Information Sheet

Why is there a levy/charge on cherries?

A levy or an export charge is payable on cherries to provide funding for research and development and marketing carried out via Horticulture Australia Limited (HAL). DAFF-Levies receives the funds and forwards them to HAL, in addition to distributing the Australian Government’s matching research and development (R&D) contributions. Levies and export charges are introduced and administered by the Australian Government at the request of Industry.

What is the levy/charge payable on?

Levy is payable on fresh cherries produced and sold in Australia.

Export charge is payable on fresh cherries produced in and exported from Australia.

No export charge is payable if domestic levy has already been paid on the cherries to be exported.

Who pays the levy/charge and who submits returns?

The producer (the person who owns the cherries immediately after they are harvested) is liable to pay the levy.

Where a producer sells their produce via an intermediary, such as a first purchaser, buying agent, selling agent or merchant; 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. The intermediary can recover the amount of levy paid from the producer, by offset or otherwise.

A producer who sells cherries by retail sale i.e. direct to the consumer such as at roadside stalls, shed sales, farm gate, etc. must submit levy and returns directly to the LRS.

In the case of the Export Charge, the producer, defined as the person who exports the product from Australia (the owner of the product at the time of export), is liable to pay the charge. This person must forward export charge to the LRS along with return forms. If the product is exported through an exporting agent, the agent is liable to pay the charge on behalf of the producer and submit it along with return forms to LRS. The exporting agent can recover the amount of charge paid from the producer (the owner of the product at the time of export).

The export charge is not payable if domestic levy has already been paid on the cherries to be exported.

What is the rate of levy/charge on cherries?

The rate of domestic levy and export charge for cherries is calculated as follows:

Cherries 7 cent per kilogram

Note: Levy Rates are current as at 1 January 2012.

Australian Government levies exclude Goods and Services Tax.

Are there any exemptions associated with this levy/charge?

Cherries sold or used in a levy year* by a producer for processing are exempt from levy or charge.

When is levy/charge due for payment?

Annual Return

A Cherry levy year begins on 1 April and ends on 31 March the following year.

Returns with payment are due on or before 28 April. For example, if you were submitting a return for the period of 1 April 2012 to 31 March 2013, the return and payment would be due on 28 April 2013.

Please Note: For the Cherry levy year 2011–2012, Cherry levy payers are required to submit their annual returns spanning the period from 1 February 2011 to 31 March 2012 (a period of 14 months). Returns with payment will be due on or before 28 April 2012.

General information and definitions

The levy and export charge rate is calculated on a per kilogram basis.

‘Retail sale’ means a sale of cherries by the producer other than a sale to a first purchaser or through an agent e.g. sales by the producer direct to the consumer such as at roadside stalls, shed sales, farm gate etc.

* A levy year for cherries is a period of 12 months beginning on 1 April in a year and concluding on 31 March in the following year.

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/export charge 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/export charge has been paid in full.

Penalties are also imposed for other breaches of the legislation.

For more information please contact your nearest DAFF-Levies office.

Giving false or misleading information is a serious offence.

How do I lodge my return?

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

• Lodge Online via the Levies Online System 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:
  
  DAFF-Levies
  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.

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.

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 DAFF-Levies) along with your return form to the address above.

What is DAFF-Levies?

DAFF-Levies is part of 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. DAFF-Levies 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.

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

For more information please visit the DAFF-Levies website.

What is Horticulture Australia Limited?

Horticulture Australia Limited (HAL) is an organisation whose aim is to develop Australian horticulture by providing comprehensive and professional R&D and marketing services to over 30 different organisations from the fruit, vegetable and nursery industries. HAL was formed in February 2001 from the former Horticultural Research & Development Corporation (HRDC) and the Australian Horticultural Corporation (AHC). HAL is an industry owned company that the Australian Government has contracted to deliver marketing and R&D services for the horticulture industry.

For more information visit the HAL website or contact them on telephone (02) 8295 2300.

What legislation is associated with this levy/charge?

The levy/charge is imposed and collected under the following legislation:

• Primary Industries (Excise) Levies Act 1999
• Primary Industries (Customs) Charges Act 1999
• Primary Industries Levies and Charges Collection Act 1991
• 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 Comlaw website 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 DAFF-Levies office in your State or Territory. If you are in the Northern Territory or Tasmania, please contact the Adelaide office. If you are in the ACT, please contact the Sydney office.

Brisbane
Telephone: 1800 647 801
Fax: 07 3716 9177

Melbourne
Telephone: 1800 683 839
Fax: 03 9322 5500

Sydney (NSW & ACT)
Telephone: 1800 625 103
Fax: 02 8334 1735

Adelaide
Telephone: 1800 814 961
Fax: 08 8201 6099

Perth
Telephone: 1800 895 506
Fax: 08 9334 1677

Canberra - Central Office
Fax: 1800 609 150