Alerts
5/18/2009 - Basic Information about Livestock Industry Levies
BRIEF:
Australian Horse Industry Council Inc. -
Basic information about Livestock Industry Levies
What are levies?
A levy is a way for animal owners to make a contribution towards the cost of various programs that are run for the benefit of the industry. There is no other way for these programs to be funded.
Why are levies in place?
Monies collected from levy payments are used to pay for promotion and marketing, research and development, disease management, biosecurity training, and any other program that benefits animals and animal owners. Levy payments are also used to fund programs run by Animal Health Australia.
Who proposes levies?
A levy for a livestock industry is proposed by the industry after consultation with participants.
Who pays levies?
A levy is paid by animal owners.
When are levies paid?
A levy is paid by an animal owner at the same time as some other transaction involving animals or animal products. For example, in the cattle and sheep industries a levy is paid at the same time as an animal is sold, or when animal products (for example meat, milk, wool) are sold.
Who collects levies?
Levies are collected by an industry organisation which conducts transactions with animal owners. In the cattle and sheep industries these organisations are livestock sellers, dairy companies, wool brokers, and abattoirs. These organisations then consolidate all the individual levies collected and send them on a regular basis to the Levies Revenue Service.
Is a levy paid at every specified transaction in other livestock industries?
Animal owners must contribute a levy amount at each specified transaction. The levy amount is calculated the same way for each transaction and everybody in the industry operates under the same rules. The requirement to make a levy contribution is independent of the economic value of the transaction.
Is a levy still payable if the transaction is at a loss to the animal owner?
The requirement to pay a levy is triggered by the transaction and is still in place even if the transaction is done at an economic loss to the animal owner.
Who oversights and audits levies?
The Australian Government legislates for, collects and distributes levies on behalf of the industry. This is done by the Levies Revenue Service in the Department of Agriculture, Fisheries and Forestry.
Why does the horse industry need a levy?
The horse industry needs horse owners to contribute to various programs that are undertaken for the benefit of the entire horse industry. Currently there is no industry wide funding of research and development, promotion, education and training, animal welfare, or Animal Health Australia programs which benefit all horse owners.