There are numerous challenges for primary producers as
- Seasonal demands,
- Government's rules and regulation,
- Climatic changes,
- Political Climate and uncertainties,
- Finances
among other variable challenging factors.
These pressures are enough to cope with to operate a business. And you still have income tax and GST obligations.
We are here to help you take off your pressure of the GST obligation and Income tax.
We have met many farmers mainly vegetable producers who not only have pressure in accounting, taxation and GST side but they also do not know on DAFF levy. Knowing levy in agriculture is extremely important.
You as a primary producer for Agriculture, Fishery or Forestry , you may have to register for DAFF levy. Depending on your condition you may have to collect those levy and remit the levy to the right department.
Did you know this?
We can assist you to register for DAFF Levy. Upon registration you will receive LRS number. You need this number to lodge the levy return.
Hence, primary producers in Agriculture, Fishery and Forestry have
- Levy to lodge
- GST returns to lodge
- Income Tax to lodge
What is Vegetables Levy and charge?
The vegetable levy and charge was first introduced 1 March 1996. Vegetables that are produced in Australia and are sold by the producer or used by the producer in the production of other goods, or that are exported will attract a levy or charge. Horticulture Innovation Australia Limited and Plant Health Australia (PHA) are responsible for the expenditure of the vegetable levy.
Retail sale for vegetables means a sale by a producer except to a first purchaser or a sale through a buying agent, selling agent or exporting agent.
Processing may include canning, bottling, freezing, cooking, pickling, roasting or dehydrating, but does not include washing, grading or packing vegetables, transporting vegetables in their natural state or preparing vegetables for sale in their natural state.
The vegetable levy and charge rate comprises Emergency Plant Pest Response (EPPR), PHA and research and development (R&D)
Levy and charge rates (commencing 1 October 2018)
Unprocessed vegetables – calculated as a percentage of the sale value is 0.510% of the sale value.
Processed vegetables – calculated as a percentage of the value of the vegetable if it were first sold as an unprocessed vegetable is 0.510% of the sale value.
Do you need to lodge the Levy Return?
The producer, the person who owns the vegetables immediately after harvest is liable to pay the levy.
If you produce vegetables and sell your vegetables by retail sale, you must lodge a return and make a payment to the department.
If you produce vegetables and sell your vegetables through an intermediary, including a first purchaser, buying agent, selling agent, exporting agent or processor, the amount of levy or charge they pay to the department on your behalf can be recovered from you by offset or otherwise.
If you are an intermediary, including a first purchaser, buying agent, selling agent, exporting agent or processor, you must lodge a return and make a payment to the department. You can recover from the producer the amount of levy paid to the department by offset or otherwise.
If you export vegetables — that is, you own the vegetables at the time of export — you must lodge a return to the department and make a payment.