Primary Industries (Excise) Levies Act 2024

The Primary Industries (Excise) Levies Act 2024 establishes a comprehensive, flexible legislative framework that authorises the Commonwealth executive to impose excise levies across Australia's primary industry sectors and related supply chains. Mechanically, the Act does not directly set tax rates or define specific levy payers on its face. Instead, it functions as skeleton legislation, delegating the power to impose levies, define exemptions, set tax rates, and designate the liable levy payers to the Governor-General through subordinate regulations (s 3).

The Act divides its levy-imposing power into three distinct categories:

Levies on products that are the produce of a primary industry, covering animal, plant, fungus, or algal products (Part 2).
Levies on goods consumed by, or used in the maintenance or treatment of, animals, plants, fungi, or algae (Part 3).
Levies on goods connected with the commercial production or preparation of nursery products (Part 4).

The statutory mechanism requires that before any levy is imposed under Part 2 or Part 4, the Minister must be satisfied that the tax revenue will be directed toward specific categories of expenditure. These categories include industry marketing, advertising, promotion, research and development (R&D) activities, biosecurity programs, biosecurity response funding, and the National Residue Survey (ss 7(3), 13(2)). For levies on input goods under Part 3, the expenditure is restricted to plant and animal health promotion, maintenance, and biosecurity responses (s 10(2)).

By consolidating the constitutional authority to levy primary industries into a single statutory instrument, the Act streamlines the federal tax-imposition process. However, this structure shifts substantial legislative authority away from Parliament to executive discretion, allowing levy rates, exemptions, and targeted commodities to be altered dynamically through regulations and ministerial instruments.

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Commonwealth Coat of Arms of Australia

Primary Industries (Excise) Levies Act 2024

No. 56, 2024

An Act relating to the imposition of primary industries levies that are duties of excise, and for related purposes

Contents

Part 1—Preliminary

1 Short title

2 Commencement

3 Simplified outline of this Act

4 Definitions

5 Crown to be bound

6 Application of this Act in external Territories

Part 2—Levies in relation to products that are produce of a primary industry

7 Imposition of levies

8 Imposition of 2 or more levies

9 Exemptions from levy

Part 3—Levies in relation to goods consumed by, or used in the maintenance or treatment of, animals, plants, fungi or algae

10 Imposition of levies

11 Imposition of 2 or more levies

12 Exemptions from levy

Part 4—Levies in relation to goods connected with nursery products

13 Imposition of levies

14 Imposition of 2 or more levies

15 Exemptions from levy

Part 5—Rate of levy

16 Rate of levy

17 Components of levy

18 Flexibility in relation to rates of levy

19 Nil or zero rates

Part 6—Levy payer

20 Levy payer

Part 7—Other matters

21 Act does not impose levy on property of a State

22 Net GST not included in price of product or goods or amount paid for product or goods

23 Nominated industry representative bodies and nominated polling bodies

24 Treatment of partnerships

25 Treatment of trusts

26 Treatment of unincorporated bodies or associations

27 Making of regulations

Commonwealth Coat of Arms of Australia

Primary Industries (Excise) Levies Act 2024

No. 56, 2024

An Act relating to the imposition of primary industries levies that are duties of excise, and for related purposes

[Assented to 9 July 2024]

The Parliament of Australia enacts:

Part 1—Preliminary

1 Short title

This Act is the Primary Industries (Excise) Levies Act 2024.

2 Commencement

(1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.

Commencement information
Column 1 Column 2 Column 3
Provisions Commencement Date/Details
1. The whole of this Act 1 January 2025. 1 January 2025

Note: This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act.

(2) Any information in column 3 of the table is not part of this Act. Information may be inserted in this column, or information in it may be edited, in any published version of this Act.

3 Simplified outline of this Act

This Act authorises the regulations to:

(a) impose levies in relation to animal products, plant products, fungus products or algal products that are produce of a primary industry; and

(b) impose levies in relation to goods that are of a kind consumed by, or used in the maintenance or treatment of, animals, plants, fungi or algae; and

In addition to imposing a particular levy, the regulations are to set out:

(a) any exemptions from the levy; and

(b) the rate of the levy; and

4 Definitions

In this Act:

algae means macroalgae, microalgae or cyanobacteria, and includes seaweeds.

algal product means:

(a) an alga; or

(b) any part of an alga; or

(d) anything wholly or principally produced from, or wholly or principally derived from, an alga.

animal means any member, alive or dead, of the animal kingdom (other than a human being).

animal product means:

(a) an animal; or

(b) any part of an animal; or

(d) anything wholly or principally produced from, or wholly or principally derived from, an animal.

aquaculture means propagating, rearing, keeping or breeding aquatic vertebrates or aquatic invertebrates.

fishing means the catching, capturing or harvesting of aquatic vertebrates or aquatic invertebrates.

forest operations means the growing, harvesting or processing of wood.

fungus means any member, alive or dead, of the fungi kingdom, and includes yeasts, mushrooms and truffles.

fungus product means:

(a) a fungus; or

(b) any part of a fungus; or

(d) anything wholly or principally produced from, or wholly or principally derived from, a fungus.

levy means a levy imposed by regulations made for the purposes of Part 2, 3 or 4.

nominated industry representative body means a body determined to be a nominated industry representative body by an instrument in force under subsection 23(1).

nominated polling body means a body determined to be a nominated polling body by an instrument in force under subsection 23(6).

nursery products includes trees, shrubs, plants, seeds, bulbs, corms, tubers, propagating material and plant tissue cultures, grown for ornamental purposes or for producing fruits, vegetables, nuts or cut flowers and foliage.

plant means any member, alive or dead, of the plant kingdom.

plant product means:

(a) a plant; or

(b) any part of a plant; or

(d) anything wholly or principally produced from, or wholly or principally derived from, a plant.

produce of a primary industry means products that result from any of the following:

(a) agriculture or the cultivation of land;

(b) the maintenance of animals for commercial purposes;

(d) controlled environment cropping, including vertical farming, indoor farming and protected cropping;

(e) forest operations;

(f) fishing;

(g) aquaculture;

(h) hunting or trapping;

(i) picking or harvesting from the wild;

(j) horticulture;

(k) viticulture;

(l) the cultivation of fungi or algae;

(m) any other primary industry activity.

product means an animal product, a plant product, a fungus product or an algal product (whether or not any operations have been performed in relation to the product).

property of any kind belonging to a State: see subsection 21(2).

Secretary means the Secretary of the Department.

5 Crown to be bound

This Act binds the Crown in right of each of the States, of the Australian Capital Territory and of the Northern Territory. However, it does not bind the Crown in right of the Commonwealth.

6 Application of this Act in external Territories

(1) Subject to subsection (2), this Act and the regulations do not extend to the external Territories.

(2) The regulations may extend this Act, and any provisions of the regulations, to an external Territory that is prescribed by the regulations.

Part 2—Levies in relation to products that are produce of a primary industry

7 Imposition of levies

(1) The regulations may impose a levy in relation to one or more specified products in the circumstances prescribed by the regulations.

Note: Products may be specified by name, by inclusion in a specified class, or in any other way.

(2) The products must be produce of a primary industry.

Minister to be satisfied of matters

(3) Before the Governor‑General makes regulations for the purposes of subsection (1), the Minister must be satisfied that the imposition of the levy will result in one or more of the following:

(a) expenditure on the marketing, advertising or promotion of products of one or more primary industries;

(b) expenditure on research and development activities for the benefit of one or more primary industries;

(c) expenditure on activities, including biosecurity activities, relating to the promotion or maintenance of the health of plants, animals, fungi or algae;

(d) expenditure on matters relating to a biosecurity response;

(e) expenditure on activities relating to the National Residue Survey;

(f) expenditure:

(i) on any other activity prescribed by the regulations in relation to one or more primary industries; and

(ii) for the benefit of one or more primary industries.

Duty of excise

(4) This section authorises the imposition of a levy only so far as the levy is a duty of excise within the meaning of section 55 of the Constitution.

8 Imposition of 2 or more levies

This Part does not prevent the imposition of 2 or more levies, whether in relation to the same products or in relation to different products.

9 Exemptions from levy

The regulations may provide for exemptions from a levy under this Part.

Part 3—Levies in relation to goods consumed by, or used in the maintenance or treatment of, animals, plants, fungi or algae

10 Imposition of levies

(1) The regulations may impose a levy in relation to one or more specified goods:

(a) that are of a kind consumed by, or used in the maintenance or treatment of, animals, plants, fungi or algae; and

(b) in the circumstances prescribed by the regulations.

Note: Goods may be specified by name, by inclusion in a specified class, or in any other way.

Minister to be satisfied of matters

(2) Before the Governor‑General makes regulations for the purposes of subsection (1), the Minister must be satisfied that the imposition of the levy will result in either or both of the following:

(a) expenditure on activities, including biosecurity activities, relating to the promotion or maintenance of the health of plants, animals, fungi or algae;

(b) expenditure on matters relating to a biosecurity response.

Duty of excise

(3) This section authorises the imposition of a levy only so far as the levy is a duty of excise within the meaning of section 55 of the Constitution.

11 Imposition of 2 or more levies

This Part does not prevent the imposition of 2 or more levies, whether in relation to the same goods or in relation to different goods.

12 Exemptions from levy

The regulations may provide for exemptions from a levy under this Part.

Part 4—Levies in relation to goods connected with nursery products

13 Imposition of levies

(1) The regulations may impose a levy in relation to one or more specified goods:

(a) that are for use in the production or preparation of nursery products:

(i) for sale; or

(ii) for use in the commercial production of other goods; and

(b) in the circumstances prescribed by the regulations.

Note: Goods may be specified by name, by inclusion in a specified class, or in any other way.

Minister to be satisfied of matters

(2) Before the Governor‑General makes regulations for the purposes of subsection (1), the Minister must be satisfied that the imposition of the levy will result in one or more of the following:

(a) expenditure on the marketing, advertising or promotion of products of one or more primary industries;

(b) expenditure on research and development activities for the benefit of one or more primary industries;

(c) expenditure on activities, including biosecurity activities, relating to the promotion or maintenance of the health of plants;

(d) expenditure on matters relating to a biosecurity response;

(e) expenditure on activities relating to the National Residue Survey;

(f) expenditure:

(i) on any other activity prescribed by the regulations in relation to one or more primary industries; and

(ii) for the benefit of one or more primary industries.

Duty of excise

(3) This section authorises the imposition of a levy only so far as the levy is a duty of excise within the meaning of section 55 of the Constitution.

14 Imposition of 2 or more levies

This Part does not prevent the imposition of 2 or more levies, whether in relation to the same goods or in relation to different goods.

15 Exemptions from levy

The regulations may provide for exemptions from a levy under this Part.

Part 5—Rate of levy

16 Rate of levy

The rate of a levy is worked out in accordance with the regulations.

17 Components of levy

(1) The rate of a levy may be expressed to be equal to:

(a) a single component prescribed by the regulations; or

(b) the sum of such components as are prescribed by the regulations.

(2) Subsection (1) does not limit section 16.

18 Flexibility in relation to rates of levy

(1) Different rates of the same levy may be prescribed by the regulations for different kinds of products or goods.

(2) Subsection (1) does not limit section 16.

(3) Subsection (1) does not limit subsection 33(3A) of the Acts Interpretation Act 1901.

19 Nil or zero rates

The rate of a levy, or a component of the rate of a levy, may be expressed to be:

(a) nil; or

(b) zero; or

(d) 0% of the sale price of a product or goods.

Part 6—Levy payer

20 Levy payer

A levy is payable by the person worked out in accordance with the regulations.

Part 7—Other matters

21 Act does not impose levy on property of a State

(1) This Act does not authorise the imposition of a tax on property of any kind belonging to a State.

(2) Property of any kind belonging to a State has the same meaning as in section 114 of the Constitution.

(3) For the purposes of this section, assume that a reference in section 114 of the Constitution to a State includes a reference to the Australian Capital Territory and the Northern Territory.

22 Net GST not included in price of product or goods or amount paid for product or goods

Despite section 177‑12 of the A New Tax System (Goods and Services Tax) Act 1999, a reference in the regulations to the price of a product or goods (including sale price or market price), or the amount paid for a product or goods, is taken not to include the net GST (within the meaning of that Act) that is included in that price or amount.

23 Nominated industry representative bodies and nominated polling bodies

Nominated industry representative bodies

(1) The Minister may, by legislative instrument:

(a) determine a specified body to be a nominated industry representative body; and

(b) specify one or more levies in relation to that body.

(2) If the Minister does so, before regulations are made setting or amending the rate of such a levy:

(a) if the whole of the rate is specified in relation to the body in accordance with paragraph (3)(a)—the body must be consulted, and may make recommendations to the Minister, about the whole of the rate; or

(b) if a part or parts of the rate are specified in relation to the body in accordance with paragraph (3)(b)—the body must be consulted, and may make recommendations to the Minister, about that part or parts of the rate.

(3) The Minister may, in the instrument under subsection (1):

(a) specify the whole of the rate of a levy in relation to a body for the purposes of paragraph (2)(a); or

(b) specify a part or parts of the rate of a levy in relation to a body for the purposes of paragraph (2)(b).

(4) A nominated industry representative body must, before making a recommendation referred to in paragraph (2)(a) or (b), consult the bodies (if any) specified in relation to the body under subsection (5).

(5) The Minister may, in the instrument under subsection (1), specify bodies in relation to a nominated industry representative body for the purposes of subsection (4).

Nominated polling bodies

(6) The Minister may, by legislative instrument:

(a) determine a specified body to be a nominated polling body; and

(b) specify one or more levies in relation to that body.

(7) If the Minister does so, before regulations are made setting or amending the rate of such a levy:

(a) if the whole of the rate is specified in relation to the body in accordance with paragraph (8)(a)—the body must be consulted, and may make recommendations to the Minister, about the whole of the rate; or

(b) if a part or parts of the rate are specified in relation to the body in accordance with paragraph (8)(b)—the body must be consulted, and may make recommendations to the Minister, about that part or parts of the rate.

(8) The Minister may, in the instrument under subsection (6):

(a) specify the whole of the rate of a levy in relation to a body for the purposes of paragraph (7)(a); or

(b) specify a part or parts of the rate of a levy in relation to a body for the purposes of paragraph (7)(b).

(9) A nominated polling body must, before making a recommendation referred to in paragraph (7)(a) or (b), ensure a poll is conducted in accordance with the requirements specified under subsection (10). The recommendation must be in accordance with the results of the poll.

(10) The Minister may, in the instrument under subsection (6), specify requirements that are for, or in relation to, the conduct of a poll for the purposes of subsection (9).

24 Treatment of partnerships

(1) This Act and the regulations apply to a partnership as if it were a person, but with the changes set out in this section.

(2) An obligation that would otherwise be imposed on the partnership by this Act or the regulations is imposed on each partner instead, but may be discharged by any of the partners.

(3) If this Act or the regulations would otherwise permit something to be done by the partnership, the thing may be done by one or more of the partners on behalf of the partnership.

(4) For the purposes of this Act and the regulations, a change in the composition of a partnership does not affect the continuity of the partnership.

25 Treatment of trusts

(1) This Act and the regulations apply to a trust as if it were a person, but with the changes set out in this section.

Trusts with a single trustee

(2) If the trust has a single trustee:

(a) an obligation that would otherwise be imposed on the trust by this Act or the regulations is imposed on the trustee instead; and

(b) if this Act or the regulations would otherwise permit something to be done by the trust, the thing may be done by the trustee.

Trusts with multiple trustees

(3) If the trust has 2 or more trustees:

(a) an obligation that would otherwise be imposed on the trust by this Act or the regulations is imposed on each trustee instead, but may be discharged by any of the trustees; and

(b) if this Act or the regulations would otherwise permit something to be done by the trust, the thing may be done by one or more of the trustees on behalf of the trust.

26 Treatment of unincorporated bodies or associations

(1) This Act and the regulations apply to an unincorporated body or association as if it were a person, but with the changes set out in this section.

(2) An obligation that would otherwise be imposed on the body or association by this Act or the regulations is imposed on each member of the body’s or association’s committee of management instead, but may be discharged by any of the members.

(3) If this Act or the regulations would otherwise permit something to be done by the body or association, the thing may be done by one or more of the members of the body’s or association’s committee of management on behalf of the body or association.

27 Making of regulations

(1) The Governor‑General may make regulations prescribing matters:

(a) required or permitted by this Act to be prescribed by the regulations; or

(b) necessary or convenient to be prescribed for carrying out or giving effect to this Act.

Consultation—setting or amending the rate of a levy

(2) Before regulations are made setting or amending the rate of a levy, the Minister must be satisfied that in relation to the proposed regulations:

(a) if one or more nominated industry representative bodies must be consulted about the proposed regulations in accordance with section 23:

(i) the consultation has occurred; and

(ii) if, in accordance with that section, such a body makes a recommendation to the Minister about the rate—the rate does not exceed the rate so recommended; and

(b) if a nominated polling body must be consulted about the proposed regulations in accordance with section 23:

(i) the consultation has occurred; and

(ii) if, in accordance with that section, the body makes a recommendation to the Minister about the rate—the rate does not exceed the rate so recommended; and

(c) if neither a nominated industry representative body nor a nominated polling body must be consulted about the proposed regulations:

(i) appropriate consultation has been undertaken about the proposed regulations with bodies and persons involved in the industry in relation to the levy; and

(ii) any recommendations made by those bodies or persons about the rate have been considered.

Note: For consultation requirements generally, see section 17 (consultation) of the Legislation Act 2003.

(3) The fact that consultation referred to in subsection (2) does not occur does not affect the validity or enforceability of the regulations.

Other instruments

(4) The regulations may make provision in relation to a matter by conferring on the Minister or the Secretary a power to make a legislative instrument.

Incorporation of other instruments

(5) Despite subsection 14(2) of the Legislation Act 2003, the regulations may make provision in relation to a matter by applying, adopting or incorporating, with or without modification, any matter contained in an instrument or other writing as in force or existing from time to time.

No limit on subsection (1)

(6) Subsections (4) and (5) do not limit subsection (1).

[Minister’s second reading speech made in—

House of Representatives on 18 October 2023

Senate on 16 November 2023]

(122/23)

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Primary Industries (Excise) Levies Act 2024

No. 56, 2024

An Act relating to the imposition of primary industries levies that are duties of excise, and for related purposes

Contents

Part 1—Preliminary

1 Short title

2 Commencement

3 Simplified outline of this Act

4 Definitions

5 Crown to be bound

6 Application of this Act in external Territories

Part 2—Levies in relation to products that are produce of a primary industry

7 Imposition of levies

8 Imposition of 2 or more levies

9 Exemptions from levy

Part 3—Levies in relation to goods consumed by, or used in the maintenance or treatment of, animals, plants, fungi or algae

10 Imposition of levies

11 Imposition of 2 or more levies

12 Exemptions from levy

Part 4—Levies in relation to goods connected with nursery products

13 Imposition of levies

14 Imposition of 2 or more levies

15 Exemptions from levy

Part 5—Rate of levy

16 Rate of levy

17 Components of levy

18 Flexibility in relation to rates of levy

19 Nil or zero rates

Part 6—Levy payer

20 Levy payer

Part 7—Other matters

21 Act does not impose levy on property of a State

22 Net GST not included in price of product or goods or amount paid for product or goods

23 Nominated industry representative bodies and nominated polling bodies

24 Treatment of partnerships

25 Treatment of trusts

26 Treatment of unincorporated bodies or associations

27 Making of regulations

Primary Industries (Excise) Levies Act 2024

No. 56, 2024

Understanding the operation of this Act requires a precise analysis of its statutory definitions, which are engineered to capture a remarkably wide spectrum of biological and commercial activities.

Under section 4, "produce of a primary industry" extends far beyond traditional farming. It includes products resulting from agriculture, land cultivation, commercial animal maintenance, forest operations, fishing, aquaculture, hunting, trapping, horticulture, viticulture, and wild harvesting. Significantly, the definition explicitly encompasses modern agricultural technologies, such as soilless growing systems (hydroponics, aeroponics, and aquaponics) and controlled environment cropping (vertical farming, indoor farming, and protected cropping). This ensures that emerging agrotech industries cannot escape the levy net via technical loopholes regarding "cultivation of land."

The Act breaks down commercial biological outputs into four primary categories under section 4:

"Animal product": Any member of the animal kingdom (excluding humans), any part of an animal, anything produced by an animal (such as milk, honey, or wool), or anything wholly or principally derived from them.
"Plant product": Any member of the plant kingdom, its parts, its products, or derivatives.
"Fungus product": Any member of the fungi kingdom (including yeasts, mushrooms, and truffles), its parts, its products, or derivatives.
"Algal product": Any macroalgae, microalgae, or cyanobacteria (including seaweeds), its parts, its products, or derivatives.

Another critical concept is "nursery products", defined in section 4 to include trees, shrubs, plants, seeds, bulbs, corms, tubers, propagating material, and plant tissue cultures, whether grown for ornamental purposes or for food production (fruits, vegetables, nuts) or cut flowers.

Finally, the Act introduces two key institutional concepts under section 23:

"Nominated industry representative body": A specified body determined by the Minister via legislative instrument to represent a sector for a given levy.
"Nominated polling body": A body determined by the Minister to conduct industry-wide polls before recommending levy rate amendments.

The economic and compliance footprint of the Primary Industries (Excise) Levies Act 2024 spans the entire agricultural, biological, and horticultural supply chain of Australia.

First, it directly affects primary producers. This includes traditional crop and livestock farmers, commercial fishers, forestry operators, and aquaculturists. It also captures specialised operators, such as mushroom growers, seaweed harvesters, wild-game trappers, and commercial vertical-farming enterprises.

Second, the Act extends its reach to input manufacturers and suppliers. Because Part 3 authorises levies on goods "consumed by, or used in the maintenance or treatment of" animals, plants, fungi, or algae, businesses manufacturing or selling veterinary medicines, animal feed, fertilisers, pesticides, fungicides, and soil conditioners may find their products subject to excise levies. Similarly, suppliers of materials used in the production or preparation of nursery products (such as pots, growing media, or propagation trays) are exposed under Part 4.

Third, the Act affects intermediaries and supply chain participants. Under section 20, the specific "levy payer" is left to the regulations. Historically, for administrative convenience, governments often designate processors, wholesalers, or abattoirs as the legal levy payers, requiring them to collect and remit the tax. This shifts the administrative compliance burden onto intermediaries, who must adjust their payment systems to deduct levies from payments made to producers.

Fourth, the Act affects professional advisors, including accountants, auditors, and lawyers representing agricultural clients. They must navigate complex structural rules, particularly because the Act binds state and territory governments (s 5) but exempts the Commonwealth. Furthermore, individual partners in partnerships (s 24), trustees of trusts (s 25), and management committee members of unincorporated associations (s 26) are personally liable for the compliance obligations of their respective organisations.

The primary statutory duty imposed by the Act is the liability to pay the specified levies once they are activated and detailed by the regulations (s 20).

Crucially, the Act modifies standard commercial law principles regarding business structures to ensure the revenue collector can enforce these duties:

Partnerships (s 24): A partnership is treated as a single person for the purposes of the Act, but the legal obligations are thrust onto each partner individually. While any single partner can discharge the obligation, every partner remains jointly and severally exposed to the liability. Changes in partnership composition do not affect this continuity.
Trusts (s 25): If a trust has a single trustee, the obligation falls on that trustee. If the trust has multiple trustees, the obligation is imposed on each trustee individually, though it can be discharged by any of them.
Unincorporated Bodies (s 26): For unincorporated associations or bodies, the compliance and payment obligations are imposed on each member of the body's committee of management.

Regarding rights, the Act establishes a consultation framework under section 23 and section 27. When a nominated industry representative body is specified for a levy, the Minister must consult that body before making or amending regulations that alter the levy rate. If a nominated polling body is designated, that body has the right and duty to conduct a formal poll of industry participants before making a recommendation to the Minister. The recommendation must align with the poll results, and the Minister is legally constrained from setting a levy rate that exceeds the rate recommended by either the representative body or the polling body (ss 27(2)(a)(ii), 27(2)(b)(ii)).

However, this statutory "right" to be consulted is severely compromised by section 27(3). This section explicitly states that a failure to undertake the consultation referred to in subsection 27(2) "does not affect the validity or enforceability of the regulations." Consequently, industry participants have no administrative law recourse to strike down a levy on the basis of a total failure of the executive to consult them.

Because the Primary Industries (Excise) Levies Act 2024 is strictly drafted as a taxing Act to comply with section 55 of the Constitution (which dictates that laws imposing taxation must deal only with the imposition of taxation), the text of this Act does not contain civil penalty provisions, criminal offences, interest charges for late payments, or administrative audit powers.

Instead, the enforcement, collection, and penalty machinery are bifurcated. Section 27(1) grants the Governor-General broad power to make regulations "prescribing matters... necessary or convenient to be prescribed for carrying out or giving effect to this Act." In practice, the procedural collection mechanisms, late-payment penalties, record-keeping mandates, and administrative powers to audit commercial premises are housed either in separate companion legislation (such as a primary industries levies collection Act) or delegated heavily to the regulations.

For compliance professionals, this structural split represents an regulatory risk. While the liability to pay is grounded in this Act, the actual enforcement risks (such as daily compounding interest for non-payment, personal liability for directors of corporate intermediaries, and penalties for failing to submit returns) must be tracked through secondary legislation and separate collection statutes.

Furthermore, because partnerships, trusts, and unincorporated associations are treated as "persons" under sections 24 to 26, the executive can deploy whatever enforcement powers are provided in the broader regulatory framework directly against the private assets of individual partners, trustees, or committee members to satisfy unpaid levy debts.

The Act sits at the intersection of several critical constitutional and statutory frameworks:

The Australian Constitution (s 55): Sections 7(4), 10(3), and 13(3) explicitly state that the Act authorises the imposition of a levy "only so far as the levy is a duty of excise within the meaning of section 55 of the Constitution." Under constitutional law, an excise is a tax on the manufacture, production, sale, or distribution of goods. By limiting the Act's scope to excises, the drafters ensure that if a regulation inadvertently imposes a tax that is characterised as a direct tax or an income tax, only that specific regulation falls invalid, rather than the entire Act.
The Australian Constitution (s 114): Under section 21, the Act explicitly declares that it does not authorise the imposition of a tax on property of any kind belonging to a State (with ACT and NT treated as States for this purpose). This prevents the Commonwealth from levying state-owned agricultural enterprises, such as state-run research farms or forestry corporations, preserving intergovernmental tax immunity.
A New Tax System (Goods and Services Tax) Act 1999: Section 22 explicitly overrides section 177-12 of the GST Act. It mandates that any reference in the regulations to the price of a product or goods (such as the sale price or market price used to calculate an ad valorem levy rate) must exclude the net GST. This prevents double taxation and ensures levy calculations are based purely on the pre-GST commercial value of the commodity.
Legislation Act 2003: While section 17 of the Legislation Act 2003 sets out general consultation rules for legislative instruments, this Act establishes its own specific consultation regime under section 23 and section 27. Crucially, section 27(5) overrides section 14(2) of the Legislation Act 2003, expressly permitting regulations to apply, adopt, or incorporate external instruments or writings "as in force or existing from time to time." This allows the regulations to dynamically track external commercial or technical standards without requiring continuous statutory updates.

The Primary Industries (Excise) Levies Act 2024 (No. 56, 2024) was assented to on 9 July 2024, with its entire provisions commencing on 1 January 2025 (s 2).

Because of its recent enactment and commencement, the Act has not yet accumulated a complex history of direct legislative amendments. Instead, it represents a modern "clean-slate" reform designed to consolidate, standardise, and simplify a highly fragmented historical regime. Prior to this Act, primary industry levies were scattered across dozens of individual, commodity-specific excise acts passed over several decades.

The policy choice to enact this unified statute reflects an economic and administrative drive to centralise the legislative architecture. Rather than passing a new Act of Parliament every time a new agricultural product or input requires a levy, the 2024 Act establishes a permanent statutory chassis. Any subsequent expansion of the levy regime to new industries, or adjustments to existing levy rates, will be executed via amendments to the subordinate regulations rather than amendments to this principal Act. This significantly reduces the parliamentary hurdle for tax adjustments and concentrates structural power in the Department of Agriculture, Fisheries and Forestry and the office of the Minister.

As this Act only commenced operations on 1 January 2025, there is no established history of judicial interpretation or litigation directly addressing its provisions. However, the legal architecture of the Act is highly susceptible to specific constitutional battlegrounds that have historically plagued Australian primary industry levies.

The primary litigation risk centers on the definition of a "duty of excise" under section 55 of the Constitution. The High Court of Australia has a long, turbulent history of interpreting what constitutes an excise. The landmark decision in Ha v New South Wales (1997) 189 CLR 465 consolidated a broad view of excises as taxes on step-by-step production, manufacture, sale, or distribution of goods. More recently, in Vanderstock v Victoria [2023] HCA 30, the High Court re-emphasised its expansive interpretation of excise duties, striking down an electric vehicle road-user charge as an unconstitutional state excise.

Under the Primary Industries (Excise) Levies Act 2024, any regulation that attempts to levy "goods consumed by, or used in the maintenance or treatment of" animals or plants (Part 3) or "goods connected with nursery products" (Part 4) will be closely scrutinized by commercial litigants. If a levy on an input (such as a fertiliser or chemical) is designed in a way that does not relate directly to the quantity or value of the goods produced or distributed, litigants may argue it falls outside the constitutional boundaries of an excise. If the High Court were to hold that a specific regulatory levy is not a duty of excise, the regulation would be constitutionally invalid under sections 7(4), 10(3), or 13(3).

Practitioners and business operators should be aware of several regulatory traps embedded in this statutory text:

The Consultation Loophole (s 27(3)): While the Act goes to great lengths under sections 23 and 27 to outline democratic structures, including industry polls and formal consultation with representative bodies, section 27(3) explicitly strips these requirements of any legal teeth. If the Minister fails to consult, or ignores the statutory consultation steps entirely, the resulting regulations remain fully valid and enforceable. Industry members cannot challenge the levy in court on procedural non-consultation grounds.
The Input Tax Trap (Pt 3 and Pt 4): Traditional levies are imposed on outputs (e.g., cents per tonne of wheat sold). However, Parts 3 and 4 permit levies on inputs (e.g., feed, medicine, nursery preparation goods). This can create a compounding tax effect, raising the cost of production before a single item of produce is sold, severely impacting cash flow for capital-intensive operations.
Joint and Several Liability for Partners and Trustees (ss 24, 25): The Act treats partnerships and trusts as "persons", but places the actual legal liability on the individual partners and trustees. If a partnership fails to pay a levy, the Commonwealth can pursue any individual partner for the entire outstanding debt. Retiring partners must ensure they are formally released from past partnership liabilities, as changes in partnership composition do not affect the continuity of the partnership's liability (s 24(4)).
Dynamic Incorporation of External Standards (s 27(5)): Because regulations can incorporate external documents "as in force from time to time," a business's levy liability could change overnight because an independent, non-government body modified a technical manual, definition, or quality standard, without any parliamentary oversight or legislative notice.

To ensure compliance and mitigate liability risks under the Act, commercial entities and their advisors should adopt the following operational strategies:

Configure Accounting Systems for GST Stripping (s 22): Ensure that Enterprise Resource Planning (ERP) and billing software are configured to automatically strip out the "net GST" from the sale price or market price before calculating any ad valorem levy. Standard sales figures cannot be used as the direct baseline for levy calculations; doing so will result in overpayment.
Audit Supply Chain Contracts for Levy Pass-Throughs: Because the regulations under section 20 will specify who the legal "levy payer" is, businesses acting as intermediaries (processors, wholesalers, packers) must review their supply contracts. Contracts must explicitly state whether the purchase price paid to the primary producer is inclusive or exclusive of the levy, and authorise the intermediary to deduct and withhold the levy from payments.
Establish Partner and Trustee Indemnity Clauses: Given that sections 24 and 25 impose personal liability on individual partners and trustees for the obligations of the partnership or trust, partnership agreements and trust deeds must be updated. These documents must contain robust, mutual indemnity clauses ensuring that any levy liability paid by an individual partner or trustee is fully indemnified out of the assets of the partnership or trust estate.
Monitor the Federal Register of Legislation for s 23 Instruments: Compliance managers must actively track legislative instruments issued by the Minister under section 23. These instruments identify which "nominated industry representative bodies" and "nominated polling bodies" have the exclusive right to consult on levy rates. Businesses must ensure they maintain active membership or registration with these nominated bodies to participate in rate-setting polls and consultation processes.

Primary Industries (Excise) Levies Act 2024

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