Information Sheet

Why is there a levy/charge on citrus?

A levy or an export charge is payable on citrus to provide funding for promotion, research and development carried out via Horticulture Australia Limited (HAL) and plant health programs via Plant Health Australia (PHA). DAFF–Levies receives the funds and forwards them to HAL and PHA, 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 payable on?

Levy is payable on citrus produced in Australia that is either sold by the producer or used by the producer in the production of other goods.

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

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

Who pays the levy/charge and who submits returns?

The producer (the person who owns the citrus immediately after it is 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 DAFF–Levies along with return forms which are available from all DAFF–Levies offices or by accessing the DAFF–Levies website. The intermediary can recover the amount of levy paid from the producer, by offset or otherwise.

A producer who sells citrus 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 DAFF–Levies.

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 DAFF–Levies 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 DAFF–Levies. 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 a levy has already been paid on the citrus to be exported.

What is the rate of levy/charge on citrus?

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

Oranges in bulk: $2.75 per tonne
Oranges not in bulk: 5.5 cents per box*
Other citrus in bulk: $2.00 per tonne
Other citrus not in bulk: 4 cents per box*

Note: Levy Rates are current as at 1 November 2010.

Australian Government levies exclude Goods and Services Tax (GST)

* See heading “General Information and Definitions” for defined box weights.

Australian Government levies exclude Goods and Services Tax (GST)

Note: Levy Rates are current as at 30 September 2011.

Are there any exemptions associated with this levy/charge?

Levy is not payable on citrus if in a levy year* the total quantity of citrus sold by the producer by retail sale (i.e. direct to the consumer such as at roadside stalls, shed sales, farm gate etc.) or used by the producer in the production of fruit juice or any other processed product is not more than 500 boxes.

Levy is not payable on citrus used or sold for stockfeed.

When is levy/charge due for payment?

Quarterly Returns:

The return together with payment is due within 28 days after the end of the quarter in which the citrus was purchased, processed, sold or exported. For example the return and payment for the September quarter, covering transactions in the months of July, August and September, is due on or before 28 October.

Annual Returns:

Producers who sell citrus by retail sale (i.e. direct to the consumer such as at roadside stalls, shed sales, farm gate etc.) or who use citrus in the production of fruit juice or any other processed product, and the total amount of citrus so used is 500 boxes or more, must submit levy and the completed return form directly to DAFF–Levies on an annual basis. The return is due together with payment on or before 28th February in the next levy year. For example, the return and payment for 2011 levy year* must be lodged by 28th February 2012.

A first purchaser, buying agent, selling agent or exporter may apply through DAFF–Levies for an exemption from the requirement to lodge quarterly returns for a levy year* if that person has reasonable grounds for believing that the levy/export charge payable by the person for that year will be less than $1,000. If exemption is granted, returns must be lodged on an annual basis.

Please contact your nearest DAFF–Levies office if you require an application for exemption form to be sent out to you, or if you need further clarification in relation to annual returns.

General information and definitions

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

A ‘box’ is defined as 20kg for oranges and other citrus (excluding grapefruit) and 16.67kg for grapefruit.

‘Retail sale’ means a sale of citrus by the producer other than 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 citrus is the same as a calendar year (i.e. 1st January to 31st December)

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

People who lodge returns to DAFF–Levies 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 DAFF–Levies officers.

For further information or clarification on what records must be kept, who should keep them and for how long please contact your nearest DAFF–Levies 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; 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)

Mail

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 outlined above.

What is the 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.

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.

What legislation is associated with this levy?

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 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?

Email DAFF–Levies or 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.

Canberra – Central Office

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