What and how?
A separate company has been formed by an independent third party provider to manage the levy collection system on behalf of the FGLT. To make the task of supplying data as simple as possible, collection agents will be supplied with an automated data collation and transfer system. This will enable data to be transferred electronically, or via a faxed monthly return. Only this company will have access to the data, which will be stored securely. Information identifying the data collector or the levy payer may only be used for levy collection purposes.
Further information on the collection process or in relation to invoicing should be directed to :
Fiona Jenkins, Administration
0800 001 634
PO Box 1381
Data - How, Why, When
The contact details of the owner of the levied products (logs, posts, poles etc) just before the product crosses the mill gate or just after the wharf gate, are supplied to Levy System Limited on a monthly basis by mills and marshalling agents.
Levy System Limited sends an invoice to those companies monthly. These companies are liable to pay the invoice if they are the forest owner, or if they are the product owner, or an agent for the product owner. If a product owner or an agent, but not the forest owner, they have a legal right to recover the levy component from the previpus product owner. The ultimate levy payer is the forest owner.
- Information for Data Collection Agent, Mills and Marshalling Companies (.pdf 113 KB)
- Informaton for Forest Owners (.pdf 200.36 KB)
- Information for Marketing and Management companies (.pdf 202.23 KB)
Levy Rate - How, Why, When
The levy rate is 27cents per tonne for the first year with the ability to strike a maximum levy rate over the six year levy term of 30 cents per tonne. Each year the Plantation Forestry Work Programme will be reviewed with apapropriate industry consultation and a budget for the next year approved. A Forestry Plantation Work Programme will be be created each year from which a budget and ultimately the levy rate will be calculated.
The levy struck for each year may be more or less than the previous year's levy, but it may not exceed the maximum levy amount of 30 cents per tonne.
Assuming a 30 cents per tonne maximum levy rate and a typical radiata forest harvested at year 30, the levy will average out at around $5 a hectare a year for each year a forest is growing. This expense is tax deductible.
At the end of the 2019 financial year the levy arrangement will come to the end of its six year term. If forest growers want to continue to fund work on behalf of the industry with a levy struck under the Commodity Levies Act for a further six years, there must be a majority yes vote in another referendum.
The levy applies to logs, posts, poles, forest waste, binwood, hog fuel and woodchips produced in New Zealand sourced from a plantation forest.
The levy does not apply to bark sold separately, Christmas trees or domestic firewood.
Production from planted native forests will be levied. Production from natural native forests will not be levied.