Information Sheet

Why is there a levy/charge on potatoes?

A levy or an export charge is payable on Potatoes to provide funding for 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/charge payable on?

There are two separate and quite distinct potato levies. Levy is payable on:

1. unprocessed potatoes produced and sold in Australia; and
2. processing potatoes defined as unprocessed potatoes used in the production of other goods, except potatoes processed at a processing establishment if the business carried out at the establishment is not wholly or substantially a business of processing horticultural products.

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

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

Who pays the levy/charge and who submits returns?

The producer of the unprocessed potatoes (the person who owns the potatoes 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 DAFF-Levies along with return forms that 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.

For processing potatoes – Levy is payable by the person who owns the processing potatoes when processing begins.

A producer who sells unprocessed potatoes by retail sale i.e. direct to the public 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 for unprocessed potatoes, 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).

As previously stated, export charge is not payable if the domestic levy has already been paid on the unprocessed potatoes to be exported.

What is the rate of levy/charge on potatoes?

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

Unprocessed potatoes (levy/export charge): 50 cents per tonne
Processed potatoes (levy): 50 cents per tonne

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

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

Are there any exemptions associated with this levy/charge?

Levy is not payable on:

1. unprocessed potatoes sold by a primary producer by retail sale# if the total quantity sold in the levy year* does not exceed 100 tonnes.
2. unprocessed potatoes sold for stockfeed
3. processing potatoes used by a processor in a levy year* if the total quantity used does not exceed 100 tonnes.

Export charge is not payable on:

1. potatoes exported by an exporter if the total quantity of the potatoes exported in the levy year* does not exceed 100 tonnes.

When is levy/charge due for payment?

Quarterly Returns: 

A quarterly return 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, for the quarter ending 31 March (i.e. for the months of January, February & March), the levy and/or charge must be lodged by 28 April.

Annual Returns:

Producers who sell unprocessed potatoes by retail sale i.e. direct to the consumer, are eligible to lodge annual rather than quarterly returns.

The return is due together with payment on or before 28 February in the next levy year.

For example, the return and payment for 2005 levy (calendar) year* must be lodged by 28 February 2006.

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 quantity of potatoes likely to be dealt with in the year will be less than 1,000 tonnes. 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 rate is calculated on a per tonne basis.

#Retail sale, for the sale of potatoes by a producer, means a sale by the producer of the potatoes, except a sale to a first purchaser or through an agent i.e. direct to the consumer such as at roadside stalls, shed sales, farm gate etc.

*A levy year for potatoes 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.

• 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 Levies and Charges Collection Act 1991
• Primary Industries (Excise) Levies Act 1999
• Primary Industries (Customs) Charges Act 1999
• 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