In a significant move to modernize and simplify the agricultural levy system, new legislation will replace the current framework this year. This reform aims to make the levy system more user-friendly and transparent for all participants. Over 50 pieces of legislation governing more than 110 levies across 75 commodities and 18 recipient bodies are being consolidated into just five Acts. The Deputy Secretary for Agriculture, Fisheries, and Forestry Policy, Matt Lowe, highlighted that from January 2025, the revamped legislation will clarify obligations for levy payers, collection agents, and recipient bodies. It will also support industries in pursuing new or modifying existing levies more effectively.

A Comprehensive Transformation of the Levy System

In the heart of the Australian agricultural sector, a pivotal transformation is underway. For decades, the levy system has been a cornerstone of collaboration between industry and government, facilitating strategic investments in research, marketing, biosecurity, and residue testing. However, as the system grew organically over the past three decades, it became increasingly complex and less efficient. Recognizing this, the Department of Agriculture, Fisheries, and Forestry embarked on an extensive review, leading to the development of streamlined legislation.

The new framework, set to take effect from January 2025, promises to reduce administrative burdens and provide greater clarity for all stakeholders. Key features such as levy rates and purposes remain unchanged, but participants can expect smoother administrative processes, including updated due dates and forms. Importantly, Research and Development Corporations will benefit from increased funding certainty, allowing them to continue their vital work. In the fiscal year 2023-24, these corporations, along with entities like Animal Health Australia and Plant Health Australia, received over $600 million in levy payments, with an additional $470 million in matching government funding for research and development activities.

Levies are collected from farmers, producers, processors, and exporters, with any changes requiring majority agreement among levy payers. The consultation process has involved extensive engagement with industry groups, levy payers, collection agents, and recipient bodies, ensuring that the new legislation meets the needs of all stakeholders.

From the perspective of a journalist, this reform represents a significant step forward in enhancing the efficiency and effectiveness of the agricultural levy system. By simplifying the legislative framework and reducing administrative complexities, the new system not only supports ongoing investment in critical areas but also fosters a more transparent and collaborative environment. This initiative sets a strong foundation for future improvements and underscores the commitment of both industry and government to sustaining and advancing Australia's agricultural sector.