Custard apples levy and charge

The custard apples levy and charge was first introduced 1 January 1995. Custard apples that are produced in Australia and sold by the producer or that are exported will attract a levy or charge. Horticulture Innovation Australia Limited is responsible for the expenditure of the custard apples levy and charge.

Custard apples levy and charge rates

Custard apples means a fruit of the species Annona cherimola, Annona muricata, Annona reticulate, Annona squamosa or a hybrid between, or within, any of these species.

A process in relation to custard apples does not include cleaning, sorting, grading, packing and fruit conditioning operations such as storage and ripening.

A standard box in relation to custard apples is 10 kilograms.

A standard tray in relation to custard apples is 7 kilograms.

Bulk custard apples means custard apples which are not packed in a standard tray or a standard box.

Retail sale means any sale of custard apples by a producer except a sale to a first purchaser or through a buying agent, selling agent or exporting agent.

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

Custard apples	Marketing	R&D	TOTAL
Packaged – standard box	13 cents per box	27 cents per box	40 cents per box
Packaged – standard tray	13 cents per tray	27 cents per tray	40 cents per tray
Bulk	$16 per tonne	$34 per tonne	$50 per tonne

The custard apples levy and charge rate is calculated per box or per tonne. The custard apples charge is not payable if the levy has already been applied to the custard apples prior to export. GST is not applied to Australian Government levies and charges.

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

A producer of custard apples, the person who owns the custard apples immediately after harvest is liable to pay the levy.

If you produce custard apples and sell your custard apples through an intermediary, including a first purchaser, buying agent, selling agent or exporting agent, the amount of levy they pay to the department on your behalf can be recovered from you by offset or otherwise.

If you are an intermediary, including a first purchaser, buying agent, selling agent or exporting agent, you must lodge a return and make a payment to the department. You can recover from the producer the amount of levy paid to the department, by offset or otherwise.

If you export custard apples—that is, you are the person who owns the custard apples at the time of export, you must lodge a return and make a payment to the department.

Exemptions from paying the custard apples levy and charge

A producer is not liable to pay the custard apples levy and charge, if the custard apples are used for processing or the producer sells directly to a processor for processing.

A producer is also not liable to pay the custard apples levy if the producer sells the custard apples by retail sale.

How do I lodge a custard apples 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 manual horticulture return form.

Return and payment dates

IMPORTANT: If you pay your levy or charge late you will incur a penalty that is calculated daily at a compounding rate of 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 custard apples levy and charge is based on a calendar year.

Quarterly returns and payments

Quarterly returns and payments must be lodged with the department within 28 days of the end of March, June, September and December.

Example: for the quarter ending 30 June – if you bought, sold or exported apples in the months of April, May and June – your quarterly return is due on or before 28 July.

Annual return and payment

As a custard apples levy and charge payer you may be eligible to lodge your return and make a payment to the department once a year, that is on or before 28 February in the next calendar year.

Example: the 2017 annual return and payment must be made on or before 28 February 2018.

To be eligible for an annual return and payment, you must have reasonable grounds to believe that the total amount of custard apples which you are likely to deal in, in a calendar year, amounts to less than $500 of levy or charge. You must also make an application to the Secretary of the Department of Agriculture and Water Resources. If you would like to make an application please contact the department’s levies office in your state or territory.

What must be included in my return?

As a producer of custard apples, your return for a quarter or levy year must set out for that quarter or levy year:

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 leviable custard apples sold
4. Amount of levy payable
5. Amount of levy paid
6. Total amount of levy payable, and
7. Total amount of levy paid.

As an intermediary of custard apples, including as a first purchaser, buying agent, selling agent or exporting agent, your return for a quarter must set out for that quarter:

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. ABN, or if you are a company the ACN
2. Period to which the return relates
3. Quantity of custard apples bought, sold or exported, in kilograms
4. Amount of levy and charge payable for each of those quantities
5. Total amount of levy and charge payable, and
6. Total amount of levy and charge paid.

As an exporter of custard apples, your return for a quarter or levy year must set out for that quarter or levy year:

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. ABN, or if you are a company the ACN
2. Period to which the return relates
3. Quantity of custard apples exported
4. Amount of charge payable for each of those quantities
5. Total amount of charge payable, and
6. Total amount of charge paid.

What records do I need to keep?

As a producer of custard apples, you must keep records for five (5) years showing for each levy year, the:

1. Quantity of custard apples, in kilograms, sold by retail sale or otherwise
2. Amount of levy payable for the custard apples
3. Amount of levy paid for the custard apples, and
4. Details for each person to whom custard apples were sold other than by retail sale, the persons:
   1. Full name
   2. Business or residential address (not the address of a post office box or post office bag) and
   3. ABN, if any, or if the person is a company and does not have an ABN, its ACN.

As an intermediary of custard apples, including as a first purchaser, buying agent, selling agent or exporting agent, you must keep records for five (5) years showing for each levy year, the:

1. Quantity of custard apples, in kilograms, bought, sold or exported
2. Amount of levy and  charge payable for the custard apples
3. Amount of levy and charge paid for the custard apples, and
4. Details for each person on whose behalf the custard apples was dealt with, the persons:
   1. Full name
   2. Business or residential address (not the address of a post office box or post office bag) and
   3. ABN, if any, or if the person is a company and does not have an ABN, its ACN.

As an exporter of custard apples, you must keep records for five (5) years showing for each levy year, the:

1. Quantity of custard apples exported, in kilograms
2. Amount of charge payable for the custard apples
3. Amount of charge paid for the custard apples, and
4. Details for each person to whom the custard apples were exported to, the persons:
   1. Full name and business or residential address (not the address of a post office box or post office bag).

Primary Industries Legislation

The custard apples levy and charge is provided for under the:

Primary Industries (Excise) Levies Act 1999

Primary Industries (Customs) Charges 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