Anthony Chisholm (Queensland, Australian Labor Party, Assistant Minister for Education) Share this | Link to this | Hansard source

CHISHOLM (—) ():  I move:

That these bills be now read a second time.

I seek leave to have the second reading speeches incorporated in Hansard.

Leave granted.

The speeches read as follows—

PRIMARY INDUSTRIES (EXCISE) LEVIES BILL 2023

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 rural communities.

This will help strengthen the competitiveness and productivity of our agriculture, fisheries and forestry sectors and keep them on the 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 long-standing, 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 locating all levy details in subordinate legislation, the new framework will make it easier for industry's 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.

PRIMARY INDUSTRIES (CUSTOMS) CHARGES BILL 2023

The Primary Industries (Customs) Charges Bill 2023 is part of a package of Bills that will streamline and modernise the agricultural levies legislative framework.

This Bill is one of three imposition Bills in the package that will enable the new agricultural levies legislative framework to impose excise levies, customs charges and services levies.

The two other imposition Bills are the Primary Industries (Excise) Levies Bill 2023 and the Primary Industries (Services) Levies Bill 2023.

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 is also being introduced to manage the consequential changes and arrangements to ensure a smooth transition to the new framework.

Together, the package of 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.

PRIMARY INDUSTRIES (SERVICES) LEVIES BILL 2023

The Primary Industries (Services) Levies Bill 2023 is part of a package of Bills that will streamline and modernise the agricultural levies legislative framework.

This Bill is one of three imposition Bills in the package that will enable the new agricultural levies legislative framework to impose excise levies, customs charges and services levies.

The two other imposition Bills are the Primary Industries (Excise) Levies Bill 2023 and the Primary Industries (Customs) Charges Bill 2023.

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 is also being introduced to manage the consequential changes and arrangements to ensure a smooth transition to the new framework.

Together, the package of 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.

PRIMARY INDUSTRIES LEVIES AND CHARGES COLLECTION BILL 2023

The Primary Industries Levies and Charges Collection Bill 2023 is part of a package of Bills to streamline and modernise the agricultural levies legislative framework.

The Collection Bill will replace the Primary Industries Levies and Charges Collection Act 1991.

It will enable collection of existing levies and charges without significantly changing how they are collected, and will provide the framework required for collection of any new levies and charges in the future.

It will trigger monitoring, investigation and enforcement powers of the Regulatory Powers (Standard Provisions) Act 2014. This means more modern and flexible compliance and enforcement tools will be available to support compliance with levy collection requirements. And compliance measures and penalties will be proportionate to the seriousness of the infringement.

This will bring the levy system in line with other Commonwealth regulatory schemes.

The Collection Bill will also provide for the appropriate use and disclosure of information, while ensuring effective safeguards for sensitive information.

Alongside the Collection Bill are four companion Bills:

A separate Bill is also being introduced to manage the consequential changes and arrangements to ensure a smooth transition to the new framework.

Together, the package of 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.

PRIMARY INDUSTRIES LEVIES AND CHARGES DISBURSEMENT BILL 2023

The Primary Industries Levies and Charges Disbursement Bill 2023 forms part of a package of Bills to streamline and modernise the agricultural levies legislative framework.

This Bill will continue to enable investment in strategic activities for the benefit of levied industries.

Levies and charges raised for research and development (R&D) and marketing will continue to be paid to research and development corporations for investment in R&D projects and marketing activities.

Levies and charges raised for biosecurity activities will continue to be paid to Animal Health Australia and Plant Health Australia for investment in animal and plant health and responding to disease and pest outbreaks.

Levies and charges raised for residue testing will continue to be credited to the National Residue Survey Special Account for the monitoring, testing and reporting of pesticides and chemical residues.

The Commonwealth will also continue to match industry investment in R&D through the research and development corporations, to an upper limit of 0.5 per cent of an industry's gross value of production.

The Bill consolidates provisions from 13 funding Acts.

The Bill will make small changes to matching funding to reduce complexity and increase funding certainty for research and development corporations.

This will include the removal of one of the limits on matching funding that relates to the amounts of certain levies and charges disbursed, which is largely redundant and inconsistently applied across industries.

It will also include an earlier determination of the GVP limit, which will provide funding certainty to research and development corporations at the beginning of the financial year.

The Primary Industries Research and Development Act 1989 and Wine Australia Act 2013 will be retained under the new framework and all governance-related provisions will continue to apply to statutory research and development corporations.

Funding agreements between research and development corporations and the Commonwealth will also continue to operate to complement legislative requirements. These set clear expectations for performance, administration of expenses and claims for matching funding.

Alongside the Collection Bill and the three Imposition Bills, this Bill will ensure that the agricultural levy system remains fit for purpose and continues to support collective investment in activities to benefit agricultural, fisheries and forestry industries for generations to come.

PRIMARY INDUSTRIES (CONSEQUENTIAL AMENDMENTS AND TRANSITIONAL PROVISIONS) BILL 2023

The Primary Industries (Consequential Amendments and Transitional Provisions) Bill 2023 forms part of a package of Bills to streamline and modernise the agricultural levies legislative framework.

The Bill will facilitate a smooth transition to the new agricultural levies legislation, including for levy collection and disbursement arrangements and payment of matching funding to research and development corporations.

This Bill will repeal 23 existing Acts that are, or will become, redundant upon commencement of the Bills package. It will also make consequential amendments to a number of other Acts.

Ordered that further consideration of the second reading of these bills be adjourned to the first sitting day of the next period of sittings, in accordance with standing order 111.