An Act to direct funds to the Australian Animal Health Council, and for related purposes

This Act may be cited as the Australian Animal Health Council (Live-stock Industries) Funding Act 1996.

This Act commences on the day on which it receives the Royal Assent.

In this Act:

Australian Animal Health Council means the Australian Animal Health Council Limited, A.C.N. 071‑890‑956.

Australian Animal Health Council levy means a levy or charge the rate of which is set by or under any of the following provisions:

(aa) paragraph 3(1)(d) or (2)(d) of Schedule 3 to the Primary Industries (Customs) Charges Act 1999;

(ab) paragraph 6(1)(d), (2)(d) or (3)(d) of Schedule 3 to the Primary Industries (Excise) Levies Act 1999;

(ac) subclause 10(1) of Schedule 6 to the Primary Industries (Excise) Levies Act 1999, so far as it relates to paragraph 6(1)(g) of that Schedule;

(ad) paragraph 4(b) of Schedule 16 to the Primary Industries (Excise) Levies Act 1999;

(ae) paragraph 3(c), 4(c) or 5(c) of Schedule 12 to the Primary Industries (Customs) Charges Act 1999;

(af) paragraph 4(1)(c), (3)(c) or (4)(c) of Schedule 18 to the Primary Industries (Excise) Levies Act 1999;

(ag) paragraph 3(b) of Schedule 19 to the Primary Industries (Excise) Levies Act 1999;

(ah) paragraph 3(c) of Schedule 22 to the Primary Industries (Excise) Levies Act 1999;

(a) paragraph 5(1)(d) or 5(2)(d) of the repealed Cattle (Producers) Export Charges Act 1997;

(b) paragraph 7(1)(d), 7(2)(d) or 7(3)(d) of the repealed Cattle Transactions Levy Act 1997;

(c) subsection 9(1) of the repealed Dairy Produce Levy (No. 1) Act 1986, so far as it relates to paragraph 5(1)(g) of that Act;

(d) paragraph 7(b) of the repealed Laying Chicken Levy Act 1988;

(e) paragraph 5(c), 6(c) or 7(c) of the repealed Live‑stock (Producers) Export Charges Act 1997;

(f) paragraph 6(1)(c), 7(c) or 8(1)(c) of the repealed Live‑stock Transactions Levy Act 1997;

(g) paragraph 7(1)(b) of the repealed Meat Chicken Levy Act 1969;

(h) paragraph 6(1)(c) of the repealed Pig Slaughter Levy Act 1971.

EADR agreement means the government and livestock industry cost sharing deed in respect of emergency animal disease responses made by the Commonwealth and other parties, and executed by the Commonwealth in March 2002.

horse disease response levy means levy imposed by the Horse Disease Response Levy Act 2011.

4 Transfer of funds to Australian Animal Health Council—levies and charges other than horse disease response levy

(1) The Commonwealth is to pay to the Australian Animal Health Council amounts equal to the following amounts:

(a) amounts of Australian Animal Health Council levy collected or received by or on behalf of the Commonwealth on or after 1 July 1996;

(b) amounts of penalty paid under section 15 of the Primary Industries Levies and Charges Collection Act 1991 in relation to a failure to pay Australian Animal Health Council levy by the time it became due for payment.

(2) The Commonwealth is to pay to the Australian Animal Health Council an amount equal to the sum of the following amounts less the Commonwealth’s costs in collecting or recovering those amounts and in administering this subsection:

(a) amounts of levy or charge:

(i) imposed by regulations under Schedule 27 to the Primary Industries (Excise) Levies Act 1999 or Schedule 14 to the Primary Industries (Customs) Charges Act 1999 on an animal product (as defined in whichever one of those Schedules is relevant); and

(ii) described in those regulations as EADR levy or EADR charge; and

(iii) collected or received by or on behalf of the Commonwealth;

(b) amounts of penalty paid under section 15 of the Primary Industries Levies and Charges Collection Act 1991 in relation to a failure to pay levy or charge described in paragraph (a) by the time it became due for payment.

(3) A payment (the Commonwealth payment) under subsection (2) relating to a levy or charge and to an animal product is made subject to the condition that the Australian Animal Health Council apply the Commonwealth payment in accordance with the priorities in subsections (4), (5) and (6) and subject to subsections (7) and (8).

(4) The first priority is to apply the Commonwealth payment in meeting, or reimbursing the Australian Animal Health Council for meeting, costs the Council incurs:

(a) in receiving and applying the Commonwealth payment in accordance with subsection (3); and

(b) before or in the financial year in which the Commonwealth payment is made.

(5) The second priority is to apply the Commonwealth payment in making, on behalf of the non‑government body that is a party to the EADR agreement and is concerned with the production of the animal product, a payment:

(a) to the Commonwealth for the purpose of discharging a liability of the body to the Commonwealth that arises under the EADR agreement; or

(b) if the animal product is honey—to the Commonwealth or Plant Health Australia Limited (ACN 092 607 997) for the purpose of discharging a liability of the body to the Commonwealth relating to the Commonwealth’s costs connected with a plant disease that is, may be or may have been spread by honey bees.

Note: A payment to Plant Health Australia Limited may be made for the purpose of discharging a liability of the non‑government body concerned with honey production to the Commonwealth relating to a plant disease spread by honey bees if Plant Health Australia Limited is obliged to pay the Commonwealth on behalf of the body.

(6) The third priority is to apply the Commonwealth payment in:

(a) making a payment to an organisation that is concerned with research and development relevant to production of the animal product; or

(b) taking measures relating to the promotion or maintenance of the health of animals to which the animal product relates.

(7) If a body is declared under the relevant Schedule mentioned in subparagraph (2)(a)(i) as the designated body for the animal product, the Australian Animal Health Council is to apply the Commonwealth payment in accordance with the third priority only:

(a) on request by the body; and

(b) in the way that the body requests.

(8) It is not a contravention of the condition in subsection (3) for the Australian Animal Health Council to apply the Commonwealth payment in accordance with a lower priority if the Council cannot apply the payment in accordance with a higher priority. For this purpose, a priority set out in a later subsection is lower than a priority set out in an earlier subsection.

4A Transfer of funds relating to horse disease response levy to Australian Animal Health Council

Commonwealth payment to Australian Animal Health Council

(1) The Commonwealth is to make a payment (the Commonwealth payment) to the Australian Animal Health Council of an amount equal to the sum of the following amounts less the Commonwealth’s costs in collecting or recovering those amounts and in administering this subsection:

(a) horse disease response levy collected or received by the Commonwealth;

(b) amounts of penalty paid under section 7 of the Horse Disease Response Levy Collection Act 2011 in relation to a failure to pay horse disease response levy by the time it became due for payment.

Condition on Commonwealth payment

(2) The Commonwealth payment is subject to the condition that the Australian Animal Health Council apply the payment in accordance with this section.

First priority for applying Commonwealth payment

(3) As first priority, the Australian Animal Health Council is to apply the Commonwealth payment in meeting, or reimbursing the Council for meeting, costs the Council incurs:

(a) in receiving and applying the payment in accordance with this section; and

(b) before or in the financial year in which the payment is made.

Second priority for applying Commonwealth payment

(4) As second priority, the Australian Animal Health Council is to apply the Commonwealth payment in making to the Commonwealth a payment (the Council payment) as follows, depending on whether, when the Commonwealth payment was made, a non‑government body concerned with the horse industry was party to the EADR agreement:

(a) if such a body was party to the agreement—the Council payment is on behalf of the body for the purpose of discharging a liability of the body to the Commonwealth that arises under the EADR agreement;

(b) if there was not such a body party to the agreement—the Council payment is made within 28 days after the Commonwealth payment was made and equals so much of the payment to the Council as the Council has not applied under subsection (3).

Third priority for applying Commonwealth payment

(5) As third priority, the Australian Animal Health Council is to apply the Commonwealth payment in:

(a) making a payment to an organisation that is concerned with research and development relevant to the horse industry; or

(b) taking measures relating to the promotion or maintenance of the health of horses.

(6) The Australian Animal Health Council is to apply the Commonwealth payment under subsection (5) only:

(a) on request by a non‑government body that is a party to the EADR agreement and is concerned with the horse industry; and

(b) in the way that that body requests.

Applying for lower priority if higher priority cannot be met

(7) The Australian Animal Health Council may apply the Commonwealth payment in accordance with a lower priority if the Council cannot apply the payment in accordance with a higher priority. For this purpose, a priority set out in a later subsection is lower than a priority set out in an earlier subsection.

Setting off Council payment to Commonwealth

(8) The Commonwealth may set off an amount payable to it under paragraph (4)(b) against a payment the Commonwealth must make under subsection (1).

5 Appropriation

Amounts payable to the Australian Animal Health Council under section 4 or 4A are payable out of the Consolidated Revenue Fund, which is appropriated accordingly.

6 Treatment of refunds not relating to horse disease response levy

When this section applies

(1) This section applies if:

(a) a person pays an amount by way of levy, charge or penalty described in subsection 4(2) relating to an animal product; and

(b) the Commonwealth refunds the amount (the refunded amount) to the person.

Note: For example, the Commonwealth might refund an amount because the person paid too much levy or charge.

Act applies as if the refunded amount had never been paid

(2) The other sections of this Act apply, and are taken always to have applied, as if the refunded amount had never been paid to the Commonwealth.

Note: This may, for example, lead to a result as provided for in subsection (3), (4) or (5).

Liability of Council to repay overpayment

(3) Each payment under subsection 4(2):

(a) that relates to the animal product; and

(b) that exceeds the amount it should have been because of subsection (2) of this section;

is made subject to the condition that the excess is a debt due by the Australian Animal Health Council to the Commonwealth, and that the Australian Animal Health Council comply with subsection (5) (if applicable).

Note: Some or all of this debt may be discharged if the Commonwealth expects it will not be able to set this debt off against future payments under subsection 4(2), and if past payments under that subsection have already been applied. See subsections (5) and (6).

Setting off this liability against future payments

(4) The Commonwealth may set off the excess against an amount that is payable to the Australian Animal Health Council under subsection 4(2) in relation to the animal product.

Reduced liability to repay if future payments cease

(5) If:

(a) the Secretary of the Department gives written notice to the Australian Animal Health Council that the Secretary expects the Commonwealth will not be able to set off under subsection (4) a specified amount of the excess; and

(b) the Australian Animal Health Council is yet to fully apply one or more Commonwealth payments (as defined in section 4) relating to the animal product;

the Australian Animal Health Council must, before applying those Commonwealth payments in accordance with the third priority in that section, apply those Commonwealth payments in paying the Commonwealth as much as possible of that specified amount.

(6) The debt is discharged by this subsection to the extent of the difference (if any) between:

(a) the amount specified in a notice described in paragraph (5)(a); and

(b) the amount (if any) paid to the Commonwealth under subsection (5) by the Australian Animal Health Council in connection with the notice.

Note: A set‑off under subsection (4) of an amount of the excess, or a payment to the Commonwealth under subsection (5), also discharges the debt to the extent of that amount or payment.

(7) Subsections 4(3) and (7) have effect subject to subsections (3) and (5) of this section.

7 Treatment of refunds relating to horse disease response levy

(1) This section applies if:

(a) a person pays an amount of horse disease response levy or of penalty for failure to pay horse disease response levy by the time it became due for payment; and

(b) the Commonwealth refunds the amount (the refunded amount) to the person.

Note: For example, the Commonwealth might refund an amount because the person paid too much levy or penalty.

Act applies as if the refunded amount had never been paid

(2) The other sections of this Act apply, and are taken always to have applied, as if the refunded amount had never been paid to the Commonwealth.

Note: This may, for example, lead to a result provided for in subsection (3), (4) or (5).

Liability of Council to repay overpayment

(3) Each payment under subsection 4A(1) that exceeds the amount it should have been because of subsection (2) of this section is subject to the condition that:

(a) the excess is a debt due by the Australian Animal Health Council to the Commonwealth; and

(b) the Australian Animal Health Council comply with subsection (5) of this section (if applicable).

Note: Some or all of this debt may be discharged if the Commonwealth expects it will not be able to set this debt off against future payments under subsection 4A(1), and if past payments under that subsection have already been applied. See subsections (5) and (6) of this section.