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Modernising the agricultural levies legislation

Announcement date
18 October 2023

Link to announcement 
Primary Industries (Excise) Levies Bill 2023

Problem being addressed

The current agricultural levies legislation has been in place since 1989 and has grown over time as industries have chosen to establish statutory levies on more commodities. There are currently more than 50 pieces of legislation governing over 110 levies across over 75 commodities and 18 levy recipient bodies.

A thematic review of the legislative framework for agricultural levies by the then Department of Agriculture and Water Resources in 2017-18 (the Review) found it to be duplicative, complex, opaque, and inflexible. In addition, the Review found administration of the legislation was inefficient. Notwithstanding the identified problems, the Review found that a legislative framework serves the objectives of the levy system and is necessary for the continuation of a successful industry-government arrangement.

Proposal
The proposal would modernise the legislation to support the agricultural levy system by reducing complexity, amending inconsistencies, and improving flexibility. Key changes include adoption of modern compliance arrangements and changes to the methodology underpinning matching funding arrangements. The proposed changes are consistent with the objective of maintaining the purpose and function of the agricultural levy system.

Assessed Impact Analysis outcome
Good practice

Assessment comments
To be assessed as ‘exemplary’ under the Australian Government Guide to Policy Impact Analysis, the Impact Analysis would have benefitted from:

  • Further evaluation of the barriers and risks associated with changes to the levies legislation, including issues drawn from dissenting stakeholder views; and
  • Elaboration of the evaluation approach, including firmer detail on obligations of specific parties, clarification of governance arrangements, and approaches for tracking unintended consequences.

Regulatory burden

The Department of Agriculture, Fisheries and Forestry (DAFF) expects the proposal to impose largely one-off transition costs in the first year of implementation. The average annual cost over 10-years is estimated to be $61,000.

OIA assessment of the Impact Analysis
Insufficient
Adequate
Good practice
Exemplary
Attachment File type Size
Impact Analysis docx 2.15 MB
Impact Analysis pdf 1.58 MB
OIA Assessment docx 129.83 KB
OIA Assessment pdf 287.22 KB
Certification Letter docx 226.75 KB
Certification Letter pdf 69.97 KB