Sugar Levy SIRP
Overview
The Australian Government's Sugar Industry Reform Program willbe partially funded by a levy on domestic sugar sales, including imported sugar. Refined bulk sugar, which is exported from the refinery, is exempt from the levy. A rebate of any levy paid will be available if the sugar is used as an ingredient in any food product which is subsequently exported.
The Government consulted with the key industry stakeholders in the development of the sugar levy.
Levy Rate
The levy rate is set at 3 cents per kilogram and the levy will run for approximately five years from 1 January 2003. This rate and term will ensure that the levy does not significantly disadvantage consumers or any industry sector, including the Australian food and drink manufacturing industry, which continue to retain access to some of the cheapest sugar in the world.
Rebate
The levy mechanism will mitigate against adverse impacts on exports by providing for a refund for sugar used in the production of exported manufactured products. In addition to the levy rebate for sugar in exported manufactured products, exports of sugar are exempt from levy.
Collection
The levy is collected by the Levies Revenue Service of the Department of Agriculture, Fisheries and Forestry.
The levy is being collected at the point of first sale or transfer from the refinery following the refining process. In order to ensure that imported sugar is treated on an equal basis, the definition of the collection point includes both refinery and importer. Imposition of the levy is on the purchaser of the sugar from the refinery, or the importer. The levy rate applied to imported sugar is equal to the rate applied to domestic sugar.
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More information about the sugar levy [select Sugar - (Reform) or Sugar - (Refund)]