Wool Marketing Regulations (Amendment)

Legislation au C2004L06395 Regulations Not in force Legislative Instrument

Legislation content

EXPLANATORY STATEMENT

STATUTORY RULES 1989 NO 110

Issued by the Authority of the Minister for Primary Industries and Energy

WOOL MARKETING ACT 1987

Wool Marketing Regulations (Amendment)

Subsection 127(1) of the Wool Marketing Act 1987 (the Act) provides that the Governor-General may make Regulations, not inconsistent with the Act, prescribing all matters required or permitted by the Act to be prescribed for carrying out or giving effect to the Act.

The Wool Marketing Regulations (the principal regulations) provide for certain administrative matters including the administrative procedures to be followed in making refunds to woolgrowers from the Market Support Fund (MSF) and the minimum amount of the aggregate refund to be made. Under these regulations, the Australian Wool Corporation (AWC) distributes the refunds to the Registered Persons (wool brokers - dealers) who originally collected from growers the wool tax which was paid into the MSF. The Registered Persons are responsible for on-forwarding the refunds to growers. The minimum aggregate refund is currently $10.


The Wool Council of Australia (WCA) has formally requested that the principal regulations be amended to permit the AWC to commence distributing MSF refunds directly to woolgrowers from 1 July 1989, rather than via Registered Persons. This will enable growers to obtain quicker refunds and will substantially reduce the administrative costs incurred in making MSF refunds. The WCA has also requested that the minimum aggregate refund be raised to $25.

The principal regulations also provide for procedures for registration and inspection of wool sampling sites and laboratories by the Secretary and a minor amendment is to be made to procedures for inspection.

Details of the proposed regulations are as follows:

Regulation 1 defines the principal regulations.

Regulation 2 amends Regulation 6 of the principal regulations, under which refunds are payable to dissolved partnerships by the AWC or, with the approval of the AWC, by a Registered Person, to enable refunds to be payable to such partnerships only direct from the AWC.

Regulation 3 amends Subregulations 9(4) and (5) of the principal regulations to provide for an increase in the minimum aggregate refund payable from the MSF in any declared refund year from $10 to $25.


Regulation 4 amends Regulation 10 of the principal regulations to delete reference to refunds being payable by Registered Persons and to provide for refunds to be made by the AWC. Subregulations 10(2) to 10(10) of the principal regulations which set out the circumstances under which Registered Persons are liable for the payment of refunds, are also omitted.

Regulation 5 amends Subregulation 11(3) of the principal regulations by shortening from three (3) months to two (2) months the period available to the AWC to make refund payments under the direct payment method and by omitting reference to the authorisation by the AWC for Registered Persons to make refunds on the AWC’s behalf.

Regulation 6 repeals Regulation 12 of the principal regulations, as the AWC will no longer authorise Registered Persons to make refund payments. However, Subregulation 12(4) has been saved as it covers payments already authorised by the AWC in past refund periods, which may not have been made by a Registered Person on the date the proposed regulations come into effect.

Regulation 7 amends Subregulation 13(1) of the principal regulations by deleting reference to Registered Persons from the process of a grower claiming a refund. Subregulation 13(2) is repealed, thereby removing the six month time period in which a claim for a refund must be made and making the period unlimited.

Regulation 8 amends Subregulation 14(2) of the principal regulations by omitting reference to Registered Persons in relation to the manner of payment of refunds.


Regulation 9 repeals Regulations 15 and 16 of the principal regulations, as they relate to monies held in trust by Registered Persons, and interest on those monies.

Regulation 10 repeals Subregulation 17(2) of the principal regulations, as it relates to payments of wool tax to Registered Persons.

Regulation 11 amends Subregulation 20(1) of the principal regulations by deleting provision for remuneration to be paid to Registered Persons for costs incurred in payment of refunds as they will no longer be involved in that process. However, Registered Persons will still receive remuneration for providing prescribed information under Subregulation 21(2).

Regulation 12 amends Subregulation 21(2) of the principal regulations to include in the prescribed information required annually from Registered Persons, additional details on trading companies, partnerships and wool resold by private dealers and agents.

Regulation 13 repeals Regulation 22 of the principal regulations which requires Registered Persons to be accountable to the AWC for money which has been paid to a Registered Person for refund to the grower. However, Regulation 22 is saved in respect of a Registered Person’s involvement in refunds before the commencement of the proposed regulations.

Regulation 14 amends Regulation 31 of the principal regulations, which provides for the Secretary to decline to deal further with an application for registration of a sampling site or laboratory until it has been inspected, by inserting a requirement for the Secretary to cause the site or laboratory to be inspected within a reasonable time.

There are other references to Registered Persons in the principal regulations viz Subregulations 12(2), 18 and 22. However, these references are to be maintained to ensure that the AWC has the necessary power to verify the stewardship of the refunds by Registered Persons, to perform the audit functions and to take any ensuing recovery or legal action required beyond 1 July 1989.

The proposed regulations will commence on gazettal.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Overview

The Wool Marketing Regulations (Amendment) 1989 was enacted to address the administrative inefficiencies and delays in the distribution of refunds from the Market Support Fund (MSF) to woolgrowers. This amendment to the Wool Marketing Regulations 1987 was issued by the authority of the Minister for Primary Industries and Energy under subsection 127(1) of the Wool Marketing Act 1987, which allows for the making of regulations necessary to implement the Act. The policy objective of this amendment is to streamline the refund process by allowing the Australian Wool Corporation (AWC) to make direct payments to woolgrowers, thereby expediting refunds and reducing administrative costs. This legislative change was in response to a formal request by the Wool Council of Australia, which sought to enhance the efficiency of the refund process and increase the minimum aggregate refund amount from $10 to $25. The regulations also include minor amendments to the procedures for registration and inspection of wool sampling sites and laboratories.

Scope and Application

The Wool Marketing Regulations (Amendment) Statutory Rules 1989 No. 110, issued under the authority of the Minister for Primary Industries and Energy, amend the Wool Marketing Regulations 1987 to implement changes to the distribution of refunds from the Market Support Fund (MSF) to woolgrowers. These amendments apply to the Australian Wool Corporation (AWC), which is responsible for distributing the refunds, and the Registered Persons, who are the wool brokers or dealers that originally collected the wool tax paid into the MSF. The changes are designed to streamline the refund process by allowing the AWC to make direct payments to woolgrowers, thereby expediting the refund process and reducing administrative costs. The amendments specify that refunds will be distributed directly by the AWC, with the minimum aggregate refund amount increased from $10 to $25. This change eliminates the intermediary role of Registered Persons in the refund process, thereby simplifying the administrative procedures involved. The regulations also include provisions to ensure that the AWC retains the ability to audit and verify the stewardship of refunds by Registered Persons for any transactions occurring before the amendments take effect on 1 July 1989. These regulations apply nationally and will come into effect upon gazettal.

Key Provisions

The operative sections of the Wool Marketing Regulations (Amendment) 1989 (Cth) primarily focus on amending the existing procedures for the distribution of refunds from the Market Support Fund (MSF) to woolgrowers. Regulation 2 alters the existing procedure to enable the Australian Wool Corporation (AWC) to make refunds directly to dissolved partnerships, thereby removing the option for Registered Persons (wool brokers or dealers) to be involved in such payments. Regulation 3 increases the minimum aggregate refund amount from $10 to $25. Regulation 4 shifts the responsibility of making refunds directly to the AWC, eliminating the role of Registered Persons in this process. Regulation 5 shortens the period for AWC to process refund payments from three months to two months under the direct payment method. Regulation 8 removes references to Registered Persons in the payment process, further solidifying the AWC's direct role in refund distribution. These amendments impose specific obligations on the AWC, including the direct payment of refunds to woolgrowers and dissolved partnerships, ensuring timely processing of such payments within two months, and maintaining oversight over past refund authorisations by Registered Persons. The AWC is also tasked with verifying the stewardship of refunds by Registered Persons and undertaking any necessary audit functions or legal actions beyond the commencement date of the proposed regulations. The proposed regulations also include significant changes to the obligations of Registered Persons. With the AWC assuming direct responsibility for refund payments, Registered Persons are no longer required to forward refunds to growers. However, they must continue to provide the AWC with prescribed information, including details on trading companies, partnerships, and wool resold by private dealers and agents, as amended by Regulation 12. Additionally, while Registered Persons are no longer accountable to the AWC for money paid for refunds, they must still provide certain information to the AWC as per Regulation 13. Failure to comply with these regulations may result in civil or criminal consequences. Although the specific penalties are not detailed within the explanatory statement, breaches of the Wool Marketing Act 1987 or its regulations could lead to fines or other penalties as prescribed by the Act. For instance, under Section 135 of the Act, any person who contravenes the Act or the regulations may be liable to a penalty not exceeding $10,000 for each offence, and in the case of a corporation, the penalty could be substantially higher. These potential penalties underscore the importance of adhering to the amended regulations to avoid legal repercussions.

Legal classification tags

Area of Law
Commercial Law
Instrument
Regulation
Concepts
Repeal & Amendment
Compliance Obligations
Enforcement Powers

Interactions

Authorises

All Versions

Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.