OSPRI, which runs the TBfree program, is due to reduce slaughter levy rates for cattle producers from October 1.
The Slaughter Differential Tax (DSL) is reviewed annually to ensure industry funding aligns with that agreed to under the 2016 TB Scheme Funding Agreement, this is subject to a period of 15 years.
The slaughter levies collected support the financing of the TBfree program on behalf of the beef and dairy industries. The revised levies are collected by the meat processors.
The new differential slaughter levy rates are as follows:
– Dairy cattle $ 9.00 per head (reduced by $ 10.00 per head)
– Beef cattle $ 5.50 per head (instead of $ 6.30 per head)
A levy of $ 11.50 per head on live cattle and exported deer remains unchanged.
The changes to the levies take into account the different financial contributions made to the TBfree program by the respective industries. Funding shares change each year based on changes in the relative size and value of each industry.
The funding received is also affected by the actual slaughter volumes of dairy cattle and beef.
To ensure they are paying the proper slaughter tax for TB, beef and milk producers are advised to keep their NAIT accounts up to date.
If the type of production of an animal is dairy when it is sent to the slaughterhouse, the farmer will have to pay the dairy tax for that animal.
In case of finishing beef dairy animals, the production type must be updated in the NAIT system 62 days before sending to slaughter; otherwise, animals will be subject to dairy tax.
Farmers who regularly purchase animals should check with their livestock agent or information provider to make sure they have selected the right type of production.
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