Primary Industry Funding Schemes (Citrus Growers Fund) Regulations 2017

Citrus Growers Fund (the Fund). A statutory fund administered by the Minister, initially established under the revoked 2005 regulations and continued by reg 4. It consists of contributions (both under these and the revoked regulations), investment income and any other sums received by the Minister for the Fund. The Fund is the financial vehicle through which the compulsory levy is collected, held and disbursed for industry purposes determined by the Minister.

Contribution. A compulsory levy on each tonne of citrus fruit produced and sold by a citrus grower. The default amount is $1.00 per tonne, but the Minister may set a different amount (including zero) by Gazette notice. This amount can be varied or revoked by subsequent notice. Contributions are payable on a quarterly basis unless the Minister approves a different period. The due date is 28 days after the end of the quarter (or other approved period). The levy applies to fruit produced in any season, including fruit produced before these regulations commenced but sold afterwards.

Default. A person is in default in relation to contributions if, within the two immediately preceding financial years, either (a) all or some of the contributions payable by that person have not been paid, or (b) that person has been refunded contributions from the Fund. Default triggers exclusion from direct benefits or services funded by payments from the Fund (reg 8). Notably, obtaining a refund itself causes default, effectively creating a disincentive to seek a refund for two years.

Refund. A mechanism allowing a grower to opt out of the collective scheme after paying contributions. The grower must apply in writing within one month after the end of the financial year in which contributions were paid. Evidence of contributions paid is required, and the Minister may demand verification by statutory declaration. If satisfied, the Minister must refund the contributions for that year. However, a refund triggers default, excluding the grower from direct benefits for the next two financial years.

Fund application. The Fund may be applied only for the purposes listed in reg 7. The primary category is payments to a body that the Minister believes represents citrus growers. These payments can cover operating/management expenses, affiliation fees, promotion, information collection and dissemination, representation at industry forums, communication programs, and “other purposes of the body”. The second category is “other purposes for the benefit of citrus growers”, which is broad. Administrative expenses of the Fund and refunds are also allowed.

False or misleading statements. Regulation 10 prohibits false or misleading statements (by inclusion or omission) in any information or record provided for the purposes of the regulations. The maximum penalty is $5,000. This applies to statements by any person, including growers, packers, processors and recipient bodies.

Citrus growers. Any person carrying on the business of producing citrus fruit for sale. The regulation defines “citrus fruit” broadly to include citrons, lemons, limes, grapefruit, mandarins, oranges, sevilles, tangerines and any hybrid of those. A grower is directly liable for contributions on fruit sold, either by paying the Minister directly (if sold to non-packer/processor buyers) or by having contributions deducted by a packer or processor. For small growers with low tonnage, the $1 per tonne levy is modest, but the compliance burden of quarterly reporting (or applying for a different period) and keeping records is fixed and may outweigh the levy amount. Growers who disagree with the levy’s use can seek a refund, but doing so forfeits access to benefits from the Fund for two years.

Citrus packers and processors. Packers pack citrus fruit for sale by wholesale; processors process it into a citrus fruit product for sale by wholesale. When a grower sells fruit to a packer or processor, the packer/processor must deduct the contribution from the grower’s payment and remit it to the Minister. They must also keep proper records of the sale and deduction and make them available for inspection. This imposes an administrative burden: tracking tonnage, calculating the levy, recording grower details, and sending quarterly statements with each payment. Failure to comply may lead to the grower being in default, but the packer/processor may still face enforcement under the Act.

Recipient industry bodies. The Minister may pay Fund money to a body that the Minister considers represents citrus growers. The body does not need to be elected by growers or to have any particular governance structure; it is solely the Minister’s opinion that matters. The body can receive funds for its operating expenses, promotion, representation, communication programs and “other purposes of the body”. This creates an incentive for bodies to seek Ministerial approval. The body must provide financial statements, annual reports, business plans and other information if required. The Minister may also give the body information about growers who have received refunds, which may enable the body to exclude them from services.

The Minister and public administration. The Minister controls the Fund: setting the contribution amount (including zero) by Gazette notice, approving alternative payment periods, deciding which body is representative, approving payments, and requiring information from recipient bodies. Administrative staff must process contributions, issue refunds, inspect packer/processor records and manage the Fund’s investment income.

Duty to pay contributions (growers). A citrus grower must ensure contributions are paid on each tonne of fruit produced and sold. If the fruit is sold to a non-packer/processor buyer, the grower pays directly. If sold to a packer or processor, the grower is not directly liable but must accept the deduction from the sale proceeds. The duty arises quarterly but can be varied by Ministerial approval.

Duty to deduct and remit (packers and processors). A packer or processor who buys citrus fruit from a grower must deduct the contribution from the payment and remit it to the Minister. They must keep records of the sale and deduction and make them available for inspection. The payment must be accompanied by a statement listing each grower’s name, address and tonnage.

Duty to provide accurate information. Any person providing information or keeping records for the regulations must not make false or misleading statements. This applies to growers claiming refunds, packers/processors doing their record-keeping, and recipient bodies providing information to the Minister.

Right to claim a refund (growers). A grower may claim a refund within one month after the end of the financial year in which contributions were paid. The Minister must refund the amount if the grower provides acceptable evidence (and statutory declaration if required). However, the refund triggers default status, excluding the grower from direct Fund benefits for two financial years. This right is thus costly to exercise.

Right to apply for varied payment periods. A grower, or a packer/processor on the grower’s behalf, may apply in writing for approval to pay contributions on a monthly, half-yearly or yearly basis instead of quarterly. The Minister may grant or refuse this, and may vary or revoke approvals.

Right to inspect records (Minister’s delegate). The Minister may authorise a person to inspect records kept by packers and processors at any reasonable time. This is a power of the Minister, not a right of the packer/processor.

Right to receive Fund benefits (conditional). A grower who is not in default may receive direct benefits or services funded by payments from the Fund. The regulation does not define “direct benefits or services”, but it likely includes things like promotion programs, industry events or communication services funded by the Fund. The Minister controls which body receives the money and for what purposes, so growers’ access to benefits depends on the Minister’s decisions.

Minister’s powers to vary contribution amount. The Minister may change the per-tonne levy by Gazette notice. The amount can be increased, decreased or set to zero. This gives the Minister significant control over the levy’s financial burden, without requiring legislative amendment or grower approval. The power to set zero effectively allows the scheme to be suspended without revocation.

The regulations contain only one specific penalty: a maximum of $5,000 for false or misleading statements (reg 10). This applies to any person who makes a statement false or misleading in a material particular, whether by inclusion or omission, in information provided or records kept for the regulations. The penalty is modest relative to the potential harm if, say, a packer or processor under-reports tonnage or a grower falsely claims a refund.

Default as an exclusionary mechanism. Enforcement of the contribution obligation itself is achieved not through fines but through exclusion from benefits. A person in default (due to non-payment or past refund) is not entitled to receive direct benefits or services funded by the Fund (reg 8). This is a form of enforcement that relies on the value of those benefits to encourage compliance. However, it does not recover unpaid contributions; it only denies future benefits. The regulations do not provide a mechanism for recovery of unpaid contributions (e.g., as a debt due to the Crown). Such a mechanism may exist in the Act itself, but the regulations do not refer to it.

Record inspection. The Minister may authorise a person to inspect packer/processor records at any reasonable time (reg 5(2)(b)). This is a compliance check power but carries no additional penalty for refusing inspection. The Act may provide such penalties.

Enforcement risk assessment. Because the only financial penalty is for false statements, the scheme relies heavily on voluntary compliance by growers and on packers/processors remitting correctly. Small growers with low tonnage may be tempted not to report and pay a $1 per tonne levy, but the risk is low. However, if a grower later wants to access Fund benefits (such as industry promotion or information), default status would block that. The refund provision also acts as a safety valve; growers who object can exit, but at the cost of two years of benefit exclusion.

Minister’s discretion. The Minister can change the contribution amount to zero, effectively stopping collections. This could be used as a response to industry opposition or low compliance. The Minister also decides which body gets funding, so can reward cooperative bodies and penalise uncooperative ones, indirectly influencing behaviour.

Primary Industry Funding Schemes Act 1998 (the Act). The regulations are made under this Act. The Act establishes the framework for primary industry funding schemes, including powers to establish funds, impose contributions and manage enforcement. The regulations must be read in conjunction with the Act. For example, the Act may provide for recovery of unpaid contributions as debts, appointment of inspectors, and offences beyond those in the regulations. The Act may also contain provisions about the Fund’s investment, auditing and reporting. Users should refer to the Act to understand the full enforcement regime.

Revoked regulations. The 2017 regulations revoked and replaced the 2005 regulations (Schedule 1). However, the Fund continues in existence, and contributions paid under the revoked regulations become part of the Fund (reg 4(3)(b)). The exchange of information provision (reg 9(2)) allows the Minister to provide the recipient body with information about growers refunded under either these or the revoked regulations, maintaining continuity.

State administrative law. The Minister’s decisions under the regulations (e.g., varying contribution amounts, approving payment periods, determining which body represents growers, requiring information) are likely reviewable under the Judicial Review Act 1991 (SA) or common law. However, the regulations do not provide for an internal merits review process.

Tax implications. Contributions paid by growers are likely a business expense deductible under income tax law, but the regulations do not address this. Refunds might be assessable income if previously deducted. Packers and processors who deduct contributions may need to account for them separately in their financial records.

Competition and consumer law. The Fund’s use for industry promotion and communication programs could potentially raise issues under the Competition and Consumer Act 2010 (Cth) if it facilitates collective action by growers that might restrict competition. However, the scheme is a government-imposed levy, not a private arrangement, so it may be exempt under state legislation. Nevertheless, the broad “other purposes” clause could allow payments for activities that coordinate pricing or output. No case law is available.

Interaction with federal levies. The Commonwealth mandates a citrus levy under the Primary Industries Levies and Charges Collection Act 1991, which may operate in parallel. Growers may face both state and federal levies on the same fruit. The regulations do not address any offset or coordination. This duplication increases the regulatory burden.

Horticulture Code of Conduct. The mandatory Code under the Competition and Consumer Act 2010 (Cth) applies to horticulture producers and traders. The deduction by packers/processors under these regulations interacts with payment arrangements under the Code, which requires transparency and clear agreements. The Code does not prohibit deductions, but the regulations add an extra layer of mandatory deduction beyond any contractual terms.

The regulations were made on 19 September 2017 (Gazette 19.9.2017 p4100) and commenced on 19 January 2018, four months after making, as per regulation 2 and section 10AA of the Subordinate Legislation Act 1978. They revoked and replaced the Primary Industry Funding Schemes (Citrus Growers Fund) Regulations 2005 (Schedule 1). The legislative history in the source text shows no amendments after commencement. No amending regulations are listed. The regulations remain in force as at the date of this writing, subject to any later unlisted amendments. Users should check the South Australian legislation website for any subsequent changes.

The 2005 regulations, which these replaced, established the same basic structure. The 2017 regulations appear to be a re-make to update and continue the scheme, with no substantial changes evident from the source. The refund provision (reg 6) and the exclusion from benefits (reg 8) replicate the previous scheme’s approach. The Minister’s power to set the contribution amount by Gazette notice was likely also present earlier.

The regulations are made under an Act that has been amended over time, but those amendments are not reflected in these regulations. The Fund’s investment income provision (reg 4(3)(c)) suggests the Minister has power to invest Fund monies, likely under the Act or other state investment legislation.

The source text does not record any litigation history for these regulations or the revoked 2005 regulations. There are no publicly reported cases as at the date of the legislative history (2017). Given the small scale of the scheme (SA citrus industry), and the fact that the levy amount is only $1 per tonne (adjustable by the Minister), it is unlikely to have generated significant litigation.

Potential areas of dispute that could arise but have not yet been litigated include: (a) whether the Minister’s opinion that a body represents growers is reviewable; (b) whether a refund claim denial is appealable; (c) whether the default exclusion from benefits is proportionate; (d) whether false statement prosecutions under reg 10 have occurred. No cases known.

The regulations were made under the Act, which may have been litigated in other contexts (e.g., other primary industry funds), but that is outside the source.

Refund trap: time limit and default penalty. A grower has only one month after the end of the financial year to claim a refund (reg 6(1)). If the grower misses that narrow window, the contributions for that year cannot be recovered. If the grower does claim and obtains a refund, the grower is then in default for two financial years and cannot receive any direct benefits or services from the Fund (reg 8(2)(b)). This essentially means a refund buy back of the levy but at the cost of losing access to industry programs funded by the Fund. For a grower who supports the levy but had a low-income year, the refund may not be worth the exclusion. For a grower who opposes the levy, the refund option is punitive: they pay and then are excluded from the very services the levy is supposed to fund.

Ministerial discretion over contribution amount. The Minister may set the contribution amount at any figure (including zero) by Gazette notice, and may vary or revoke that notice at any time (reg 5(1)(a)(ii) and 5(4)(a)). There is no requirement for industry consultation, market testing, or independent review. A future Minister could increase the levy from $1 per tonne to a much higher amount with no legislative change. This creates regulatory uncertainty for growers, packers and processors who must plan for contributions. The ability to set it to zero could be used to effectively suspend the scheme, but the Minister could later reintroduce a levy without new regulations.

Broad application of Fund. The Fund may be applied for “other purposes of the body” (reg 7(a)(vii)) and “other purposes for the benefit of citrus growers” (reg 7(b)). These are exceptionally broad. The Minister could fund activities that have little to do with citrus industry development, such as general administrative overhead of a body, or political lobbying. The only constraint is the Minister’s own opinion. There is no requirement that expenditure be efficient, proportionate or approved by growers. This creates a risk of rent-seeking: the recipient body may use Fund money to advance its own interests rather than the interests of all growers.

Default defined broadly. A person is in default if contributions have not been paid “all or some” in the preceding two financial years (reg 8(2)(a)). This means even a short delay in payment, or a partial payment, triggers default. There is no cure period or notice requirement. Default also occurs if the person has been refunded contributions (reg 8(2)(b)). So a grower who pays on time but later claims a refund is treated the same as a grower who never paid. This conflates non-compliance with legitimate opt-out.

No benefit definition. The regulations do not define “direct benefits or services funded by payments from the Fund”. It is unclear what counts. If the Fund pays for a field day open to all growers, is that a “direct benefit”? If the Fund pays for a body’s operating expenses, do the body’s members receive indirect benefits? The exclusion in reg 8(1) may be difficult to enforce in practice, and may be applied arbitrarily by the recipient body or the Minister.

Packers and processors bear compliance burden without benefit. Packers and processors are required to deduct contributions, keep records, and submit statements. They do not receive any benefit from the Fund themselves (they are excluded from the definition of “citrus grower”). This is a free service to the state and to growers. The administrative costs of tracking tonnage per grower and preparing quarterly statements may be significant for small packers. Failure to comply could lead to enforcement under the Act, but the regulations provide no cost recovery.

No cap on Fund accumulation. The regulations do not require the Fund to be spent each year or to maintain a maximum balance. The Fund could accumulate large sums, especially if the Minister sets a high contribution amount or if refund claims are low. The Minister could then hold funds indefinitely, earning investment income, without distributing them to growers or industry. This is a potential drain on growers’ finances for no present benefit.

False statement penalty applies to all persons. A packer or processor who makes a minor error in a statement could be liable for a $5,000 penalty. The definition “false or misleading in a material particular” is broad. Many small errors could be argued to be material. This creates a risk for honest mistakes, especially given the lack of a defence of reasonable care in the regulations.

For citrus growers. Determine your total tonnage of citrus fruit produced and sold each quarter (or other approved period). If you sell directly to consumers or retailers (i.e., not to a packer/processor), you must pay contributions directly to the Minister. Calculate the amount: 1 tonne = $1 (unless another amount is gazetted). Submit payment within 28 days after the quarter end, accompanied by a statement with your name, address and tonnage. If your cash flow would benefit from monthly, half-yearly or yearly payments, apply in writing to the Minister for approval. Keep records of sales and tonnage to support your payments and any future refund claim. If you sell to a packer or processor, you are not required to pay directly; the packer/processor must deduct the contribution from your payment. Still, you should verify that the deduction is made and correctly recorded, because you may need evidence if you later claim a refund. To claim a refund, write to the Minister within the month after the end of the financial year (by 31 July for the year ending 30 June). Provide evidence of contributions paid (e.g., receipts from packer/processor or your own payment receipts). If the Minister requires, provide a statutory declaration verifying the evidence. Be aware that a refund will make you ineligible for direct Fund benefits for the next two financial years. If you do not intend to claim a refund, pay on time to avoid default.

For citrus packers and processors. When you buy citrus fruit from a grower, you must deduct the contribution from the amount payable. The rate is $1 per tonne (or the gazetted amount). Calculate the contribution for each grower based on the tonnage you pack or process in that quarter (or approved period). Keep proper records: these must show the sale, the deduction, and the grower’s name and address. Make the records available for inspection at any reasonable time by an authorised person. Remit the total contributions to the Minister within 28 days after the quarter, accompanied by a statement listing each grower’s name, address and tonnage. If you want to pay on a monthly, half-yearly or yearly basis, apply to the Minister for approval. Do not make false or misleading statements in your records or remittance statements; the penalty is $5,000.

For recipient industry bodies. If the Minister determines you represent citrus growers, you may apply for Fund payments. Ensure you can provide financial statements, annual reports, business plans and any other information the Minister reasonably requires. You may be asked to identify growers who have been refunded (from information the Minister provides) and to exclude them from direct benefits or services funded by the Fund. Keep clear accounting of how Fund money is spent, separately from other revenue, to satisfy future information requests.

For all parties. Monitor the South Australian Government Gazette for any change to the contribution amount. The Minister can alter it at any time, which will affect your obligations and deductions. If you are uncertain about your obligations, seek legal advice. The regulations do not provide for administrative guidance or compliance assistance beyond what the Minister may offer informally.

Recommended compliance steps.

1. Record every sale of citrus fruit (grower) or purchase from a grower (packer/processor) with tonnage and date.
2. Set up a system to calculate contributions on a quarterly or approved periodic basis.
3. Maintain separate records of contributions deducted/paid for each grower.
4. Submit timely payments and statements to the Minister.
5. If you are a grower, decide before the end of a financial year whether to claim a refund, and if so, prepare evidence early to meet the one-month deadline.
6. If you are a packer/processor, ensure your deduction process is transparent to growers and your records are inspection-ready.
7. Monitor the Gazette and the SA legislation website for any amendments or Ministerial notices.