The introduction of the seed cotton levy and export charge will ensure that all harvested seed cotton that is intended for export has a levy or charge applied.
Commencing 1 April 2017, the seed cotton levy will be introduced on harvested seed cotton intended for export at a rate of $4.06 per tonne. The seed cotton export charge will also be introduced on exported seed cotton at a rate of $4.06 per tonne.
However, the seed cotton levy does not apply to seed cotton that is processed in Australia. The cotton levy applies to all leviable cotton at a rate of $2.25 per 227 kilogram bale.
Schedule 5 of the Primary Industries (Excise) Levies Regulations 1999 define 'seed cotton' to mean a cotton seed, with the natural fibrous hairs attached, as extracted from the ripened bolls of a cotton plant. A breakdown of the seed cotton levy and export charge is shown in the table below:
Distribution of levy and export charge|
Levy and export charge rates
Research and Development
$3.99 per tonne
Plant Health Australia
$0.07 per tonne
Emergency Plant Pest Response
$0.00 per tonne
$4.06 per tonne
Who is affected by the introduction of a seed cotton levy and export charge?
The producer, the person who owns the seed cotton immediately after harvest, or is the owner of the seed cotton at the time of export, is liable to pay the levy or export charge. However, the export charge is not payable if the levy has already been applied to the seed cotton.
GST is not applied to Australian Government levies and charges.
Information about lodging your return
A producer who harvested and exported seed cotton in a month must submit a monthly return and make a payment to the department within 28 days after the end of that month.
An intermediary, including a selling or exporting agent, who sold or exported seed cotton in a month on behalf of a producer must submit a monthly return and make a payment to the department within 28 days after the end of that month. The intermediary can recover from the producer the amount of levy or charge paid to the department on their behalf, by offset or otherwise.
Information about how to lodge your return is available at Lodging returns and paying levies. Alternatively, you can call the Levies Helpdesk on the free call number: 1800 020 619 or email Levies Management.