Kristy McBain (Eden-Monaro, Australian Labor Party, Minister for Regional Development, Local Government and Territories) Share this | Hansard source

I move:

That this bill be now read a second time.

The agriculture, fisheries and forestry sectors are major contributors to the Australian economy.

Their combined gross value of production is expected to be worth $86 billion in 2023-24. In 2022-23 agriculture, fisheries and forestry sectors made up 12.1 per cent of our exported goods and services and employed 2.2 per cent of our workforce.

The government recognises the importance of these sectors and the contribution they make to our rural and regional communities and the overall national interest.

We're focussing on priority areas of climate, biosecurity, workforce and trade to bring benefits to industry and to rural communities.

This will help strengthen the competitiveness and productivity of our agriculture, fisheries and forestry sectors and keep them on a path towards their goal of growing to $100 billion by 2030.

Having an effective agricultural levy system is critical to this goal.

The agricultural levy system is a longstanding, successful partnership between industry and the Australian government to facilitate industry investment in strategic activities.

It allows primary industries to collectively invest in research and development, marketing, biosecurity activities, residue testing and biosecurity responses.

These investments are managed by the 15 rural research and development corporations (RDCs), along with Plant Health Australia, Animal Health Australia, and the National Residue Survey, which sits in the Department of Agriculture, Fisheries and Forestry.

Each year these bodies receive around $600 million in levies from farmers, producers, processors and exporters. In addition, more than $300 million is provided on average each year by the Australian government to the RDCs in matching funding for research and development.

The RDCs are the cornerstone of the agricultural innovation system. Their investments are helping capitalise on the significant opportunities that exist for agriculture, fisheries and forestry—new products, new markets and more sustainable low-emission practices. ABARES tells us that for every dollar invested in agricultural R&D, there is close to an eight-fold benefit to farmers.

Continuing to invest in R&D will be even more important in coming years as we ramp up efforts to reduce emissions and adapt to a changing climate.

And the work of Plant Health Australia, Animal Health Australia and the National Residue Survey is critical to Australia's biosecurity system and our access to international markets.

The levy system in its current form has been in place for over 30 years and is the envy of the world.

It allows government to collect levies at industry's request that can be invested in priorities that could not be funded by many primary producers on their own.

However, as the legislative framework that supports the system has grown, it has become overly complex and inconsistent, making it difficult to understand and administer.

There are more than 50 pieces of legislation governing over 110 levies across over 75 commodities and 18 levy recipient bodies.

A 2018 review of the agricultural levies legislation found the legislative framework is necessary for a successful industry-government arrangement, but the current legislation is ineffective in meeting industries' needs now and in the future.

The package of agricultural levies bills will replace the existing framework with more contemporary, flexible and efficient legislation that better supports the system.

The new framework, once enacted, will condense over 50 pieces of legislation down to five acts and associated subordinate legislation.

The new framework will provide the RDCs with more certainty about the matching funding they receive from the Commonwealth for research and development activities.

It will provide for more flexible and proportionate compliance measures supporting levy collection.

And by allocating all levy details in subordinate legislation, the new framework will make it easier for industries seeking to establish a new levy or to adjust the settings of their existing levies.

The legislation will also operate separately from the new biosecurity protection levy.

The new framework will also provide a solid foundation on which to base any broader future reforms to further improve the operation of the agricultural levy system.

The key features of the framework will remain the same. The new framework will not change existing levy or charge rates and will continue to support the fundamental principles of the industry-led system.

The Primary Industries (Excise) Levies Bill 2023 is one of five bills that will streamline and modernise the agricultural levies legislative framework.

It is one of three bills in this package that will enable imposition of excise levies, customs charges and services levies. The two other imposition bills are the Primary Industries (Customs) Charges Bill 2023 and the Primary Industries (Services) Levies Bill 2023.

The three imposition bills will enable existing excise levies and customs charges to be re-established in regulations, as well as enabling levies to be imposed on certain agricultural services.

They include requirements for industry consultation when a new or amended levy or charge is proposed, before the new regulations are made.

The three imposition bills will replace five current levy and charge imposition acts.

Alongside the three imposition bills are two companion bills: the Primary Industries Levies and Charges Collection Bill 2023 and the Primary Industries Levies and Charges Disbursement Bill 2023.

A separate bill, the Primary Industries (Consequential Amendments and Transitional Provisions) Bill 2023, is also being introduced to manage the consequential changes and arrangements required to ensure a smooth transition to the new framework.

This package of bills is the result of extensive consultation over several years to ensure the new framework meets the needs of those who use and benefit from the agricultural levy system.

Together, these bills will establish a new legislative framework that provides the basis for a more effective and efficient levy system that will support more sustainable, competitive and productive agriculture, fisheries and forestry sectors now and into the future.

Debate adjourned.

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