EXPLANATORY STATEMENT
STATUTORY RULES 1986 NO. 286
Issued by the Authority of the Minister for Primary Industry
WOOL INDUSTRY ACT 1972
WOOL INDUSTRY (MARKET SUPPORT FUND - REFUNDS) REGULATIONS (AMENDMENT) 1986
Woolgrowers contribute a percentage of their proceeds from the sale of wool to the Market Support Fund. The Wool Industry Act 1972 provides for the Governor-General to make regulations for the purpose of the making of refunds from the Market Support Fund.
The Wool Industry (Apportionment of Wool Tax) Regulations prescribe percentages for the purpose inter alia of sub-section 84A(1) of the Wool Industry Act 1972. The Wool Industry (Apportionment of Wool Tax) Regulations (Amendment) (No 160. of 1986) has altered sub-section 3(b) of the Apportionment Regulations such that 4% of the gross value of shorn wool sold will be apportioned to the Market Support Fund instead of the previous 5%. This provides for a larger proportion of the wool tax to be used for promotion of wool.
This amendment to the Apportionment Regulations results in an inconsistency between those Regulations and sub-paragraph 6(e)(ii) of the Wool Industry (Market Support Fund - Refunds) Regulations. Sub-paragraph 6(e)(ii) requires registered persons to provide the Australian Wool Corporation with information as to an amount equal to 5% of the sale value of wool dealt with by the registered person during a financial year.
This proposed amendment alters sub-section 6(e)(ii) so that it refers to a percentage equal to the percentage prescribed from time to time by the Wool Industry (Apportionment of Wool Tax) Regulations, and thus avoids the need for frequent consequential changes.
Overview
The Wool Industry (Market Support Fund - Refunds) Regulations (Amendment) 1986 was enacted to amend the existing regulations under the Wool Industry Act 1972, addressing the inconsistency caused by the reduction in the percentage of gross value of shorn wool sold that is to be apportioned to the Market Support Fund. The Wool Industry Act 1972, enacted by the Parliament of Australia, was introduced to provide for the establishment of a Market Support Fund and to facilitate the making of refunds from this fund. The policy objective behind these regulations is to ensure that the Market Support Fund can continue to operate effectively in light of changes to the apportionment of the wool tax, thereby supporting the promotion of wool. This amendment ensures that the Market Support Fund - Refunds Regulations remain aligned with the Wool Industry (Apportionment of Wool Tax) Regulations, avoiding the need for frequent adjustments.
Scope and Application
The Wool Industry (Market Support Fund - Refunds) Regulations (Amendment) 1986 applies to all registered persons, such as woolgrowers, who are involved in the sale of wool and contribute to the Market Support Fund under the provisions of the Wool Industry Act 1972. This Act, administered at the Commonwealth level, encompasses all entities and individuals engaged in the wool industry across Australia. The amendment aims to align the percentage required for refunds from the Market Support Fund with the updated apportionment prescribed by the Wool Industry (Apportionment of Wool Tax) Regulations. By amending sub-paragraph 6(e)(ii) of the Refunds Regulations, it ensures that the percentage used for calculating refunds matches the new 4% apportionment set by the amended Apportionment Regulations, thereby streamlining compliance and reducing the need for frequent updates. This change is designed to ensure consistency and efficiency in the application of the Market Support Fund refunds across the industry.
Key Provisions
The primary operative sections of the Wool Industry (Market Support Fund - Refunds) Regulations (Amendment) 1986 include sub-section 6(e)(ii). This section requires registered persons to provide information to the Australian Wool Corporation regarding the amount that corresponds to the percentage of the gross value of wool sold, as specified in the Wool Industry (Apportionment of Wool Tax) Regulations. The amendment ensures that this percentage is now aligned with the new 4% value, as specified in the amended Wool Industry (Apportionment of Wool Tax) Regulations. This change is crucial for ensuring that the information provided to the Australian Wool Corporation accurately reflects the current apportionment percentage.
The obligations imposed by these regulations on the parties involved, specifically registered persons, are to ensure they supply the Australian Wool Corporation with accurate and timely information regarding the percentage of their wool sales that are to be allocated to the Market Support Fund. This information must reflect the current apportionment percentage set out in the Wool Industry (Apportionment of Wool Tax) Regulations. Failure to comply with these requirements may result in administrative or legal consequences.
In terms of penalties and consequences for non-compliance, the explanatory statement does not explicitly detail the penalties for breach of these regulations. However, under the general principles of administrative law and the authority of the Minister for Primary Industry, failure to adhere to these requirements could potentially lead to administrative actions, fines, or other legal consequences as deemed appropriate by the relevant authorities. It is crucial for registered persons to stay updated with the current regulations and ensure compliance to avoid any potential repercussions.