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Wool Services Privatisation (Miscellaneous Provisions) Regulations 2000 2000 No. 348

EXPLANATORY STATEMENT

STATUTORY RULES 2000 No. 348

Issued by the Authority of the Minister for Agriculture, Fisheries and Forestry

Wool Services Privatisation Act 2000

Wool Services Privatisation (Miscellaneous Provisions) Regulations 2000

Section 39 of the Wool Services Privatisation Act 2000 (the 'Act') provides that the Governor-General may make regulations prescribing matters required or permitted by the Act to be prescribed, or necessary or convenient to be prescribed for carrying out or giving effect to the Act.

The Act provides for the privatisation of the Australian Wool Research and Promotion Organisation (AWRAP) into a new Corporations Law company, Australian Wool Services Limited (AWS).

The Government's decision to privatise AWRAP and establish the new AWS followed Government consideration of the 1999 wool industry Future Directions Taskforce Report. The Taskforce was established in December 1998 to undertake a major inquiry into the future directions of the Australian wool industry. Whilst most of the recommendations of the Task-force Report were focussed on individual farm businesses and what they can do to improve their profitability, there were recommendations for Government to consider, including the future of AWRAP.

Section 30 of the Act provides for the Minister to declare a research body to be the research body for the purposes of receiving payments in relation to wool tax and wool levy and payments in relation to research and development. Section 31 of the Act permits the Minister on behalf of the Commonwealth to enter into a contract with the research body that provides for the Commonwealth to make payments of various kinds to the research body. It is expected that the Minister will declare Australian Wool Innovation Limited ('AWI'), a subsidiary of AWS, to be the research body.

The regulations deal with miscellaneous matters to enable payments to be made by the Commonwealth to the research body. The regulations will:

*       provide that the definition of wool levy includes a levy or charge prescribed by regulations; and

*       provide a definition of eligible wool and prescribe the manner in which the Minister is to determine the gross value of eligible wool produced in Australia in the financial year for the purposes of determining payments by the Commonwealth to the research body.

Other regulations are being made which provide regulations for other aspects of the privatisation process, including the proposed Primary Industries Levies and Charges Collection Amendment Regulations 2000 (No. 5), the proposed Primary Industries (Excise) Levies Amendment Regulations 2000 (No. 6), the proposed Primary Industries (Customs) Charges Amendment Regulations 2000 (No. 2) and the proposed Wool Services Privatisation (Eligible Woolgrowers) Regulations 2000.

Details of the regulations are at Attachment A.

The regulations would commence on the date on which Schedule 1 of the Wool Services Privatisation Act 2000 commences (expected to be 1 January 2001).

ATTACHMENT A

WOOL SERVICES PRIVATISATION (MISCELLANEOUS PROVISIONS) REGULATIONS 2000

Regulation 1 gives the name of the regulations as the Wool Services Privatisation (Miscellaneous Provisions) Regulations 2000.

Regulation 2 provides for the regulations to commence at the same time as Schedule 1 to the Wool Services Privatisation Act 2000 (the 'Act'). That is, on a date to be fixed by Proclamation (expected to be 1 January 2001).

Regulation 3 provides definitions for terms used in the regulations.

Regulation 4 provides that the definition of wool levy for the purposes of Section 7 of the Act is the levy imposed under the Primary Industries (Excise) Levies Regulations 1999 and the charge imposed under Primary Industries (Customs) Charges Regulations 1999. This regulation enables those payments made by the Commonwealth to the research body (as provided for in Section 31 of the Act) in relation to wool levy to include the prescribed levy and charge.

Regulation 5:

Subregulation 5(1) provides that eligible wool has the same meaning as shorn wool as defined under the Primary Industries Levies and Charges Collection Regulations 1991. This defines 'eligible wool' for the purposes of determining the gross value of eligible wool.

Subregulation 5(2) provides that the Minister must determine the gross value of eligible wool produced in Australia in accordance with Subregulations 5(3) and 5(4).

Subregulation 5(3) provides that the gross value of eligible wool produced in Australia in a financial year is the average of an estimate of the gross value of eligible wool for that financial year provided by the Australian Bureau of Agricultural and Resource Economics (ABARE), and the amounts stated by ABARE to be the gross value of eligible wool in each of the two last preceding financial years.

Subregulation 5(4) provides that the Minister may estimate the gross value of eligible wool for a financial year if the determination is made prior to ABARE releasing its estimate for the current year or stating the amounts for either of the two last preceding financial years.

 

Overview

The Wool Services Privatisation (Miscellaneous Provisions) Regulations 2000 were enacted to facilitate the privatisation of the Australian Wool Research and Promotion Organisation (AWRAP) into a new company, Australian Wool Services Limited (AWS), as provided for in the Wool Services Privatisation Act 2000. The Act was introduced to address the future directions of the Australian wool industry, following the recommendations of the 1999 Future Directions Taskforce Report. The Minister for Agriculture, Fisheries and Forestry issued these regulations under the authority granted by Section 39 of the Act, aiming to ensure the smooth transition and effective management of the industry. The regulations address miscellaneous provisions necessary for the implementation of the Act, including the definitions and processes for determining the gross value of eligible wool and the inclusion of prescribed levies and charges in payments to the research body. These provisions are designed to support the new structure of wool services in Australia and ensure the continued support of research and development in the industry.

Scope and Application

The Wool Services Privatisation (Miscellaneous Provisions) Regulations 2000 applies to the implementation and administration of the Wool Services Privatisation Act 2000, which is a Commonwealth Act. The Act and its associated regulations govern the privatisation of the Australian Wool Research and Promotion Organisation (AWRAP) into Australian Wool Services Limited (AWS), a new corporation under the Corporations Law. The Act and regulations are applicable to entities and individuals involved in the wool industry, particularly those engaged in the collection, sale, and processing of wool in Australia. The regulations address miscellaneous provisions necessary to facilitate the transition, including the determination of the gross value of eligible wool, the definition of wool levy, and the process for making payments to the research body, which is expected to be Australian Wool Innovation Limited (AWI), a subsidiary of AWS. The Act and regulations extend to the national jurisdiction of Australia, and their provisions are designed to be implemented in conjunction with other related regulations and amendments to existing regulations. The scope of the Act is focused on the structural and financial aspects of the wool industry's privatisation, without detailing specific exclusions or thresholds within the provided explanatory statement. The application of the Act and its regulations is further extended through subordinate instruments, which include the Primary Industries Levies and Charges Collection Amendment Regulations 2000, Primary Industries (Excise) Levies Amendment Regulations 2000, Primary Industries (Customs) Charges Amendment Regulations 2000, and Wool Services Privatisation (Eligible Woolgrowers) Regulations 2000.

Key Provisions

The Wool Services Privatisation (Miscellaneous Provisions) Regulations 2000 (Regulations) are designed to address various matters necessary for the implementation of the Wool Services Privatisation Act 2000 (Act). These Regulations are intended to ensure the smooth transition from the Australian Wool Research and Promotion Organisation (AWRAP) to the newly established Australian Wool Services Limited (AWS). The regulations cover several key areas. Firstly, Regulation 4 clarifies the definition of wool levy, encompassing the levy imposed under the Primary Industries (Excise) Levies Regulations 1999 and the charge imposed under Primary Industries (Customs) Charges Regulations 1999 (Regulation 4). Secondly, Regulation 5 defines 'eligible wool' and prescribes the method for determining the gross value of such wool produced in Australia (Regulation 5(1)-(4)). This is crucial for calculating payments to the research body, which is expected to be Australian Wool Innovation Limited (AWI), a subsidiary of AWS. The Regulations impose specific obligations on the relevant parties to ensure compliance with the Act. For example, the Minister must determine the gross value of eligible wool produced in Australia in accordance with the prescribed method (Regulation 5(2)-(4)). This involves averaging an estimate provided by the Australian Bureau of Agricultural and Resource Economics (ABARE) with the values from the two preceding financial years. The Minister also has the authority to estimate the gross value if ABARE's estimate is not yet available (Regulation 5(4)). These obligations are essential for facilitating accurate and timely payments to the research body. Failure to comply with the requirements set out in the Regulations may result in various consequences. While the Regulations themselves do not specify offences or penalties, the broader legislative framework under the Act and related laws may impose sanctions for non-compliance. For instance, breaches of the Act or related regulations could potentially lead to civil or criminal penalties, depending on the nature and severity of the breach. The Act empowers the Minister to take appropriate action, including imposing fines or other penalties, to enforce compliance with its provisions. Additionally, any actions that undermine the proper functioning of the privatised wool services could have broader implications for the industry and the entities involved.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.