EXPLANATORY STATEMENT
STATUTORY RULES 1983 No. 103
Issued by the Authority of the Minister of State for Resources and Energy for and on behalf of the Minister of State for Primary Industry
WOOL INDUSTRY (MARKET SUPPORT FUND-REFUNDS) REGULATIONS (AMENDMENT)
These Regulations are designed to amend the Wool Industry (Market Support Fund-Refunds) Regulations (No. 154 of 1981) so as to increase the minimum refund to woolgrowers from the Wool Market Support Fund, from one cent to $10.
Section 92 of the Wool Industry Act 1972 (“the Act”) provides that the Governor-General may make regulations, not inconsistent with this Act, prescribing all matters required or permitted by this Act.
The Act provides the legislative framework for a scheme of progressive repayment to woolgrowers of past levy contributions to the wool Market Support Fund, administered by the Australian Wool Corporation.
Sub-sections 42J(5), (5A) and (6) of the Act specify $25 as the minimum amount of refund payable, subject to any lower amount being prescribed by Regulation. The minimum amount to be refunded is currently set at one cent by Regulation.
In 1982, following discussions with relevant wool industry organisations, it was agreed that the minimum refund should be increased from 1 cent to $10, so that a refund would be paid on a minimum transaction of, or a minimum aggregate of wool sales transactions of, $200.
Implementation of the new minimum level required amendment of section 42J of the Act to permit aggregation of sales data for calculating the amount of the refund, and secondly an increase in the minimum refund by Regulation.
Amendments of section 42J of the Act were included in the Statute Law (Miscellaneous Provisions) Act (No. 1) 1983, which received Royal Assent on 20 June 1983 and takes effect on 18 July 1983. Regulations 1 and 2 prescribe $10 as the minimum amount to be refunded with effect from 18 July 1983.
The overall impact of introducing a minimum refund of $10 will be to improve administration of repayments from the Market Support Fund through elimination of small refunds for which the costs involved were disproportionate to the refund amount.
Overview
The Wool Industry (Market Support Fund-Refunds) Regulations (Amendment) 1983 were introduced to address the inefficiency of processing small refunds from the Wool Market Support Fund, which was causing administrative costs to be disproportionate to the refund amounts. This amendment to the existing Wool Industry (Market Support Fund-Refunds) Regulations (No. 154 of 1981) was made under the authority of the Minister of State for Resources and Energy, on behalf of the Minister of State for Primary Industry. The primary objective of the amendment was to increase the minimum refund payable to woolgrowers from one cent to $10, thereby reducing the administrative burden associated with processing small refunds and ensuring that only transactions with a minimum aggregate of $200 would be eligible for a refund. This legislative change was enacted to streamline the administration of the Wool Market Support Fund and improve the efficiency of the refund process for woolgrowers.
Scope and Application
The Wool Industry (Market Support Fund-Refunds) Regulations (Amendment) 1983 amends the existing regulations to increase the minimum refund to woolgrowers from the Wool Market Support Fund from one cent to $10. This change is implemented pursuant to the authority granted under Section 92 of the Wool Industry Act 1972, which mandates that the Governor-General can make regulations consistent with the Act, prescribing all matters required or permitted by it. The Act itself outlines the legislative framework for the progressive repayment scheme to woolgrowers of their past contributions to the Wool Market Support Fund, managed by the Australian Wool Corporation. The amendments, which include changes to section 42J of the Act, allow for the aggregation of sales data to calculate the refund amount and set the new minimum refund amount at $10, applicable from 18 July 1983. These changes are designed to streamline the administration of repayments by eliminating small refunds where the administrative costs outweighed the refund value.
Key Provisions
The main operative sections of the Wool Industry (Market Support Fund-Refunds) Regulations (Amendment) are sections 1 and 2, which prescribe the new minimum refund amount of $10. These sections amend the original regulations to align with the changes in section 42J of the Wool Industry Act 1972, which now allows for the aggregation of sales data for calculating the refund amount. Section 42J(5) of the Act previously set the minimum refund amount, and these regulations update that provision to ensure that a refund will be paid on a minimum transaction of, or a minimum aggregate of wool sales transactions of, $200.
The amendments impose obligations on the Australian Wool Corporation to administer the Market Support Fund, ensuring that refunds are calculated correctly and disbursed to eligible woolgrowers. The new regulations require that sales data be aggregated to determine the appropriate refund amount, which means that transactions of $200 or more will be eligible for a refund of at least $10. The Australian Wool Corporation must also ensure that the administrative costs associated with these refunds are reasonable and proportionate to the refund amount, as the previous one cent minimum refund often incurred disproportionate administrative costs.
Failure to comply with the new minimum refund provisions could result in legal consequences for the Australian Wool Corporation, potentially leading to civil or criminal penalties if the entity does not adhere to the legislative requirements. Although the specific penalties are not detailed in the explanatory statement, it can be inferred that non-compliance with the statutory requirements could lead to enforcement actions under the Wool Industry Act 1972 or other relevant legislation. The new regulations aim to improve the efficiency and effectiveness of the refund process, reducing the administrative burden while ensuring that woolgrowers receive fair compensation for their contributions to the Market Support Fund.