Information Sheet

Why is there a levy/charge on honey?

A levy or an export charge is payable on honey to provide funding for research and development and residue testing programs.  These programs are administrated by the Honeybee Research and Development Committee of the Rural Industries Research and Development Corporation (RIRDC) and the National Residue Survey (NRS) respectively.  DAFF-Levies receives the funds and forwards them to RIRDC and NRS, in addition to distributing the Australian Government’s matching research and development (R&D) contributions.  A small portion of the levy and export charge is paid to the Emergency Animal Disease Response fund, allowing a reserve of money to build up that will be used in the event of a disease outbreak which could threaten the prosperity of the industry.  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:

1. honey produced in Australia; and
2. honey produced in Australia and used in the production of other goods.

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

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

Who pays the levy/charge and who submits returns?

The producer (the person who owned the honey immediately before sale) and the person who uses honey in the production of other goods are liable to pay the levy.

Where a producer sells the honey via an intermediary, such as a first purchaser, buying agent or selling agent; 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 our DAFF-Levies website. The intermediary can recover the amount of levy paid from the producer, by offset or otherwise.

Producers who sell honey directly to the public via retail sale (including roadside stalls, shed sales, farmgate etc) are required to submit returns and payment directly to DAFF-Levies on an Annual basis.  Producers who use honey in the production of other goods are required to submit returns and payment 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.

What is the rate of levy/charge on honey?

The rate of levy/export charge for Honey sold or used in production of other goods:

Domestic Levy & Export Charge - 2.3 cents per kilogram

Note: Levy Rates are current from 1 March 2011.

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

Are there any exemptions associated with this levy/charge?

Levy is not imposed in relation to a sale of honey if:

1. levy has been imposed on the honey because of a previous sale of the honey (honey levy is only payable once – if it is resold or exported after it’s initial purchase, no further levy or charge is payable
2. honey sold by a person in a month (other than honey sold by the producer by designated sale**) if the total weight of that honey, and any other honey used by the person in that month in the production of other goods, is not more than 50 kilograms
3. honey sold in a year by the producer by designated sale if the total weight of that honey, and any other honey used by the producer in that year in the production of other goods (e.g. making toffee apples etc), is not more than 600 kilograms.

Levy is not imposed in relation to honey that is used in the production of other goods where:

1. levy has been imposed on the honey because of a previous sale of the honey (honey levy is only payable once – if it is resold or exported after it’s initial purchase, no further levy or charge is payable
2. honey used by a person (other than the producer) in a month in the production of other goods if the honey so used by the person in that month, together with the honey, if any, sold by the person in that month, weighs not more than 50 kilograms
3. honey that, in a year, is used by the producer in the production of other goods if the honey so used by the producer in that year, together with the honey, if any, sold by the producer by designated sale** in that year, weighs not more than 600 kilograms.

When is levy/charge due for payment?

Quarterly Returns:

First purchasers, buying/selling agents, processors, shopkeepers etc, must lodge quarterly returns, unless they have applied for and received exemption from the requirement to lodge quarterly returns.

Quarterly returns with payment must be submitted to DAFF-Levies 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 the 28 July.

Annual Returns:

A producer of leviable honey must lodge a return for a levy year if, in that levy year:

1. the producer:
2. 1. sells honey by designated sale**; or
   2. uses honey in the production of other goods; and
3. the total weight of the honey so sold or used is more than 600 kilograms.

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 $2,000.  If exemption is granted, returns must be lodged on an annual basis.

The return is due together with payment on or before 28 February in the next levy year.  For example, the return and payment for 2010 must be lodged by 28 February 2011.

Please contact your nearest DAFF-Levies office to ascertain if you qualify as an annual payer.

General Information And Definitions

The levy rate is calculated on per kilogram basis.

*A levy year for Honey is the same as a calendar year (i.e. 1st January to 31st December).

**”Designated Sale” - means a sale of honey by a producer, except:

1. to a first purchaser; or
2. to a buying agent; or
3. by a selling agent.

This generally therefore involves sales at roadside stalls, markets etc. where the producer is selling directly to the public.

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 cent 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?

You can lodge your levy return through the following:

• 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.

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 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 visit DAFF-Levies website.

What are the Rrural Industry Research and Development Corporation (RIRDC) and the National Residue Survey?

RIRDC supports improved efficiency, sustainability, product quality, education and technology transfer in Australian industries, which continue to undergo significant structural development due to deregulation in a number of states.  RIRDC is becoming more sensitive to customer requirements leading to the development of an increasingly diverse range of product lines.  Public perception and opinions have bought issues of food safety, animal welfare and environmental impact to the forefront.  RIRDC is assisting industries in answering the government call to take a more active role in self-regulation of management quality standards. For more information on RIRDC you can visit the RIRDC website or telephone: (02) 6271 4100.

The National Residue Survey uses levy funds to monitor, assess and report on the levels of chemical residues in food produced by Australian agriculture and fisheries industries that participate in the scheme.  This gives domestic and international customers confidence in the quality and safety of their products.  For more information on residue survey activities contact the National Residue Survey at DAFF-NRS website or email NRS, or telephone: (02) 6272 3446.

What legislation is associated with this levy/charge?

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

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

Please be advised that under section 27 of the Primary Industries Levies and Charges Collection 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 and charges?

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.

DAFF-Levies – Contact Information

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 (NSW & ACT)
Telephone 1800 625 103
Fax 02 8334 7135

E-mail us at: Levies Management