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Grower levies

 

Settlement against ASX differs to traditional grower contracts in a number of ways. One important difference is that when selling through ASX, growers through their Risk Management Adviser or Futures Broker (if dealing direct) are responsible for organising and making the payment of their levy returns.

DAFF Levy

The Australian Government Department of Agriculture, Fisheries and Forestry (DAFF) is responsible for the coordination and collection of grain grower levies. Growers interested in delivering against ASX Grain Futures contracts are responsible for submitting levy returns for these sales. This should be done by the grower's Risk Management Adviser or Futures Broker (if dealing direct).

Why is there a DAFF levy?

A levy is payable to provide funding for research and development programs administered by the Grains Research & Development Corporation (GRDC) and plant health programs via Plant Health Australia (PHA)

What is the value of the DAFF levy?

The applicable DAFF Levy for grower deliveries is 1.015% of the farm gate value achieved for wheat, barley, canola and sorghum.

When is the DAFF levy due for payment?

Quarterly returns with payment must be submitted to the Levies Revenue Service (LRS) on or before the 28th day after the end of the quarters of March, June, September and December.

The due date for levy payment for deliveries made on ASX are outlined in the following table.

ASX Delivery Month Quarter Applicable Levy Due Date
January March 28th April
March March 28th April
May June 28th July
July September 28th October
September September 28th October
November December 28th January

Why can't ASX 24 /ASX Clear (Futures) pay the DAFF levy for growers?

The settlement process for ASX is standardised and, as best as possible, serves the needs of the entire industry. In many instances, settlement with the ASX Clear (Futures) is based on omnibus accounts. That is, there is one account for a Clearing Participant. ASX Clear (Futures) cannot distinguish grower deliveries, does not know the original sale price and does not know the cost of cart from farm to silo. ASX Clear (Futures) therefore cannot calculate and pay levy contributions on behalf of the grower.

Further Information on the DAFF levy

For further information regarding the levy, including how to make payments to the LRS and to download return forms please refer to the DAFF website

South Australian grain industry funding schemes

 

South Australian growers delivering against ASX Canola contracts need to, through their Risk Management Adviser or Futures Broker submit payment for South Australian grain industry funding schemes. This is a voluntary scheme but on an 'opt-out' basis rather than an 'opt-in' basis.

 

What is the value of the 2013/2014 Grain Harvest Deductions?

 

The following amounts are to be deducted from the proceeds for the 2013/2014 season:

 

  • 20 cents per tonne for the Grain Industry Fund; and
  • 30 cents per tonne for the Grain Research and Development Fund.

Why can't ASX 24 /ASX Clear (Futures) pay the SAGIT/SAFF levy for growers?

The settlement process for ASX is standardised and, as best as possible, serves the needs of the entire industry. In many instances, settlement with the ASX Clear (Futures) is based on omnibus accounts. That is, there is one account for a Clearing Participant and ASX Clear (Futures) cannot distinguish grower deliveries. ASX Clear (Futures) therefore cannot calculate and pay levy contributions on behalf of the grower.

Further Information

For further information, including how to make payments and to download return forms please refer to the PIRSA website

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