Bills Digest 78 1995-96
Dairy Produce Levy (No. 1) Amendment Bill 1996
WARNING:
This Digest is prepared for debate. It reflects the legislation as introduced
and does not canvass subsequent amendments.
This Digest was available from 14 May 1996
CONTENTS
Date introduced: 1 May 1996
House: House of Representatives
Portfolio: Primary Industries and Energy
Commencement: 1 July 1995, immediately after the commencement
of the Dairy Produce Levy (No.1) Amendment Act 1995.
This Bill amends the Dairy Produce Levy (No.1) Act (the Principal
Act) retrospectively from 1 July 1995 to make the milk levy scheme consistent
with existing industry practices and dairy market support arrangements
under the Dairy Produce Act 1986 administered by the Australian
Dairy Corporation (the Corporation).
The amendments implement Australia's commitments following the Uruguay
round of GATT trade negotiations by making assistance to dairy producers
operate in a clearly defined and transparent scheme.
This Bill should be read in conjunction with the Dairy Produce Amendment
Bill 1996, Dairy Produce Act 1986, the Dairy Produce Levy (No.2)
Act 1986 and the Primary Industries Levies and Charges Collection
Act 1991.
Background
Background to the dairy market support scheme is contained in Bills
Digest No 60/1995 - Dairy Produce Amendment Bill 1995, Bills Digest
No. 61/1995 - Dairy Produce Levy (No.1) Amendment Bill 1995 and Bills
Digest No. 62/1995 - Dairy Produce Levy (No.2) Amendment Bill 1995.
These are available on the PDBS.
Background to the dairy market support scheme is contained in Bills
Digest No 60/1995 - Dairy Produce Amendment Bill 1995, Bills Digest
No. 61/1995 - Dairy Produce Levy (No.1) Amendment Bill 1995 and Bills
Digest No. 62/1995 - Dairy Produce Levy (No.2) Amendment Bill 1995.
These are available on the PDBS.
Item 1 amends the title of the Principal Act by omitting the
words 'of certain dairy produce produced in Australia and a levy upon
certain dairy products produced in Australia' and substituting 'the protein
content of certain dairy produce produced in Australia'.
Item 2 redefines 'market milk' as milk in respect of which a
dairy producer receives a market milk payment. 'Manufacturing milk' is
therefore the total leviable milk less market milk. (This definitional
change is achieved by omitting existing para 5(1)(a) and substituting
a new para which changes the basis of calculating the market milk levy
on relevant dairy produce supplied by the producer during a month ending
before 1 July 2000 to liquid milk for human consumption in Australia in
respect of which the producer receives or is entitled to receive a market
milk payment).
Item 3 amends paras 5(1)(d), (e) and (f) to provide Corporation,
promotion and research levies apply only to milk subject to a manufacturing
levy or market levy and are not imposed on milk consumed, disposed of
or lost on-farm.
Amount of market milk levy
Section 6 specifies the amount of market milk levy imposed by
s.5 on relevant dairy produce processed during a month based on milk fat
and milk protein rates for the specified month. Items 4-6 amend
s.6 by omitting 'processed during' and substituting 'in relation to which
the producer has received, or is entitled to receive, a payment relating
to' a month.
Para 6(a) is amended by inserting the words 'before it leaves the farm
where it was produced'. Para 6(b) is amended by omitting 'produce' and
substituting 'produce before it leaves the farm where it was produced'.
These changes will calculate the market milk levy on the basis of the
market milk payment the producer receives or is entitled to receive and
the specified milk fat and protein content of the milk ex farm. The calculation
is not affected by any later treatment of the milk, for example processing
of modified milk.
Amount of manufacturing milk levy
Items 7 and 8 amend paras 7(2)(a) and (b) by inserting after
produce the words' before it was delivered or used'. This makes the manufacturing
milk levy calculated on the specified milk fat and protein rates ex farm
if delivered to a manufacturer, or immediately prior to on-farm manufacturing
of milk.
Amount of other levies on relevant dairy produce
Item 9 inserts a new subsection (2) specifying the milk content
fat content or the protein content of the relevant dairy produce is the
content of the produce:
- before it leaves the farm where it was produced; or
- before it is delivered to or used by the manufacturer.
Further reading
Gleeson, T, 'Outlook for the Australian dairy industry', Outlook
96, Proceedings of the National Agricultural and Resources Outlook
Conference, Canberra, 6-8 February 1996, Vol.2 Agriculture, ABARE, p.253.
Tonkin, G, 'The Australian Dairy Corporation's role in a deregulated
world', Outlook 96, Proceedings of the National Agricultural and
Resources Outlook Conference, Canberra, 6-8 February 1996, Vol.2 Agriculture,
ABARE, p.263.
Hill, B, 'Competition, cooperatives and deregulation' Outlook 96,
Proceedings of the National Agricultural and Resources Outlook Conference,
Canberra, 6-8 February 1996, Vol.2 Agriculture, ABARE, p.272.
Sarah O'Brien Ph. 06 277 2433
13 May 1996
Bills Digest Service
Parliamentary Research Service
This Digest does not have any official legal status. Other sources should
be consulted to determine whether the Bill has been enacted and, if so,
whether the subsequent Act reflects further amendments.
PRS staff are available to discuss the paper's contents with
Senators and Members and their staff but not with members of the public.
ISSN 1323-9032
© Commonwealth of Australia 1996
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Published by the Department of the Parliamentary Library, 1996.
This page was prepared by the Parliamentary
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Last updated: 14 May 1996
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