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All rights reserved. This publication is copyright and may not be resold or reproduced in any manner (except excerpts for bona fide study purposes in accordance with the Copyright Act) without the prior consent of the Publisher. Every effort has been made to ensure that this newsletter is free from error or omissions. However, the Publisher, or its respective employees or agents, shall not accept responsibility for injuries, loss or damage occasioned to any person acting or referring from action as a result of the material in this newsletter whether or not such injury, loss or damage is in any way due to any negligent act or omission, breach of duty or default on the part of the Publisher, or its respective employees or agents. AUSTRALIAN HONEY INDUSTRY MONTHLY REVIEW To: The Australian Honey Industry From Stephen Ware – Executive Director Re: November/December 2008 Update AB’s Honey Australian Honey Products Beechworth Honey Bees Neez Apiaries Capilano Honey Limited Dewar Apiaries Honey DownUnder H L & H M Hoskinson I N & JE Mills Pollination Association of WA Saxonbee Enterprises Spring Gully Goods Pty Ltd Stephens, R Tasmanian Crop Pollination Association Tasmanian Honey Company Walkabout Apiaries Weerona Apiaries Wescobee Limited AHBIC acknowledges the beekeeper suppliers who contribute via their packer and queen bee supplier to AHBIC. We also urge beekeepers to support those packers/queen bee breeders who contribute to AHBIC. Does your honey buyer’s or queen bee supplier’s name appear on this list? If not, then ask ‘why not?’ SUPPORT THOSE WHO SUPPORT YOUR INDUSTRY! AUSTRALIAN HONEY BEE INDUSTRY COUNCIL Address: Suite 204, Level 2, 105 Pitt Street, Sydney NSW 2000 Telephone: 02 9221 0911 Mailing Address: PO Box R838, Royal Exchange NSW 1225 Facsimile: 02 9221 0922 Email Address: [email protected] Website: www.honeybee.org.au ABN 63 939 614 424
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Page 1: AUSTRALIAN HONEY BEE INDUSTRY COUNCIL 2008 Newsletter.pdfHoney bee colonies that have become weak and have low numbers of adult bees resulting from starvation, queenlessness, excessive

All rights reserved. This publication is copyright and may not be resold or reproduced in any manner (except excerpts for bona fide study purposes in accordance with the Copyright Act) without the prior consent of the Publisher. Every effort has been made to ensure that this newsletter is free from error or omissions. However, the Publisher, or its respective employees or agents, shall not accept responsibility for injuries, loss or damage occasioned to any person acting or referring from action as a result of the material in this newsletter whether or not such injury, loss or damage is in any way due to any negligent act or omission, breach of duty or default on the part of the Publisher, or its respective employees or agents.

AUSTRALIAN HONEY INDUSTRY MONTHLY REVIEW

To: The Australian Honey Industry From Stephen Ware – Executive Director Re: November/December 2008 Update

AB’s Honey Australian Honey Products Beechworth Honey Bees Neez Apiaries Capilano Honey Limited Dewar Apiaries Honey DownUnder H L & H M Hoskinson I N & JE Mills

Pollination Association of WA Saxonbee Enterprises Spring Gully Goods Pty Ltd Stephens, R Tasmanian Crop Pollination Association Tasmanian Honey Company Walkabout Apiaries Weerona Apiaries Wescobee Limited

AHBIC acknowledges the beekeeper suppliers who contribute via their packer and queen bee supplier to AHBIC. We also urge beekeepers to support those packers/queen bee breeders who contribute to AHBIC.

Does your honey buyer’s or queen bee supplier’s name appear on this list? If not, then ask ‘why not?’

SUPPORT THOSE WHO SUPPORT YOUR INDUSTRY!

AUSTRALIAN HONEY BEE INDUSTRY COUNCIL Address: Suite 204, Level 2, 105 Pitt Street, Sydney NSW 2000 Telephone: 02 9221 0911

Mailing Address: PO Box R838, Royal Exchange NSW 1225 Facsimile: 02 9221 0922 Email Address: [email protected] Website: www.honeybee.org.au

ABN 63 939 614 424

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THE HON TONY BURKE MP, Minister for Agriculture, Fisheries and Forestry Further protection for Australian honey bee industry - 4 November 2008 The Rudd Government has committed $300,000 over the next two years to continue an important surveillance program for pests and disease in Australia’s honey bee and pollination industries.

The National Sentinel Hive Program was established in 2000 at 27 sea ports around the country to monitor for honey bee parasites and exotic bees.

Recent outbreaks of bee diseases and pests have affected agricultural industries in a number of overseas countries.

A House of Representatives Standing Committee inquiry this year recommended the National Sentinel Hive Program be continued to help protect the Australian industry.

Minister for Agriculture, Fisheries and Forestry Tony Burke met last month with key industry representatives and chair of the Standing Committee, Federal Member for Lyons Dick Adams, to discuss issues facing the industry.

“The Rudd Government recognises the importance of rigorous quarantine and biosecurity measures to protect our valuable agriculture, fisheries and forestry industries,” Mr Burke said.

“The Australian honey bee industry is fortunate to be free so far of Varroa and other pests and disease affecting other countries – but we must remain vigilant.

“In addition to the $300,000 commitment, I also asked Roger Beale AO to respond to the honey bee inquiry’s findings in his report on our overall quarantine and biosecurity system.”

According to figures released last week by the Australian Bureau of Agricultural and Resource Economics, the estimated gross value of honey and beeswax production in 2007-08 was $75 million.

The figures show there were more than 1,700 commercial beekeepers in Australia during 2006-07.

Bees are also crucial for pollinating dozens of horticultural crops, as well as pastures, fodder and some broadacre crops. WAX MOTH Members of industry are reminded that the use of PDB in the treatment of wax moth is strictly illegal in the Apiary Industry so too is the sale of PDB products to apiarists for the treatment of Wax Moth. Producers are urged to follow the recommendation of state DPIs in the control of wax moth. We reproduce the recommendations of the Victorian department however we note other states also have agnotes or similar dealing with the issue. If you have any concerns or doubts in the treatment of wax moth you are urged to contact your local department of Industry advisory officer for further details. Wax Moth - A Pest of Combs and Honey Bee Products Russell Goodman, Knoxfield Updated May 2008

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Introduction Wax moth larvae are very destructive and can quickly destroy stored beeswax combs. They tunnel and chew through combs, particularly combs that have contained brood and pollen. Healthy, populous honey bee colonies do not tolerate wax moth larvae in the hive. Wax moths are never the initial cause of colony destruction but in weak colonies their larvae can damage combs not covered and protected by bees. Greater wax moth (Galleria mellonella) Adult moths are pale brown to grey, usually about 20 mm long. The grey wings are often mottled and appear as "roof" or "boat" shaped when folded over the body. Female moths usually lay 300 to 600 eggs in clusters on comb or in small cracks in hive material. The almost spherical, pinkish to white eggs are about 0.5 mm in diameter. The eggs hatch within 3 - 5 days when temperatures range from 29°C to 35°C. Hatching is delayed when temperatures are colder and at 18°C hatching commences about 30 days after egg laying. Larvae are creamy white, but turn grey on reaching their fully grown size of up to 28 mm in length. After hatching, the small very active larvae tunnel in comb, lining their tunnels with silky web as they go. They move from comb to comb through a mass of webbing.

Greater wax moth larvae Newly hatched larvae may move to neighbouring honey bee colonies. Overseas laboratory studies have shown that newly hatched larvae can travel more than 50 metres. Wax moth larvae are very active in warm weather, but become inactive in the extreme cold of winter. At the optimum temperature of about 32°C they reach full development about 19 days after hatching. At cooler temperatures, and when food is scarce, the larval period may extend to 5 months. Fully developed larvae spin silky cocoons that may be found in a mass of webbing in the comb, and on the frames and internal surfaces of the hive. Larvae may form small canoe shaped depressions in the wooden hive components in which to spin their cocoons. Larvae can also bore through the wooden bars of frames.

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Wax moth cocoons on top bars of wooden frames After spinning the cocoon, the larvae commence the pupal stage which lasts about 14 days when temperatures are high but as long as 2 months during cooler temperatures. After emergence, adult moths mate and the life-cycle begins again.

Webbing produced by wax moth larvae. The comb under this webbing has been destroyed Lesser wax moth (Achroia grisella) This moth is smaller than the greater wax moth and has a silver-grey to dull-yellow, slender body about 13 mm in length. Lesser wax moth larvae are usually white with a brown head. They feed on combs, pollen and litter found on the hive floor. They are usually solitary, whereas greater wax moth larvae often congregate in large numbers. Damage caused by wax moths Beehives Honey bee colonies that have become weak and have low numbers of adult bees resulting from starvation, queenlessness, excessive swarming, disease, pesticide poisoning or neglect cannot effectively guard their hive against wax moth infestation. At first, combs left unattended by bees are attacked. As the colony weakens further, even combs with bees may be damaged. On occasions, one or two wax moth larvae may be seen in a healthy, populous hive. These are mostly removed by adult bees and very little, if any, damage occurs. Sometimes, one or two wax moth larva occur between the hive mat and the top bar of a frame. Again, these individuals cause little, if any, damage and may be removed by the beekeeper.

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Bald brood and deformed honey bee pupae Developing honeybee pupae are exposed when wax moth larvae partly remove the cell caps, a condition known as bald brood. Worker bees chew the remainder of the capping thereby fully exposing the heads of the pupae which continue to develop normally. The lines of bald brood follow the direction of the wax moth's travel. Some honey bee pupae nearing maturity may have deformed legs or wings. One of the causes of this deformity is a result of wax moth excreta affecting the final moult of the pupa before its emergence from the cell. Galleriasis Newly formed adult bees are sometimes unable to emerge from their cells. These bees are trapped by silken threads produced by greater wax moth larvae tunnelling at the base of the cells. The bees eventually die and are later removed by hive bees. This is a minor problem and is rarely seen. Damage to stored combs and hive material Damage will vary with the level of infestation and the time that has elapsed since the infestation first began. In time, stored combs may be completely destroyed and the frames and combs become filled with a mass of tough, silky web. In ideal conditions for wax moth development, a box (super) of combs may be rendered useless in about a week. Damage occurs mainly in the warm and hot months of the year when wax moths are most active. However, considerable damage can still occur during the cool part of late autumn and early spring as greater wax moth can produce a large amount of metabolic heat which can raise the immediate temperature around them by up to 25°C above the normal environment temperature. Little if any damage is seen in the extremely cold winter period, because the larvae are relatively inactive. At the time of storage, combs that are apparently free of wax moth may contain eggs that will hatch later. They should be monitored at frequent intervals for signs of moth infestation unless treated (discussed later). Adult moths may also lay eggs in the external cracks and joints of stacked supers of combs. After hatching, the tiny larvae quickly tunnel though the joints to infest the combs. This explains why some combs that have been treated by freezing to kill all life-cycle stages of the moth, are later found infested. Wax moth larvae prefer dark brood combs that contain some pollen. However, combs sticky with honey after extracting, white combs and combs containing honey are still at risk of attack. Larvae may damage frames and hives by chewing the wood to make cavities for cocoons. Damage to apiary products Bee-collected pollen Wax moth larvae grow extremely well on a diet of fresh or dried pollen. Adult wax moths may deposit their eggs whenever pollen is exposed while in the pollen trap on the hive, and during processing and packaging. The eggs can hatch at any time, even after packaging, making the pollen unsuitable for human consumption.

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Comb honey Honey sold in the comb should be protected immediately it is taken from the hive. Wax moth eggs present on the comb at the time of packaging will hatch soon after and the webbing and excreta produced by the larvae will render the comb unfit for sale. Beeswax Clean, refined beeswax including foundation is not readily subject to wax moth attack. Damage is usually minor and the larvae usually fail to grow to full size. Dirty, unrefined beeswax and slum gum is more readily infested. Control of wax moth The control measures described below are effective for both the greater and lesser wax moth. Apiary hygiene Slum gum, old combs and scraps of beeswax are best collected and processed to form clean cakes of beeswax. If left unprocessed, these items can provide an ideal environment for development of wax moth. Combs and other items infested with wax moth are best treated or destroyed. A clean environment will always assist in minimising the incidence of wax moth. Hives with bees Maintain strong, populous colonies and wax moth invasion will be curtailed. Weak colonies may be united with other colonies of bees to form one strong colony. Stored combs Some beekeepers who store combs in late autumn and reuse them in early spring find that control methods are not needed because the winter temperatures prevent or minimise any wax moth activity. The success of this method depends on the winter temperature in the district. Careful monitoring of stored combs on a regular basis, even during winter, is essential. Some beekeepers may temporarily store a super of empty combs above the mat and beneath the cover of the hive occupied by a strong honey bee colony. The bees protect the combs from wax moth. During good honey producing seasons, combs of honey removed from hives for extracting may be left for a short period of time before they are again used on a hive. Beekeepers find that if this period of rotation is short, there is little opportunity for wax moth infestation to occur. Freezing All life-cycle stages of the wax moth, including eggs, are killed by freezing at the following temperatures and times:

- 6.7°C at 4.5 hours -12.2°C at 3 hours -15.0°C at 2 hours

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It is important to commence timing of this treatment only when the hive material or apiary products have reached the recommended temperature. A number of hobby beekeepers have purchased small freezers and find freezing an excellent means of protecting their combs. After freezing, the combs should be stored in a moth-proof environment to prevent re-infestation. Sealed, strong plastic garbage bags provide a good insect-proof storage environment. Combs that have been frozen and then placed in untreated supers for storage are immediately at risk to infestation because the supers may contain wax moth eggs. It is best to treat the super and combs and then place them together in a sealed plastic bag. Cold rooms The use of cool rooms to store combs and protect them from wax moths has become increasingly popular in the beekeeping industry. A temperature of 4°C will restrict wax moth activity. Bee collected pollen Collecting pollen from pollen traps every 2 or 3 days will help to minimise, but not prevent wax moth infestation. Drying and packaging of bee-collected pollen should be done in a moth-proof environment and the product frozen to kill all life-cycle stages of the moth. Allow sufficient time for the product to cool to the desired temperature before timing the commencement of the treatment. Freezing of pollen after packaging will ensure that the product is free of wax moth eggs and will not be at risk of infestation until the package is opened. Comb honey This product may also be frozen to control all life-cycle stages of wax moth. However, some types of honey (for example, clover and lucerne) may candy after freezing. Allow time for the product to cool to the desired temperature before timing the commencement of the treatment. To some extent, freezing comb honey for 24 – 48 hours can eliminate the guesswork. Comb honey may also be held in cool rooms but this treatment will not kill wax moth eggs. NSW DEPARTMENT OF PRIMARY INDUSTRIES - RESPONSE TO MINI BUDGET Last week’s mini-budget announced some tough measures to enable the State to adjust to the difficult global economic situation and meet its financial targets. The impact of the mini-budget means that the NSW Department of Primary Industries (DPI) expects to undergo some change over the coming months and years. While this presents challenges, it also provides a catalyst and an opportunity to improve and modernise our way of doing business and utilise the latest technologies to help our clients as much as possible.

State of Victoria, Department of Primary Industries The advice provided in this publication is intended as a source of information only. Always read the label before using any of the products mentioned. The State of Victoria and its employees do not guarantee that the publication is without flaw of any kind or is wholly appropriate for your particular purposes and therefore disclaims all liability for any error, loss or other consequence which may arise from you relying on any information in this publication.

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Our focus will be to ensure that the excellent services NSW DPI provides to primary industries continue. NSW DPI will continue to remain a strong and effective organisation, with a critical mass of over 3,000 people supporting the mineral, agricultural, fisheries and forestry industries across the State. In the weeks and months ahead, the Department will be working with our industry partners and stakeholders with our focus firmly on opportunities that already exist, and others that can be created, to further enhance the State’s primary industries. Throughout this process our priority is to ensure that the relationship between NSW DPI and your organisation continues with the long-term future in mind. We are implementing a range of initiatives to reposition NSW DPI in line with business trends and to enable us to adapt within the difficult global context. These initiatives include: • working with industry to develop an extension and advisory strategy which identifies the best

way of obtaining the latest information, technology solutions and research and development results to farmers

• an external review to help us set research and development priorities for NSW DPI that are aligned with the national research and development strategy and government priorities

• an external review of diagnostic and analytical services to improve the commercial viability of this function

• reprioritising Departmental resources to effectively manage the upcoming commercial fishing reforms

• implementing a voluntary redundancy program across the Department to help meet the budget targets

• reducing our agency costs by proposing to close sites at Alstonville, Berry, Condobolin, Glen Innes, Gosford, Griffith, Jindabyne Hatchery and Temora. Discussions are already occurring with affected stakeholders, local communities and staff regarding the options and future strategies for each site.

These changes will not happen overnight, but instead will be managed over a three-year period to minimise disruption to stakeholders and staff. This will be an ongoing process, evolving out of discussions between the Department, stakeholders, unions, staff and local communities. In addition, the following recent changes to the NSW DPI Executive will ensure NSW DPI remains ideally positioned to implement these changes. The key change is the appointment of Mr George Davey to the position of Deputy Director-General of NSW DPI. George, who is the former Director-General of the NSW Food Authority, brings to NSW DPI a wealth of experience in public sector administration and issues management. Other changes include Ms Renata Brooks and Dr Nick Austin exchanging roles. The new NSW DPI Board of Management team is: • Mr George Davey, Deputy Director-General and Executive Director, Fisheries, Compliance and

Regional Relations Ph: (02) 8289 3944; email: [email protected]

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• Mr Nick Roberts, Deputy Director-General Primary Industries Trading and Chief Executive Officer, Forests NSW Ph: (02) 9407 4259; email: [email protected]

• Ms Renata Brooks, Executive Director, Science and Research Ph: (02) 6391 3333; email: [email protected]

• Dr Nick Austin, Executive Director, Agriculture, Biosecurity & Mine Safety Ph: (02) 6391 3307; email: [email protected]

• Mr Brad Mullard, A/Executive Director, Mineral Resources Ph: (02) 4931 6422; email: [email protected]

• Ms Wendy Stamp, Executive Director, Strategy Policy & Communications Ph: (02) 8289 3906; email: [email protected]

• Ms Jeannine Biviano, Executive Director, Corporate Services Ph: (02) 6391 3319; email: [email protected]

• Mr Doug Hocking, Executive Director, DPI Reform Ph: (02) 6391 3334; email: [email protected]

I welcome you to contact any of my Executive team as we work together with you to implement our future initiatives.

I thank you for your patience and cooperation during this time of change. Richard Sheldrake Director-General NSW Department of Primary Industries 21 November 2008 AUSTRALIAN TAX OFFICE - OFFICIAL RULING ON BEEKEEPING

Taxation Determination TD 2008/26 Page status: legally binding Page 1 of 3 Taxation Determination Income tax: are bees kept for use in a honey production business trading stock as defined in section 70-10 of the Income Tax Assessment Act 1997? This publication provides you with the following level of protection: This publication (excluding appendixes) is a public ruling for the purposes of the Taxation Administration Act 1953. A public ruling is an expression of the Commissioner’s opinion about the way in which a relevant provision applies, or would apply, to entities generally or to a class of entities in relation to a particular scheme or a class of schemes. If you rely on this ruling, the Commissioner must apply the law to you in the way set out in the ruling (unless the Commissioner is satisfied that the ruling is incorrect and disadvantages you, in which case the law may be applied to you in a way that is more favourable for you – provided the Commissioner is not prevented from doing so by a time limit imposed by the law). You will be protected from having to pay any underpaid tax, penalty or interest in respect of the matters covered by this ruling if it turns out that it does not correctly state how the relevant provision applies to you.

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Ruling 1. Yes, bees kept for use in a honey production business are trading stock as defined in section 70-10 of

the Income Tax Assessment Act 1997 (ITAA 1997)1 because they are livestock. Date of effect 2. This Determination applies to years of income commencing both before and after its date of issue. However, the Determination will not apply to taxpayers to the extent that it conflicts with the terms of settlement of a dispute agreed to before the date of issue of the Determination (see paragraphs 75 and 76 of Taxation Ruling TR 2006/10). Commissioner of Taxation 19 November 2008 ¹ All legislative references are to the ITAA 1997 unless otherwise stated. Page 2 of 3 Page status: not legally binding Appendix 1 – Explanation This Appendix is provided as information to help you understand how the Commissioner’s view has been reached. It does not form part of the binding public ruling. Explanation

3. Section 70-10 states that trading stock includes: (a) anything produced, manufactured or acquired that is held for purposes of manufacture, sale or

exchange in the ordinary course of a business; and (b) live stock.

4. The use of the word ‘includes’ in the definition of trading stock in section 70-10 signifies that a thing

may be trading stock for the purposes of the provision if it meets the requirements in paragraphs 70-10(a) or 70-10(b) or is otherwise trading stock within the ordinary meaning of that term.2

5. The term ‘live stock’ is defined in subsection 995-1(1) to ‘not include animals used as beasts of burden or working beasts in a *business other than a *primary production business’.3 The High Court in Federal Commissioner of Taxation v. Wade4 considered this definition of ‘live stock’ when it was then found in subsection 6(1) of the Income Tax Assessment Act 1936. Dixon and Fullagar JJ stated that the definition, by inference, makes it clear that all animals used in a primary production business are included as live stock.5

6. Bees, being insects, are animals.6 Paragraph (b) of the definition of ‘primary production business’ in subsection 995-1(1) includes as a primary production business a business of ‘maintaining animals for the purpose of selling them or their bodily produce (including natural increase)’. Honey is the bodily produce of bees.7 A business of keeping bees for the production and sale of honey is a ‘primary production business’ as defined in subsection 995-1(1) and the bees kept for use in that honey production business are live stock.

7. As bees kept for use in a honey production business are live stock, they are trading stock as defined in section 70-10.8

2 See Stephen J’s observations in Federal Commissioner of Taxation v. St Hubert’s Island Pty Ltd (1978) 138 CLR 210 at 216; 78 ATC 4104 at 4106; (1978) 8 ATR 452 at 454-455, and also see Federal Commissioner of Taxation v. Suttons Motors (Chullora) Wholesale Pty Ltd (1985) 157 CLR 277 at 281-282; 85 ATC 4398 at 4400; (1985) 16 ATR 567 at 570. 3 An asterisk appearing before a word in the ITAA 1997 denotes that the meaning of the word is defined in section 995-1 of the ITAA 1997 for the purposes of the Act.

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4 (1951) 84 CLR 105; (1951) 9 ATD 337 5 Federal Commissioner of Taxation v. Wade (1951) 84 CLR 105 at page 110; (1951) 9 ATD 337 at page 342.

6 The Australian Oxford Dictionary, 1999, Oxford University Press, Melbourne defines ‘bee’ as: (1)(a) … a stinging hymenopterous insect of the genus Apis, which collects nectar and pollen, produces wax and honey, and lives in large communities. (b) a related insect of the superfamily Apoidea, either social or solitary; (2) any insect of similar type. The dictionary also defines ‘insect’ as: (1) (a) a six-legged arthropod of the class Insecta, frequently having one or two pairs of wings; (b) (loosely) any small invertebrate animal with several pairs of legs. 7 The website of the Honeybee Industry Council of Australia (http:/www.honeybee.org.au) describes the process by which honey is created as follows: ‘As [the bee] sucks the nectar from the flower, it is stored in her special honey stomach ready to be transferred to the honey-making bees in the hive…When her nectar “sacs” are full, the honeybee returns to the hive. Nectar is delivered to one of the indoor bees and then passed mouth-to-mouth from bee to bee until its moisture content is reduced from about 70% to 20%. This changes the nectar into honey…Finally, the honey is placed in storage cells and capped with beeswax...’ 8 The accompanying Law Administration Practice Statement PS LA 2008/4 (GA) provides guiding principles on how to calculate the value of bees held as trading stock. Appendix 1 – Explanation This Appendix is provided as information to help you understand how the Commissioner’s view has been reached. It does not form part of the binding public ruling. Explanation

3. Section 70-10 states that trading stock includes: (a) anything produced, manufactured or acquired that is held for purposes of manufacture, sale

or exchange in the ordinary course of a business; and (b) live stock.

4. The use of the word ‘includes’ in the definition of trading stock in section 70-10 signifies that a thing may be trading stock for the purposes of the provision if it meets the requirements in paragraphs 70-10(a) or 70-10(b) or is otherwise trading stock within the ordinary meaning of that term.2

5. The term ‘live stock’ is defined in subsection 995-1(1) to ‘not include animals used as beasts of burden or working beasts in a *business other than a *primary production business’.3 The High Court in Federal Commissioner of Taxation v. Wade4 considered this definition of ‘live stock’ when it was then found in subsection 6(1) of the Income Tax Assessment Act 1936. Dixon and Fullagar JJ stated that the definition, by inference, makes it clear that all animals used in a primary production business are in

6. Bees, being insects, are animals.6 Paragraph (b) of the definition of ‘primary production business’ in subsection 995-1(1) includes as a primary production business a business of ‘maintaining animals for the purpose of selling them or their bodily produce (including natural increase)’. Honey is the bodily produce of bees.7 A business of keeping bees for the production and sale of honey is a ‘primary production business’ as defined in subsection 995-1(1) and the bees kept for use in that honey production business are live stock.

7. As bees kept for use in a honey production business are live stock, they are trading stock as defined in section 70-10.8

Taxation Determination TD 2008/26 Page status: not legally binding Page 3 of 3 References Previous draft: TD 2007/D7 Related Rulings/Determinations: TR 2006/10

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Subject references: • agriculture • honey bees • livestock industry • livestock valuation • trading stock • primary production Legislative references: • ITAA 1936 6(1) • ITAA 1997 • ITAA 1997 70-10 • ITAA 1997 70-10(a) • ITAA 1997 70-10(b) • ITAA 1997 995-1 • ITAA 1997 995-1(1) • TAA 1953 Case references: • Federal Commissioner of Taxation v. St Hubert’s Island Pty Ltd (1978) 138 CLR 210; 78 ATC

4104; (1978) 8 ATR 452 • Federal Commissioner of Taxation v. Suttons Motors (Chullora) Wholesale Pty Ltd (1985) 157

CLR 277; 85 ATC 4398; (1985) 16 ATR 567 • Federal Commissioner of Taxation v. Wade (1951) 84 CLR 105; (1951) 9 ATD 337 Other references: • Law Administration Practice Statement PS LA 2008/4 (GA) • The Australian Oxford Dictionary, 1999, Oxford University Press, Melbourne • About the Honey Industry http://www.honeybee.org.au AUSTRALIAN PLAGUE LOCUSTS - Current situation in NSW as at 19 November 2008 • General • Control campaign • Landholder responsibilities • Apiarists and Organic Producers • Warning to motorists • Further information General Nymphs that emerged during the initial round of hatching are now starting to swarm in many areas. Therefore there will be an increase in sightings of adult locusts flying. Swarms have been reported in the following areas; Wagga, Young, Narrandera, Condobolin, Forbes, Gundagai and south toward the Victorian border. Numerous swarms across an area in excess of 30,000 ha have been reported north of Narrandera.

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Expected rainfall over the next few days across the Central and Southern regions will likely promote egg laying by those locusts now flying. The total number of confirmed reports as at 19 November was 2,666. Landholders observing locusts, including swarms (adults), should report the sighting to their local Rural Lands Protection Board (RLPB) as soon as possible. Central Regions: Scattered nymphal bands have been confirmed and treated. A number of swarms have been reported in the south-eastern part of the Condobolin area, the southern part of the Forbes area and the northern part of the Narrandera area. Southern Regions: Large numbers of nymphal bands have been confirmed and treated. Numerous swarms have been reported in the Wagga and Narrandera areas with a couple of swarms reported in both the Gundagai and Young areas. Far West Regions: A small amount of nymphal activity has been reported. Landholders should continue to monitor properties for activity. Northern Regions: A very small amount of nymphal activity has been reported. Landholders should conduct regular property inspections for locust activity. Control campaign The NSW Department of Primary Industries, NSW Farmers’ Association, RLPBs, APLC and NSW landholders work together to control locusts in NSW. The primary aim is to contain the outbreak at the nymphal stage using ground control, thus reducing the number of locusts migrating, breeding and laying more eggs. Spraying locust nymphs when they are concentrated together into a band, usually 2-3 weeks after hatching, is the most efficient and economic time to control locusts. Control is continuing to target ground concentrations to prevent them becoming airborne. NSW control strategies remain based on landholder ground-rig spraying of locust bands using Fenitrothion and Chlorpyrifos. Metarhizium, a fungal agent, has been successfully used on a few organic crops and sensitive area habitats. Aerial control is a last option subject to meeting strict environmental and operational requirements. Plans are in place for fixed wing aerial control of airborne swarms. However, terrain, environmental and other risk factors impose significant constraints on aerial control and opportunities for cost-effective aerial control are limited. Restrictions include a "no spray buffer zone" of a minimum 1,500 metres upwind and a minimum 150 metres on all other sides of water sources (dams), creekbeds, domestic dwellings and other sensitive areas. In addition the grain harvest is in full swing, which precludes aerial spraying near any crops either being harvested or near harvest because of chemical withholding periods. Five misting sprayers are being moved to the south of the state to provide more capacity and more spraying options for swarms, subject to the constraints highlighted above.

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Local RLPB staff provide advice to landholders on appropriate control measures and will issue insecticide to landholders as per the requirements of the Standard Operating Procedures. All RLPBs are responding quickly to reports from landholders and implementing locust control measures where appropriate. The operation has so far issued sufficient insecticide to treat approximately 97,500 ha of nymphs. This is a major achievement by landholders, as these nymphs could have potentially formed 970,000 ha of swarms eating 80,000 tonne or $12 million worth of green feed a day. To manage the allocation of resources in highly infested areas a State Coordination Centre is operating at Orange. Forward Command Posts (FCPs) are in place at Wagga Wagga, Forbes and Narrandera and a Local Coordination Centre (LCC) is operating at Wagga Wagga. Further Forward Command Posts and Coordination Centres will be established as required. Landholder responsibilities Landholders have the responsibility under the Rural Lands Protection Act 1998 to report the presence of plague locusts to their Rural Lands Protection Board and to control locusts/nymphs on their land, using insecticide provided from the RLPB. These pesticides must be used in accordance with the requirements of the Pesticides Act 1999. The Act requires that all insecticide applications be recorded. A template of a recording sheet is available from the NSW DPI website. Apiarists and Organic Producers Apiarists with bee hives located in areas affected by plague locust control activities should contact the RLPB and the landowner to ensure that control officers are notified of the location and number of hives. Registered organic producers or those seeking organic certification should also notify the RLPB to ensure that the location of their premises can be considered in risk assessment and pre-control checks. Warning to motorists • Motorists should be aware that visibility may be reduced if travelling through a swarm. They

should ensure their windscreen wiper tank is full and carry a rag to wipe off excess insects if necessary. Headlights may also need cleaning.

• The front grille should be regularly checked and cleaned to reduce the possibility of the engine

overheating. It may be advisable to fix a mesh insect screen to the front of the vehicle.

Further information • Contact your local RLPB, or • A toll-free call to the APLC can be made on 1800 635 962. • Reports can be sent through the APLC web page at www.daff.gov.au/aplc.

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BEEKEEPING COMPETENCY STANDARDS In March 2007, formal approval was given for the adoption of competency standards for the beekeeping industry. This enables individual beekeepers to obtain recognised training in agriculture specialising in apiculture. Recognised Training Organisations (RTOs) who wish to teach apiary courses may obtain course material by contacting AHBIC directly. Industry is also negotiating with RTOs to ensure that a pathway exists, regardless of where a participant resides, for them to be able to complete the apiary course. The following provides a list of competencies required to complete the various levels of training. We would suggest that anyone seeking to undertake training in apiary courses, approach their various educational providers to enquire regarding the courses available. RTE20103 Certificate II in Agriculture Specialising in Beekeeping

A total of 17 units of competency must be completed. • Select the eight mandatory units from Group A below

• Select six additional units from Group B below

• Select three additional units from Groups A, B and/or C below

Units should be selected in accordance with local work undertaken and local industry advice.

GROUP A (units in italics are mandatory)

FDFCORFSY2A Implement the food safety program and procedures

RTC2701A Follow OHS procedures

RTC2702A Observe environmental work practices

RTC2705A Work effectively in the industry

RTC2801A Participate in workplace communications

RTE2157A Open and reassemble a beehive

RTE2217A Construct and repair beehives

RTE2305A Use a bee smoker GROUP B

FDFCORQAS2A Implement quality systems and procedures

FDFHYCH2A Operate a creamed honey manufacture process

FDFOPTISP2A Implement sampling procedures

FDFZCSCIP2A Clean equipment in place

FDFZCSCS2A Clean and sanitize equipment

FDFZPKPP2A Operate a packaging process

PUAWER001A Identify, prevent and report potential workplace emergency situations

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GROUP B

RTC2016A Recognise plants

RTC2210A Maintain properties and structures

RTC2301A Undertake operational maintenance of machinery

RTC2307A Operate machinery and equipment

RTC2704A Provide basic first aid

RTC2706A Apply chemicals under supervision

RTD2703A Operate in isolated and remote situations

RTE2144B Carry out regular livestock observation

RTE2156A Support beekeeping work

RTE2205A Fabricate and repair metal or plastic structures

RTE2503B Observe and report on weather

RTE2707B Follow site quarantine procedures

RTE2902B Collect and record production data

TDTD497B Load and unload goods/cargo

TDTD1497B Load and unload vehicles carrying special loads GROUP C

This group includes other units of competency from RTD02 Conservation and Land Management, RTE03 Rural Production, RTF03 Amenity Horticulture and/or other endorsed Training Packages. Units selected must be aligned to Certificate I, II or III outcomes. These units must be relevant to work undertaken in the rural sector.

QUALIFICATION RULES

For a Certificate II in Agriculture specialising in Beekeeping at least thirteen of the units of competency presented for this qualification must relate to beekeeping work procedures, activities or contexts. In addition, at least thirteen of the units selected to make up this qualification must be aligned clearly to Certificate II outcomes.

RTE30103 Certificate III in Agriculture Specialising in Beekeeping

A total of 16 units of competency must be completed. • Select six units from Group A below (including the one mandatory unit)

• Select seven additional units from Group B below

• Select three additional units from Groups A, B and/or C below

Units should be selected in accordance with local work undertaken and local industry advice.

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GROUP A (unit in italics is mandatory)

FDFOPTHCP3A Participate in a HACCP team

RTE3153A Manage honey bee swarms

RTE3154A Requeen a honey bee colony

RTE3155A Manipulate honey bee brood

RTE3320A Remove a honey crop from a hive

RTE3321A Extract honey

RTE3415A Manage pests and disease within a honey bee colony

RTE3713A Carry out workplace OHS procedures GROUP B

BSBCMN304A Contribute to personal skill development and learning

BSBEBUS303A Participate in a virtual community

BSBEBUS304A Buy online

BSBEBUS305A Sell online

FDFCORQFS3A Monitor the implementation of quality and food safety programs

RTC3213A Implement property improvement, construction and repair

RTC3310A Operate specialised machinery and equipment

RTC3311A Perform specialised machinery maintenance

RTC3701A Respond to emergencies

RTC3704A Prepare and apply chemicals

RTC3705A Transport, handle and store chemicals

RTC3805A Coordinate work site activities

RTE3118A Implement feeding plans for intensive production

RTE3131A Transport livestock

RTE3156A Rear queen bees

RTE3307A Coordinate machinery and equipment maintenance and repair

RTE3314A Transport farm produce or bulk materials

RTE3407A Identify and report unusual disease or plant pest signs

RTE3506A Monitor weather conditions

RTE3714A Maintain and monitor environmental work practices

RTE3801A Provide on-job training support

RTE3901A Comply with industry quality assurance requirements

RTE3904A Keep records for a primary production business

RTE3908A Maintain and monitor feedstocks

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GROUP C

This group includes other units of competency from RTD02 Conservation and Land Management, RTE03 Rural Production, RTF03 Amenity Horticulture and/or other endorsed Training Packages.

Units selected must be aligned to Certificate II, III or IV outcomes. These units must be relevant to work undertaken in the rural sector.

QUALIFICATION RULES

For a Certificate III in Agriculture specialising in Beekeeping at least twelve of the units of competency presented for this qualification must relate to beekeeping work procedures, activities or contexts. In addition, at least twelve of the units selected to make up this qualification must be aligned clearly to Certificate III outcomes.

RTE40103 Certificate IV in Agriculture Specialising in Beekeeping

A total of 12 units of competency must be completed. • Select ten units from Group A below

• Select two additional units from Group A and/or C below

Units should be selected in accordance with local work undertaken and local industry advice.

GROUP A

BSBCMN413A Implement and monitor environmental policies

BSBEBUS405A Conduct online financial transactions

BSBHR402A Recruit and select personnel

BSBSBM402A Undertake financial planning

BSBSBM403A Promote the business

BSBSBM406A Manage finances

PMLSAMP400A Obtain representative samples in accordance with a sampling plan

RTC4306A Supervise maintenance of property, machinery and equipment

RTC4701A Implement and monitor the enterprise OHS program

RTC4702A Minimise risks in the use of chemicals

RTC4703A Plan and implement a chemical use program

RTC4908A Supervise work routines and staff performance

RTC4911A Operate within a budget framework

RTD4406A Implement pest management action plans

RTD4811A Provide information on environmental issues and policies

RTE4121A Select and establish an apiary site

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GROUP A

RTE4122A Produce and harvest royal jelly

RTE4125A Supervise nutrition and feeding in an intensive production system

RTE4128A Provide bee pollination services

RTE4130A Trap and store pollen

RTE4131A Collect and store propolis

RTE4132A Perform queen bee artificial insemination

RTE4203A Implement and monitor a property improvement plan

RTE4301A Conduct major repair and overhaul of machinery and equipment

RTE4901A Administer finance, insurance and legal requirements

RTE4902A Support and review business structures and relationships

RTE4913A Analyse and interpret production data

RTE4914A Participate in an e-business supply chain

RTE4915A Implement and monitor quality assurance procedures

TDTR298B Source goods/services and evaluate contractors GROUP C

This group includes other units of competency from RTD02 Conservation and Land Management, RTE03 Rural Production, RTF03 Amenity Horticulture and/or other endorsed Training Packages.

Units selected must be aligned to Certificate III, IV or Diploma outcomes. These units must be relevant to work undertaken in the rural sector.

QUALIFICATION RULES

For a Certificate IV in Agriculture specialising in Beekeeping at least ten of the units of competency presented for this qualification must relate to beekeeping work procedures, activities or contexts. In addition, at least ten of the units selected to make up this qualification must be aligned clearly to Certificate IV outcomes.

RTE50103 Diploma of Agriculture Specialising in Beekeeping

A total of 10 units of competency must be completed. • Select eight units from Group A below

• Select two additional units from Group A and/or C below

Units should be selected in accordance with local work undertaken and local industry advice.

GROUP A

BSBADM504A Plan or review administration systems

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GROUP A

BSBADM506A Manage business document design and development

BSBEBUS405A Conduct online financial transactions

BSBEBUS501A Evaluate e-business opportunities

BSBEBUS504A Implement an e-business strategy

BSBEBUS505A Implement new technologies for business

BSBEBUS506A Plan and develop a business website

BSBFLM507A Manage quality customer service

BSBFLM509A Promote continuous improvement

BSBFLM511A Develop a workplace learning environment

BSBMGT507A Manage environmental performance

BSBSBM405A Monitor and manage business operations

PSPPOLI601A Manage policy implementation

RTC5701A Establish and maintain the enterprise OHS program

RTC5702A Develop and manage a chemical use strategy

RTC5801A Provide specialist advice to clients

RTC5908A Prepare estimates, quotes and tenders

RTC5913A Collect and manage data

RTC5914A Prepare reports

RTE5101A Develop and implement a breeding strategy

RTE5103A Manage livestock production

RTE5106A Develop production plans for livestock

RTE5205A Plan and manage infrastructure requirements

RTE5523A Develop climatic risk management strategies

RTE5525A Manage trial and/or research material

RTE5526A Develop an organic management plan

RTE5807A Manage staff

RTE5901A Develop a marketing plan

RTE5902A Develop and review a business plan

RTE5903A Plan, implement and review a quality assurance program

RTE5906A Monitor and review business performance

RTE5909A Develop a sales strategy for rural products

RTE5912A Plan and monitor production processes

RTE5916A Prepare and monitor budgets and financial reports

RTE5920A Negotiate and monitor contracts/commercial agreements

RTE5921A Market products and services

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GROUP A

RTE5923A Prepare the enterprise for organic certification

RTE5924A Research and apply rural industry knowledge

RTE6905A Manage price risk through trading strategy

TDTL1998B Implement and monitor transport logistics

WRRO5B Control inventory

WRWPL508A Improve supply and distribution chains GROUP C

This group includes other units of competency from RTD02 Conservation and Land Management, RTE03 Rural Production, RTF03 Amenity Horticulture and/or other endorsed Training Packages.

Units selected must be aligned to Certificate III, IV, Diploma or Advanced Diploma outcomes. These units must be relevant to work undertaken in the rural sector.

QUALIFICATION RULES

For a Diploma of Agriculture specialising in Beekeeping at least eight of the units of competency presented for this qualification must relate to beekeeping work procedures, activities or contexts. In addition, at least eight of the units selected to make up this qualification must be aligned clearly to Diploma outcomes.

AUSTRALIAN HONEY BEE INDUSTRY COUNCIL REVIEW The Review Chairman has advised that the closing date for submissions to the AHBIC Review has been extended to 31 December 2008. The July 2008 AHBIC Annual General Meeting resolved that a review be undertaken of the peak body’s organisational structures. The review will also investigate and make recommendations about future funding of the organisation which has historically relied substantially on the subscription of voluntary levies by industry participants. A discussion paper tabled at the AHBIC AGM by the Victorian Apiarists’ Association, dealing with the funding crisis and proposing a way forward through structural reform of the peak body has been provided to all editors of the Australian beekeeping media for the information of beekeeping industry stakeholders. The Review Committee comprises: Mr Bill Weiss (Chairman), Mr Linton Briggs, Mr Stephen Fewster & Mr Ken Gell. The Review Committee needs to know what you, as members, expect of AHBIC and FCAAA. If you consider we need both bodies. If you consider we need packers, pollinators and queen breeders as separate member bodies. What form should the peak body be that you would consider making contribution to for funding of that body? Inquiry Terms of Reference: 1. What structural changes are necessary, if any, to help improve the function of the peak body?

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2. What structural changes are necessary, if any, to help improve peak body voluntary levy collection?

3. What other options for peak body funding need to be investigated? 4. What administrative changes are necessary, if any, to improve communication and feedback

from AHBIC sector member bodies - honey production (FCAAA), crop pollination (NCPA), queen/package bee production (AQBBA), honey packers and marketers (HP&MAA)?

5. The role of FCAAA (principal state beekeeping associations) in the structure and function of the peak body?

Submissions from Australian honey bee industry stakeholders are invited to be lodged by the 31 December 2008. The review committee will publish its findings and recommendations by end of January, 2009. All replies to remain confidential. Submissions may be mailed or posted online to the following addresses: Mr B Weiss, Chairman AHBIC Review Committee 206 Lambeth Street, Glen Innes NSW 2370 Phone/Fax: 02 6732 1263 or Email: [email protected] APIS CERANA INCURSION CONTINUES As members would be aware from the timely reports from Trevor Weatherhead, that Queensland DPI and local producers continue to attempt to eradicate this Apis cerana incursion, first detected at the Cairns waterfront. I would like to put on record my thanks to all those producers who have participated and the QLD DPI people who have put in countless hours attempting to eradicate this Apis cerana incursion. At last advice we were still trying to come to terms with eradicating all the swarms that arose from the initial incursion, however we remain optimistic that eventually this incursion will be eradicated. Advice 27 – 14 November, 2008 President Rodney and I participated in a telephone hook-up today, Friday 14 November, 2008. Points to come out were:- • There are still Apis cerana foraging at Aloomba – they are starting to feed on one of the sugar

stations so it hoped that they will now be able to be beelined – there is a rough direction at the moment but more bees are required to refine the line – the weather at the moment although fine is very windy from mid morning on – cerana are not foraging once the wind gets up

• The area around IP17 is still being checked – nothing so far • What was originally thought to be Apis cerana foraging after the destruction of IP17 are now

thought to be native/leaf cutter bees • Some of the wax from the cerana nests is to be melted and some of the bait logs will be coated

inside with melted wax to see if that will attract cerana • The RA has been officially extended south from the old RA – all beekeepers in north Queensland

are to be advised of the extension I will send out the next Advice after the next phone hook-up which is scheduled for Friday 28 November 2008 unless there are other developments. Trevor Weatherhead

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WORK WANTED The following beekeepers are looking for employment in Australia: Hello, I’m a fellow beekeeper from the USA and I am planning on coming to Australia in June 09 via the working holiday visa. Currently I am a Peace Corps volunteer in Malawi working with rural beekeepers. I only have a few years experience, but I’m looking for any employment (hive management/harvesting). Do you have any leads on where to look? Thank you, Rob Norris [email protected] Dear Mr Ware I am a beekeeper since 1997. If a job opportunity is provided to me in Australia it will be your supreme kindness to me. It is my keen wish that our Pakistan honey business gain modern techniques which will increase production. Mr Muhammad Karim C/- Swat Steel Centre Airport Road Mingora, Swat, NWFP Pakistan Ph: 0092 946 711 274 ANNUAL GENERAL MEETING – Change of Date The AHBIC AGM will now be held on Sunday 12 & Monday 13 July 2009 Following a survey of industry members it has been resolved to move the AHBIC Annual General Meeting forward by one day. The reason for this being that NSW have added an extra day onto their Annual Conference and a number of members indicated that not only the cost but the time away from their businesses was a factor and they would like to see the AGM changed. A brief survey of industry found that the majority favoured changing the AGM even if it was only for one day and therefore in order to save costs and assist members of industry we have decided to try a new format. We have undertaken to do this as a trial for this year. I trust the change in dates will not affect too many people and I can confirm that the venue remains unchanged at the Penrith Panthers Club. Accommodation is available at the venue and more details along with transport arrangements will be advised in the New Year.

SEASONS GREETINGS On behalf of the AHBIC Executive Committee and office staff, we wish all a happy and safe Christmas and we look forward to a prosperous 2009. The AHBIC office will be closed from 5pm Friday 19 December and will reopen at 9am on Monday 5 January 2009.


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