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2013-2014-2015-2016
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
THE HOUSE OF REPRESENTATIVES
PRIMARY INDUSTRIES LEVIES AND CHARGES COLLECTION AMENDMENT
BILL 2016
EXPLANATORY MEMORANDUM
(Circulated by authority of the Minister for Agriculture and Water Resources,
the Hon. Barnaby Joyce MP)
PRIMARY INDUSTRIES LEVIES AND CHARGES COLLECTION AMENDMENT
BILL 2016
GENERAL OUTLINE
The Primary Industries Levies and Charges Collection Amendment Bill 2016 (the Bill)
makes legislative changes to the Primary Industries Levies and Charges Collection Act 1991
(the Act), which will allow the Department of Agriculture and Water Resources (the
department) to provide levy and charge payer (levy payer) information to the rural research
and development corporations (RDCs) for the purpose of developing levy payer registers.
As it stands, the Act only permits the distribution of levy payer information to the wool and
dairy RDCs. This Bill remedies this by allowing the government to provide levy payer
information to the thirteen other RDCs.
Levy payer registers allow RDCs to identify and consult directly with the levy payers who
fund the research and development (R&D) system, and ensure accuracy in the allocation of
voting entitlements. Through greater levy payer engagement in their work, RDCs will be
better able to align research investments to industry priorities; improve returns to farmers,
fishers and foresters; and contribute to a more profitable, competitive and sustainable
agricultural sector.
The Bill removes the legislative impediment to the development of levy payer registers.
However, recognising that a 'one size fits all' approach would not be appropriate given the
diversity of Australian agricultural industries, the Bill allows for the distribution of levy payer
information to an RDC to occur only where an RDC, in consultation with industry, requests
it, and that request is approved by the Minister for Agriculture and Water Resources. The
department would then work with RDCs on the administrative design and development of a
register. This is consistent with the government's approach to the broader R&D levy system,
where levies can be introduced or amended at the request of industry.
The Bill allows an authorised person to provide levy payer contact information, and details of
the levy paid or payable, to an eligible recipient. An authorised person is a person appointed
by the Secretary of the Department of Agriculture and Water Resources (the Secretary) under
section 26 of the Act and as defined in section 4.
The Bill defines an eligible recipient as an RDC or the Australian Bureau of Statistics (ABS).
As such, the Bill also provides for levy payer information to be distributed to the ABS to
perform any of its functions under the Australian Bureau of Statistics Act 1975. This is
consistent with the government's Public Data Policy Statement, which commits to securely
share data between Australian Government entities to improve efficiencies, and inform policy
development and decision making.
The Bill sets out the purposes for which the information provided to the eligible recipient can
be used. This includes matters relating to the development and maintenance of levy payer
registers, the ability to make public any statistical, de-identified information, and for any
functions required of the recipient under Commonwealth laws or under a funding agreement
between the RDC and the Commonwealth. RDCs will also be able to use levy payer registers
to allocate voting rights for industry polls more efficiently and accurately, without the need
for paper-based statutory declarations.
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The Bill also allows the Secretary to provide, by legislative instrument, for other information
relating to the production or processing of a commodity to be given to an eligible recipient.
This will allow additional industry-specific data, which may be collected by the department,
to be distributed to the relevant RDC or the ABS. This could include information on the area
of production, inputs, or production or processing methods used in relation to a particular
commodity.
The Bill does not permit secondary disclosure of information included in a levy payer
register, except in limited circumstances and where expressly permitted by the Secretary in
writing. This aims to protect the integrity and security of levy payer personal information.
Such circumstances could include provision of information to an information technology
company engaged by an RDC to deliver data management services, or to an industry
representative body for consulting levy payers on R&D plans or demonstrating industry
support for a levy amendment proposal. The administrative arrangements will enable levy
payers to opt-out of receiving information from industry representative bodies, should they
choose to do so.
Such limits do not apply to the disclosure of personal information to an individual to whom
that personal information relates, as per the Privacy Act 1988. The Bill allows for the
Secretary to delegate to a Senior Executive Service employee in the department the power to
permit secondary disclosure, as the matter relates to the administrative operations of the rural
RDCs.
The RDCs and the ABS are considered APP entities and their use of personal information is
therefore subject to the Australian Privacy Principles, which are outlined in Schedule 1 of the
Privacy Act 1988.
The Bill maintains current practices for distribution of the name and address of the person or
body that lodges levy returns with the department, to RDCs, industry representative bodies
and others. In limited situations, the person that lodges returns is also the levy payer (e.g. in
the turf industry).
The Bill makes consequential amendments to the Australian Meat and Live-stock Industry
Act 1997 and the Dairy Produce Act 1986. These amendments repeal similar limitations on
the use of levy payer information by the dairy, and meat and livestock RDCs, as these are
now captured in section 27(B) of the Bill. The consequential amendments also include
savings provisions to ensure that these previous limitations on the use of levy payer
information continue to apply to information provided before the commencement of the Bill.
The Bill also makes consequential amendments to the National Residue Survey
Administration Act 1992 (NRS Act) to add the new section 27A to the parts of the Act that
are not affected by section 11 of the NRS Act.
Background
The development of levy payer registers has been identified in a number of reviews and
inquiries as important to the ongoing strength of Australia's rural R&D system. The Senate
Rural and Regional Affairs and Transport References Committee's inquiry into Industry
structures and systems governing the imposition of and disbursement of marketing and R&D
levies in the agricultural sector recommended legislative amendments to allow for the
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development of levy payer registers, to improve consultation with levy payers and ensure the
accurate allocation of voting entitlements.
The Agricultural Competitiveness White Paper identifies a number of measures aimed at
improving Australia's world-leading rural R&D system. These measures and the outcomes
they seek to deliver--including new R&D priorities, improved governance of RDCs and
increased funding for the Rural Industries Research and Development Corporation--will
benefit from timely improvements to consultation between RDCs and levy payers.
Financial impact statement
This Bill has no financial impact.
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Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Primary Industries Levies and Charges Collection Amendment Bill 2016
This Bill is compatible with the human rights and freedoms recognised or declared in the
international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny)
Act 2011.
Overview of the Bill
The Primary Industries Levies and Charges Collection Amendment Bill 2016 (the Bill)
makes amendments to sections 27 and 29 of the Primary Industries Levies and Charges
Collection Act 1991, and adds sections 27A and 27B. It also makes consequential
amendments to the Australian Meat and Live-stock Industry Act 1997, the Dairy Produce Act
1986 and the National Residue Survey Administration Act 1992.
The Bill will allow the Department of Agriculture and Water Resources to provide levy payer
information to the rural research and development corporations (RDCs) for the purpose of
developing levy payer registers. As it stands, the Act only permits the department to
distribute levy payer information to the wool and dairy RDCs. The Bill remedies this by
allowing the government to provide levy payer information to the thirteen other RDCs
(proposed section 27A).
Levy payer registers will allow RDCs to identify and consult directly with the levy payers
who fund the research and development (R&D) system, and ensure accuracy in the allocation
of voting entitlements. Improved consultation and voting systems were identified as critical
for the ongoing strength of Australia's rural R&D system in the Senate Rural and Regional
Affairs and Transport Committee's inquiry into Industry structures and systems governing
the imposition of and disbursement of marketing and R&D levies in the agricultural sector.
Through greater engagement with levy payers, RDCs will be better able to align research
investments to industry priorities; improve returns to farmers, fishers and foresters; and
contribute to a more profitable, competitive and sustainable agricultural sector.
The Bill also provides for levy payer information to be provided to the Australian Bureau of
Statistics (ABS). This is consistent with the government's Public Data Policy Statement,
which commits to securely share data between Australian Government entities to improve
efficiencies, and inform policy development and decision-making.
Human rights implications
The Bill engages the right to protection against arbitrary and unlawful interferences with
privacy in Article 17 of the International Covenant on Civil and Political Rights (ICCPR).
This right may be subject to permissible limitations, provided they are authorised by law and
not arbitrary. In order for an interference with the right to privacy to be permissible, the
interference must be authorised by law, be for a reason consistent with the provisions, aims
and objectives of the ICCPR, and be reasonable in the particular circumstances. The United
Nations Human Rights Committee has interpreted 'reasonableness' in this context to imply
that any interference with privacy must be proportional to the end sought and be necessary in
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the circumstances of any given case. The collection, use, storage and sharing of personal
information engages this right.
The Bill provides for levy payer information to be disclosed to and used by an RDC and the
ABS. Paragraph 27A(1) of the Bill sets out information to be distributed, including the name,
address, contact details and Australian Business Number of a levy or charge payer. As
primary producers are often family farms, levy payer information would sometimes be
personal information, as defined by section 6(1) of the Privacy Act 1988, and would allow for
an individual to be identified and contacted by an RDC. Such information may also be
provided to the ABS in fulfilling its functions. The authorisation of the use and disclosure of
this information is provided for under law.
The Privacy Act 1988 regulates the handling of personal information about individuals and
implements Australia's obligations, as a party to the ICCPR, regarding privacy. The RDCs
and the ABS are considered APP entities and their use of personal information is therefore
subject to the Australian Privacy Principles, which are outlined in Schedule 1 of the Privacy
Act.
Further, section 27B of the Bill sets out the purposes for which levy payer information
provided to eligible recipients can be used. This is limited to matters relating to the
development and maintenance of levy payer registers; the ability to make public any
statistical, de-identified information; and for any functions required of the recipient under
Commonwealth law or under a funding agreement between the RDC and the Commonwealth.
The Bill does not provide for levy payer information to be used for agri-political purposes.
On this basis, the disclosure of personal information under the Bill is not arbitrary, as it is
only permitted for specific uses which directly relate to improving consultation, voting
systems and the operations of an RDC or allow the ABS to fulfil its functions.
In addition, subsection 27B(4) of the Bill does not permit secondary disclosure of information
included in a levy payer register, except where expressly permitted by the Secretary in
writing. This is to protect the integrity and security of levy payers' personal information,
while still allowing some flexibility for information to be used for broader research and
development, marketing, National Residue Survey or bisoecurity purposes, under subsection
27B(6). For example, the Secretary may permit an RDC to employ an information technology
company for data management services, or an industry representative body to access levy
payer information to consult on amendments to a levy.
On this basis, the proposed measures in the Bill are consistent with the right to protection
against arbitrary and unlawful interferences with privacy under Article 17 of the ICCPR.
Conclusion
This Bill is compatible with human rights because the limitations outlined above are
reasonable, necessary and proportionate.
The Hon. Barnaby Joyce MP, Minister for Agriculture and Water Resources
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PRIMARY INDUSTRIES LEVIES AND CHARGES COLLECTION AMENDMENT
BILL 2016
Notes on items
Clause 1 Short title
1. Clause 1 provides that the Act may be cited as the Primary Industries Levies and
Charges Collection Amendment Act 2016.
Clause 2 Commencement
2. Clause 2 provides a schedule for commencement.
3. All items in the Bill that are not covered under Schedule 1 commence on the day this Act
receives Royal Assent.
4. Items included under Schedule 1 will commence on the day after this Act receives Royal
Assent.
Clause 3 Schedules
5. Clause 3 enables Schedule 1 to have effect.
Schedule 1--Amendments
Part 1--Main amendments
Primary Industries Levies and Charges Collection Act 1991
Item 1 Paragraph 27(1)(a)
6. Item 1 amends the text of paragraph 27(1)(a) of the Act to allow for the continued
distribution, on request, of the name and address of the person or body that lodges levy
returns with the department to RDCs and industry representative bodies.
7. Section 27(1)(a) of the Act currently allows the department to provide the contact details
of levy or charge payers (levy payers) to RDCs, industry representative bodies, and
others granted access by the Secretary of the Department of Agriculture and Water
Resources (the Secretary). For example, the department provides the apple and pear
industry representative body with information on apple and pear levy collection agents
on a monthly basis.
8. The department does not currently hold the contact details of all levy or charge payers.
Under present arrangements, the department receives only the contact details of those
who lodge levy returns with the department. These are often corporations or
intermediaries, rather than individual levy payers.
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9. It has therefore been the department's practice to provide the contact details of the
person or body that lodges levy returns with the department to RDCs, industry
representative bodies and other interested parties, on a case-by-case basis, under section
27(1)(a) of the Act.
10. The amendments proposed in this Bill will mean the department may receive the contact
details of individual levy payers. It is not the intention of this Bill to allow individual
levy payer contact details to be provided to any interested party. The amendments to the
text of paragraph 27(1)(a) of the Act therefore maintain current arrangements for the
provision of information to interested parties.
Item 2 Subsections 27(3), (3A) and (4)
11. Item 2 repeals subsections 27(3), (3A) and (4) of the Act.
12. Subsections 27(3) and (3A) of the Act allowed for levy payer information to be
distributed to RDCs in the wool and dairy industries respectively. The effect of these
subsections will be incorporated into section 27A of the Bill at Item 3.
13. The repeal of these subsections will not impact on the ability of the wool and dairy
industries to receive levy payer information, as is currently set out in subsections 27(3)
and 27(3A) of the Act.
14. The repeal of subsection 27(4) of the Act removes definitions that are no longer
required, or replaced by new definitions of eligible recipient and Australian Business
Number (ABN) in Item 3. An eligible recipient is defined as an RDC or the Australian
Bureau of Statistics, as outlined at paragraph 18 and 19 below. An ABN is as defined in
section 41 of the A New Tax System (Australian Business Number) Act 1999.
Item 3 After section 27
15. Item 3 introduces two new sections, 27A and 27B, after section 27.
16. Subsection 27A(1) of the Bill outlines the information that can be provided to an eligible
recipient. Paragraph 27A(1)(a) of the Bill enables the name, address, contact details and
ABN of any person who has paid, or is liable to pay, a levy or charge on an agricultural
product to be given to an eligible recipient. Paragraph 27(1)(b) of the Bill enables
information relating to the amount of levy or charge that each levy or charge payer has
paid, or is liable to pay, for each leviable commodity to be given to an eligible recipient.
17. This section of the Bill provides for the separate amounts of several different levies or
charges paid, or payable, by a single levy or charge payer to be provided to an eligible
recipient. For example, where a single grower produces and pays a levy on potatoes and
onions, the relevant RDC would receive information on the separate amounts of levy
paid on the potatoes and onions, rather than the total amount of levy paid for both
commodities.
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18. Paragraph 27A(1)(c) of the Bill provides for the authorised person to also give
production or processing information about a collection product to an eligible recipient.
This allows additional industry-specific data which may be collected by the department
to be distributed to the relevant RDC or the Australian Bureau of Statistics. For example,
this could include information on the area of production, inputs or production or
processing methods used in relation to a particular commodity.
19. Subsection 27A(2) of the Bill provides a definition for eligible recipients, which includes
all current rural RDCs (paragraphs 27A(2)(a)-(k) of the Bill) and the Australian Bureau
of Statistics (paragraph 27A(2)(l) of the Bill).
20. Providing levy payer information and production or processing data to the Australian
Bureau of Statistics aligns with the government's commitment in its Public Data Policy
Statement to securely share data between Australian Government entities to improve and
inform policy development and decision-making.
21. The authorised officer will only provide levy payer information to the RDC which is
relevant to the leviable commodity. This is in line with current arrangements for
providing information under 27(1) of the Act.
22. Section 27B of the Bill describes the purposes for which an eligible recipient can use
levy payer information provided to it under subsection 27A(1) of the Bill.
23. Under subsection 27B(1), uses of this information by an RDC relate to the maintenance
of a levy payer register, the publication of statistical, de-identified information (for
example, within research papers) and in performing any of an RDCs' functions under a
law of the Commonwealth or a contract (or similar) between the Commonwealth and an
RDC.
24. Subsection 27B(2) allows an RDC to use levy payer information to determine eligibility
to be a member or a shareholder of the RDC.
25. Subsection 27B(3) allows the Australian Bureau of Statistics to use levy payer
information in performing any of its functions under the Australian Bureau of Statistics
Act 1975.
26. This item also expressly prohibits secondary disclosure of any levy payer information
provided under subsection 27A(1) of the Bill. This aims to protect the integrity and
security of levy payers' personal information. This does not limit the disclosure of an
individual's information to the person to whom it relates.
27. In limited circumstances, the Secretary can permit, in writing, secondary disclosure of
this information. Such circumstances could include provision of information to an
information technology company engaged by an RDC for data management services.
The Secretary could also allow an industry representative body to access levy payer
information to consult on amendments to a levy or to consult on an RDC's R&D plan,
for example. Subsection 27B(7) of the Bill states that an approval by the Secretary of
secondary disclosure is not a legislative instrument for the purposes of the Legislative
Instruments Act 2003. This provision is included to assist readers.
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Item 4 At the end of subsection 29(1)
28. Subsection 29(1) of the Act allows for the Secretary to delegate any of his or her powers
under the Act, except for the powers under section 26 (Appointment of authorised
persons). Item 4 adds the powers under sections 27A and 27B of the Bill to the list of
powers that the Secretary cannot delegate.
Item 5 After subsection 29(1)
29. Item 5 allows for the Secretary to delegate his or her powers under subsection 27B(4) of
the Bill to a departmental officer at, or acting at, an SES Band 1 or 2 level. The power
provided for under subsection 27B(4) of the Bill relates to the Secretary being able to
permit secondary disclosure of levy payer information. This is included as the matter
relates to the administrative operations of the rural RDCs.
Item 6 Application provisions
30. The application provisions set out under Item 6 provide for information given to eligible
recipients under paragraphs 27A(1)(a)-(c) of the Bill to include information in relation
to the financial year in which Schedule 1 commences or in a later financial year.
Part 2--Consequential amendments
Australian Meat and Live-stock Industry Act 1997
Item 7 Division 5 of Part 3
31. Item 7 repeals Division 5 of Part 3 to the Australian Meat and Live-stock Industry Act
1997 (AMLI Act). Division 5 of Part 3 sets out the uses for which a body declared under
section 60 of the AMLI Act could use information provided to them under subsection
27(1) of the Act. The purposes for which such information can be used are now included
under the new section 27B of the Bill.
Item 8 Saving provision
32. Item 8 ensures that any information provided to a body declared under section 60 of the
AMLI Act prior to the commencement of Schedule 1, will continue to be subject to
Division 5 of Part 3 of the AMLI Act.
Dairy Produce Act 1986
Item 9 Section 8
33. Item 9 repeals section 8 of the Dairy Produce Act 1986. Section 8 sets out the uses for
which the dairy industry services body (currently declared as Dairy Australia) could use
information provided to it under subsection 27(3A) of the Act. The purposes for which
such information can be used are now included under the new section 27B of the Bill.
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Item 10 Saving provision
34. Item 10 ensures that any information provided to the declared dairy industry services
body (Dairy Australia) prior to the commencement of Schedule 1, will continue to be
subject to section 8 of the Dairy Produce Act 1986.
National Residue Survey Administration Act 1992
Item 11 Subsection 11(6)
35. Item 11 amends the National Residue Survey Administration Act 1992 (NRS Act) to add
the words 'or 27A' to the parts of the Primary Industries Levies and Charges Collection
Act 1991 that are not affected by section 11 of the NRS Act.
36. Section 11 of the NRS Act is not designed to impact on the operation of section 27 or
section 27A with this amendment of the Primary Industries Levies and Charges
Collection Act 1991.
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