Culinary herb & spice levy
The Australian Herb and Spice Industry Association (AHSIA) has announced that it is required to suspend the proposed herb and spice levy consultation process for the duration of the federal election campaign, including all information sessions scheduled for July and August across Australia.
In accordance with the Caretaker Convention that comes into effect when an election is called, the Rural Industries Research & Development Corporation (RIRDC) has advised that it would be appropriate for all activity relating to the consultation process around the potential introduction of a herb and spice levy,tobe delayed until after the election.
Stakeholders will be informed when the consultation process is to resume after the election.
Please refer to the AHSIA website for further updates:
In summary, the proposed culinary herb and spice R&D Levy is modelled on existing levy arrangements, and is an ad valorem figure of 0.5 % (ie half of one percent) of the value of the product at the first point sale, calculated as follows:
- Domestic Levy 0.5% of the gross sale value at first point of sale
- Export Charge 0.5% of the “free on board” (FOB) value
(This equates to 50 cents out of $100 of produce sold, or 1 cent on a $2 sale.)
The target commencement date for the proposed R&D Levy is 1st July 2011.
The proposed levy will be payable on all culinary herbs & spices whether fresh-cut, potted, processed or dried, produced and sold primarily for human consumption (except for parsley, shallots, chilli, and ginger).
Note:Given parsley, shallots and chilli are currently subject to the vegetable levy, these products will need to be specifically exempted from the proposed herb and spice levy. Ginger has a separate levy process underway. If there is sufficient interest, AHSIA would need to negotiate this change of levy coverage with DAFF and Ausveg.
Potted plants including herbs and spices are leviable nursery products, and as such are liable to pay a “pot levy”. These funds are applied to nursery and garden industry marketing, research and development purposes. Given potted herbs will also benefit from the research to be funded through the proposed herb and spice levy, it is envisaged that potted herbs and spices will be included in the coverage of the proposed herb and spice levy.
Note:It is not intended to include nursery stock, medicinal herbs and spices, or Australian native plant industry products in this levy proposal, however AHSIA would be pleased to receive advice from industry participants on their interest in the proposed levy funded R&D programs and coverage under the Biosecurity Levy.
In the discussion paper we also present the case for strengthening industry biosecurity arrangements through AHSIA becoming a member of Plant Health Australia (PHA), by signing the Emergency Plant Pest Response Deed (EPPRD), and by implementing an Emergency Plant Pest Response (EPPR) Levy for the herb and spice industry, collected under the Plant Health Australia (Plant Industries) Funding Act 2002. (This is often referred to as a ‘biosecurity levy’.)
A full copy of the levy proposal discussion paper has been sent to all registered industry participants.
If you haven’t yet receive the discussion paper by direct mail you are urged to register your contact details with the AHSIA secretariat (as indicated below) to ensure that you receive future levy communications, including details of registration arrangements for the levy ballot.
Herb and spice industry participants are invited to make written submissions on the issues raised in this discussion paper either by post, fax or email. Please address your submissions to:
Herb and Spice Levy Proposal
C/- McFarlane Strategic Services
33 Phillips St, SOMERTON PARK SA 5044
Fax (08) 8376 7048
Information sessions will be rescheduledlater in the year to ensure potential levy payers have a first-hand opportunity to ask questions and learn more about the levy proposal.
The levy consultation process will conclude with a secret ballot of eligible voters to be undertaken by the Australian Electoral Commission (AEC) after information sessions have been completed.
For further information on the levy proposal, consultation process and levy ballot, please visit the AHSIA website:
Industry stakeholders are also encouraged to contact AHSIA Directors as listed in the discussion document to further discuss the proposed levy arrangements or any other industry matters.
Robert Hayes, president,
Australian Herb and Spice Industry Association Ltd
20 July 2010