WOOL TAX ACT (No. 4) 1974
No. 69 of 1974
An Act to amend the Wool Tax Act (No. 4) 1964-1973.
BE IT ENACTED by the Queen, the Senate and the House of Representatives of Australia, as follows: —
Short title and citation.
1. (1) This Act may be cited as the Wool Tax Act (No. 4) 1974.
(2) The Wool Tax Act (No. 4) 1964-1973 is in this Act referred to as the Principal Act.
(3) The Principal Act, as amended by this Act, may be cited as the Wool Tax Act (No. 4) 1964-1974.
Commencement.
2. This Act shall be deemed to have come into operation on 2 September 1974.
Rate of tax.
3. Section 5 of the Principal Act is amended—
(a) by omitting the words “The rate” and substituting the words “Subject to sub-section (2), the rate”; and
(b) by adding at the end thereof the following sub-section:—
“(2) The rate of the tax in respect of wool subjected by a manufacturer to a process of manufacture on or after 2 September 1974 and before 1 July 1975, is a rate per centum of the sale value of the wool equal to the sum of 5 per centum and the rate per centum that would, but for this sub-section, be the rate of the tax.”.
Regulations.
4. Section 6 of the Principal Act is amended by omitting from sub-section (1) the words “paragraph (a) of the last preceding section” and substituting the words “paragraph 5(1)(a)”.
Application.
5. Where tax has been paid before the date on which this Act received the Royal Assent in respect of wool on which tax was imposed by section 4 of the Principal Act, being wool subjected by a manufacturer to a process of manufacture on or after 2 September 1974, the further tax imposed on that wool by virtue of the operation of this Act is due and payable at the expiration of 21 days after that first-mentioned date.
Overview
The Wool Tax Act (No. 4) 1974 was enacted to amend the Wool Tax Act (No. 4) 1964-1973, addressing the need to update and refine the tax regulations concerning the sale value of wool subjected to manufacturing processes. This Act was passed by the Queen, the Senate, and the House of Representatives of Australia. Its primary policy objective is to adjust the tax rate for wool manufactured between 2 September 1974 and 1 July 1975, ensuring that the tax is calculated as a percentage of the sale value, comprising 5 per cent plus the previously applicable rate. This legislative amendment aims to provide clarity and fairness in the taxation of wool during the specified period, reflecting changes in economic conditions and market values.
Scope and Application
The Wool Tax Act (No. 4) 1974 amends the Wool Tax Act (No. 4) 1964-1973 and applies to any wool subjected to a process of manufacture between 2 September 1974 and 1 July 1975. The Act specifies the rate of tax applicable to this period, which is a sum of 5 per centum and the rate that would otherwise apply. The Act applies to manufacturers who have already paid tax on such wool prior to its Royal Assent on the date of 2 September 1974, with a requirement for the additional tax to be paid within 21 days of the Act's commencement. The Act provides for its application to be further defined and extended through subordinate regulations, although these do not alter the primary scope of the legislation itself.
Key Provisions
The Wool Tax Act (No. 4) 1974 introduces several significant amendments to the Wool Tax Act (No. 4) 1964-1973. The Act primarily modifies the rate of tax on wool subjected to a manufacturing process after 2 September 1974 and before 1 July 1975. Under Section 3(2) of the Act, the tax rate is determined by adding five per cent to the usual rate of tax that would apply if this amendment did not exist. This adjustment aims to reflect the impact of the manufacturing process on the value of the wool at the time of sale.
Entities subject to the Wool Tax Act (No. 4) 1974 are required to adhere to the modified tax rates as stipulated in the Act. Specifically, manufacturers who process wool between the specified dates must ensure they account for the increased tax rate in their calculations. Section 5 of the Act outlines the requirement for manufacturers to pay the further tax imposed by this amendment within 21 days after the Act received Royal Assent. It is crucial for manufacturers to be aware of this timeline to avoid any potential non-compliance issues.
The Wool Tax Act (No. 4) 1974 also addresses the implications of tax paid before the Act’s commencement. If tax was already paid on wool manufactured after 2 September 1974, the additional tax imposed by the Act must be paid within 21 days of the Act receiving Royal Assent. This ensures that all relevant taxes are up-to-date and accounted for under the new legislative framework.
Failure to comply with the provisions of the Wool Tax Act (No. 4) 1974 may result in civil or criminal consequences, depending on the severity and intent of the breach. While the specific penalties are not detailed in the text provided, it is customary for such breaches to incur fines or other financial penalties under Australian tax law. The exact penalties would be determined based on the nature of the non-compliance and could be enforced through legal proceedings.