Thoroughbred R&D Levy Proposal
A Discussion Paper
12. Levy Management:
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The levy collection service is located within DAFF and is the responsible entity for administering levies including, levy collection compliance, and disbursing industry levies to the relevant agencies.
Under the proposed statutory Thoroughbred R&D Levy collection model, The Australian Stud Book (ASB) will be required by law to collect the proposed levy on all broodmare returns, and coverings commencing 1st August 2014, or a date as otherwise approved by The Minister.
All levy funds collected by the ASB from the operative date of the levy, will be remitted by the end of August each year to DAFF. Levy funds are then transferred to RIRDC for investment in approved Thoroughbred R&D projects, and will attract matching funds from the Australian Government. DAFF will recover its levy administration costs from RIRDC, who can use levy funds for this purpose.
DAFF collection and administration costs are based on full cost recovery of including set-up costs, annual collection costs, and levy compliance costs.
It is not proposed to have an upper limit (cap) on the total contribution paid by an individual Thoroughbred breeder. Benefits from the contributions paid are considered to be commensurate with the industry holding (i.e. the greater the number of broodmares and stallions owned the greater benefit of the levy to the breeder).
Similarly it is not proposed to exempt any minimum (threshold) contribution by an individual Thoroughbred breeder from the scheme.
Q9: Do you have any comments on the proposed levy collection arrangements and costs including the ‘no cap’ and ‘no threshold’ provisions?
Please refer to Attachment 2: Thoroughbred Levy Feedback Form, where you are able to record your responses to the questions raised in this discussion paper.
Included with this discussion paper are: