About levies and the levy system

 

How levies and charges work

We impose levies and charges on agricultural products at the request of primary industries (agriculture, fisheries and forestry producers and their representatives).

Whether a levy or charge is imposed depends on whether the product is sold, processed or used to produce other goods in Australia, or exported:

  • Levies are duties of excise on certain goods produced, manufactured, sold or distributed in Australia.
  • Charges are duties of customs on goods imported to or exported out of Australia.

There are currently more than 110 levies and charges collected on more than 70 commodities across the agriculture, fisheries, and forestry sectors.

We disburse these levy and charge funds to levy recipient bodies. They will then invest in the activities the levy or charge was imposed to fund.

Levy recipient bodies include:

  • research and development corporations (RDCs)
  • Animal Health Australia (AHA)
  • Plant Health Australia (PHA)
  • National Residue Survey (in the department).

We also match investments in research and development by RDCs.

Benefits of levies

All levy payers contribute and all benefit from the levy funded activities.

Funds raised from levies and charges help industries to grow, stay competitive and manage risks.

In 2023-24 we disbursed over $1 billion to 18 levy recipient bodies, made up of $603 million in levies and charges and $470 million in Commonwealth matching payments for eligible research and development activities.

This level of investment in key priorities like research and development could not be achieved by primary producers on their own.

How levies are set

Primary industries request new levies or changes to existing levies. They also drive levy settings for their industry. This includes rates and how often levies or charges are collected.

Industry representative bodies will present a levy proposal to industry. If it’s agreed, they will present the proposal to us.

See more on how to propose a new or amended levy or charge in our levy guidelines, including how we can help with proposals.

Levy and charge components

The levy system allows primary industries to collectively invest in strategic activities including:

  • research and development (R&D)
  • marketing
  • biosecurity activities
  • biosecurity responses
  • residue testing

Commodities can be levied for any or all of these purposes. Levies must be used for the purpose for which they were collected.

Levies must not be used to fund agri-political activities.

Research and development (R&D) levy components are invested by RDCs in research and development activities including:

  • experimentation and analysis in science, technology, economics or business
  • to increase knowledge and build on industry objectives
  • extension activities
  • improvements in production, processing, storage, transport or marketing.

R&D delivers new technology and knowledge to the industry. This investment continues to yield high returns.

See more on agricultural R&D investment in Australia.

Marketing levy components are invested by RDCs for industry marketing, advertising or promotion of industry products.

Biosecurity activity components are collected to fund industry member contributions to:

  • Plant Health Australia (PHA)
  • Animal Health Australia (AHA).

AHA and PHA partner with government and industry to enhance animal and plant health. This work includes preparedness, prevention, emergency response and management.

A biosecurity response component is collected primarily to repay the cost of a biosecurity emergency response to a plant pest or animal disease incursion, but can be used for other biosecurity purposes.

The Australian Government underwrites (on request) industry contributions to emergency responses under the:

The EPPRD and the EADRA outline the responsibilities of all signatories following detection of an exotic plant pest or animal disease in Australia, providing arrangements to allow for rapid response to such incursions. Biosecurity emergency response levies can be used to pay (or repay, if underwritten) the costs of responses.

Biosecurity emergency response levies are often only activated (set to a positive rate) in an emergency. Or they can be set at a low rate to raise funds for use during an emergency response.

The National Residue Survey (NRS) levy component is used by the NRS team in the department to:

  • fund monitoring activities for chemical residues and environmental contaminants in Australian animal and plant products.
  • help participating industries to demonstrate good agricultural practice and meet importing country requirements.

What we do

We collect and distribute levies and charges to specified levy recipient bodies on behalf of industry. We recover the administration cost for these activities from levy recipient bodies.

We also:

  • administer levies legislation, including receiving amounts and returns
  • conduct compliance inspections
  • advise industry representative bodies on policy and processes for establishing or changing a levy and advising the responsible Minister on industry levy proposals.

Process

The process for collection and disbursement of levies has 4 main stages.

Levy payment

Levy payers pay levies to collection agent, or sometimes directly to us.

Collection

Collection agent collects the levy and submits levy returns to us.

Disbursement

We receive and pay levies to specified levy recipient bodies.

Receipt of levies

Levy recipient bodies manage the levies in line with industry and government priorities.

Participants in the levy system

Many people and organisations play a part in the levy system.

Levy and charge payers

Parties that are responsible for paying levies and charges. They include growers, primary producers, processors, importers or exporters of levied goods.

Collection agents

Collection agents often collect the levies and charges and submit returns and payments to us on behalf of levy payers.

They operate at identified narrow points in the supply chain. These points are where most, if not all, leviable products flow through. This is the most cost-effective way to collect levies.

Levy recipient bodies

We pay amounts to levy recipient bodies equal to levy and charge components. They manage and invest those amounts in line with industry priorities.

The 18 levy recipient bodies include:

Levy recipient bodies will publish how they invest their funds on their websites.

Legislation

The agricultural levies legislative framework enables the agricultural levy system to operate. We:

The operational provisions are provided for in legislative instruments under these Acts. This includes levy rates, return due dates, record keeping requirements:

Recent changes

Australia’s statutory agricultural levy system as we know it today was created in 1989. As the legislative framework that supports the system expanded, it became overly complex and inconsistent. This made it difficult to understand and comply with.

In 2017-18, we conducted a review of the agricultural levies legislative framework. The review found that the legislative framework:

  • served the objectives of the levy system, and
  • was necessary to the successful industry-led arrangement, but
  • was inconsistent, difficult to understand and had some redundant instruments.

A new modernised and streamlined legislative framework commenced on 1 January 2025. The modernised legislation aims to:

  • make it easier for industry to understand legislative requirements
  • make changing levy settings in the legislation simpler and quicker
  • provide greater flexibility in managing compliance, and allow for a more proportionate response to non-compliance
  • provide more funding certainty to RDCs due to simplified and standardised matching funding arrangements.

There are no changes to individual levy settings under the new legislation.

Drafting of the legislation was informed by extensive consultation with stakeholders. This included industry representative bodies, levy payers, collection agents, RDCs, AHA and PHA, and other stakeholders.

In 2023 and 2024 we released the drafts of the legislation, regulations and rules for public consultation.

Details of the consultation process are still available on our Have Your Say webpage.