EXPLANATORY STATEMENT
STATUTORY RULES 1987 NO. 132
Issued by the Authority of the Minister for Primary Industry
WOOL MARKETING ACT 1987
WOOL MARKETING REGULATIONS
Sub-section 127(1) of the Wool Marketing Act 1987 (No 90 assented to 5 June 1987) provides that the Governor-General may make regulations, not inconsistent with that Act, prescribing all matters required or permitted by that Act to be prescribed, or necessary or convenient to be prescribed for carrying out or giving effect to that Act and for prescribing penalties not exceeding $5000 for offences against the regulations.
The Wool Marketing Act 1987 supersedes the Wool Industry Act 1972 as from 1 July 1987. The purpose of the regulations is to:
(a) remove the administrative procedures to be followed in making refunds to woolgrowers from the Market Support Fund, which were detailed in Part IIIA of the Wool Industry Act 1972, to regulations
(b) continue those existing regulations made under the Wool Industry Act 1972 which are required under the Wool Marketing Act 1987.
Part I of the regulations provides for the citation and interpretation of the regulations.
Sub-section 51(1) of the Wool Marketing Act 1987 provides for refunds to be paid by the Australian Wool Corporation out of the Market Support Fund, once a refund period has been declared, to producers of wool in respect of participating wool for that period. Sub-section 51(2) of the Wool Marketing Act 1987 provides for regulations concerning the manner of payment of the refunds and conditions governing such refunds.
Part II of the regulations therefore provides for the administrative procedures to be followed in making such refunds. These procedures include determining who is entitled to a refund; how the refund is calculated; how the refunds are to be distributed through persons registered under the Wool Tax (Administration) Act 1964 or by the Australian Wool Corporation; records to be kept by the Corporation and registered persons; information to be provided by registered persons; recovery of overpayments; payment of remuneration by the Corporation to registered persons for costs incurred in making refunds; and prescribing penalties. Part II is a merging of the administrative procedures contained in Part IIIA of the Wool Industry Act 1972 and the regulations made under that Part IIIA. The regulations are the Wool Industry (Market Support Fund - Refunds) Regulations: Statutory Rules No 154 of 1981 as amended by Statutory Rules Nos 103 of 1983 and 286 of 1986.
Paragraphs 127(2)(e) and (f) of the Wool Marketing Act 1987 provide for regulations to be made in relation to the registration and inspection of wool sampling sites and fees payable. Part III - Sampling Sites is in effect the continuation of the Wool Industry (Sampling Sites) Regulations: Statutory Rules No 102 of 1979 as amended by Statutory Rules nos 190 of 1983, 117 and 266 of 1984 and 259 of 1985 made under the Wool Industry Act 1972. These regulations cover registration of sampling sites, fees payable, inspection of sampling sites, obligations of site operators, and cancellation of registration.
Part IV - Liability to Taxation continues that part of the Australian Wool Corporation and Australian Wool Testing Authority (Liability to Taxation) Regulations: Statutory Rules 177 of 1976, made under the Wool Industry Act 1972 applying to the Australian Wool Corporation. These regulations provide for the Australian Wool Corporation to pay pay-roll tax under State legislation. The Australian Wool Testing Authority Limited became a private company in 1982.
Part V provides for the review by the Administrative Appeals Tribunal of certain decisions by the Australian Wool Corporation and Secretary of the Department of Primary Industry.
Details of the Regulations are given in the attachment.
ATTACHMENT
DETAILS OF THE REGULATIONS
PART I - PRELIMINARY
Regulation 1: Citation
Provides for the regulations to be cited as the Wool Marketing Regulations.
Regulation 2: Interpretation
Unless the contrary interpretation occurs “the Act” means the Wool Marketing Act 1987.
PART II - REPAYMENT OF MONEYS PAID INTO MARKET SUPPORT FUND
DIVISION 1: PRELIMINARY
Regulation 3: Interpretation
Provides for the definition for terms used in the regulations not already appearing in section 3 of the Wool Marketing Act 1987.
Sub-regulations (2)-(4) relate to the timing of production and sale of wool produced. Sub-regulation (5) identifies the commencement of the payment of wool tax to the Market Support Fund as 2 September 1974 and therefore the commencement of the refund period. Sub-regulation (6) allows for the sale or export of wool by or on behalf of a person exercising rights under a mortgage, lien etc given by the producer as security.
Under sub-regulation (7) the Northern Territory is regarded as a State. The Australian Capital Territory is included in New South Wales for the purposes of the Wool Tax (Administration) Act 1964.
DIVISION 2 - ENTITLEMENT TO REFUNDS
Regulation 4: Producers normally entitled to refunds
Subject to Regulation 5, 6, 7 and 8, the producer of participating wool is entitled to be paid a refund as prescribed under Regulation 9.
Regulation 5: Bankrupt estates
If a trustee is administering or has administered (under the provisions of the Bankruptcy Act 1966) a person’s affairs, a deceased estate, an estate which is administered by a personal representative and participating wool was produced, it will be the trustee who will receive any refund; subject to exclusions in sub-regulation (3).
Regulation 6: Defunct companies and dissolved partnerships Provision is made in relation to defunct companies and dissolved partnerships to allow the Australian Wool Corporation (Corporation) to determine to whom a refund is payable.
Regulation 7: Deceased persons
Provides for any refund that would have been paid to a person who has now died, to be payable to the personal representative of that person, subject to Regulation 5 under which it would be paid to the trustee.
Regulation 8: Personal representatives and trustees
Provides that in the case where there has been a change in the identity of the personal representative or the trustee, as the case may be, the refund in relation to participating wool will be paid to the person or trustee who fills these positions for the time being.
Regulation 9: Amount of refund
Wool can be sold on different bases such as by a wool-broker on behalf of the producer, by the producer to a registered wool-dealer or to a manufacturer or by a producer to a person in other circumstances. The recovery of wool tax varies according to the selling procedure, and it is therefore necessary to have different procedures for calculating the amount of refund.
This regulation Provides for the determination of the amount of refund payable to a producer in relation to a declared refund period. If the wool was sold by a wool-broker on behalf of the producer, was sold by the producer to a registered wool-dealer or to a manufacturer or sold by a producer to a person in other circumstances, and the Corporation is satisfied that the wool tax payable was actually recovered or retained, then the amount refunded will be 5/8 of the amount of that wool tax. However, where the Corporation is satisfied that in a sale agreement for wool, the producer was paid a price for the wool fixed after allowing an amount in respect of wool tax, the amount of refund payable is equal to 5/92 of that price.
Where wool is used in manufacture by or on behalf of the producer or exported by or on behalf of the producer during the refund period, the amount of refund payable is 5/8 of the amount paid by the producer for wool tax purposes.
The regulation also provides a procedure for the price paid for particular wool to be determined by the Corporation based on information relating to prices paid for similar quality wool, where the producer of wool is unable to establish the price that was paid for the wool.
Where wool has been dealt with and accounts provided to producers by a wool-broker, registered wool-dealer, manufacturer or exported in a refund period and the refund or total of the refunds payable has been determined as being less than $10, then a refund is not payable. Also where a refund payable in respect of any claim has been determined as being less than $10, then a refund is not payable.
DIVISION 3: METHOD OF DISTRIBUTION
Regulation 10: Persons by whom refunds in respect of participating wool are to be made
Specifies that refunds are to be paid by registered persons, which include wool-brokers, registered wool-dealers, manufacturers or registered exporters, on behalf of the Corporation, or by the Corporation. The circumstances where the Corporation is to make the payment of a refund are provided. Also provides for refunds to be paid by registered
persons holding records relating to particular wool, in situations where the registered person who dealt with the wool ceases to be registered.
Regulation 11: Registered persons to make refunds on behalf of Corporation
Specifies what information a registered person who dealt with wool is to provide to the Corporation within one month of a declaration of a refund period notified in the Gazette and also what the registered person should do if not all the prescribed information is available. This regulation also specifies what action the Corporation should undertake to authorise registered persons, within 3 months after the date of publication of the refund period in the Gazette, to make appropriate refund payments or advise registered persons that the refund payments will be made by the Corporation.
Provision is made for the Corporation to further investigate information provided by registered persons and it is specified what the registered person or other person should do if the information is not available. Where information is not provided or a statement setting out the reasons why the information was not provided, a Corporation certificate stating this fact is evidence of non-compliance.
This regulation also provides for situations relating to the timing of the declaration of a refund period where registered persons hold records relating to particular wool and the registered person who dealt with the wool ceases to be
registered. A registered person is only considered to have dealt with wool where wool tax has not already been paid on that wool. A registered person is not liable for conviction where the previous registered person did not comply with providing information or a statement advising the information was not available.
Regulation 12: Payments authorised under Regulation 11
Provides for the Corporation to pay to registered persons those moneys which have been authorised under Regulation 11, so that registered persons can make payments to wool producers. The Regulation also provides for the registered person to return to the Corporation any moneys which have not been paid to producers after 1 month of receipt of the moneys from the Corporation, with reasons for non-payment. It also provides for registered persons to return to the Corporation an amount equal to returned cheques or unpresented cheques after 15 months.
Regulation 13: Claims made upon the Corporation
Provides for a person who believes that a refund is payable and who has not received a refund within 4 months of the declaration of a refund period, to make a claim to the Corporation. The circumstances where the Corporation need not make a payment after having received a claim for a refund are specified.
The Corporation is required to investigate a claim, in a manner it determines, as soon as practicable after it receives the claim and determine if a payment or additional payment is warranted. The Corporation is to advise the claimant in writing of its decision, the reasons for it and where claims are successful the basis on which the amount of the payment has been determined, as well as forwarding the moneys to the claimant.
Regulation 14: Manner of payment of refund
Requires that payments to persons be made by either cheque or by electronic/telegraphic transfer of funds. Payments by a registered person or the Corporation to a person entitled to a refund shall be accompanied by a written statement identifying the amount paid as the refund.
Regulation 15: Moneys paid under Regulation 12 to be held in trust
Requires registered persons to hold in trust for the Corporation moneys paid to them by the Corporation for the purpose of making refunds.
Regulation 16: Investment of moneys received under
Regulation 12
Requires registered persons to hold moneys in a bank account opened and used for the purpose of making refunds. Interest earned on moneys held in such an account is to be paid to the Corporation as soon as possible.
Regulation 17: Person receiving payment to which he or she is not entitled
Provides for the repayment of moneys to the Corporation where a person believes a payment should not have been made or the amount received exceeds the amount due and this is confirmed by the Corporation.
Also specifies circumstances where registered persons are to inform the Corporation where payment or overpayment is suspected and to repay moneys where this is confirmed by the Corporation.
Regulation 18: Recovery of payments
Provides for the Corporation to recover by court action any amount paid that was not payable, or not payable to whom it was paid or exceeds the amount payable and which has not otherwise been recovered under Regulation 17.
DIVISION 4: MISCELLANEOUS
Regulation 19: Corporation to keep records of persons under Administration Act
Requires the Corporation to maintain an up to date register in relation to each relevant section of the Administration Act, and for each State, of all persons registered on or after 1 July 1987 and the date thereafter that they cease to be registered. The register is not to be made public but provision is made for the identification of persons from the register for the purposes of claims to payment for participating wool.
Regulation 20: Remuneration of registered persons making payments under this Part
Requires the Corporation to make payments to registered persons, in accordance with principles approved by the Minister, for costs incurred by them in the payment of refunds for a declared period under section 50 of the Wool Marketing Act 1987 or costs incurred in the intended payment of refunds for a period proposed to be so declared.
Regulation also requires relevant organisations to make a joint submission to the Minister on the principles that the Minister should approve for the purposes of this regulation and provides for an arbitration process should the relevant organisations be unable to make a joint submission and for the method of payment and distribution of the costs of arbitration.
Regulation 21: Persons paying wool tax to furnish details to Corporation in relation to each financial year
This regulation requires a registered person who, in such capacity, deals with wool after the financial year ending 30 June 1986, to furnish to the Corporation a return setting out prescribed information in respect of all wool dealt with during that financial year or a statement in writing setting out the reasons why they are unable to provide such information. Return is to be furnished within one month of the end of the relevant fiscal year or any longer period the Corporation may allow. The obligation to furnish a return passes with the transfer of records from a person who ceases to be a registered person to another registered person.
Regulation 22: Registered person to account to Corporation
Requires a registered person to account to the Corporation for moneys provided by the Corporation for payments in respect of participating wool. The Corporation may require a registered person to provide the books and accounts relating to payments in respect of participating wool for audit by the Corporation.
Regulation 23: Access to premises
Provides an authorised person, with the consent of the occupier, to enter premises, search for examinable documents, to inspect or make copies of take extracts from examinable documents for the purposes of the administration of this Part, or to apply to a magistrate for a warrant to take such action.
Regulation 24: Destruction of records
Prohibits anyone who is or has been, after the commencement of this regulation, a registered person from destroying a relevant record without the consent of the Corporation, or from parting with the possession or control of such record other than in accordance with the Corporation’s instructions.
Regulation 25: Persons who become registered persons again after ceasing to be registered persons
Provides a mechanism whereby a person who is a registered person, who ceases to be such a person and then subsequently becomes a registered person again, will be treated under this Part as if they had never before been a registered person.
PART III - SAMPLING SITES
Regulation 26: Interpretation
Provides definition for terms used in the following regulations.
Regulation 27: Application for registration of sampling site
Provides that an application for the registration of a sampling site, lodged with the Secretary, shall firstly set out the particulars of the sampling site to which it relates. Secondly it will provide information to accurately describe the sampling process covering methods, building and equipment to be used, identification of sample with the lots sampled, records and number and qualification of staff employed.
Regulation 28: Inspection of proposed sampling site
Where an application has been made, the Secretary may direct an inspector to inspect the sampling site and may, until the site has been inspected, decline to deal further with the application.
Regulation 29: Registration
Once an application in accordance with Regulation 28 has been lodged, the criteria for registration met and the fee payable for registration has been paid, the Secretary shall register the sampling site.
Regulation 30: Criteria for registration
Provides that the Secretary shall not register a sampling site unless it meets the specified criteria.
Regulation 31: Notice of operations at sampling site
The Secretary may require the operator of a sampling site to give notice of the days, during a specified period not exceeding one month, in which the operator intends drawing samples of greasy wool.
Regulation 32: Operator to keep records
The operator shall keep records of lots and samples drawn and forward to the Secretary, by the last day of each July, a record of the number of lots of greasy wool from which core samples were drawn during the previous financial year. These records are required for monitoring and audit purposes.
Regulation 33: Power of inspectors at sites
Provides that an inspector may enter a registered sampling site at any reasonable hour and providing that the inspector is able to produce a certificate issued by the Secretary under sub-regulation 38(2) is able to remain on the site and observe or inspect the sampling operation, buildings and equipment, samples drawn and records of the site.
Regulation 34: Amendment of statement of methods
The statement of methods as provided for under Regulation 27 may be amended by the operator, with the approval of the Secretary at any time.
Regulation 35: Fees
A fee of $100 is payable for the registration of a sampling site.
An inspection fee is also payable, and is determined as follows:
51 cents or such lesser amount determined by the Minister for Primary Industry and published in the Gazette multipled by the number of lots sampled during the financial year, or $100, whichever is the greater.
Both fees are payable by the operator one month after notification of the Secretary of the amount.
Regulation 36: Cancellation of registration
Provides for the Secretary to cancel the registration of a sampling site. However, the operator must be given notice in writing specifying the ground on which the Secretary proposes to cancel the registration and a specified time in which to show reasonable cause why the registration should not be cancelled. Sub-regulations (4) and (5) provide for the date of effect of any cancellation.
Regulation 37: Notice of registration
The Secretary shall give notice in writing of the registration of a sampling site or the approval of the amendment to a statement of methods.
Regulation 38: Inspectors
Sets out the basis for appointment of inspectors of sampling sites.
The Secretary may appoint inspectors and shall give to each person so appointed a certificate stating that the person is an inspector for the purpose of these regulations.
Regulation 39: Giving of notices
Notice may be given to or by the Secretary by post, addressed as stated in the sub-regulations, or by other means as appropriate.
Regulation 40: Delegation
Powers under the regulations given to the Secretary may be delegated by the Secretary. Such a delegation does not prevent the exercise of the power by the Secretary.
Regulation 41: Transitional
Allows for transitional arrangements to ensure continuity of operation of the administration of the regulations with respect to sampling sites under the Wool Industry Act 1972 and the Wool Marketing Act 1987.
PART IV - LIABILITY TO TAXATION
Regulation 42: Liability to State pay-roll tax
Specifies that the Corporation is subject to pay-roll tax in each of the six States in accordance with their respective Pay-roll Tax Acts.
PART V - REVIEW OF DECISIONS
Regulation 43: Review of decisions of Corporation
Provides for applications to be made to the Administrative Appeals Tribunal to review a decision made by the Corporation in relation to the determination of a claim for an amount of refund payment or additional refund payment.
Regulation 44: Review of decisions of Secretary
Provides for applications to be made to the Administrative Appeals Tribunal to review a decision made by the Secretary in relation to not registering a sampling site, not approving an amendment of the statement of methods relating to a registered sampling site or cancelling the registration of a sampling site.
Regulation 45: Statement to accompany notice of decision Requires the Corporation or the Secretary as the case may be to make reference to the Administrative Appeals Tribunal when giving written advice of decisions relating to the determination of refund payments and the registration of sampling sites respectively. However the omission of reference to the Administrative Appeals Tribunal in the written advice does not affect the validity of the decision.