Information Sheet

Why is there a levy on mushrooms?

A levy is payable on Agaricus Mushrooms to provide funding for marketing, research and development carried out via Horticulture Australia Limited (HAL). The Levies Revenue Service (LRS) 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 payable on?

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

Who pays the levy and who submits returns?

The producer (the grower of the Agaricus Mushrooms) is liable to pay the levy.

Where producers of Agaricus Mushrooms produce their own Spawn, or purchase Spawn from an overseas seller, the producer is required to submit levy and returns directly to the LRS on a monthly basis.

What is the rate of levy on mushrooms?

The rate of domestic levy for Agaricus Mushroom is calculated as follows:

$2.16 per kilogram of Mushroom Spawn#

Are there any exemptions associated with this levy?

If a producer produces or purchases more than 370,000 kilograms of mushroom spawn in a levy year* for the production of Agaricus mushrooms, every kilogram over 370,000 kilograms is exempt from levy in that levy year*.

When is levy due for payment?

Monthly Return:

Returns and payments are required to be lodged monthly by the following persons:

1. a mushroom producer who produces and uses mushroom spawn for mushroom production;
2. a mushroom producer who purchases mushroom spawn from an overseas seller and uses that mushroom spawn for mushroom production.

The return together with payment is due within 28 days after the end of the month in which the levy liability was incurred. For example the return and payment for the month of July is due on or before 28 August.

Equal Monthly Instalments:

Producers who produce or purchase more than 370,000 kilograms of mushroom spawn in a levy year*, for the production of Agaricus mushrooms, are eligible to apply to pay their levy liability in equal monthly instalments during the levy year.

Please contact your local LRS office for further information on eligibility to pay levy in equal monthly instalments.

Quarterly Returns:

A seller of mushroom spawn must lodge returns and payments on a quarterly basis.

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.

Sellers of Mushroom Spawn who do not receive payment of levy from buyers by the date it is due, must include with their quarterly return details of those buyers and the amount of levy owed.

General information and definitions 

The levy rate is calculated on the basis of per kilogram of mushroom spawn#.

# ‘mushroom spawn’ means Agaricus spp mycelia contained in a medium and used for the inoculation of phase 2 substrate, including (but not limited to) grain spawn, casing inoculum and inoculated supplement.

* A levy year for Agaricus Mushrooms is the same as a financial year (i.e. 1 July to 30 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?

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.

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 outlined on the previous page.

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, visit the LRS website.

What is Horiculture 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 Mushroom, 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.

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

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 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

If you experience any trouble accessing this information email: Levies Management.