Grower levies

Settlement against ASX positions 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.

If you are a grower in Queensland, New South Wales and Victoria you are required to pay the DAFF Levy.

If you are a grower in South Australia you are required to pay the DAFF Levy, the South Australian Grains Industry Trust and South Australian Farmers Federation Levy.

If you are a grower in Western Australia you are required to pay the DAFF Levy and the Grain Industry Funding Scheme (PDF 166KB) which is 30 cents per tonne.

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 DAFF 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. 

SAGIT/SAFF Levy

South Australian growers delivering against ASX Canola contracts need to, through their Risk Management Adviser or Futures Broker (if dealing direct) submit payment for SAGIT Fund and SAFF Levy. This is a voluntary scheme but on an 'opt-out' basis rather than an 'opt-in' basis.

Why is there a SAGIT/SAFF levy?

Arrangements made pursuant to the Wheat Marketing Act 1989 provide for the collection of prescribed amounts to support grains research and development in South Australia and the activities of the South Australian Farmers Federation (SAFF) Grains Council.

What is the value of the SAGIT/SAFF levy?

The following amounts are to be deducted from the proceeds for the 2007/2008 season;

  • 16 cents per tonne for the SAGIT Fund
  • 5 cents per tonne for the SAFF Grains Council

When is the SAGIT/SAFF levy due for payment?

Risk Management Advisers or Futures Brokers are required to remit the deductions to the Minister no later than 21 days after payment, or first payment, is made to the grower. The Minister may recover any amount not so paid by action in a court of competent jurisdiction. 

The SAGIT/SAFF levy is a Voluntary Scheme - can I opt ot?

This is a voluntary scheme but on an 'Opt Out' rather than an "Opt In' basis. The legislation requires a purchaser of grain, in this case the Risk Management Adviser or Futures Broker, to deduct from the amount payable under the contract of sale, an amount equal to the prescribed rate. Growers may notify the Minister for Agriculture, Food and Fisheries in writing by 31 March 2008 if they do not consent to paying the contribution, in which case the Minister will refund the deductions to them.

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 SAGIT/SAFF levy contributions on behalf of the grower.

Further Information on the SAGIT/SAFF levy

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