Wool International Regulations (Amendment) 1994 No. 43
EXPLANATORY STATEMENT
STATUTORY RULES 1994 No. 43
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.
Subsections 61(1) and 61(2) of the Act provides that Wool International is subject to taxation (other than income tax) under the laws of the Commonwealth but not subject to State or Territory taxation laws. However, subsection 61(3) of the Act provides that Wool International may be subject to taxation under a specified law of a State or Territory if it is provided for in the regulations.
The purpose of the proposed regulations relating to pay-roll tax is to remove the exemption of Wool International from paying pay-roll tax in the States and Territories. Removing Wool International from the exemption of State and Territory pay-roll accords with Commonwealth Government policy on this matter. In addition, such regulations will also mean that Wool International will not have an exemption to pay-roll tax as an apparent advantage over commercial enterprises.
The regulations relating to pay-roll tax prescribe relevant State and Territory pay-roll taxes for this purpose and are to have effect from 1 December 1993.
At the time of privatisation of Wool International, share rights will be issued to wool-tax payers in proportion to the wool tax paid between 1 July 1993 and the time of privatisation. In order to record the wool-tax paid for this purpose, a register of wool-tax payers is to be established and maintained by Wool International.
The remainder oil the proposed regulations, which are to commence on gazettal, provide the rules for the establishment and maintenance of such a register of wool-tax payers including the rules that are to apply to additional contributions that wool-tax payers may make over and above the wool tax they are required to pay. They also set out how often Wool International must provide wool-tax payers with reports on the wool-tax they have paid, the detail to be contained in those reports and what information the records for wool-tax payers on the register are to contain.
Provision for regulations relating to additional contributions by wool-tax payers is made in section 45 of the Act and for reporting of wool tax records to wool-tax payers, in section 64 of the Act. Provision for regulations relating to the keeping of the register by Wool International is made in section 66 of the Act.
Overview
The Wool International Regulations (Amendment) 1994 No. 43, issued under the authority of the Minister for Primary Industries and Energy, amends the Wool International Regulations made under the Wool International Act 1993. This Act was enacted to establish Wool International, an entity responsible for the management and disposal of the wool stockpile, reducing debt over time, and providing wool marketing-related services. The 1994 Amendment seeks to address the issue of Wool International's exemption from pay-roll tax in the states and territories, aligning with the Commonwealth Government's policy on the matter and ensuring parity with commercial enterprises. The regulations establish a register of wool-tax payers, set rules for maintaining this register, and specify the contents and frequency of reports to be provided to wool-tax payers. These amendments aim to ensure transparency and fairness in taxation practices concerning Wool International.
Scope and Application
The Wool International Regulations (Amendment) 1994 No. 43 pertains to the amendment of the Wool International Act 1993, which governs the establishment and operations of Wool International. This legislation applies specifically to Wool International, a body responsible for the management and disposal of the wool stockpile, amongst other functions. The regulations extend to the geographic jurisdiction of the Commonwealth and affect the taxation status of Wool International. Notably, the amendment removes the exemption of Wool International from State and Territory payroll tax, aligning with broader Commonwealth policy, and ensuring equitable treatment with commercial enterprises. The regulations also encompass the establishment and maintenance of a register of wool-tax payers, detailing how Wool International must record and report on wool tax payments. These regulations provide specific rules for the operation of the register, including the frequency of reporting and the information to be included in those reports. The amendment applies from 1 December 1993 and includes provisions for share rights distribution to wool-tax payers at the time of privatisation, as well as additional contributions that wool-tax payers may make.
Key Provisions
The main operative sections of the Wool International Regulations (Amendment) 1994 (No. 43) primarily address the removal of Wool International's exemption from State and Territory payroll taxes (regulations 1-5). Specifically, these regulations amend the existing provisions under the Wool International Act 1993 to ensure that Wool International is subject to payroll taxes in the states and territories as per the Commonwealth Government's policy. The regulations also establish a register of wool tax payers and set out rules for additional contributions and reporting (regulations 6-10). These rules aim to ensure transparency and accountability in the tax contributions made by wool tax payers.
The obligations and requirements imposed by these regulations on Wool International and wool tax payers are significant. Wool International is now required to pay payroll taxes in accordance with the relevant State and Territory laws. Additionally, Wool International must establish and maintain a register of wool tax payers, ensuring that all wool tax paid by individuals and entities is accurately recorded (regulation 6). Wool International must also provide regular reports to wool tax payers detailing the wool tax they have paid and maintain comprehensive records of these payments (regulations 7-10). Furthermore, the regulations outline the procedures for additional contributions by wool tax payers and how these contributions should be handled and recorded.
The consequences for non-compliance with these regulations can be substantial. While the regulations themselves do not explicitly outline penalties for breach, non-compliance with State and Territory payroll tax laws could lead to civil or criminal penalties as prescribed by those laws. For example, failure to pay payroll tax could result in fines, interest charges, or even legal action. Additionally, if Wool International fails to maintain the required register or provide accurate reports to wool tax payers, it could face regulatory scrutiny or enforcement actions from the relevant authorities. These potential consequences underscore the importance of adhering to the obligations set forth in the regulations.