Information Sheet

Information on Deer Velvet Levy & Export Charge

Why is there a levy/charge on deer velvet?

A levy or an export charge is payable on deer velvet to provide funding for research and development carried out via the Rural Industries Research and Development Corporation (RIRDC). The Levies Revenue Service (LRS) receives the funds and forwards them to RIRDC, 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 paid on deer velvet produced in Australia and sold by the producer or used by or on behalf of the producer in the production of other goods.

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

No Export Charge is payable if domestic levy has already been paid on the deer velvet to be exported.

Who pays the levy/charge and who submits returns?

The producer (the person who owns the deer velvet immediately before it is sold, or if the deer velvet is used in the production of other goods, the person who owns the deer velvet immediately before the goods are produced) is liable to pay levy.

Where a producer sells the deer velvet via an intermediary, such as a first purchaser, buying agent, selling agent or processor; the intermediary is liable to pay levy on behalf of the producer. The intermediary must forward the levy to LRS along with return forms that are available from all LRS offices or the Levies website. The intermediary can recover the amount of levy paid from the producer, by offset or otherwise.

In the case of the Export Charge, the producer, defined as the person who exports the deer velvet from Australia (the owner of the deer velvet at the time of export), is liable to pay the charge. This person must forward export charge to the Levies Revenue Service (LRS) along with return forms. If the deer velvet 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 LRS. The exporting agent can recover the amount of charge paid from the producer (the owner of the product at the time of export).

Producers who use deer velvet in the production of other goods must forward the levy and return forms to LRS directly.

Export charge is not payable if domestic levy has already been paid on the deer velvet to be exported.

What is the rate of levy/charge on deer velvet?

The rate of domestic levy is calculated as follows:

Domestic:

Sale of deer velvet: 1 per cent of the sale value of the deer velvet.
Deer velvet used in producing other goods: 1 per cent of the declared value of the deer velvet.

Export:

1 per cent of the declared value of the deer velvet.

Note: Levy Rates are current as at 1 October 2011.

Are there any exemptions associated with this levy/charge?

There are currently no exemptions associated with this levy/charge.

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 June (i.e. for the months of April, May and June) is due on or before 28 July.

General information and definitions

The levy/charge rate is calculated as a percentage of the sale or declared value of the deer velvet.

A levy year for deer slaughter 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 export charge 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/charge 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.

Does GST apply to Australian Government levies/charges?

No. Australian Government levies administered by the LRS are exclusive of the GST (Goods and Services Tax). The levy/charge is a separate calculation, exclusive of GST consideration.

For further information visit the Australian Taxation Office website or contact them by phone on 132 478.

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 charges from a client base of over 9 000 levy payers.

For more information about LRS, please visit the LRS website.

What is the Rural Industries Research and Development Corporation?

The Rural Industries Research and Development Corporation (RIRDC) is a statutory Corporation that was formed in July 1990.  RIRDC was set up by the Australian Government to work closely with Australian rural industries on the organisation and funding of their R&D needs.  RIRDC is about managing and funding priority research and translating results into practical outcomes for industry development.  RIRDC’s business is about new products and services and new and better ways of producing them.  They are achieving this by enhancing innovation in the rural and related sectors, fostering the development of new industries and by addressing strategic issues facing the rural sector.

For more information on RIRDC visit the RIRDC website.

What legislation is associated with this levy/charge?

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

Primary Industries (Excise) Levies Act 1999
Primary Industries (Customs) Charges 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 from the Commonwealth of Australia Law website or purchased from Canprint Information Services by phone on 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. If you are in the ACT, please contact the Sydney office.

Levies Online Helpdesk (for technical assistance only)

Telephone: 1800 022384

Sydney

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

Telephone: 1800 814 961
Fax: 08 8201 6099

Perth

Telephone: 1800 895 506
Fax: 08 9334 1677

Email: Levies Management