Understanding your Levies

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Plant Health Australia

Commercial citrus growers pay the Plant Health Australia levy at a rate of $0.03 per tonne which is collected at the first point of sale (see below for further information on how levies are collected).

This levy contributes to the membership of Plant Health Australia (PHA), who coordinates and develops initiatives at a national level. As PHA members include most major industries, the Australian Government and all state/territory governments, PHA provides plant industry with value by providing a unique, effective and coordinated means of contributing to policy making and direction setting on major plant health issues.

How the levies are collected and managed

The PHA levy, citrus R&D levy ($1.97 per tonne - all citrus) and marketing levy ($0.75 per tonne - oranges only) are collected at the first point of sale by the packer, agent or processor.

All collectors are legally required to pass on the levy to the Levies & Revenue Service of the Australian Government Department of Agriculture, Fisheries & Forestry (DAFF). A levy collection charge is applied on an industry-by-industry basis.

The Levies & Revenue Service then forwards the levy money to HAL who manage the citrus R&D and marketing programs in consultation with Citrus Australia and the citrus Industry Advisory Committee (IAC).

The HAL Industry Services Manager is the primary contact for citrus in HAL, a number of Professional Services people manage individual projects.

The HAL Board is ultimately responsible for approving expenditure from both the levy and Australian Government-matched funding and ensures that projects meet the priorities of both the industry and Government.

How the funding is used

Levies collected in one year are used to fund R&D and marketing projects in the following financial year so that the industry knows exactly how much is available to invest.

Investment is guided by the citrus IAC Strategic Investment Plan. This plan allows coordination in planning for both investment in R&D and marketing, although the two levies remain separate.

HAL charges all industries a cost recovery fee. The cost recovery fee funds the employment of the Industry Services Manager and Professional Services people, and operating costs involved in managing the programs.

How are projects selected?

The funding process is open to both public and private providers. Projects are considered by the IAC on merit and according to industry priorities. More information regarding the funding process can be found on the HAL website, click here.

How do levy payers find out about project results?

Throughout the life of the project, project teams are required to report back to HAL through milestone reports.

Project teams are also required to report back to industry to explain the progress and outcomes. This may be done in a variety of ways and is commonly done through articles in Australian Citrus News, Citrus Industry Annual Report and other publications, factsheets and posters, information uploaded to websites such as www.citrusaustralia.com.au, presentations at Citrus Australia annual conferences, regional forums, field days, workshops and at other industry forums.

It is important that levy payers make the most of these opportunities to hear first-hand about the latest R&D and marketing activities. To maximise return on investment, growers should be the first to use the outcomes and respond to new information.

Voluntary Contributions (VCs)

Non-levy payers within the industry, such as individual companies or regional organisations, can submit a proposal for funding. In this case the project applicant must supply half the funds for matching by the Australian Government.

Levy money is not used for VC projects. Local grower groups can also use this mechanism to part fund activities such as R&D into local issues, study tours or utilising experts.

For more details click here.

Across Industry Program

All industries involved with HAL have agreed to a system for sharing the costs of projects of general horticultural importance. HAL manages the Across Industry Program; where industries share contributions to the program costs.

The Across Industry Program is very important for the citrus industry, recent projects include fruit fly control, market access, strategic health initiatives, water initiatives, and pesticide regulation. For the latest report on the Across Industry Program, click here.

Biosecurity Levy

The citrus biosecurity, levy proposed by Citrus Australia, was approved by the citrus industry in September 2005. Initially to be set at zero ($0), the levy is to be activated in the event of an exotic outbreak to which an eradication response is considered appropriate.

Plant Health Australia (PHA) has developed an Emergency Plant Pest Response Deed (EPPRD) which delegates responsibilities and activities in the event of an incursion. Under the EPPRD, the biosecurity levy will provide a funding mechanism to cover the citrus industry's share of any exotic pest or disease eradication program, including reimbursement costs for citrus trees/crops destroyed.