Biosecurity and Agriculture Management Industry Funding Scheme (Grains) Regulations 2010

The Scheme rests on a small set of legal and operational building blocks: the Account, the Industry Management Committee, the registered receivers mechanism, chargeable transactions and chargeable produce, and the approved programmes/payments regime.

• Account. An agency special purpose account under the Financial Management Act 2006 is created for the GSH industry and administered by the Director General in consultation with the IMC (regulation 6(1) and (2)). Moneys in the Account may be temporarily invested as public moneys are invested (regulation 7).

• Industry Management Committee (IMC). The IMC is an appointed body established by regulation 8. It consists of at least 5 and not more than 7 members appointed by the Minister after consulting the appointments committee (regulation 9(1)). Members are generally required to be “full participants” unless the Minister makes specific limited exceptions (regulation 9(2) and (3)). The IMC advises on Account administration, approves programmes, sets recommendations for rates and areas, consults growers annually and reports to the Minister and participants (regulation 11).

• Area of operation and contribution rates. The Minister is to declare before each financial year the area(s) where the Scheme operates and the rates at which contributions are to be paid (regulation 13(1)). Rates may vary by produce class and area and may be declared nil (regulation 13(2) and (3)). Notices must be published in the Gazette and must indicate the IMC’s estimated proportion of contributions applied to each specified pest (regulation 13(6)).

• Chargeable transactions, chargeable produce and contributors. The Scheme treats as chargeable (a) deliveries of qualifying produce to a registered receiver for storage, handling or marketing on behalf of a grower, and (b) sales of qualifying produce by a grower to a registered receiver (regulation 3 definitions). Qualifying produce is produce grown in an area of operation. The contributing party is the grower, but the registered receiver is the entity responsible for deducting the contribution from the grower’s chargeable payment and remitting it (regulation 15; regulation 16(1) and (2)).

• Registration and record keeping. Produce receivers who meet the qualifying receiver tonnage threshold (500 tonnes) must register as qualifying receivers within 30 days of becoming qualifying receivers, and must keep records for at least 5 years of each chargeable transaction and the deductions and remittances made (regulation 14; regulation 16(4)). The register is to be published or made accessible online as provided by the Act (regulation 14(6)). Significant fines attach to failures to notify or to update registration details (regulation 14(1) and (3): $10 000).

• Collection and remittance mechanics. Registered receivers deduct the contribution when making a payment to the grower and must provide a written statement to the grower in the form required by the Director General (regulation 16(1)). Monthly remittance to the Director General is required within 30 days of the end of each calendar month, accompanied by a statement with transaction-level details as required (regulation 16(2)). Failure to deduct or remit attracts substantial penalties (regulation 16(1) and (2): fines of $20 000).

• Payments and approved programmes. The IMC may approve programmes for the control of specified pests or to advance control measures (regulation 19). Payments from the Account, on IMC approval, can be made towards approved programme costs (regulation 20), for direct losses suffered by persons linked to specified pests or control actions (regulation 21), and for costs of destroying infected or infested produce (regulation 22). The IMC specifies amounts, conditions and may make payments conditional on recipients undertaking control measures (regulation 19(2) and regulation 21(5); regulation 22(4)).

• Eligibility and conditions for payments. The Regulations impose eligibility conditions: payments under regulations 20 to 22 are not available to grower claimants who are not full participants for the relevant financial year (regulation 23(1)), and to non-growers only if they have paid contributions and the IMC is satisfied it is in participants’ best interests (regulation 23(1A) and 21(3); 22(2)). Payments are excluded where the applicant has failed to pay contributions, has been convicted of failing to report presence of a specified pest, or has not complied with pest control requirements or payment conditions (regulation 23(2)).

• Opting out and refunds. Growers may opt out for a specified financial year within designated windows (regulation 17). Growers who opt out may request a refund of contributions paid on their behalf for the relevant year by 31 July following the end of that year, subject to evidence acceptable to the Director General and IMC direction to repay (regulation 18(1) to (3)).

• Review and sunset. The IMC must commission independent consultant reviews of the Regulations, scheme operation and benefits to the industry after 30 June 2011 (regulation 27). The Scheme contains a default termination date and a process for Ministerial extension following consultation (regulation 28). On termination, there are explicit winding-up rules about outstanding contributions, refunds, applications pending and residual balances (regulation 28(4)).

• Limited pest scope. The Scheme funds relate to “specified pests” defined as declared pests listed in Schedule 1. The Schedule presently lists two species only: bedstraw and skeleton weed (Schedule 1). This constrains the subject‑matter for approved programmes and compensation payments under the Regulations.

These concepts combine a user-funded pooling mechanism with administrative control by government officials and an industry committee. The legal architecture allocates levy-raising authority to the Minister/IMC (for rates, areas), collection and remittance duties to receivers, and spending discretion to the IMC subject to procedural limits and eligibility conditions.

The Regulations allocate obligations and rights across identifiable cohorts in the GSH industry and public administration.

• Growers. Growers of grain, seed and hay grown in declared areas are the ultimate contributors under the Scheme (definition of grower; regulation 15(1)). Every grower who completes a chargeable transaction must pay the contribution applicable at the time the grower’s chargeable payment is due (regulation 15(1) and (2)). Growers who opt out under the tightly specified notice windows become non‑participants for that financial year but may seek refunds for contributions paid on their behalf, subject to documentary proof and the Director General’s and IMC’s processes (regulation 17 and 18). Eligibility for payments from the Account is conditional on being a “full participant” in the financial year of the loss (regulation 23(1)). The Regulations further condition payments on compliance with pest control requirements and on absence of convictions for failing to report pests (regulation 23(2)).

• Produce receivers and qualifying receivers. Persons carrying on businesses that receive produce for storing, handling and marketing or that purchase produce from growers are “produce receivers” (definition). Those receiving or purchasing 500 tonnes or more in a financial year meet the qualifying receiver threshold and must register with the Director General within 30 days of becoming qualifying receivers (regulation 3 definitions; regulation 14(1)). Registered receivers must deduct contributions from chargeable payments, provide growers with written statements, keep detailed transaction records for at least 5 years and remit deductions monthly to the Director General (regulation 16(1) to (4)). Failure to register, to update details or to keep or present records attracts significant fines (regulation 14; regulation 16).

• Industry Management Committee (IMC) members. The IMC is composed of appointees by the Minister after consulting the appointments committee (regulation 9(1)). The IMC has active administrative responsibilities: it recommends areas and rates to the Minister (regulation 13(1)), approves programmes and payments (regulation 19 to 23), consults growers at least annually (regulation 11(2)), produces annual reports for the Minister and participants (regulation 11(3) and (4)) and directs the Director General in certain repayment decisions (regulation 18(3)(b)). IMC members are generally required to be full participants unless exceptions apply, and the Minister sets terms of office not exceeding 3 years (regulation 9(2), (3) and (4)). Members receive remuneration and allowances as determined by the Minister on recommendation of the Public Sector Commissioner (regulation 10).

• Director General and public administration. The Director General administers the Account and maintains the register of qualifying receivers (regulation 6(2); regulation 14(2)). The Director General may make requirements as to the form of notices and statements (regulation 12; regulation 16(1)). The Director General performs audit and inspection functions by appointing officers to audit records (regulation 16(5)). The Director General makes payments from the Account subject to IMC approval and in accordance with IMC-specified terms and conditions (regulations 20 to 23). Under regulation 26, the Director General may apply Account funds to repay Crown expenses and to meet other administrative costs, subject to IMC approval where required.

• Minister and appointments committee. The Minister declares the annual area(s) of operation and contribution rates on recommendation from the IMC, and may amend or revoke such declarations (regulation 13(1) and (4)). The Minister appoints IMC members after consulting the appointments committee established by the Biosecurity and Agriculture Management Regulations 2013 (regulation 9(1)). The Minister also may extend the life of the Scheme beyond its default termination date following consultation with the IMC and affected bodies (regulation 28).

• Non‑grower applicants. The Regulations allow payments to persons who are not growers only in restricted circumstances: the IMC must be satisfied payment is in the best interests of participants and (from 2023 amendment) the person must have paid contributions under the Scheme (regulation 21(3); regulation 23(1A)). The IMC is empowered to set differing bases or amounts for non‑grower applicants (regulation 21(5)(a)).

• Wider public and other public authorities. The Minister’s decision to extend the Scheme, and certain IMC decisions, require consultation with other public authorities and organisations that appear to take part in implementing or otherwise be significantly affected by the Scheme (regulation 28(2)). The Director General must notify the IMC of any amount applied under regulation 26(1)(b) or (c) within one month (regulation 26(4)).

Who pays, who collects and who decides. Economically, growers carry the levy burden in statutory terms, but registered receivers collect and remit the funds under legal obligation. The IMC (an industry-appointed committee with Ministerial appointments) and the Director General control how funds are allocated: the IMC approves programmes, specifies payment terms and recommends area and rate declarations; the Director General administers the Account and effect payments under IMC approvals. Receivers and growers bear compliance costs, record keeping costs and potential penalties for non-compliance.

This section summarises specific legal obligations and rights created by the Regulations and points to the regulatory levers that enforce them.

• Duty to declare area and rates. The Minister must publish in the Gazette, on the IMC’s recommendation before the start of each financial year, the area(s) in which the Scheme operates and the rate(s) of contributions (regulation 13(1)). The IMC must have regard to estimated costs for approved programmes when making recommendations (regulation 13(5)). Notices must indicate the IMC’s estimated allocation across specified pests (regulation 13(6)). The Minister retains discretion to amend or revoke such declarations by Gazette notice (regulation 13(4)).

• Duty of qualifying receivers to notify and register. A person becoming a qualifying receiver must notify the Director General within 30 days with prescribed details (regulation 14(1)). The Director General maintains a register and publishes or provides online access (regulation 14(2); 14(6)). A registered receiver must notify changes to registered details within 30 days (regulation 14(3)). Failure to notify or update attracts a fine of $10 000 (regulation 14(1), (3)).

• Duty to deduct, report and remit contributions. Registered receivers must deduct contributions when making a chargeable payment, provide a written statement to the grower in the form required by the Director General, keep detailed transaction records for five years and remit deductions monthly within 30 days of the end of the calendar month, accompanied by a written statement with transaction details as required (regulation 16(1) to (4)). There are fines of $20 000 for failing to comply with the deduction and remittance obligations (regulation 16(1), (2)).

• Recordkeeping and audit. The registered receiver must retain records for at least 5 years detailing transaction nature, identities of growers, volumes and amounts deducted, and dates of remittances (regulation 16(4)). The Director General may appoint officers to inspect, examine and audit these records, and the registered receiver must produce the requested documents and information (regulation 16(5)).

• Grower right to opt out. A grower may opt out of the Scheme for a specified financial year by notice to the Director General in the windows prescribed: for 2010-11 between 1 June and 31 July 2010; for later years between 1 June and 30 June in the immediately preceding financial year (regulation 17(1) and (2)). Opting out affects participant status definitions which in turn affect eligibility for compensation payments (see regulation 3 definitions and regulation 23(1)).

• Right to refund after opting out. A grower who opted out may request a refund of any contributions paid on their behalf during that financial year by notice to the Director General before 31 July following the end of the specified financial year. The request must specify details and be accompanied by evidence acceptable to the Director General of payment (regulation 18(1) and (2)). If the Director General is satisfied, they must notify the IMC and the IMC is to direct repayment out of the Account (regulation 18(3)).

• IMC powers over approvals and payments. The IMC may approve programmes for control and improvement of control measures (regulation 19(1)), and approvals must specify the amount available from the Account and any particular activities and the basis for funding (regulation 19(2)). The IMC approves payments from the Account for programme costs, losses and destroying produce, subject to caps and terms (regulations 20 to 22). The IMC may also specify conditions for payments, including conditional undertakings from recipients to implement control measures (regulation 21(5)(b); regulation 22(4)(b)). The IMC is to consult growers at least once each financial year and report annually on Scheme performance (regulation 11(2) and (3)).

• Eligibility conditions and disqualifications. Payments are not available to growers who are not full participants in the relevant financial year (regulation 23(1)). Payments to non-growers are subject to contribution payment and IMC satisfaction that payment is in participants’ best interests (regulation 23(1A) and 21(3)). Payments are denied where the person has failed to pay contributions, has been convicted of failing to report presence or suspected presence of the specified pest in question, or has failed to comply with pest control requirements or with agreed payment conditions (regulation 23(2)).

• Administrative duties of the Director General. The Director General administers and maintains the Account, credits interest on investments to the Account, maintains the register, may set requirements about forms and statements, appoints officers to audit records, and makes payments out of the Account in accordance with IMC approvals and regulatory constraints (regulations 6, 7, 14, 16 and 20 to 26).

• Reporting and consultation duties. The IMC must consult growers at least annually (regulation 11(2)), prepare annual reports on Scheme operation and effectiveness and provide copies to the Minister and participants (regulation 11(3) and (4)). The IMC must commission independent review(s) after 30 June 2011 (regulation 27).

• Penalty and fraud offence. A person who knowingly makes false statements or is concerned in fraudulent acts to obtain pecuniary benefits under the Scheme commits an offence punishable by a fine of $20 000 (regulation 30).

These duties and rights create a framework where statutory levies are collected through market actors (receivers) to fund a combination of public programmes and compensation, with multiple administrative checks and eligibility conditions designed to tie payments to compliance with biosecurity obligations.

The Regulations establish several civil‑penalty style fines and criminal offences, along with administrative powers for inspection, audit and disqualification from payments. Enforcement is primarily administrative, but the fines and general fraud offence provide punitive consequences.

Specific fines and penalties

• Registration and notification failures. Failure of a qualifying receiver to notify the Director General within 30 days of becoming a qualifying receiver or to notify changes to registered details within 30 days carries a penalty of $10 000 (regulation 14(1) and (3)). These are expressed as fines and attach directly to the registration duties.

• Deduction and remittance failures. A registered receiver who fails to deduct the amount of a contribution when making a chargeable payment, or who fails to remit amounts deducted and to provide the required monthly statement, risks a fine of $20 000 for each of those subregulation breaches (regulation 16(1) and (2)). Those provisions also create an obligation to supply statements to growers and to the Director General in the forms required.

• Recordkeeping and audit compliance. While no separate fine is specified for failure to keep records for 5 years, the Director General may appoint an officer to inspect and audit records and may require production of records and information; non‑cooperation is likely to engage other statutory offences or the fines noted for failure to comply with the register and remittance obligations (regulation 16(5)).

• Fraudulent claims and false statements. Regulation 30 creates a general offence targeting intentional fraud: a person who knowingly makes a false statement or is concerned in any fraudulent act for the purpose of obtaining pecuniary benefit under the Scheme commits an offence punishable by a fine of $20 000. The provision is framed broadly to deter fraudulent claims for payments from the Account.

Administrative disqualifications and conditions

• Payments conditioning and disqualification. The IMC may refuse payments where applicants have failed to pay contributions, been convicted of failing to report the presence or suspected presence of the specified pest which is the subject of the application, or failed to comply with pest control requirements or conditions they have undertaken (regulation 23(2) and (3)). This operates as an administrative sanction and gate to payments, independent of monetary fines.

• Eligibility restrictions. Payments are not to be made to growers who are not full participants for the financial year in which the losses are incurred (regulation 23(1)). Payments to non-growers are further restricted to persons who have paid contributions in accordance with the Scheme (regulation 23(1A)) and require IMC satisfaction as to participant interest (regulation 21(3); regulation 22(2)). These eligibility rules can operate to exclude claimants from receiving compensation when conditions are not satisfied.

• Audit and inspection powers. The Director General may appoint officers to inspect, examine and audit records kept by registered receivers and may require production of records and information (regulation 16(5)). This allows compliance verification and supports enforcement of remittance and deduction obligations.

• Administrative reporting and review. The IMC’s reporting obligations and requirement to commission independent review(s) provide a governance mechanism for procedural accountability (regulation 11 and 27). While not enforcement per se, they can feed into Ministerial decisions and adjustments to area and rates that alter incentives.

Operational enforcement dynamics

• Collection risk and legal incidence. The legal incidence of the contribution is on the grower (regulation 15(1)), but enforcement primarily targets registered receivers because they deduct and remit. Regulation 16(3) provides that payment by a registered receiver to the Director General of deducted amounts is a partial discharge of the receiver’s obligation to pay the grower, and the amount is taken to have been paid to the Account by the grower. This creates a practical enforcement focus on receivers for collection but retains statutory liability on growers who may not be properly discharged where receivers fail to remit. Receivers bear large monetary fines for non-compliance while growers risk loss of eligibility for compensation if they have not complied with Scheme obligations.

• Administrative discretion and conditionality. Many payments are at the IMC’s discretion and conditional upon compliance with pest control or other measures (regulation 19(2), 21(5), 22(4)). The IMC’s decisions can therefore be both allocative and remedial; conditional payments can tie recipients to continuing pest-control obligations and hence create enforcement leverage short of prosecution.

• Interaction with the Act’s reporting offences. Regulation 23(2)(b) disqualifies payment where the person has been convicted of failing to comply with a written law requirement to report the presence or suspected presence of the specified pest which is the subject of the claim. That cross-reference imports enforcement consequences from the Biosecurity and Agriculture Management Act 2007 for reportable biosecurity breaches.

• Penalty levels. The fines are modest in absolute terms relative to large commercial transactions in the grain industry, but they are substantial for individual administrators and registrants. The $20 000 fine for deduction/remittance failures and for fraud is the highest specified in these Regulations.

Enforcement procedure and remedies. The Regulations do not set out a detailed enforcement procedure for imposing the monetary fines; those operate as offences under the Regulations. For disputes about IMC decisions to refuse payments, the applicant may request a review under the Biosecurity and Agriculture Management Regulations 2013 regulation 129F(2), which the Regulations explicitly reference (regulation 23(5)). The Director General must notify applicants within three months of receiving an application about what payment, if any, is to be made or the reason for refusal (regulation 23(4)).

In short, enforcement combines monetary penalties aimed at receivers and fraudsters, administrative disqualification from payments for non-compliance, audit and inspection powers for the Director General, and IMC conditionality as a behavioural lever to enforce pest-control compliance.

The Regulations are embedded within the Biosecurity and Agriculture Management Act 2007 (the Act) framework and cross‑reference the Biosecurity and Agriculture Management Regulations 2013 (BAM Regulations 2013) and the Financial Management Act 2006. The text explicitly invokes multiple external statutory provisions and administrative instruments.

Key cross-references and imports

• Biosecurity and Agriculture Management Act 2007. The Regulations define “pest control requirement” by direct reference to the Act: a direction in a pest control notice under section 31 of the Act, an obligation imposed by a management plan under section 45 of the Act, or obligations imposed by regulations made under the Act for pest control purposes (regulation 3 definition of pest control requirement). Regulation 26(1)(b) requires payment of any amount required under section 146(3) of the Act and interest on that amount out of the Account. Regulation 14(6) requires the register to be published on the electronic site maintained under section 159 of the Act. Regulation 23(5) provides that applicants dissatisfied with the outcome of an application for a payment may request a review under BAM Regulations 2013 regulation 129F(2), thereby connecting appeals or reviews into the BAM Regulations 2013 review panel regime.

• Biosecurity and Agriculture Management Regulations 2013. The appointments committee and review panel referenced in the definitions are established by the BAM Regulations 2013 (definitions: appointments committee; review panel). Regulation 9 requires the Minister, before appointing IMC members, to consult and take account of the appointments committee (which is a creature of the BAM Regulations 2013 regulation 129B(1)). The IMC’s decisions and the reviewable determinations fall into the review mechanics established by the BAM Regulations 2013 (regulation 23(5)).

• Financial Management Act 2006. The Account is established as an agency special purpose account under section 16 of the Financial Management Act 2006 and investment rules for public moneys are borrowed from section 11 to permit temporary investment of Account funds and crediting interest to the Account (regulation 6(1) and regulation 7).

• Gazette and public law formalities. The Minister must declare areas and rates by notice published in the Gazette and may amend or revoke such declarations by Gazette notice (regulation 13(1) and (4)). The Minister may declare Scheme termination or extension by Gazette notice as well (regulation 28(3) and regulation 29(1)). These publication requirements engage administrative law norms for notice and transparency and affect compliance planning by industry participants.

Implications of cross-references

• Reporting and enforcement under the Act. The Regulations make payment eligibility contingent on compliance with the Act’s reporting and pest-control obligations. Specifically, an applicant convicted of failing to comply with a written law requirement to report the presence or suspected presence of the specified pest in question is disqualified from payments (regulation 23(2)(b)). This imports criminal or administrative enforcement tools under the Act into the Scheme’s eligibility regime.

• Appeals and review routes. The reference to BAM Regulations 2013 regulation 129F(2) allows applicants dissatisfied with IMC/Director General outcomes to seek review through the regime established in the BAM Regulations 2013. The IMC and Director General must therefore operate with awareness of the external review pathway, which affects procedural fairness and transparency standards applied to decisions about payments.

• Financial management constraints. The use of an agency special purpose account under the Financial Management Act 2006 places the Account under public finance rules for investment, reporting, and accountability. It also permits the Director General to apply Account funds to repay amounts previously charged to the Consolidated Account as required by regulation 26(1)(c), and to credit interest from investments back to the Account (regulation 7; regulation 26).

• Administrative delegation and appointments. The Minister’s appointment role for IMC members and requirement to consult the appointments committee established under the BAM Regulations 2013 creates interaction between ministerial discretion and the appointments committee’s advice function. Regulation 9 also sets eligibility constraints linked to participant status under the Scheme’s own definitions, which in turn feeds back into IMC representativeness and potential conflicts of interest.

• Publication and online access. The Director General must publish the register of qualifying receivers on the electronic site maintained under section 159 of the Act (regulation 14(6)). This integrates Scheme transparency with the Act’s digital infrastructure.

Potential areas of legal complexity

• Definitions and Act interplay. The Regulations rely on definitions and procedural frameworks that exist in the Act and in the BAM Regulations 2013. Interpretation of key terms like “pest control requirement” or the application of s 146(3) payments will depend on the Act’s substantive provisions and any relevant regulations. Practitioners will need to read the Regulations in conjunction with the Act and BAM Regulations 2013 to resolve questions of eligibility, enforcement and review.

• Review and appeal jurisdiction. The explicit referral to BAM Regulations 2013 regulation 129F(2) raises questions about the precise review pathway and timeframes. Parties seeking review of IMC determinations must follow the external regulations’ procedures, which will govern evidence, review panel composition and potential rehearings.

• Financial and administrative powers. The Regulations allow the Director General, with IMC approval in some cases, to use the Account to satisfy Crown liabilities and administrative costs (regulation 26). This cross-charging may raise issues of priority and accounting in winding-up scenarios where residual balances are applied under regulation 28(4)(h).

When applying the Regulations practitioners should therefore work with the Act and BAM Regulations 2013 concurrently. The text makes clear the Scheme is not self-contained but deliberately leverages existing biosecurity and public finance frameworks.

The compilation table at the end of the Regulations records the enactment and amendment chronology. The Regulations were originally published on 21 May 2010 with substantive provisions commencing 22 May 2010. Since enactment the Regulations have been amended on several occasions. The compilation table lists four further legislative instruments and dates. Key amendments are as follows.

• 2011 consequential amendments. The Public Sector Reform (Consequential Amendments) Regulations 2011 (r. 20), published 11 February 2011 and commencing 12 February 2011, made consequential changes. The precise text of the 2011 amendment is not reproduced in the provided compilation extract, but the compilation table records its amendment instrument and commencement date.

• 2012 amendment. The Biosecurity and Agriculture Management Industry Funding Scheme (Grains) Amendment Regulations 2012, published 2 March 2012 and commencing 3 March 2012, amended various provisions. The Regulations themselves include bracketed notes that indicate regulation 3 and regulation 11 were amended by Gazette 2 Mar 2012 p. 853‑4. Specific amendments indicated in the body text include the updated definition or cross‑reference annotations and possible minor textual changes.

• 2020 amendment relating to Industry Funding Schemes. The Biosecurity and Agriculture Management Regulations Amendment (Industry Funding Schemes) Regulations 2020 (SL 2020/255), made 24 December 2020 and commencing 25 December 2020, effected deletions and amendments. The Regulations show several explicit deletions and amendments attributed to SL 2020/255, notably the deletion of regulations 4 and 5, and multiple amendments across regulations 3, 9, 14, 16, 23 and 26 (as indicated by bracketed amendment notes). The effects include updates to defined terms and appointment/composition provisions, and reordering or removal of redundant provisions to align with broader industry funding scheme changes across the Biosecurity and Agriculture Management Regulations.

• 2023 amendment. The Biosecurity and Agriculture Management Regulations Amendment (Industry Funding Schemes) Regulations 2023 (SL 2023/152), made 4 October 2023 and commencing 5 October 2023, is recorded in the compilation table. The body of the Regulations contains amendment annotations (for example, regulation 23 amended: SL 2023/152 r. 6), indicating further updates to payment eligibility conditions and related procedural rules. One visible change in the text is regulation 23(1A), inserted by SL 2023/152, which expressly requires that non-grower recipients of payments have paid contributions under this Scheme in accordance with the Regulations.

What changed materially

• Participant eligibility and IMC composition. Regulation 9 was amended (SL 2020/255 r. 19) to refine who may be appointed to the IMC and to add termination provisions tied to opt‑out status (regulation 9(5)(ca)). The 2020 amendments adjusted the interplay between IMC membership and participant status, introducing a mechanism by which a member who was a participant at appointment ceases to hold office at the beginning of the financial year for which that member opts out under regulation 17(1) (regulation 9(5)(ca)). This links IMC membership more directly to participant behaviour.

• Registration and reporting. Regulation 14 has been amended to modernise how the register is maintained and to require publication or online access (regulation 14(6)) and to reflect new penalty structures and information requirements (SL 2020/255 r. 25). Regulation 16’s audit powers and requirements for record keeping were amended to articulate the Director General’s inspection powers more clearly (SL 2020/255 r. 20 and 25).

• Payment eligibility tightening. The 2023 amendment inserted regulation 23(1A) requiring that non-grower applicants for payments under regulation 21 or 22 must have paid contributions under the Scheme in accordance with these regulations. This narrows the class of non-growers who can receive payments and ties receipt to contribution payment history.

• Administrative expense treatment. Regulation 26 was amended to specify that the Account may be applied to pay remuneration and allowances for certain committees and for review costs to the extent the IMC approves them, making explicit that such administrative expenses are chargeable to the Account subject to IMC approval (regulation 26(1)(d) to (f) and regulation 26(3)). The 2020 amendments clarified and consolidated these administrative payment rules.

Sunset and termination mechanics

• The Regulations originally contained an express termination mechanism: the Scheme had a default termination on 30 June 2015 (regulation 28(1)) but the Minister could extend the Scheme by notice in the Gazette after consultation (regulation 28(2) and (3)). Amendments have not altered the inclusion of termination and winding-up mechanics but have refined consultation obligations linked to Ministerial decisions about Scheme continuation.

Where to find textual history

• The compilation table at the end of the Regulations identifies each amending instrument and its commencement. For precise wording changes, one must consult the amending statutory instruments themselves (SL 2020/255; SL 2023/152; Biosecurity and Agriculture Management Industry Funding Scheme (Grains) Amendment Regulations 2012) and compare with previous versions. The Regulations include inline amendment notes which identify the regulations and registers affected.

Practical consequence of amendments

• Taken together, the amendments since 2010 have tightened governance and accountability, clarified administrative expense treatment, refined IMC membership rules in relation to participant status, strengthened payment eligibility for non-growers and adjusted reporting/registration requirements. Practitioners should check the current consolidated version and the text of amending regulations for exact operative wording when advising clients on current obligations.

The Regulations as provided do not include any case law, judicial decisions, or adjudicated disputes. The text contains no references to litigation, decisions or precedential rulings. The compilation table and notes list enactment and amending instruments but do not record any litigation or court challenges.

Implications for practitioners

• Absence of recorded cases. Because the Regulations do not record any litigation history, there is no statutory case law to guide interpretation of ambiguous terms, such as the boundaries of “chargeable transaction”, the operation of the IMC’s discretion, or the scope of disqualifying conditions under regulation 23. Practitioners must therefore rely primarily on the text, the cross‑referenced Act and BAM Regulations 2013, and any administrative decisions or agency practice that have arisen in implementation.

• Administrative review avenues. The Regulations provide for administrative review under the BAM Regulations 2013 (regulation 23(5)), which means that disputes arising from IMC decisions may be subject to review procedures established by the BAM Regulations 2013. Where disputes are escalated beyond internal review, one would expect judicial review in the courts to be available on public law grounds such as jurisdictional error, procedural fairness failures, or unreasonableness, but no reported judicial decisions are cited in the provided material.

• Areas likely to generate disputes. Practical areas that could lead to litigation or formal review include disputes over IMC decisions to refuse payments, disagreements about the calculation of losses or compensation amounts, disputes about the classification of transactions as chargeable, and enforcement actions against receivers for alleged failures to deduct or remit contributions. Questions about the construction of participant, full participant and opt‑out rules have potential to produce contested decisions.

• Recommendation for due diligence. In the absence of judicial guidance, parties should diligently document compliance (register entries, deduction statements, monthly remittance files, record retention) because administrative decisions and reviews will rely on documentary evidence. Entities facing IMC refusals or Director General determinations should seek administrative review under BAM Regulations 2013 and, where necessary, seek legal advice on potential judicial review remedies.

In short, the Regulations themselves do not show a litigation trail. Practitioners should monitor administrative practice, IMC determinations and any reviews under the BAM Regulations 2013, and should preserve records to support review or litigation should disputes arise.

These Regulations create several practical traps for participants and administrators. The following are concrete points where actors commonly err or misread obligations, with citations to the relevant provisions.

1. Registration deadlines and large fines. Qualifying receivers must notify the Director General within 30 days of becoming qualifying receivers (regulation 14(1)). The penalty for non-notification or late notification is $10 000. Missing the 30 day window transforms a routine commercial threshold into a statutory offence with material financial exposure. Keep a compliance calendar keyed to tonnage calculations.

2. Receiver deduction obligation and grower partial discharge. Receivers must deduct the contribution when making the chargeable payment and give the grower a written statement in the Director General’s required form (regulation 16(1)). If the receiver deducts but fails to remit, regulation 16(3) treats the payment to the Director General as a partial discharge of the receiver’s obligation to make the chargeable payment to the grower. However, the legal incidence of the charge remains with the grower under regulation 15(1). That means receiver errors can produce accounting disputes between grower and receiver about whether the grower has effectively paid. Practitioners should ensure written statements clearly reflect deductions and that receivers retain proof of remittance.

3. Monthly remittance timing. Registered receivers must remit all amounts deducted within 30 days of the end of each calendar month (regulation 16(2)). Late remittance attracts a $20 000 fine. The monthly deadline is administratively strict; large receivers processing high volumes must establish internal cashflow and reconciliation routines to meet this timeline.

4. Record retention and audit. Receivers must retain records for 5 years (regulation 16(4)). The Director General may appoint officers to inspect and audit these records and require production of information (regulation 16(5)). Failure to maintain or produce adequate records will expose receivers to enforcement action and will complicate dispute resolution with growers.

5. Full participant condition for compensation. Payments from the Account are not to be made to growers who are not full participants for the financial year in which losses are incurred (regulation 23(1)). The definition of “full participant” ties to the grower’s opt‑out history (regulation 3 definitions). A grower who opts out for one year may not be eligible for compensation in a later year depending on the sequence of participation and opting out. Parties seeking compensation must check participant status carefully.

6. Narrow pest scope. The Schedule lists specified pests that are the only pests for which approved programmes and compensation are to be funded under these Regulations (Schedule 1). As currently drafted, only bedstraw and skeleton weed are specified. Programs relating to other pests will not be fundable unless the Schedule is amended to include them. Participants should not assume broad pest coverage.

7. Opt-out and refund windows. A grower may opt out but only in narrow windows: for years after 2010-11 the opt‑out notice period is between 1 June and 30 June in the immediately preceding financial year (regulation 17(2)). Refunds for contributions paid on behalf of an opting-out grower must be requested by 31 July following the end of the specified financial year and must be supported by evidence acceptable to the Director General (regulation 18(1) and (2)). Missing these windows forfeits opt-out and refund rights.

8. IMC approval gating payments. Many payments require prior IMC approval (regulations 20 and 21). The IMC may impose terms, conditions and conditionality tied to further performance. Applicants should prepare for a discretionary approval process and factor conditionalities into compliance planning.

9. Disqualification for failure to report pests. Regulation 23(2)(b) disqualifies applicants who have been convicted of failing to comply with a reporting requirement under a written law to report the presence or suspected presence of the specified pest that is the subject of the application. This ties criminal or administrative failures under the broader Act directly to Scheme eligibility and can be overlooked when preparing claims.

10. Payments to non-growers limited. The IMC may approve payments to non-growers only if satisfied it is in the best interests of participants, and from 2023 non-growers must have paid contributions to be eligible (regulation 21(3); regulation 23(1A)). Entities other than growers should not assume entitlement to compensation without checking contribution history and IMC policy.

11. Use of Account to repay Crown costs. Regulation 26 permits the Director General to apply Account funds to repay amounts charged to the Consolidated Account even if those amounts relate to periods before the Regulations or before pests were specified in the Schedule. This could result in funds being used to discharge historical Crown costs rather than immediate programme or compensation needs, affecting cash available for participants.

12. Termination does not extinguish liabilities. When the Scheme is terminated, contributions payable but unpaid remain payable and are credited to the Account on payment; outstanding refund and application rights continue in defined ways (regulation 28(4)(b), (d), (e) and (f)). Termination does not absolve parties from liabilities or erase pending claims; it changes operational horizons and rights.

13. Forms and evidence acceptable to the Director General. Many procedural elements (form of notices, statements, evidence for refunds) are subject to the Director General’s requirements or acceptance (regulation 12; regulation 16(1) and 18(2)). That creates administrative discretion and potential unpredictability; parties should seek early clarity from the agency about acceptable forms and supporting documents.

14. IMC membership linked to participation. A member who was a participant at appointment ceases to hold office at the beginning of a financial year for which the member opts out (regulation 9(5)(ca)). This can have governance effects where IMC composition changes in response to individual members’ commercial choices.

These “gotchas” are procedural and substantive. They point to predictable compliance failure modes: missed registration or remittance deadlines, incomplete records, misreading of eligibility rules, dependence on narrow pest coverage, and unanticipated uses of Account funds. Practical compliance requires calendar discipline, clear transactional documentation and early engagement with the Director General and the IMC about forms, evidence and approval pathways.

This section provides a practical compliance checklist tailored to the principal affected actors: growers and produce receivers, and also outlines obligations for IMC members and the administering agency. The checklist references specific regulatory provisions.

For produce receivers (qualifying receivers)

1. Determine qualifying status. Monitor volumes: if you receive or purchase 500 tonnes or more in a financial year, you are a qualifying receiver under the definitions (regulation 3). If you meet the threshold in the current year, you must notify the Director General within 30 days (regulation 14(1)). Note that the assessment is year by year, and the threshold may be satisfied by prior-year volumes plus expectations for the current year (regulation 3 qualifying receiver definition).

2. Register promptly and maintain details. Provide the Director General with your name, principal place of business in the State and other details as required within 30 days. If details change, notify the Director General within 30 days to avoid a $10 000 penalty (regulation 14(1), (3)).

3. Public register and transparency. Be aware that the register is published online via the electronic site maintained under s 159 of the Act (regulation 14(6)). Ensure you consent to public listing of the required details and verify accuracy.

4. Implement deduction and statement procedures. When making chargeable payments to growers, deduct the contribution amount and provide the grower a written statement in the form required by the Director General (regulation 16(1)). Establish standardised payment documents that capture the deduction line item clearly.

5. Monthly remittance and reporting. Remit all deducted amounts to the Director General within 30 days of the end of each calendar month. Prepare and submit the required written statement detailing each deduction and the transaction details as specified by the Director General (regulation 16(2)). Implement reconciliation and cashflow processes to accommodate monthly remittance.

6. Recordkeeping and audit readiness. Keep records and accounts for at least 5 years showing the nature of each transaction, identity of the grower, volumes of produce, the amount deducted, and remittance dates (regulation 16(4)). Ensure secure storage, indexed retrieval and audit trails to facilitate inspections under regulation 16(5).

7. Cooperate with inspection and audit. If an officer appointed by the Director General requests records or information, produce them as required (regulation 16(5)). Non-cooperation can invite additional enforcement actions.

8. Seek clarity on forms. The Director General may prescribe forms; request written confirmation of the accepted format and keep copies of submitted statements and receipts of remittances.

For growers

1. Understand chargeability. Know when a transaction is “chargeable”: delivery to or sale to a registered receiver for storage, handling or marketing purposes (regulation 3; regulation 15(1)). The amount of contribution is determined by reference to the rate declared at the time the chargeable payment is due (regulation 15(2)). Check the Gazette before each financial year for the declared area(s) and rates (regulation 13(1)).

2. Opt-out rules and timing. If you intend to opt out for a financial year, serve notice on the Director General in the specified window: for 2010-11 different dates applied but for subsequent years the opt-out window is between 1 June and 30 June in the preceding financial year (regulation 17(2)). Missing the opt-out window means you remain a participant.

3. Refund claims after opting out. If you opted out and contributions were paid on your behalf, request a refund by 31 July after the end of the specified financial year. Provide the details and evidence acceptable to the Director General. Track documentary evidence of contributions paid on your behalf to support refund claims (regulation 18(1) to (3)).

4. Maintain compliance with pest-control requirements. Be aware that payments from the Account will be refused where you have failed to comply with pest-control requirements or have been convicted of failing to report the presence or suspected presence of the specified pest in question (regulation 23(2)). Ensure timely reporting and compliance with notices, management plans and regulatory obligations under the Act.

5. Understand participant status implications. Payment eligibility depends on “full participant” status. The definition links to opt-out history and may affect entitlement to compensation. Before incurring losses that might prompt claims, verify participant status for the relevant financial year (regulation 3 definitions; regulation 23(1)).

6. Prepare documentation for claims. Applications for payments must be made in the form, procedures and time limits established by the IMC (regulation 23(3)). Prepare evidence of loss, compliance with control measures, payment of contributions and any other required supports.

7. Engage with IMC consultation. The IMC is required to consult growers at least annually (regulation 11(2)). Participate in these consultations to influence rate and area recommendations and to stay aware of IMC programme priorities.

For the Industry Management Committee and IMC appointees

1. Observe eligibility and composition rules. The Minister appoints members after consulting the appointments committee; members are generally full participants unless the Minister exercises permitted exceptions (regulation 9(1) to (3)). Be mindful that a member who was a participant at appointment ceases office if they opt out at the start of a financial year (regulation 9(5)(ca)).

2. Recommendations on area and rates. In making recommendations to the Minister on area and contribution rates, have regard to the estimated costs of payments relating to current approved programmes (regulation 13(5)). Provide clear estimates and basis for rate allocation including the estimated proportion of contributions likely to be applied to each specified pest (regulation 13(6)).

3. Approve programmes and specify terms. When approving programmes under regulation 19, specify the amount available from the Account, designate particular activities to be funded and set terms and conditions including payment bases and conditionality (regulation 19(2)). Ensure approvals are documented and budgets are reconciled against Account balances.

4. Exercise payment discretion transparently. Approve payments under regulations 20 to 22 only within specified caps and conditions. Document reasons, basis for amounts and any conditional undertakings imposed on recipients (regulation 20 to 22). Ensure applicants receive written notification within three months as required by regulation 23(4).

5. Ensure governance and reporting. Consult growers at least annually and produce annual reports on Scheme operation for the Minister and participants (regulation 11(2) and (3)). Commission the independent consultant review required after 30 June 2011 and publish or provide the report to participants and the Minister as soon as reasonably practicable (regulation 27).

For the Director General and administering agency

1. Maintain the Account and register. Manage the Account as an agency special purpose account under the Financial Management Act 2006 and maintain the register of qualifying receivers with online access (regulation 6; regulation 14(2) and (6)). Ensure investment and accounting practices comply with s 11 and s 16 of the Financial Management Act.

2. Prescribe forms and provide guidance. Publish required forms for notices, statements and refund claims, and make guidance publicly available. Where the Regulations leave form and evidence to the Director General’s discretion, provide clear published standards to reduce disputes (regulation 12; regulation 16(1); regulation 18(2)).

3. Implement audit and compliance procedures. Appoint officers for inspections and audits of registered receivers under regulation 16(5) and maintain an audit trail of remittances, statements and register updates. Use these audits to enforce remittance obligations and to validate refund and payment claims.

4. Timely notification of payment outcomes. When an application for payment is received, notify applicants within three months of the decision or reason for refusal, citing whether the IMC failed to approve the payment or another stated reason (regulation 23(4)).

5. Apply Account funds in accordance with IMC approvals and statutory limits. Make payments only pursuant to IMC approvals and ensure expenditure consistency with the purpose of the Account and IMC directions (regulations 19 to 26). Notify the IMC of any amount applied under regulation 26(1)(b) or (c) within one month (regulation 26(4)).

6. Winding up and termination procedures. If the Scheme is terminated, ensure statutory winding-up steps are followed: close the Account, continue to accept and credit previously payable contributions, process refund and payment applications tied to pre-termination actions and apply residual balances in ways the IMC considers beneficial to participants (regulation 28(4)).

Common operational controls

• Compliance calendar. Establish an annual schedule keyed to Gazette notices for rates and areas, opt‑out windows (1 to 30 June or the special 2010 window), monthly remittance deadlines and the 31 July refund window.

• Standardised documentation. Use standard templates for deduction statements to growers, monthly remittance statements to the Director General, registration forms and refund evidence checklists.

• Audit trails. Maintain transaction-level records for at least 5 years, including grower IDs, volumes, deduction amounts and remittance receipts, to support both audits and refund/claim processes.

• Legal and advisory engagement. Seek legal advice when preparing IMC approvals, dealing with disputed claims, interpreting participant status or contesting IMC decisions under the BAM Regulations 2013 review pathway.

Following these concrete steps will minimise exposure to fines, preserve eligibility for payments and create the documentary foundation required for refunds and claims under the Scheme.