EXPLANATORY STATEMENT
STATUTORY RULES 1986 NO 160
Issued by the Authority of the Minister of State for Sport, Recreation and Tourism for and on behalf of the Minister for Primary Industry
WOOL INDUSTRY ACT 1972
WOOL INDUSTRY (APPORTIONMENT OF WOOL TAX) REGULATIONS (AMENDMENT)
The purpose of this Amendment to Regulations under the Wool Industry Act 1972 (the Act) is to apportion wool industry funds, collected as a tax on sales of shorn wool under the Wool Tax Acts (Nos 1-5) 1964, among wool research; wool promotion and market administration expenses; and wool market support.
The Act provides for the Governor-General to make Regulations to prescribe percentages of the sale value of shorn wool to be paid to the Australian Wool Corporation for the purposes of the Wool Research and Development Fund, in respect of the general purposes of the Corporation (that is wool promotion and market administration expenses) or in respect of the Market Support Fund.
The Act also provides that the sum of the percentages prescribed by Regulations to be paid to the Australian Wool Corporation for the purposes of the Wool Research and Development Fund, for the general purposes of the Corporation and in respect of the Market Support Fund shall be equal to the percentage specified in the rate of tax imposed by the Wool Tax Acts (Nos 1-5) 1964. That rate is presently 8%.
The Act provides that the Governor-General take into consideration any recommendations made to the Minister by the Wool Council of Australia before making Regulations prescribing apportionment of wool tax receipts. The Wool Council of Australia has recommended that apportionment of wool tax receipts for wool sold during 1986/87 be at the rates of 0.5% for research, 3.5% for wool promotion and market administration expenses and 4.0% for market support and the Minister has agreed with these recommendations.
The Wool Industry (Apportionment of Wool Tax) Regulations (Amendment) provides for apportionment of 0.5% for research, 3.5% for wool promotion and market administration expenses and 4% for market support under paragraph 53(1)(a), sub-section 83(1) and sub-section 84A(1) respectively of the Act. The Amendment also provides that wool tax imposed during the year commencing 1 July 1985 but not received prior to 1 July 1986 be apportioned at the rates which applied prior to 1 July 1986 ie 0.5% for research, 2.5% for wool promotion and market administration expenses and 5% for market support.