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Earlier this year, the rate of the industry levy to invest in research, development and marketing changed to also incorporate the macadamia industry’s contribution to managing the varroa mite response. The levy, which is mandatory and administered under Australian primary industries legislation, is applied to all macadamias produced in and exported from Australia.

The levy is critically important to our industry as it raises the necessary funding for industry research and development and funds the Australian macadamia marketing program. Projects funded by the levy are essential for ensuring the Australian macadamia industry remains strong and successful now and into the future. The levy also helps fund the National Residue Survey and emergency plant response activities, such as the recent multi-industry response to varroa mite.

New levy rate

Following a period of industry consultation and associated legislative change in late 2024, effective 1 January 2025, the macadamia statutory levy was set at 26c/kg of dried kernel, and is allocated as follows:

·       marketing – 16.01c/kg

·       research and development – 8.57c/kg

·       national residue testing – 0.63c/kg

·       Emergency Plant Pest (Biosecurity) Response - 0.79c/kg.

Projects funded by the R&D levy attract an additional matched contribution from the Australian Government using public funds, doubling the available investment funding for R&D. Marketing projects are not eligible for these additional contributions, hence the greater allocation of industry levy funds to marketing projects.

How the levy is calculated, collected and paid

Levies are paid to the Levy Revenue Service (LRS) on all Australian macadamia nut in-shell or kernel following the first transaction (sale, consignment or export) after harvest, either paid directly or via a third party (collection agent).

Most commonly in the macadamia supply chain, the collection agent is a handler or processor, who deducts the levy from the levy payer (grower) and pays that amount on to LRS as part of a monthly return. Levy returns and payment are due by the last day of the second month after sale/export.

Levy payers (growers) who process, sell or export their crop themselves, without the involvement of a third party, are responsible for levy payment directly to LRS.

Levies are based on the saleable weight at 1.5% moisture content. For nut-in-shell where no sample is taken, a default kernel recovery of 50% is used in the levy charge calculation.

The levy does not apply to nuts used to manufacture macadamia oil or goods that are not for human consumption, nor does it apply if the total annual payable charge is less than $120 (GST exclusive).

The LRS passes the levy onto:

·       Hort Innovation to fund macadamia marketing and R&D investment

·       The National Residue Survey to fund residue testing and reporting

·       Plant Health Australia to fund Emergency Plant Pest Response activities

Levy rates

Information

Additional information about the levy, is available on the Australian Department of Agriculture, Fisheries and Forestry website.

The Australian Macadamia Society (AMS) works closely with the LRS and members of the Australian Macadamia Handlers Association (AMHA) to ensure the levy collection process is clearly understood, and that annual levy receipts align with crop forecasts.  

If you have any questions on the levy structure or process, contact the AMS.