Regulation Impact Statement Updates

Official website for publishing regulatory impact analysis information for regulatory decisions announced by the Australian Government, COAG and COAG Councils.

Tea Tree Oil Levy

Aust Gov
7th June 2017

Regulation Impact Statement – Department of Agriculture and Water Resources

In the 2017/18 Budget the Government announced a levy on the tea tree oil industry consistent with its 2016 election commitment. 

The levy will ensure all tea tree oil producers invest equitably in research and development (R&D), and provide industry with greater certainty about future R&D funding for investment in longer-term projects. It also provides the industry with a mechanism to contribute to national cost-shared eradication responses in the case of a pest or disease incursion. 

The levy will be managed by the Rural Industries Research and Development Corporation (RIRDC). The Government will match expenditure by RIRDC on eligible tea tree oil R&D.

A Regulation Impact Statement (RIS) was prepared and certified by the Department of Agriculture and Water Resources, and was assessed as compliant and consistent with best practice by the Office of Best Practice Regulation.

The RIS estimates that the preferred option will have an annual average net regulatory cost of $2,103 for the entire industry.

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