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.
Overview
The Wool Industry (Apportionment of Wool Tax) Regulations (Amendment) 1986, issued under the authority of the Minister of State for Sport, Recreation and Tourism on behalf of the Minister for Primary Industry, was enacted to address the need for precise allocation of wool industry funds collected through the Wool Tax Acts (Nos 1-5) 1964. These funds, collected as a tax on sales of shorn wool, are intended to support various aspects of the wool industry, including research, promotion, market administration, and market support. The amendment to the Wool Industry Act 1972 was introduced to ensure that the wool tax receipts are appropriately distributed among the Australian Wool Corporation's Wool Research and Development Fund, its general purposes (such as wool promotion and market administration expenses), and the Market Support Fund. The policy objective of this regulatory amendment is to align the apportionment of wool tax receipts with the current needs of the industry, as recommended by the Wool Council of Australia, thereby ensuring effective funding distribution in support of the wool industry's various initiatives.
Scope and Application
The Wool Industry (Apportionment of Wool Tax) Regulations (Amendment) under the Wool Industry Act 1972 applies to all persons and entities involved in the sale of shorn wool in Australia, which are subject to the Wool Tax Acts (Nos 1-5) 1964. This regulation primarily governs the apportionment of wool industry funds collected as a tax on the sale of shorn wool among wool research, wool promotion and market administration expenses, and wool market support. The geographic and jurisdictional reach of this Act is national, as it pertains to the entire Australian wool industry. The Act mandates that the Governor-General, in consultation with recommendations from the Wool Council of Australia, prescribe the percentages of the sale value of shorn wool to be allocated to these specified purposes. The current rates for these allocations are set at 0.5% for research, 3.5% for wool promotion and market administration expenses, and 4% for market support. Notably, the sum of these percentages must equal the tax rate specified in the Wool Tax Acts, which is currently 8%. This Amendment also stipulates that wool tax imposed during the fiscal year commencing 1 July 1985 but not received prior to 1 July 1986 be apportioned at the pre-amendment rates, reflecting the transitional nature of this regulation.
Key Provisions
The main operative sections of these regulations under the Wool Industry Act 1972 (section 53(1)(a), subsection 83(1), and subsection 84A(1)) detail how wool tax receipts are to be apportioned among three primary areas: research, wool promotion and market administration expenses, and market support. Specifically, the regulations require that 0.5% of the wool tax be allocated for research, 3.5% for wool promotion and market administration expenses, and 4.0% for market support. These apportionments ensure that funds collected as a tax on shorn wool sales are directed towards specific industry needs, as recommended by the Wool Council of Australia and agreed upon by the Minister.
The obligations imposed by these regulations on the parties governed by the Act include ensuring that the prescribed percentages of the wool tax are accurately calculated and distributed to the designated funds. The Australian Wool Corporation is responsible for collecting the wool tax and then apportioning the funds according to the specified percentages. Additionally, the Wool Council of Australia has a role in making recommendations to the Minister regarding the apportionment of these funds, which the Minister must consider before making any regulatory changes. These obligations are designed to maintain transparency and accountability in the allocation of wool industry funds.
Failure to comply with these regulations may result in civil or criminal consequences. While the specific penalties are not detailed in the provided explanatory statement, breaches of regulations under the Wool Industry Act 1972 could potentially lead to fines, legal action, or other enforcement measures. The severity of the penalties would depend on the nature and extent of the breach, as well as any additional provisions outlined in related legislation or case law. It is important for all parties involved to adhere to these regulations to avoid any legal repercussions.