Information Sheet

Why is there a levy on coarse grains?

A levy is payable on Coarse Grains to provide funding for research and development programs administered by the Grains Research & Development Corporation (GRDC) as well as plant health and emergency plant pest response (EPPR) programs administered by Plant Health Australia (PHA).  The Levies Revenue Service (LRS) receives these funds and forwards them to the GRDC and PHA, in addition to distributing the Australian Government’s matching research and development (R&D) contributions.  Some commodities (identified with * below) also have a component included to fund residue testing programs carried out by the National Residue Survey.  Levies and export charges are introduced and administered by the Australian Government at the request of Industry.

What is the levy payable on?

Levy is payable on coarse grains produced in Australia if the producer of the grain delivers the grain to another person (other than for storage) or processes the grain.

The following coarse grains are leviable: barley*, triticale*, oats*, cereal rye, sorghum*, maize*, millet and canary seed.

Who pays the levy and who submits returns?

The producer (the person who owns the coarse grains immediately after harvesting) is liable to pay the levy.

Where a producer sells coarse grains via an intermediary, such as a purchaser, buying agent, selling agent, merchant or processor; the intermediary is liable to pay levy on behalf of the producer.  The intermediary must forward the levy to LRS along with return forms which are available from all LRS offices or by accessing the LRS website at www.daff.gov.au/agriculture-food/levies .  The intermediary can recover the amount of levy paid from the producer, by offset or otherwise.

Producers who grow and use their own grain commercially (eg feedlotters, piggeries) must submit their own returns and levy as the grain is used.

Producers who process and sell their own grain e.g. registered or certified seed growers, must submit their own returns and levy directly to LRS as the grain is used (see “seed grain” under heading “General Information and Definitions”).

What is the rate of levy on coarse grains?

The levy rate is calculated as a percentage of ‘farm gate value’ (i.e. sale value less storage, handling, freight and ‘free on board’ costs) as follows:

*Barley          1.02% of the farm gate value of the grain
*Triticale        1.02% of the farm gate value of the grain
*Oats            1.02% of the farm gate value of the grain
Cereal Rye     1.005% of the farm gate value of the grain
*Sorghum      1.02% of the farm gate value of the grain
*Maize           0.72% of the farm gate value of the grain
Millet              1.005% of the farm gate value of the grain
Canary Seed  1.005% of the farm gate value of the grain

Note: Levy Rates are current as at 1 December 2010

Australian Government levies exclude Goods and Services Tax (GST).

Are there any exemptions associated with this levy?

• Grain processed# by or for the producer, where the producer uses the grain or all of the products and by-products of the processed grain for domestic purposes but not for commercial purposes is exempt from levy.
• Grain delivered for storage on behalf of the producer where no person is liable to pay the producer for the grain is exempt from levy.
• Levy is not payable by the producer if the total amount of leviable coarse grain delivered by producers to a particular person in a levy year* would amount to a levy liability of less than $25.00.
• Levy is not imposed on popping corn. 

 

When is levy/charge due for payment?

Quarterly Returns:

Quarterly returns with payment must be submitted to LRS on or before the 28th day after the end of the quarters of March, June, September and December.  For example the return and payment for the quarter ending 30 June (i.e. for the months of April, May and June) is due on or before 28 July.
 
There are no provisions for the lodgement of annual, rather than quarterly returns.

General information and definitions

The levy rate is calculated as a percentage of ‘farm gate value’ (i.e. sale value less storage, handling, freight and ‘free on board’ costs).
 
# "Processing" does not mean:

a) treatment with a pesticide or other preserving agent before or during storage; and
b) grading solely for seed purposes.

“Seed Grain”

• Grain produced as seed grain (certified/registered) and sold, is leviable.  The farm gate value of this grain is determined as if it was not seed grain for sowing and had been sold at the market price prevailing on the day the grain was delivered.  Information on sales prices in various locations can be found through the rural press.
• The Peak Industry Body advised that seed which is retained on farm (including that which is cleaned, graded and pickled) for use by the producer as seed for sowing will not attract a levy.

Sale value means:

a) the amount of each pool payment; or
b) in any other case – the sale price of the grain

i. from sales invoices or other documents; OR
ii. in the absence of documents the ruling price when the grain was sold

 
*A levy year for coarse grains is the same as a financial year (i.e. 1st July to 30th June)

What records must be kept, who should keep them & for how long?

People who lodge returns to LRS and people who pay levy/charge to intermediaries are required to keep records supporting the information supplied in returns or information relating to payments made to intermediaries.  These records are to be kept for a period of five (5) years and are to be made available to LRS officers.
 
 For further information or clarification on what records must be kept, who should keep them and for how long please contact your nearest LRS office.

Are there any penalties for late payments or other offences?

Where levy is paid late, penalty will be payable at the rate of 2% per month compounding on the sum of the unpaid amounts, including penalties already accrued, until the outstanding levy has been paid in full.
 
Penalties are also imposed for other breaches of the legislation.
 
For more information please contact your nearest LRS office.
 
Caution: Giving false or misleading information is a serious offence.

How do I lodge my return?

Our preferred method of lodgement is through our new Levies Online System.

Lodge Online by going to www.leviesonline.daff.gov.au/LRSONLINE or

Scan and email a copy of your completed and signed return form to levies.management@daff.gov.au or

Fax a copy of your completed and signed return form to Free Fax 1800 609 150 or

Mail your completed and signed return form to:

Levies Revenue Service
Department of Agriculture, Fisheries and Forestry
Locked Bag 4488
KINGSTON  ACT  2604

If you would like to receive information and reminder notices electronically in the future please ensure that you have included your business email address on your return form.

Contacts:

Levies Online Helpdesk (for technical assistance only):   1800 022 384

State Offices (for all other assistance):
Adelaide (SA, NT & TAS)  1800 814 961
Brisbane   1800 647 801
Melbourne  1800 683 839
Perth   1800 895 506
Sydney (NSW & ACT) 1800 625 103

How do I make payment?

Our preferred method of payment is Electronic Funds Transfer (EFT).  Payments by EFT are secure and assist to reduce processing time and minimise errors.

EFT  Electronic Funds Transfer (preferred method of payment)

Transfer your payment to the following bank account:

Bank Reserve Bank of Australia
BSB 092009
Account Number 111700
Account Name AFFA Official Administered Receipts

Reference
Please enter the prefix LRS followed by your LRS Account Number and your business name in the reference/description. (e.g. LRS12345 AZ Wholesale)

Alternatively, you can pay your levies by mailing a cheque or money order (made payable to Levies Revenue Service) along with your return form to the address above.

What is the levies revenue service?

The LRS is a branch within the Australian Government Department of Agriculture, Fisheries and Forestry (DAFF) and is responsible for the effective administration, collection and disbursement of levies and charges imposed by Commonwealth legislation on a range of rural commodities and products. LRS is also responsible for distributing the Australian Government’s matching funds for research and development, the basis of which is determined by legislation. Funds are disbursed to the relevant Research and Development (R&D) and Marketing bodies, Animal Health Australia, Plant Health Australia and the National Residue Survey.

LRS collects over 70 different levies and charges from a client base of over 9,000 levy payers.

For more information about LRS, please visit our website at www.daff.gov.au/levies.

What legislation is associated with this levy/charge?

The levy is imposed and collected under the following legislation:

Primary Industries (Excise) Levies Act 1999
Primary Industries Levies and Charges Collection Act 1991
National Residue Survey (Excise) Levy Act 1998
and associated legislation

Please be advised that under section 27 of the Primary Industries Levies and Charges Collection Act 1991 (PILCC Act 1991) an authorised person is able to release the names and addresses of levy payers to industry bodies and recipient organisations.

Copies of the legislation may be obtained via the Internet at www.comlaw.gov.au or purchased from Canprint Information Services by phoning 1300 656 863.

This information sheet is a guide only and does not substitute for the relevant legislation.

Who can I contact about levies?

For more information please contact the LRS office in your State. For those in South Australia, the Northern Territory or Tasmania please contact the Adelaide office. 

Canberra – Central Office Telephone 1800 020 619 Fax 1800 609 150	Melbourne Telephone 1800 683 839 Fax 03 9322 5500
Adelaide (SA, NT & TAS) Telephone 1800 814 961 Fax 08 8201 6099	Perth Telephone 1800 895 506 Fax 08 9334 1677
Brisbane Telephone 1800 647 801 Fax 07 3716 9177	Sydney Telephone 1800 625 103 Fax 02 8334 7135
E-mail us at: Levies Management	Visit our Web site: www.daff.gov.au/levies

July 2011