Levies EPPR and PHA levies Background AGIAs applica4on to sign the - PowerPoint PPT Presentation

Levies EPPR and PHA levies

Background • AGIA’s applica4on to sign the Emergency Plant Pest Response Deed was accepted in November 2014. • “Signing up to the EPPRD gives us the knowledge that should an emergency plant pest make it onto farms, a response will immediately swing into ac>on in accordance with the agreement and we will have a say in decision making about what happens. Any costs will be shared between the industry and government and, importantly for growers, those affected by an eradica>on response will be eligible for reimbursement for losses.” Anthony Rehbein • The Australian ginger industry has an obliga4on now to introduce an EPPR specific levy and AGIA has received advice that introducing a PHA levy concurrently would be of benefit to industry.

EPPR Levy • The EPPR levy proposal is to introduce a 0.02% ad valorum at first point of sale that, based on produc4on forecasts, would provide $3700 per annum minus administra4on costs. • Levy Revenue Services have commented that as AGIA already has a levy in place (R&D) the admin costs would be minimal. • The EPPR levy is mandatory once the Deed has been signed / approved for any plant industry. It is to ensure that in the case of an incursion affec4ng industry, there is a mechanism to co- fund and recompense government for their investment over a period of 10 years.

EPPR Levy (contd) • As part of the PHA Funding Act there is an obliga4on to apply the EPPR funds according to priori4es outlined in sec4on 10D. • The fourth priority is to make payments to any person, in accordance with a request by the relevant Plant Industry Member, for any other purpose rela>ng to emergency plant pests, within the meaning of the EPPR Deed, that affect, or that may affect: • The EPPR plant product; or • Any other EPPR plant product for which the Member is the relevant Plant Industry Member. • Therefore it is possible, if agreed by all par4es, that AGIA could invest this funding into pure biosecurity projects in the future.

PHA Levy • The intent for the PHA levy is to reduce the R&D levy by 0.02% which similarly to the EPPR levy, will mean $3700 will be vested to the PHA Levy and expenses directly related to AGIA’s engagement with PHA can be covered rather than that cost being incurred by AGIA direct. • This levy will cover the cost of membership, currently $1500 per annum and travel expenses to aZend mee4ngs.

Next steps • AGIA will write a leZer outlining both the EPPR and PHA levies to all levy payers that we have contact details for. It will also be put up on the AGIA web site to access those we don’t have contact details for. • The leZer will include a vo4ng paper for each levy payer to fill in and place in the pre paid return envelope provided. • There will be contact details provided for anyone who has ques4ons about the proposed levies.