Relevant to: Buyers and Growers
Navigation tree: Transactions > Payments > Payment Deductions
Within the Payment Deductions page you can:
- View all payment deductions that have been made against your deliveries, including levies and royalties.
- Easily export a report of the entire Payment Deduction data set
These deductions are calculated as follows:
After the price per tonne has been adjusted based on location differentials and payment scales, the overall value of the delivery will be subject to levies and end point royalty deductions.
Levy Deduction
The levy deduction is calculated as a percentage of the farm gate value and the rate depends on the commodity - The rates can be found here: http://www.agriculture.gov.au/ag-farm-food/levies/rates#field-crops. The farm gate value is calculated as the sale value (per tonne) minus a fixed constant that represents storage, handling, freight, and 'free on board' costs. AgriDigital has set this constant as $25. Consequently, the levy deduction can be calculated as follows:
Levy = (Post Adjusted Sale Value per tonne - $25) x Total levy rate x Quantity delivered (metric tonnes).
This value will be deducted from the total value of the sale.
End Point Royalty (EPR) Deduction
Each variety will have its own EPR rate per metric tonne. The EPR deduction is therefore calculated as the rate that corresponds to the variety in question multiplied by the quantity (in metric tonnes) that is exchanged in the delivery.
Declaring Primary Producer status on contracted goods:
When creating a contract, a user can declare who the primary producer of the contracted goods is for the purposes of determining levies and royalties.
When creating a sale contract the following tick box option will appear:
When creating a purchase contract the following tick box option will appear:
State specific levies:
The South Australian specific levies can be seen in the link below. Any grain accumulated from growers who are domiciled in SA will be eligible to have these state levies applied. As per the link below the GIRDF levy is 30c/MT and the GIF levy is 20c/MT (The GIF levy will be updated to 31c/MT for all South Australian grain purchased on or after 1 July 2021).
https://pir.sa.gov.au/primary_industry/crops_and_pastures/grain_industry_funds