Wool International Regulations (Amendment) 1994 No. 89
EXPLANATORY STATEMENT
STATUTORY RULES 1994 No. 89
Issued by the authority of the Minister for Primary Industries and Energy
WOOL INTERNATIONAL ACT 1993
WOOL INTERNATIONAL REGULATIONS (AMENDMENT)
The Wool International Act 1993 (the Act) provides for the Governor-General to make regulations for the purpose of prescribing all matters required or permitted by this Act to be prescribed.
The Act provides for the establishment of Wool International and its functions, powers, membership and related matters. Wool International is responsible for management and disposal of the wool stockpile, reducing the debt over time, encouraging the development of marketing and risk management mechanisms and providing other wool marketing related services. Wool International was established when the relevant parts of the Australian Wool Research and Promotion Organisation Act 1993 commenced by Proclamation on 1 December 1993.
It is the Parliament's intention that Wool International be corporatised and then privatised by a target date of mid 1997. At the time of privatisation of Wool International, share rights are to be issued to wool-tax payers in proportion to their wool tax paid between 1 July 1993 and the time of privatisation. In addition, wool-tax payers may also make additional contributions of up to 5.5 per cent of the sale value of their wool over that same period in order to increase their share right allocation to Wool International.
To effect share right allocations at the time of privatisation, Wool International is to establish and maintain a register of wool-tax payers which is to record details of both wool tax and additional contributions paid by wool-tax payers. Upon privatisation the register will become the share register of Wool International.
The regulations, which are to commence on gazettal, correct provisions so that information associated with additional contributions is to be given only to the Commissioner of Taxation to ensure that the information remains with the contribution. The proposed regulations also correct internal references relating to such information if provided by, an intermediary and to the recording of such information on the register by Wool International.
Provision for regulations relating to additional contributions by wool-tax payers is made in section 45 of the Act and for the keeping of the register by Wool International, in section 66 of the Act.
Overview
The Wool International Regulations (Amendment) 1994 No. 89 was introduced to amend the Wool International Regulations under the Wool International Act 1993. This legislative amendment was enacted by the Australian Parliament and issued by the authority of the Minister for Primary Industries and Energy. The primary purpose of these regulations is to correct and clarify provisions concerning the recording and reporting of additional contributions made by wool-tax payers to Wool International. These amendments ensure that information related to such contributions is appropriately handled and maintained by the Commissioner of Taxation, and that the register kept by Wool International accurately reflects these contributions. This amendment facilitates the corporatisation and eventual privatisation of Wool International, aligning with the policy objective of transitioning the entity from public to private ownership by mid-1997.
Scope and Application
The Wool International Regulations (Amendment) 1994 No. 89 applies to the functions and operations of Wool International, a body established under the Wool International Act 1993. These regulations specifically address the management of the wool stockpile, the privatisation process of Wool International, and the recording of additional contributions made by wool-tax payers. The Act applies to individuals and entities involved in the wool industry, particularly those who are wool-tax payers, and covers the entire Commonwealth of Australia. The regulations amend the existing rules to ensure that information regarding additional contributions made by wool-tax payers is correctly handled and that the register of these contributions is maintained accurately for the purposes of share rights allocation during privatisation. The amendments also clarify the internal processes and references within Wool International to align with the updated procedures. The regulations extend the application of the Act by refining the administrative processes associated with the wool stockpile and privatisation of Wool International, without introducing any exclusions or exemptions beyond those already specified in the Act.
Key Provisions
The Wool International Regulations (Amendment) 1994 No. 89 primarily concern the amendments made to the existing Wool International Regulations under the Wool International Act 1993. These amendments aim to refine the mechanisms for the allocation of share rights at the time of privatisation, particularly in relation to additional contributions made by wool-tax payers. Section 45 of the Act, which deals with the provision for additional contributions, is amended to ensure that relevant information is directed only to the Commissioner of Taxation (Section 45). This ensures that the additional contributions data is retained with the tax authority. Furthermore, section 66 of the Act, which mandates Wool International to maintain a register of wool-tax payers, is amended to correct internal references and clarify the recording process of these contributions by Wool International (Section 66).
The obligations imposed by these regulations primarily focus on ensuring accurate and secure handling of wool-tax payers' contributions. Wool International is required to establish and maintain a detailed register of wool-tax payers that captures both the wool tax and any additional contributions made. This register serves as the foundational document for share right allocations at the time of privatisation. Additionally, any information regarding additional contributions must be communicated exclusively to the Commissioner of Taxation, ensuring that this data remains with the tax authority and is not misappropriated or mishandled by Wool International or any intermediary.
Failure to comply with these regulations could result in significant legal and financial repercussions. Although the explanatory statement does not explicitly enumerate the penalties or consequences for non-compliance, breaches of statutory obligations under the Wool International Act 1993 generally attract penalties as prescribed by the relevant legislation. These penalties can include fines, legal action, or other enforcement measures deemed necessary by the relevant authorities to ensure compliance with the Act and its regulations. The precise penalties would depend on the specific nature and severity of the breach, but the overarching aim is to maintain the integrity and effectiveness of the wool stockpile management and privatisation process.