Passionfruit levy

The current financial status of the Hort Innovation Passionfruit Fund is:

  • Total Balance carried forward to 2017/18
  • R&D Fund Balance
  • Marketing Fund Balance
  • Total Balance carried forward to 2017/18
  • R&D Fund Balance
  • Marketing Fund Balance
  • $312,902
  • $216,921
  • $95,980

What is the statutory levy on passionfruit?

The statutory passionfruit levy is gathered from ALL commercial growers across Australia to fund research and development (R&D) projects and Marketing initiatives to improve productivity, profitability and ensure the long-term sustainability of the passionfruit industry for all stakeholders.

The current levy rate is:

Loose, fresh passionfruit – Grade 1 and Grade 2: 40 cents per 18‐litre carton
Loose, fresh passionfruit – Grade 1 and Grade 2: 40 cents per 8 kilograms, if not packed in cartons
Processing passionfruit: 3 cents per kilogram

Rates are current as at 1 October 2013.  Australian Government levies exclude GST.

Levies are collected at the point of sale.  For most passionfruit production, this will be at the market agent who is handling the wholesale transaction for the grower.  Levies are normally already deducted from the grower return received by the grower from the wholesale agent at payment.

Who manages the levy money?

The levy is collected by the Commonwealth Department of Agriculture and Water Resources, and investment of these funds is managed by Hort Innovation, a not-for-profit, grower-owned Research and Development Corporation (RDC) for Australia’s $9 billion horticulture industry.

Who decides how the levy is invested?

To help ensure R&D and marketing investment decisions are prioritised in line with the the needs of the passionfruit industry, Hort Innovation has established Strategic Investment Advisory Panels (SIAPs).  The SIAPs are guided by the strategic priorities set out in the each industry’s Strategic Investment Plan.

How does the levy work?

Growers pay $0.40 for every box of passionfruit that leaves the farm gate and the money is collected by the levy revenue service via the wholesale agents in the markets. 50% of that levy is spent on marketing activities designed to build demand for passionfruit with Australian consumers.  The remaining 50% is matched by government investment and is invested into research & development projects designed to lift productivity and profitability.

How was the levy invested in the last financial year?

The chart below shows how the funds were split by activity cost area for the financial year 2016/17.  77% of the total investment went directly to activities for the benefit of passionfruit growers with the remaining 23% funding the consultation with growers, collection of the levy monies and services provided by Hort Innovation to benefit the passionfruit industry.