Information Sheet

Why is there a levy on ginger?

A levy is payable on ginger to provide funding for research and development (R&D) carried out via the Rural Industries Research and Development Corporation (RIRDC). The Levies Revenue Service (LRS) receives the funds and forwards them RIRDC, in addition to distributing the Australian Government’s matching R&D contributions. Levies are introduced and administered by the Australian Government at the request of Industry.

What is the levy payable on?

Levy is payable on fresh ginger, seed ginger and processing ginger that is produced in Australia and sold or processed in Australia.

Who pays the levy and who submits returns?

The producer (the person who owns the ginger immediately after it is harvested) is liable to pay the levy but for ease of administration it is collected by the first purchasers, processors, agents, merchants etc. who must forward it to LRS along with return forms which are available from all LRS offices or the LRS website. The intermediary can recover the amount of levy paid from the producer by offset or otherwise.

What is the rate of levy on ginger?

The rate of domestic levy for ginger is calculated as follows:

Ginger:       0.5 per cent of the sale price

Note: Levy rate is current from 1 April 2011.

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

Are there any exemptions associated with this levy?

Levy is not imposed on ginger sold by a producer by retail sale (i.e. direct to the consumer via roadside stalls, shed sales, farm gate, etc.)

When is levy 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 September (ie. for the months of July, August and September) is due on or before 28 October.

Annual Returns:

Seed ginger producers who sell to other ginger producers must submit levy and return form directly to LRS on an annual basis.

A first purchaser, buying agent, selling agent, processor or producer may apply through LRS for an exemption from the requirement to lodge quarterly returns for a levy year* if that person has reasonable grounds for believing that the total liability of levy payable for ginger dealt within the year will be $200. If exemption is granted, returns must be lodged on an annual basis.

The annual return with payment must be submitted to LRS on or before 28th August in the next levy year. For example, the return and payment for the 2011—2012 levy year must be lodged by 28th August 2012.

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

General information and definitions

The levy rate is calculated on a per tonne basis.

Retail sale means a sale by the producer of the ginger that is not a sale to a first purchaser, processor, through an agent or at a wholesale produce market i.e. sales by the producer direct to the consumer such as at roadside stalls, shed sales, farm gate, etc.

*A levy year ginger is the same as a financial year (i.e. 1 July to 30 June).

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

People who lodge returns to LRS and people who pay levy 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 cent per month compounding on the sum of the unpaid amounts, including penalties already accrued, until the outstanding levy is paid in full.

Penalties are also imposed for other breaches of the legislation. For more information please contact your nearest LRS office.

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

• go to Levies Online

Email

Scan and email a copy of your completed and signed return form.

Fax

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

Mail

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.

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.

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 only in the reference/description. (eg 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 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 export charges from a client base of over 9,000 levy payers.

What is Rural Industries Research & Development Corp?

The Rural Industries Research and Development Corporation (RIRDC) is a statutory authority established by the Primary Industries and Energy Research and Development Act 1989 (PIERD Act). The Corporation was established by the Australian Government to work with industry to invest in research and development for a more profitable, sustainable and dynamic rural sector.

For more information on RIRDC visit their website or telephone them on (02) 6271 4100.

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
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?

Should you require further information please contact us at one of the following offices:

Levies Online Helpdesk (for technical assistance only)

Telephone: 1800 022384

Sydney (NSW and ACT)

Telephone: 1800 625 103
Fax: 02 8334 7135

Brisbane

Telephone: 1800 647 801
Fax: 07 3716 9177

Melbourne

Telephone: 1800 683 839
Fax: 03 9322 5500

Adelaide (SA, NT and TAS)

Telephone: 1800 814 961
Fax: 08 8201 6099

Perth

Telephone: 1800 895 506
Fax: 08 9334 1677