EXPLANATORY STATEMENT
STATUTORY RULES 1985 No. 146
Issued by the Authority of the Minister of State for Transport for and on behalf of the Minister for Primary Industry
WOOL INDUSTRY ACT 1972
WOOL INDUSTRY (APPORTIONMENT OF WOOL TAX) REGULATIONS
The purpose of these 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 apportionment percentages are presently prescribed by the Wool Tax Acts (Nos 1-5) 1964 and associated Regulations. The Wool Tax,(Nos 1-5) Amendment Acts (Act Nos 85-89), which received Royal Assent on 6 June 1985, will remove provision to prescribe percentages from the Wool Tax Acts and associated Regulations as from 1 July 1985.
Following Royal Assent on 6 June 1985 to the Wool Industry Amendment Act 1985 (Act No 84), the apportionment provisions are now contained in the Act, and the Wool Industry (Apportionment of Wool Tax) Regulations are required to prescribe apportionment percentages as from 1 July 1985.
The Act as amended by the Wool Industry Amendment Act 1985 provides for the Governor-General to make Regulations to prescribe percentages of the sale value of shorn wool to be paid into the Wool Research Trust Fund or to the Australian Wool Corporation 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 as amended also provides that the sum of the percentages prescribed by Regulations to be paid into the Wool Research Trust Fund or to the Australian Wool Corporation in respect of the general purposes of the Corporation or 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 as amended 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 during 1985/86 be at the rates of 0.5% for research, 2.5% to wool promotion and market administration expenses and 5.0% for market support and the Minister has agreed with these recommendations.
The Wool Industry (Apportionment of Wool Tax) Regulations provide for apportionment of 0.5% to research, 2.5% to wool promotion and market administration expenses and 5% to market support under paragraph 68(1)(a), sub-section 83(1) and sub-section 84A(1) respectively of the Act.
As the Act comes into effect on 1 July 1985 the Regulations are made in pursuance of section 4 of the Acts Interpretation Act 1901 which provides, inter alia, that where an Act includes a power to make Regulations then unless the contrary intention appears the Regulations may be made but they shall not take effect until the Act comes into operation.
Overview
The Wool Industry (Apportionment of Wool Tax) Regulations, introduced under the Wool Industry Act 1972, aim to address the need for an effective mechanism to allocate funds collected from the sale of shorn wool as tax. Enacted by the Parliament of Australia, these regulations were issued under the authority of the Minister of State for Transport on behalf of the Minister for Primary Industry. They respond to amendments made by the Wool Industry Amendment Act 1985 and the Wool Tax Acts (Nos 1-5) Amendment Acts 1985, which shifted the responsibility for setting apportionment percentages from the Wool Tax Acts to the Wool Industry Act. This legislative change ensures that the apportionment of wool tax receipts aligns with the current tax rate of 8%, as recommended by the Wool Council of Australia and agreed upon by the Minister. The regulations specify the allocation of 0.5% to wool research, 2.5% to wool promotion and market administration expenses, and 5% to market support, ensuring that the total percentage of tax receipts apportioned does not exceed the statutory tax rate.
Scope and Application
The Wool Industry (Apportionment of Wool Tax) Regulations 1985, made under the Wool Industry Act 1972, govern the distribution of funds collected as a tax on sales of shorn wool among various sectors including wool research, wool promotion and market administration expenses, and wool market support. These Regulations apply to all entities involved in the sale of shorn wool within Australia, ensuring the collected tax is allocated as per the prescribed percentages. The Act and its Regulations extend across the Commonwealth, applying to all parties engaged in the wool industry, including producers, exporters, and other relevant stakeholders. The sum of the percentages allocated by the Regulations must equal the tax rate specified in the Wool Tax Acts (Nos 1-5) 1964, currently set at 8%. Notably, the Governor-General must consider recommendations from the Wool Council of Australia before finalizing the apportionment percentages, which for the period 1985/86 are set at 0.5% for research, 2.5% for wool promotion and market administration expenses, and 5.0% for market support. The Regulations are designed to ensure that the distribution of funds supports the broader objectives of the wool industry as outlined in the Act.
Key Provisions
The Wool Industry (Apportionment of Wool Tax) Regulations 1985 (subsection 4 of the Acts Interpretation Act 1901) set out the apportionment of wool tax receipts for the year starting 1 July 1985. Under the amended Wool Industry Act 1972, these Regulations prescribe specific percentages of the sale value of shorn wool to be allocated to different funds: 0.5% to the Wool Research Trust Fund (section 68(1)(a)), 2.5% to wool promotion and market administration expenses (subsection 83(1)), and 5% to the Market Support Fund (subsection 84A(1)). This allocation must equal the tax rate of 8% imposed by the Wool Tax Acts (Nos 1-5) 1964.
The Regulations impose obligations on the parties involved in the wool industry, primarily the Australian Wool Corporation and the Wool Research Trust Fund. These entities must ensure that the specified percentages of the tax collected are directed to their respective funds as outlined in the Regulations. The Minister for Primary Industry, acting on behalf of the Minister of State for Transport, is responsible for making these Regulations, taking into account any recommendations from the Wool Council of Australia (subsection 84(1)(a)). In this instance, the Minister has adopted the Wool Council’s recommendations for the 1985/86 financial year, which propose a 0.5% allocation for research, 2.5% for promotion and administration expenses, and 5% for market support.
Failure to comply with the apportionment requirements specified in the Regulations could lead to legal consequences. Although specific penalties are not detailed in the explanatory statement, breaches of the Wool Industry Act 1972 or the Wool Tax Acts (Nos 1-5) 1964 may result in fines or other penalties as prescribed by law. The exact penalties would depend on the nature and severity of the breach and would be determined in accordance with the relevant statutory provisions. The overarching aim is to ensure that the wool industry funds are properly allocated to their designated purposes, thereby supporting research, promotion, and market support activities effectively.