Understanding Levy Calculations in AgriChain

Introduction

This article outlines how levies are calculated and applied in AgriChain based on the origin of grain movements. It explains the different types of levies, how they are determined, and how farm gate value is used in the calculation process.

Overview of Levies

In AgriChain, levies are automatically calculated and deducted based on the pickup region of a movement. Each levy type is governed by regional or national legislation and may vary based on the origin of the grain.

There are four primary levies:

1. DAFF Levy (Administered by the Department of Agriculture, Fisheries and Forestry)

2. GiF Levy (Grains Industry Fund)

3. GiRDF Levy (Grains Industry Research and Development Fund)

4. IFS Levy (Industry Funding Scheme)

How Levies Are Applied

1. DAFF Levy – National [Refer Article]

• Rate: Typically 1.02% of the farm gate value

• Applies to: All grain movements, regardless of state

• Administered by: Department of Agriculture, Fisheries and Forestry (DAFF)

• This levy is always applicable and forms the base of the total levy calculation.

2. GiF and GiRDF Levies – South Australia

• Applies only when: The pickup location of the movement is in South Australia

• Administered by: South Australian Grain Industry Trust (SAGIT)

• These levies are added in addition to the DAFF levy for movements originating in South Australia.

3. IFS Levy – Western Australia

• Applies only when: The pickup location of the movement is in Western Australia

• Administered by: Western Australia’s Industry Funding Scheme

• This levy is added in addition to the DAFF levy for movements originating in Western Australia.

Farm Gate Value Calculation

Australian levy legislation specifies that levies must be calculated based on the farm gate value of the grain — i.e., the value of grain at the point of departure from the farm.

To comply with this, AgriChain calculates the farm gate value by:

Subtracting an estimated delivery cost from the total transaction value.

This estimated delivery cost is calculated based on distance, route, and rate assumptions. The detailed calculation logic is maintained in the internal Levies and Rules configuration sheet.

Multiple Levies on the Same Movement

When a movement originates in South Australia or Western Australia, both the DAFF levy and the state-specific levy (GiF/GiRDF or IFS respectively) will apply.

For example:

• If a load originates in South Australia, both DAFF (1.02%) and GiF/GiRDF levies are added together.

• If a load originates in Western Australia, both DAFF (1.02%) and IFS levies are applied.

The final levy percentage is the sum of applicable levies.

Summary Table

Important Notes

• Levies are automatically calculated based on movement data (particularly the pickup location).

• The system ensures that the farm gate value is used in accordance with legislative requirements.

• If manual overrides or checks are required, refer to the Levies and Rules sheet for configuration details.

FAQs

What does the invoice line item show for levies?

The amount shown on the invoice line item is for all levies taken together.

Where can I see the breakdown of levies?

You can see the complete breakdown by clicking on the expand button shown next to the levy head.

Why is the levy amount not displaying on the RCTI?

This can occur if the site is not correctly mapped in the AgriChain system, resulting in the system calculating an incorrect distance between the pickup and delivery sites.

How to resolve when the levy amount is not displaying on the RCTI?

Check the site mapping to ensure the pin location is correctly placed on the system map.

• Once the address is correctly pinned, navigate to the relevant movement page.
• Click on the three-dot menu and select "Recalculate Distance".
• Go to the Payable page and refresh — the Levy amount should now reflect correctly.

What to do if getting "Distance could not be calculated" error when recalculating distance?

This can occur if the site location is incorrectly mapped to a location outside Australia. Ensure the site location is correctly updated in the AgriChain system.

Why are there levy adjustments being made?

These values are arrived after applying levy adjustment calculations (to arrive at the levy applied at Farm Gate value). You can click on the "i" button against the rate to see the calculation.

How do I remove a Levy while generating the invoice?

Simply uncheck the relevant line item before creating the invoice.

Why are the report figures different from my calculations for DAFF GIF & GIRDF Levies?

These values are arrived after applying levy adjustment calculations (to arrive at the levy applied at Farm Gate value). You can click on the i button against the rate and see the calculation.

The report currently reflects actual sales figures instead of the adjusted sales figures.

Can I manually adjust the cost in AgriChain to calculate the levies?

Manual adjustment of the cost is not possible currently.

What date is being picked up from the levy report for the purchase date?

It's the RCTI generation date, as that's when the levies are actually applied.

Reason of missing or incorrect address info on DAFF Levy Report?

• Missing Info / Incomplete Street Addresses - We can't have both of these. If we just want a Street Address (without suburb, postcode etc), then we have to trust the farm location (from NGR portal) and rely on Google Maps API to provide us with the Street Address. 
• Wrong States 
• Street address field includes suburb / Possibly/probably wrong suburbs - There are multiple levels of localities in street address, the part included in the Street Address is just what Google Maps API provides us.

Related Articles

• DAFF Levy rates
• End Point Royalty (EPR) in AgriChain