Potato Levy Frequently Asked Questions

How is the levy collected?
Are there any exemptions associated to this levy?
When is levy due for payment?
What records must be kept, who should keep them and for how long?
Are there any penalties for late payments or other offences?
Does the Goods and Service Tax (GST) apply to levies?
Where do I lodge my return?
What legislation is associated with the levy?

How is the levy collected?

The producer of the fresh potatoes (the person who owns the potatoes immediately after they are harvested) is liable to pay the levy. For ease of administration, the levy is collected by first purchasers, agents, merchants, exporters etc. who must forward it to the Levies Revenue Service (LRS) along with return forms, available from all LRS offices or by accessing www.daff.gov.au/levies.

For processing potatoes - levy is payable by the person who owns the processing potatoes when processing begins.

A producer who sells fresh potatoes by retail sale i.e. direct to the public by way of roadside stalls, shed sales, farm gate etc. must submit levy and returns directly to the LRS.

The export charge is payable and returns must be submitted by the person who exports potatoes from Australia. Export charge is not payable if the domestic levy has already been paid on the potatoes to be exported.

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Are there any exemptions associated to this levy?

Levy is not payable on:

  • fresh potatoes sold by a primary producer by retail sale if the total quantity sold in the levy year does not exceed 100 tonnes
  • fresh potatoes sold for stockfeed
  • processing potatoes used by a processor in a levy year if the total quantity used does not exceed 100 tonnes

Export charge is not payable on:

  • potatoes exported by an exporter if the total quantity of the potatoes exported in the levy year* does not exceed 100 tonnes

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When is levy due for payment?

Quarterly Returns:

A quarterly return with payment must be submitted to LRS on or before the 28th day after the end of the quarters of March, June, September and December in which the potatoes were sold or exported. For example, for the quarter ending 31 March (i.e. for the months of January, February & March), the levy and/or charge must be lodged by 28 April.

Annual Returns:

The return is due together with payment on or before 28 February in the next levy year. For example, the return and payment for 2006 levy year must be lodged by 28 February 2007.

A first purchaser, buying agent, selling agent or exporter may apply for an exemption from the requirement to lodge quarterly returns for a levy year through LRS if that person has reasonable grounds for believing that the levy/export quantity of potatoes dealt with in the year will be less than 1,000 tonnes.

Please contact your nearest LRS office to ascertain if you qualify as an annual payer.

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What records must be kept, who should keep them and for how long?

People who lodge returns and people who pay levy/charge to intermediaries are required to keep records supporting the information supplied in returns or information relating to payments made to intermediaries. These records are to be kept for a period of five years and are to be made available to LRS officers.

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Are there any penalties for late payments or other offences?

Where a levy/export charge is paid late, penalty will be payable at the rate of two per cent per month compounding on the sum of the unpaid amounts, including penalties already accrued.

Penalties are also imposed for other breaches of the legislation.

For more information please contact your nearest LRS office.

Caution: Giving false or misleading information is a serious offence.

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Does the Goods and Service Tax (GST) apply to levies?

No. Australian Government levies administered by the LRS are exclusive of the GST (Goods and Service Tax). The levy/charge is a separate calculation, exclusive of GST consideration.

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Where do I lodge my return?

The Secretary
Levies Revenue Service
Department of Agriculture Fisheries Forestry
Locked Bag 4488
KINGSTON ACT 2604

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What legislation is associated with the levy?

Copies of the legislation applicable to funds can be obtained by visiting scaleplus.law.gov.au.

This information sheet is a guide only and does not substitute for the relevant legislation.

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