Wheat Industry Assistance Act 1938

Overview

The Wheat Industry Assistance Act 1938 was enacted by the Parliament of the Commonwealth of Australia in response to the need for financial assistance to support the wheat industry, particularly wheat growers, during an economic downturn. The Act was introduced following a conference between the Prime Minister and the Premiers of the states, who sought the Commonwealth's cooperation in implementing a scheme to ensure wheat growers received a payable price for their wheat. The policy objective of the Act was to provide financial assistance to the states to support wheat growers, which would be facilitated by imposing a tax on flour sold for home consumption in Australia and distributing the proceeds to wheat growers. The Act established the Wheat Industry Stabilization Fund to manage the financial assistance and created the Wheat Stabilization Advisory Committee to advise on matters related to wheat stabilization. The Wheat Industry Assistance Act 1938 aimed to address the economic vulnerability of wheat growers by providing financial relief and ensuring a payable price for wheat. The Act established mechanisms for the collection of tax revenues from flour sales, which were then distributed to the states for onward distribution to wheat growers. This Act was a significant step in the cooperative effort between the Commonwealth and the states to support the agricultural sector during a period of economic hardship.

Scope and Application

The Wheat Industry Assistance Act 1938 applies to the states of Australia and the Australian Capital Territory, aiming to provide financial assistance to the wheat industry by imposing a tax on flour sold for home consumption and distributing the proceeds among wheat growers. The Act establishes the Wheat Stabilization Advisory Committee and the Wheat Industry Stabilization Fund to oversee the distribution of collected funds. The Act defines "flour miller" as a miller engaged in flour production, "the Committee" as the Wheat Stabilization Advisory Committee, "the Fund" as the Wheat Industry Stabilization Fund, "the Special Account" as a dedicated account within the Fund for initial and subsequent financial assistance, and "the State Minister" as the Minister administering the Department of Agriculture in a particular state. The Act’s application extends to the Commonwealth, states, and the Australian Capital Territory, with specific provisions for the distribution of funds to states and the Territory, including conditions for the application of these funds and the calculation of wheat production for distribution purposes. The Act also allows for the suspension of payments to states that fail to adequately protect wheat growers or consumers from excessive prices. Regulations under the Act can further specify details necessary for its implementation, including fees and travel expenses for Committee members.

Key Provisions

• The Wheat Industry Assistance Act 1938 (section 1) provides financial assistance to wheat growers by establishing a framework for the collection of taxes on flour and wheat and distributing the proceeds as grants to the states. The Act commences on the day it receives Royal Assent (section 2). It defines key terms such as "flour miller," "the Committee," "the Fund," "the Special Account," and "the State Minister" (section 3). A Wheat Stabilization Advisory Committee is established to advise on wheat stabilization (section 4). The Wheat Industry Stabilization Fund is created to manage the collected taxes and fund the assistance program (section 5). The Fund's moneys are applied to grants for the states, with specific accounts for special allocations and wheat tax (section 6). Special allocations from the Wheat Industry Special Account are designated for particular states and purposes (section 7). Allocations from the Wheat Tax Account are to be made to the states as determined by the Minister (section 8). Advances may be made to the states for financial assistance (section 9). Payments to states can be suspended if certain conditions are met (section 10). The Australian Capital Territory is deemed a state for the purposes of the Act (section 11). Definitions of "year" for various calculations are provided (section 12). The quantity of wheat produced is certified by the Commonwealth Statistician (section 13). An additional special grant is made to Tasmania (section 14). The Governor-General may make regulations to carry out the Act (section 15).
• Under this Act, the Wheat Stabilization Advisory Committee is obligated to advise on matters related to wheat stabilization (section 4). States must ensure their legislation supports the Act's objectives, and they must distribute the grants to wheat growers in proportion to their wheat production (section 6). The Minister is responsible for determining the distribution of funds from the Wheat Industry Stabilization Fund and deciding on special allocations and advances (sections 6, 7, 8, and 9). The Governor-General has the authority to suspend payments to states if certain conditions affecting wheat growers or consumers are not met (section 10). Tasmania is entitled to an additional special grant under specific conditions (section 14).
• Breaches of this Act may result in civil or criminal consequences. While specific offences and penalties are not detailed in the provided text, breaches generally could lead to fines or other penalties as prescribed by relevant laws. The Act empowers the Governor-General to suspend payments to states that do not comply with its conditions, which could have significant financial implications for those states (section 10).

Legal classification tags

Area of Law

Economic Regulation

Taxation Law

Instrument

Act

Concepts

Definitions & Interpretation

Regulatory Standards

Reporting & Disclosure Obligations

Enforcement Powers

Compliance Obligations