power
to record anything on the premises and the power to inspect and copy any
document on the premises.
Clause 20 of the Collection Bill triggers the monitoring
powers of the Regulatory Powers Act.
Investigation
powers
An authorised person may enter premises for
the purposes of investigation, either with the consent of the occupier or under
an investigation warrant. If entering the premises under an investigation
warrant, the authorised person can exercise investigation powers with regards
to contravention of an offence provision or a civil penalty provision. Investigation powers under Part 3
of the Regulatory Powers Act include the power to search premises for
evidential material suspected to be on the premises, the power to seize
evidential material found on the premises, the power to inspect and examine
anything on the premises, and the power to record anything on the premises.
Clause 21 of the Collection Bill triggers the investigation
powers of the Regulatory Powers Act.
Authorised
person
Subclauses 20(4) and 21(3) of the Collection Bill provide
that a compliance officer is an authorised person. Clause
4 of the Collection Bill defines a compliance officer as the
Secretary or an APS employee in the Department who has been appointed to that
position.
Other
compliance and enforcement tools
The Collection Bill also triggers the Regulatory Powers
Act to:
- enforce
civil penalty provisions in the Collection Bill: clause 22
- allow
for the giving of infringement notices in respect of specified civil penalties
and offences: clause 23[22]
- empower
the Secretary or a delegate of the Secretary to apply to a court for an
injunction to restrain a person from contravening a provision, or to compel
compliance with a provision of the Collection Bill: clause 24.
The
Disbursement Bill
The Disbursement Bill provides for the disbursement of different
components of levies and charges:
- levy
and charge components raised for research and development (R&D) and
marketing are disbursed to declared [23]
and statutory recipient bodies. Most of these bodies also receive
Commonwealth matching payments
- levy
and charge components raised for biosecurity activities and biosecurity
response activities will be disbursed to Animal Health Australia (AHA) and
Plant Health Australia (PHA)
- levy
and charge components raised for residue testing will be credited to the
National Residue Survey (NRS) Special Account.
The relevant recipient bodies are set out in table 1 below:
Table 1: recipient bodies
Explanatory
Memorandum, Disbursements Bill, p. 17.
To enable more flexibility in disbursements clause 90
gives the Minister the power to make rules prescribing matters relevant to the
Disbursement Bill by legislative instrument. Subclause 90(2) allows the
rules to make provision for the Minister or Secretary to make a legislative
instrument, a notifiable instrument, or a written instrument.
What the
Commonwealth must pay to recipient bodies
Clause 15 of the Disbursement Bill requires the
Commonwealth to make payments of the following amounts to recipient bodies:
- amounts
of a levy or charge imposed by a provision prescribed by the rules that have
been made under the Imposition Bills (if enacted) in relation to that body—to
the extent that those amounts are equal to the components of the rate of the
relevant levy or charge prescribed by the rules
- equivalent
amounts paid to a collection agent under paragraph 10(1)(a) of the Collection Bill
(if enacted)
- amounts
by way of late payment penalty under section 9 or 11 of the Collection Bill.
Clause 16 allows the Commonwealth to recover the
costs it has incurred in collecting or recovering levy and charge amounts as
well as its administrative costs from recipient bodies. In that case, the
Secretary must give the recipient body a written notice setting out the amount
of those costs and the time by which they must be paid.
What
declared recipient bodies may spend
Clauses 18–20 of the
Disbursement Bill deal with declared recipient bodies. Clause
18 restricts spending on marketing activities to the amount
that is collected for marketing purposes. Spending on marketing activities
includes the Commonwealth’s costs, refunds and debts to
the extent that they are related to amounts collected for marketing purposes.
It also includes other matters prescribed by the rules. Subclause 18(2)
makes clear that a matter is marketing activities, in relation to the body,
where expenditure on those activities is:
- for
the benefit of a designated primary industry sector in relation to the body
- in
accordance with the body’s funding agreement and
- in
accordance with the rules (if any).[24]
Clause 19 requires a declared recipient body to
spend amounts collected for R&D activities, only on research and
development activities as set out in the clause. Subclause 19(2) provides
that a matter is research and development activities, for a designated primary
industry sector in relation to the body, where expenditure on those activities
is:
- for
the benefit of that sector
- in
accordance with the body’s funding agreement and
- in
accordance with the rules (if any).
Clause 20 allows spending of general amounts on
activities prescribed by the rules, and the Commonwealth’s costs, refunds and
debts related to general collection amounts. The Explanatory
Memorandum to the Disbursement Bill provides that arrangements under the enabling
Acts for declared recipient bodies would be continued through this mechanism
(p.23).
The Explanatory Memorandum to the Disbursement Bills
states that:
Where spending on industry-specific activities is permitted,
these activities would be prescribed in the rules. This is because they are
specific to the needs of a particular industry and do not apply to all declared
recipient bodies.[25]
What
statutory recipient bodies may spend
Clauses 21 and 22 deal with statutory recipient
bodies. The spending requirements replace existing provisions in the Primary Industries
Research and Development Act 1989[26]
and the Wine Australia
Act 2013.[27]
The clauses are in similar terms to those in clauses 18
and 19—that is, they set out the requirements for the spending of amounts of
levy and change components to ensure those amounts are used for the purpose for
which the relevant levy or charge was imposed.
However, the Explanatory
Memorandum to the Disbursement Bill states that the provisions allow:
… statutory recipient bodies established under the PIRD Act
to spend R&D components on activities and expenses that relate to their
general functions and powers as statutory corporations. Arrangements under the
PIRD Act would be continued …. The Wine Act did not provide for this in
relation to the spending of R&D components.[28]
Matching
payments to most recipient bodies
Clauses 23–25 set out the proposed changes to the mechanism
for the Commonwealth to make matching payments for co-investment in R&D as
well as the spending requirements of these matching payments by most (but not
all) recipient bodies. Subclause 23(2) sets out the bodies that are
exceptions to the general rule.
Clause 23 removes a total levies limit imposed by
the current RDC Acts.
Under subclause 23(1) matching payments in the
relevant financial year are limited to 50% of the recipient body’s relevant R&D
expenditure (the expenditure limit) and 0.5% of each industry’s
gross value of production (GVP limit). An explicit carry-over
provision is added in subclause 23(5) which activates if the expenditure
limit in a given financial year exceeds the GVP limit. In that case an amount
equal to the excess is carried over into the next financial year.
Clause 25 modifies the determination of the average
gross value of production used to determine the GVP limit. The current
RDC Acts average the previous two financial years GVP values and the current financial
year’s GVP value to determine the GVP limit. The Imposition Bill proposes averaging
the GVP value of the three previous financial years. The reason is that the
current financial year’s GVP is an estimate, thus subject to adjustment and a
source of financial uncertainty for the relevant RDCs.
Under subclauses 25(2) and (4) the Secretary must
make a notifiable instrument determining an average gross value of production amount
in relation to the recipient body for the relevant financial year. That
instrument must specify each GVP amount the Secretary has used to determine the
average.
Matching
payments to Fisheries Research and Development Corporation
The FRDC has a distinct funding mechanism which is set out
in clauses 26–32 of the Disbursement Bill. According to the Explanatory
Memorandum to the Disbursement Bill:
These industry-specific arrangements reflect the shared
responsibility of the Commonwealth and State and Territory governments for
marine resources. The FRDC has responsibility for research to manage the
fisheries natural resource for the benefit of the Australian community (p. 33).
Essentially the arrangements for the FRDC are as follows:
The Commonwealth is to make matching payments to the FRDC
in relation to the fishing industry (except declared fisheries). The payments
to the FRDC in the relevant financial year would be equal to the sum of payable
amounts worked out under clause 26 being the lesser of:
- the
FRDC’s relevant fishing expenditure amount for the relevant
financial year
- the
amount equal to 0.5% of the average total main fishing industry GVP amount: subclause
26(2)
The FRDC’s relevant fishing expenditure amount
is the sum of the specified expenses listed in subclause 26(3).
Subclauses 26(5), 26(6), 26(7) and 26(8) contain
method statements for working out amounts payable in various circumstances. The
Commonwealth is to make matching payments to a declared fishery using the
method statements set out in clause 27.[29]
Clause 33 (declared recipient bodies) and clauses
34 and 35 (statutory recipient bodies) set out the spending requirements for
matching payments. In each case the clauses establish one consistent set of
provisions for all declared and statutory recipient bodies in the fishing
industry.
The FRDC must spend amounts paid to it under clauses 26
and 27 only for those matters that are permitted by the Disbursement Bill. For an
amount paid under subsection 26(1), a matter is research and
development activities for the fishing industry (except any declared fishery),
where expenditure on those activities is:
- for
the benefit of the fishing industry (except any declared fishery)
- for
the benefit of the Australian community generally
- in
accordance with the Corporation’s funding agreement and annual operational plan
and
- in
accordance with the rules (if any).
For an amount paid under subsection 27(1), a
matter is research and development activities for the declared fishery where
expenditure on those activities is:
- for
the benefit of the declared fishery
- for
the benefit of the Australian community generally
- in
accordance with the Corporation’s funding agreement and annual operational plan
and
- in
accordance with the rules (if any).
Clause 36 sets out the other amounts that the
Commonwealth must pay to the FRDC and the matters that the FRDC may spend those
amounts on.
Funding
agreements with recipient bodies
Clauses 38–41 of the Disbursement Bill consolidate the
rules about funding agreements between the Commonwealth and declared recipient
bodies.
The Minister is empowered to enter into a funding
agreement which may contain conditions: clause 38.
In addition, the Minister may, in writing, declare that a
body is a recipient body only if:
- the
body is registered as a company under the Corporations Act
2001
- there
is a funding agreement in force between the Commonwealth and the body
- the
Minister is satisfied that, if the body is so declared, the body will comply
with its obligations under the funding agreement and the Disbursement Act (when
enacted) and
- the
Minister is satisfied that any other requirements prescribed by the rules are
satisfied: subclauses 39(1) and (3).
That declaration may be revoked by the Minister at the
request of the relevant body or where, amongst other things, the Minister reasonably
believes that the body has contravened the Disbursement Act (when enacted) or
the funding agreement with the body: subclause 40(1).
In addition, the Minister must enter into a funding
agreement with a statutory recipient body. Once that has occurred, the Minister
may vary that agreement or enter into a new funding agreement with the body.
Where the funding agreement is subject to terms and conditions, the body must
comply with them: clause 42.
Other
funding arrangements
Part 3, Part 4, and Part 5 of the
Disbursement Bill largely replicate the existing funding provisions for Animal Health
Australia, Plant Health Australia, and the National Residue Survey. There are
some changes to improve consistency between the organisations. The National Residue Survey Account is renamed the National
Residue Survey Special Account in clause 64 of Part 5 of the
Disbursement Bill.
Other
matters
Part 6 deals with other matters for the purposes of
the Disbursement Bill. Clauses 84 and 85 set out standard provisions for
reconsideration and review of decisions made with respect to the Disbursement
Bill.
Appendix
The schedule of Acts that will be repealed, or made
redundant, is duplicated from the Explanatory Memorandum to the Consequential Amendments
Bill in tables A1 to A4.
Repeals and
main amendments
If the suite of Bills discussed in this Bills Digest is
enacted, then the Consequential Amendment Act would repeal 23 redundant Commonwealth
Acts. The tables below are lists of repeals duplicated from the Explanatory
Memorandum to the Amendments Bill.
Table A1: Repeals
related to the proposed Imposition Acts
Source: Explanatory
Memorandum to the Consequential Amendments Bill, p. 7.
Table A2: Repeals
related to the proposed Collection Act
Source: Explanatory
Memorandum to the Consequential Amendments Bill, p. 7.
Table A3: Repeals
related to the proposed Disbursement Act
Source: Explanatory
Memorandum to the Consequential Amendments Bill, p. 8.
Table A4:
Repeal of other redundant Acts
Source: Explanatory
Memorandum to the Consequential Amendments Bill, p. 9.
The Explanatory
Memorandum to the Consequential Amendments Bill specifies that neither the PIRD
Act nor the Wine Australia Act will be repealed. However, amendments
to the PIRD Act and Wine Australia Act will be made on by
Schedule 2 to the Consequential Amendments Bill:
[by] omitting provisions relating to the disbursement of levy
and charge amounts and matching funding, to reflect the consolidation of
disbursement related provisions into the proposed Disbursement Act to ensure
the agricultural levies legislation remains fit-for-purpose into the future.[30]
Amendments also will be made to a number of other Acts, as
outlined in the Consequential Amendments Bill, to reflect changes in
terminology and the intent of the proposed Imposition Bills, Collection Bill
and Disbursement Bill.