Primary Industries (Excise) Levies Amendment (Wool) Regulations 2019

Administered by Department of Agriculture

Legislation au F2019L00400 Regulations Not in force Legislative Instrument

Legislation content

Explanatory Statement

 

Issued by Authority of the Minister for Agriculture and Water Resources
 

Primary Industries (Excise) Levies Act 1999

Primary Industries (Excise) Levies Amendment (Wool) Regulations 2019

Legislative Authority

The Primary Industries (Excise) Levies Act 1999 (the Act) authorises the imposition of primary industries levies that are duties of excise. 

Section 8 of the Act provides that the Governor‑General may make regulations prescribing matters required or permitted by the Act to be prescribed or that are necessary or convenient to be prescribed for carrying out or giving effect to the Act.

The Act provides for the ability to impose a rate of levy on wool. Schedule 27 to the Act authorises the regulations to impose levies on primary industry products, set the rate of the levy and identify the person liable to pay the levy.

 

Purpose

 

The purpose of the Primary Industries (Excise) Levies Amendment (Wool) Regulations 2019 (the Regulations) is to amend Part 2 of Schedule 27 to the Primary Industries (Excise) Levies Regulations 1999 to reduce the rate of levy on wool produced in Australia from 2 per cent of the sale value of the wool to 1.5 per cent of the sale value of the wool.

Background

Subclause 14(2) of Schedule 27 to the Act requires the Minister to take into consideration any relevant recommendations made to the Minister by the designated body for the purposes of the subclause, before the Governor-General’s power to make the proposed regulation may be exercised.

 

Subsection 30(1) of the Wool Services Privatisation Act 2000 (the Wool Services Act) provides that the Minister may declare a body to be the research body. The Wool Services Privatisation (Research Body) Declaration 2008 declares Australian Wool Innovation Limited (AWI) as the research body. AWI receives payments from the Commonwealth in relation to wool levy for research and development activities, marketing activities and other activities.

Subsection 32(1) of the Wool Services Act provides that the research body is taken to be the designated body in relation to “rate setting clauses”. Subsection 32(3) of the Wool Services Act provides that the research body (being AWI) is required to make recommendations to the Minister in relation to the rate-setting clause. Subsection 32(6) of the Wool Services Act provides that  “rate-setting clauses” means:

a) clause 14 of Schedule 27 to the Act; and

b) clause 13 of Schedule 14 to the Primary Industries (Customs) Charges Act 1999.

In order to make a recommendation, AWI must hold a poll in accordance with the Wool Services Privatisation (Wool Levy Poll) Regulations 2003 (Wool Levy Poll Regulations). An independent WoolPoll panel confirmed that AWI conducted a poll in 2018 (WoolPoll 2018) in accordance with the requirements in the Act and the Wool Levy Poll Regulations.

Voting for WoolPoll 2018 opened on 17 September 2018 and closed on 2 November 2018. AWI announced a summary of the results on 16 November 2018 and presented the results at its Annual General Meeting on 23 November 2018.

In WollPoll 2018, wool growers voted to move from a 2 per cent levy rate to a 1.5 per cent levy rate on their gross wool sale proceeds. AWI made this recommendation to the Minister on 5 December 2018.

Section 18A of the Wool Services Privatisation (Wool Levy Poll) Regulations 2003 (Wool Levy Poll Regulations) provides that the recommendation must be made not later than three years after the previous recommendation. AWI’s previous recommendation was made on
21 December 2015, so therefore met the requirements of Section 18A of the Wool Levy Poll Regulations.

Impact and Effect

There is reduced financial impact on wool producers as a result of the Regulations, as the rate of the wool levy has decreased. 

Consultation

The reduced levy rate on wool has majority industry support and stakeholders participated in the consultation process through voting in WoolPoll 2018.

The Office of Best Practice Regulation (OBPR) was consulted in the preparation of the Regulation and advised that a Regulation Impact Statement was not required as the amendment was deemed minor and machinery in nature (OBPR ID: 22416).

Details / Operation

 

Details of the Regulations are set out in the Attachment A.

 

The Regulations are compatible with the human rights and freedoms recognised or declared under section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011. A full statement of compatibility is set out in Attachment B.

The Regulations are a legislative instrument for the purposes of the Legislation Act 2003.


 

Attachment A

 

Details of the Primary Industries (Excise) Levies Amendment (Wool) Regulations 2019

 

Section 1 – Name

 

This section provides that the name of the instrument is the Primary Industries (Excise) Levies Amendment (Wool) Regulations 2019 (Regulations)

 

Section 2 – Commencement

 

This section provides that the Regulations commence on 1 July 2019.

 

Section 3 – Authority

 

This section provides that the instrument is made under the Primary Industries (Excise) Levies Act 1999.

 

Section 4 – Schedules

 

This section provides that the instrument is amended as set out in the Schedule. .

 

Schedule 1 – Amendments

 

Item 1

This item omits the percentage “2%” and substitutes the percentage “1.5%” in clause 2.3 of Schedule 27 to the Primary Industries (Excise) Levies Regulations 1999, to reflect the reduction to the rate of levy on wool.


ATTACHMENT B

 

 

Statement of Compatibility with Human Rights
 

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

 

Primary Industries (Excise) Levies Amendment (Wool) Regulations 2019

 

 

This Legislative Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

 

Overview of the Legislative Instrument

The Primary Industries (Excise) Levies Amendment (Wool) Regulations 2019 (the Regulations) amends the Primary Industries (Excise) Levies Regulations 1999 to reduce the  rate of levy  on wool produced in Australia from 2 per cent of the sale value of the wool to 1.5 per cent of the sale value of the wool.

 

Human rights implications

This Legislative Instrument does not engage any of the applicable rights or freedoms.

 

Conclusion

This Legislative Instrument is compatible with human rights as it does not raise any human rights issues.

 

 

 

The Hon. David Littleproud MP

Minister for Agriculture and Water Resources

 

 

 

 

Overview

The Primary Industries (Excise) Levies Amendment (Wool) Regulations 2019 were enacted to reduce the rate of excise levy on wool produced in Australia from 2 per cent to 1.5 per cent of the sale value of the wool, reflecting the outcome of WoolPoll 2018, a poll conducted in accordance with the Wool Services Privatisation (Wool Levy Poll) Regulations 2003. This amendment was authorised under the Primary Industries (Excise) Levies Act 1999, which allows the Governor-General to make regulations for the imposition of primary industries levies that are duties of excise. The policy objective of the amendment was to reduce the financial burden on wool producers, aligning with the majority industry support indicated by the poll results. The Regulations were prepared following consultation with stakeholders, including Australian Wool Innovation Limited, and were deemed minor and machinery in nature, thus not requiring a Regulation Impact Statement. These Regulations were issued by the Minister for Agriculture and Water Resources under the authority of the Primary Industries (Excise) Levies Act 1999 and are compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011. The reduction in the levy rate is expected to have a positive impact on wool producers by easing their financial load while still maintaining the necessary revenue for industry research and development activities.

Scope and Application

The Primary Industries (Excise) Levies Amendment (Wool) Regulations 2019 pertains to the regulation and amendment of excise levies on wool produced within Australia. The Act applies to entities involved in the production, sale, and processing of wool, ensuring that these entities adhere to the specified levy rates. The regulations are designed to reflect the outcomes of the WoolPoll 2018, where wool growers voted for a reduction in the levy rate from 2% to 1.5% of the sale value of the wool, thereby reducing the financial burden on wool producers. The amendments made under this Act extend nationally, encompassing all states and territories within Australia, and are implemented to ensure compliance and uniformity in the levy application across the country. The regulations do not exclude any specific categories of wool producers or transactions, ensuring broad applicability and fairness within the industry. The authority to make these regulations is derived from the Primary Industries (Excise) Levies Act 1999, which allows the Governor-General to prescribe necessary matters through subordinate legislation, thereby extending or restricting the application as needed.

Key Provisions

The Primary Industries (Excise) Levies Amendment (Wool) Regulations 2019 (Regulations) amend the Primary Industries (Excise) Levies Regulations 1999 (the original Regulations) to reduce the rate of levy on wool produced in Australia from 2 per cent of the sale value of the wool to 1.5 per cent of the sale value of the wool. This amendment is specified in Schedule 1, Item 1 of the Regulations, which replaces the percentage "2%" with "1.5%" in clause 2.3 of Schedule 27 of the original Regulations (sections 2 and 4). The Regulations impose a reduced rate of levy on wool, reflecting the outcome of the WoolPoll 2018, in which wool growers voted to decrease the levy rate. The reduced rate aims to alleviate some financial pressure on wool producers by lowering the excise duty they must pay on their wool sales. Compliance with the new rate is mandatory for all parties involved in the production and sale of wool in Australia. Breach of the provisions set forth in the Regulations could result in civil or criminal consequences. Although the explanatory statement does not explicitly outline the penalties for non-compliance, it is reasonable to infer that penalties could mirror those established in the Primary Industries (Excise) Levies Act 1999 and related legislation, which often include fines and potential imprisonment for serious or repeated breaches. The exact penalties would depend on the specifics of the breach and the discretion of the relevant authorities in enforcing the Act and Regulations. The Regulations are designed to ensure that all stakeholders are aware of and comply with the new levy rate, thereby maintaining a fair and effective taxation system within the wool industry. By aligning with the Human Rights (Parliamentary Scrutiny) Act 2011, the Regulations also demonstrate a commitment to upholding human rights, ensuring that the changes do not infringe on any recognised or declared rights and freedoms.

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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.