Commodity Levies Act 1990

Levy orders

6: Matters to be specified in orders

You could also call this:

"What a levy order must include, like who pays and how the money is used"

Illustration for Commodity Levies Act 1990

When a levy order is made, it must say what organisation the levy is paid to. It must also say what commodity the levy is for. You need to know who is responsible for paying the levy. The order must explain how the amount of the levy is calculated. It must also say if some people do not have to pay the levy.

The levy order must say who pays the levy and how they pay it. If someone else pays the levy on your behalf, the order must say how they can get their money back from you. The order must also say how the organisation that gets the levy will spend the money, or how they will decide how to spend it, as stated in section 10.

The order must say if the organisation can spend the levy money itself, or if it can give the money to its branches or subsidiaries to spend. It must also say how often the levy is paid and when it is due. The levy order may say what the levy money is used for and how much levy people have to pay.

If the levy is based on how much of a commodity you have, the order may say if the levy applies to commodities imported into New Zealand. It may also say if the levy rate is the same for imported and local commodities. The order can say if people can get more time to pay the levy and if they have to pay extra if they pay late.

A Minister will only recommend a levy order if they think the levy money will be spent in a way that does not break New Zealand's international rules. If the levy applies to imported commodities, the Minister must be satisfied that people who import or export commodities will not get unfair benefits from the levy money. The Minister must also make sure the levy rate on imported commodities is not too high.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM227329.


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"Rules for Ministers to make levy orders"


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7: Effect of orders, or

"What happens when an order is made to pay a levy"

Part 1Levy orders

6Matters to be specified in orders

  1. Every levy order imposing on any commodity a levy payable to any industry organisation shall specify—

  2. the organisation; and
    1. the commodity; and
      1. the persons primarily responsible for paying the levy; and
        1. the basis on which the amount of the levy is to be calculated or ascertained; and
          1. the persons (if any) to be exempt from paying the levy; and
            1. that—
              1. in all cases the levy is to be paid by the persons primarily responsible for paying it; or
                1. in all cases the levy is to be paid by persons other than those primarily responsible for paying it, but recoverable by them from those primarily responsible; or
                  1. in some cases the levy is to be paid by the persons primarily responsible for paying it; and in some cases the levy is to be paid by persons other than those primarily responsible for paying it, but recoverable by them from those primarily responsible; and
                  2. to the extent that the levy is to be paid by persons other than those primarily responsible for paying it, but recoverable by them from those primarily responsible,—
                    1. the persons who are to pay it; and
                      1. their duties; and
                        1. the means by which they may recover it; and
                        2. the extent (if any) to which any persons, or persons of any class or description, are to refrain from disclosing information (or information of any class or description) obtained, or obtained as a result of actions undertaken,—
                          1. under the order; or
                            1. in relation to the order, under this Act; and
                            2. subject to section 10, either—
                              1. how the organisation is to spend the levy; or
                                1. a means by which the organisation is to consult the persons primarily responsible for paying it as to how the organisation is to spend it; and
                                2. whether the levy must be spent by the organisation, or may be paid to and spent by branches or subsidiaries of the organisation; and
                                  1. the periods in respect of which the levy is to be paid; and
                                    1. whether the levy is to be paid at a single rate or 2 or more different rates; and if at different rates, the things (whether—to which the different rates may apply; and
                                      1. different classes or descriptions of the commodity; or
                                        1. different things of a specified kind, connected with the production of the commodity, on the basis of which the levy is imposed)—
                                        2. in respect of each rate of levy, one of the following:
                                          1. a maximum rate of levy, with the organisation empowered to set the actual rate:
                                            1. a maximum amount by which the organisation may increase the rate of the levy in any specified period, with the initial rate of the levy to be fixed by the organisation with the approval of a Minister, and later rates to be fixed by the organisation either with the approval of a Minister or within the maximum:
                                              1. the rate for a period, being either a rate fixed by the organisation and not higher than the rate last fixed, or a higher rate fixed by a Minister on the recommendation of the organisation; and
                                              2. how the rates of the levy are to be notified; and
                                                1. if the levy is to be paid by persons not primarily responsible for paying it and recovered by them from the persons primarily responsible,—
                                                  1. whether or not the persons not primarily responsible are entitled to charge the organisation a fee for paying and recovering it; and
                                                    1. if so, the amount of the fee, or a means by which its amount may be calculated or ascertained; and
                                                    2. how often the levy is to be paid; and
                                                      1. the due and latest days, or a means for ascertaining the due and latest days, for payment of the levy.
                                                        1. Subject to subsection (3), a levy order imposing on any commodity a levy payable to any industry organisation may prescribe all or any of the following matters:

                                                        2. general purposes for which the levy is to be spent:
                                                          1. maximum and minimum amounts of levy payable:
                                                            1. if the levy is payable on a basis that relates to quantities of the commodity,—
                                                              1. subject to subsection (4), whether or not the levy applies to quantities imported into New Zealand; and
                                                                1. if so, subject to subsection (5), whether the levy is payable in respect of the imported commodity at a rate that is the same as the rate applying to the commodity produced in New Zealand, or at a lower rate:
                                                                2. the making of returns (whether by producers of a commodity or other persons) to the organisation or some other person or body, for the purpose of enabling or assisting the determination of amounts of levy payable:
                                                                  1. circumstances in which, and conditions subject to which, persons may be allowed extensions of time for the payment of any amount of levy:
                                                                    1. the payment of additional or increased levy when amounts of levy otherwise payable have been paid late or not paid at all.
                                                                      1. No Minister shall recommend the making of a levy order imposing a levy on any commodity unless satisfied that the spending of the levy in accordance with the order would not be, and would not be able to be, contrary to New Zealand's international legal obligations.

                                                                      2. No Minister shall recommend the making of a levy order imposing a levy on a commodity and prescribing that the levy applies to quantities of the commodity imported into New Zealand, unless the Minister is satisfied, on the basis of information and evidence satisfactory to the Minister, that unless the levy applies to imported commodity, exporters or importers of imported product, or other persons acquiring or dealing with imported product, will derive unearned benefits from the expenditure of the levy.

                                                                      3. No Minister shall recommend the making of a levy order imposing a levy on a commodity and prescribing that the levy applies to quantities of the commodity imported into New Zealand, unless the Minister is satisfied, on the basis of information and evidence satisfactory to the Minister, that the rate of levy on imported product provided for in the order cannot be greater than the rate necessary to ensure that exporters or importers of imported product, or other persons acquiring or dealing with imported product, will not derive unearned benefits from the expenditure of the levy.

                                                                      Notes
                                                                      • Section 6(1)(f): substituted, on , by section 3(1) of the Commodity Levies Amendment Act 1995 (1995 No 85).
                                                                      • Section 6(1)(g): amended, on , by section 3(2) of the Commodity Levies Amendment Act 1995 (1995 No 85).