Beef production levy

The beef production levy was first introduced 6 May 1964. Cattle that are slaughtered at an abattoir for human consumption, including bobby calves, will attract the beef production levy. The Australian Meat Processor Corporation is responsible for the expenditure of the beef production levy.

Beef production levy rates

Cattle means bovine animals other than buffalo.

A bobby calf is defined as a bovine animal other than a buffalo or a head of lot-fed cattle which has:

1. Been slaughtered and the dressed weight of whose carcase did not or does not exceed 40kg or
2. Been slaughtered but which, at the time of the leviable transaction or other dealing, had or has a liveweight that did not or does not exceed 80kg, or
3. Has not been slaughtered or had its liveweight determined at the time of the leviable transaction or other dealing but which, in the opinion of the intermediary, would, if slaughtered at that time, have constituted or constitute a carcase whose dressed weight would not have exceeded or would not exceed 40kg.

An animal is slaughtered on a service kill basis if the animal is killed by a slaughterer, other than the owner of the animal, and the owner of the animal retains ownership of all of the products of the slaughter.

The beef production levy rate comprises marketing and research and development (R&D), as shown in the table below:

Beef production levy component	Levy Rate
Marketing	0.24 cents per kilogram
R&D	0.36 cents per kilogram
TOTAL	0.6 cents per kilogram

The beef production levy rate is calculated per kilogram of the hot carcase weight. GST is not applied to Australian Government levies.

The hot carcase weight, the weight of a carcase weighed within two (2) hours after slaughter, is taken to be 240 kilograms if an abattoir, is:

1. Able to determine a hot carcase weight but fails to do so
2. Unable to determine a hot carcase weight and is able to determine a cold carcase weight but fails to do so within the weighing period or
3. Unable to determine a hot carcase weight or a cold carcase weight within the weighing period.

Example: For a hot carcase weight of 240 kilograms, the amount of levy payable on that weight is $1.44.

If an abattoir is unable to determine a hot carcase weight but determines a cold carcase weight within the weighing period the hot carcase weight is taken to be the cold carcase weight multiplied by 1.03.

Note: Schedule 24 of the Primary Industries Levies and Charges Collection Act 1991 contains offence provisions for failing to determine the carcase weight when able to do so.

Do I need to lodge a return and make a payment?

A producer, the person who owns the carcass immediately after the hot carcase weight is determined or taken to have been determined is liable to pay the levy.

If you are a producer of cattle and your cattle are delivered to a processor, the amount of levy they pay to the department on your behalf can be recovered from you by offset or otherwise.

If you are a processor of cattle, you must lodge a return and make a payment to the department if in a month you slaughtered leviable cattle, or leviable cattle were delivered to you or were slaughtered by or delivered to another processor on your behalf. You can recover from the producer the amount of levy paid to the department by offset or otherwise.

A processor means the proprietor of the processing establishment that processes the product, unless, immediately prior to delivery to that establishment, the product is owned by the proprietor of another processing establishment, in which case the proprietor of that other establishment is regarded as the processor.

Exemptions from paying the beef production levy

A producer of cattle is not liable to pay the beef production levy on the slaughter of cattle where the carcases are condemned or rejected as being unfit for human consumption.

How do I lodge a beef production return?

You must register with the department to receive a unique LRS number before you can lodge your first return.

To lodge your return online, access Levies Online . Alternatively, you can complete a beef production return form.

Return and payment dates

IMPORTANT: If you pay your levy late you will incur a penalty that is calculated daily at a compounding rate of two (2) per cent of the unpaid amount each month, including any penalties you have already accrued, until you have paid the outstanding amount in full.

The beef production levy is based on a financial year.

Monthly returns and payments

Monthly returns and payments must be submitted to the department within 28 days after the end of that month.

Example: for the month of July, the return and payment is due to the department on or before 28 August.

What must be included in my return?

As a processor who processed cattle in a month, your return for a month must state, in respect of the month:

1. Your personal details, including:
   1. Full name
   2. Business or residential address, not the address of a post office box or post office bag
   3. Post office box or post office bag, and
   4. Australian Business Number (ABN), or if you are a company the Australian Company Number (ACN)
2. Period to which the return relates
3. Quantity of cattle slaughtered
4. Quantity of cattle on which levy is not payable were slaughtered
5. Quantity of leviable cattle were slaughtered
6. Total kilograms of hot carcase weight of leviable cattle slaughtered
7. Rates of levy payable
8. Total amount of levy payable, and
9. Total amount of levy paid.

What records do I need to keep?

As a processor who processed cattle in a month, you must keep records for five (5) years, setting out for that month, for each of the following persons:

1. From whom the cattle mentioned in the return were bought, the persons:
   1. Full name and business or residential address (not the address of a post office box or post office bag) and the person’s ABN, if any, or if the person is a company and does not have an ABN —its ACN.
2. Each producer on whose behalf the processor slaughtered cattle, the persons:
   1. Full name and business or residential address (not the address of a post office box or post office bag) and the person’s ABN, if any, or if the person is a company and does not have an ABN—its ACN.
3. Each producer on whose behalf the processor had cattle slaughtered by another processor, the persons:
   1. Full name and business or residential address (not the address of a post office box or post office bag) and the person’s ABN, if any, or if the person is a company and does not have an ABN—its ACN.
4. Details of each purchase or service kill arrangement
5. A copy of the return, and
6. Any statement given to you from the person on whose behalf the cattle are delivered, stating that levy is not payable and setting out, the:
   1. Personal details of the person on whose behalf the cattle are delivered
   2. Number of lot-fed cattle delivered
   3. Number of bobby calves delivered
   4. Number of other cattle delivered
   5. Number of bobby calves on which levy is not payable were delivered
   6. Number of any lot‑fed cattle on which levy is not payable were delivered, and
   7. Number of other cattle on which levy is not payable were delivered.

As a person on whose behalf cattle are delivered to a processor, that person must keep records of:

1. The date of delivery, and
2. For each lot of cattle, the:
   1. Personal details of the vendor from whom, or agent through whom, the cattle were bought, and
   2. Date of the purchase.

Primary Industries Legislation

The beef production levy is provided for under the:

Primary Industries (Excise) Levies Act 1999, and

Primary Industries Levies and Charges Collection Act 1991.

This information is a guide only. If you are required to lodge a return and make a payment to the department, it is your responsibility to remain aware of your obligations under legislation.

Contact us

If you have any questions about levies and charges, your levies account or how to lodge your return, please contact the Levies Helpdesk via email: levies.management@awe.gov.au or call us on 1800 020 619