Wool Tax Amendment Regulations 2000 (No. 1)

Administered by Department of the Treasury

Legislation au F2000B00161 Regulations Not in force Legislative Instrument

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Wool Tax Amendment Regulations 2000 (No. 1) 2000 No. 153

EXPLANATORY STATEMENT

STATUTORY RULES 2000 No. 153

Issued by the Authority of the Assistant Treasurer

Wool Tax Act (No 1) 1964

Wool Tax Act (No 2) 1964

Wool Tax Act (No 3) 1964

Wool Tax Act (No 4) 1964

Wool Tax Act (No 5) 1964

Wool Tax Amendment Regulations 2000 (No. 1)

Section 6 of each of the Wool Tax Act (No 1) 1964, Wool Tax Act (No 2) 1964 Wool Tax Act (No 3) 1964 Wool Tax Act (No 4) 1964 and Wool Tax Act (No 5) 1964 (the

Acts) provides that the Governor-General may make regulations for giving effect to the Acts.

The Regulations amend each of the Wool Tax (No. 1) Regulations, Wool Tax (No. 2)

Regulations, Wool Tax (No. 3) Regulations, Wool Tax (No. 4) Regulations and the Wool Tax (No. 5) Regulations (the Regulations) to lower the wool tax rate from 4 per cent to

3 per cent from 1 July 2000. The different Wool Tax Regulations apply to different

persons in the wool industry such as brokers, dealers, manufacturers and exporters.

The Government agreed to lower the rate for shorn wool (subsection 5(1) of the Acts) and carpet wool (subsection 5(2) of the Acts) from 4 per cent to 3 per cent from 1 July 2000. This decision followed consideration of the 1999 wool industry Future Directions Taskforce Report. The Taskforce was established in December 1998 to undertake a major inquiry into the future of the Australian wool industry.

The Government agreed to lower the wool tax rate in a staged manner to ensure the costs of transition of establishing the new entity(ies) to replace the Australian Wool Research and Promotion Organisation (AWRAP) and its subsidiary, the Woolmark Company, with private sector arrangements, are fully met. A request to further reduce the rate to 2 per cent will be made later depending on the extent of the transition costs.

The Minister for Agriculture, Fisheries and Forestry has portfolio responsibility for the wool industry and the reform process. Section 51 of the Australian Wool Research and Promotion Organisation Act 1993 (the AYWO Act) allows for recommendations to be determined by the Minister for Agriculture, Fisheries and Forestry in relation to the rate of wool tax. However, the wool tax is raised under the Acts, which are administered by the Treasurer.

The AWRPO Act as amended (Act No. 47 of 2000) allowed the Government to lower the tax rate based on the results of Wool Poll 2000, rather than having to hold a formal Wool Tax Ballot as previously required.

When the Regulations were first gazetted in 1987, they were gazetted without the, year being included in the name. The Regulations are now cited with the year 1987 included in the name for each of the 5 Regulations.

The Regulations specify that: the wool tax rate is lowered to 3 per cent; the new rate commences on 1 July 2000; the new rate applies to both shorn wool and carpet wool produced in Australia; and. the name of the Regulations to be cited with the year 1987.

Details of the amending Regulations are attached.

The Regulations commence on 1 July 2000.

ATTACHMENT

Details of the Regulations are as follows:

Regulation 1:       Identifies the Regulations as the Wool Tax Amendment Regulations 2000 (No. 1 ).

Regulation 2: Provides for the Regulations to commence on 1 July 2000.

Regulation 3:       Amends the Wool Tax (No. 1) Regulations. The amendments are contained in Schedule 1 of the Regulations.

Regulation 4:       Amends the Wool Tax (No. 2) Regulations. The amendments are contained in Schedule 2 of the Regulations.

Regulation 5:       Amends the Wool Tax (No. 3) Regulations. The amendments are contained in Schedule 3 of the Regulations.

Regulation 6:       Amends the Wool Tax (No. 4) Regulations. The amendments are contained in Schedule 4 of the Regulations.

Regulation 7:       Amends the Wool Tax (No. 5) Regulations. The amendments are contained in Schedule 5 of the Regulations.

Item 1

Regulation 1 provides that the Regulations are cited as the Wool Tax (No. 1) Regulations 1987 (the Regulations No 1).

Item 2

Subregulation 3(1) of the Regulations No. 1 is amended from 1 July 2000 with the new rate of wool tax of 3% for shorn wool (other than carpet wool) on which the tax is payable on the, sale value of the wool. This is a reduction of 1 % on the current rate.

Subregulation 3(2) of the Regulations No. 1 is amended from 1 July 2000 with the new rate of wool tax for carpet wool of 3% on which the tax is payable. This is a reduction of 1 % on the current rate.

Schedule 2

Item 1

Regulation 1 provides that the Regulations are cited as the Wool Tax (No. 2) Regulations 1987 (the Regulations No 2).

Item 2

Subregulation 3(1) of the Regulations No. 2 is amended from 1 July 2000 with the new rate of wool tax of 3% for shorn wool (other than carpet wool) on which the tax is

payable on the sale value of the wool. This is a reduction of 1 % on the current rate.

Subregulation 3(2) of the Regulations No. 5 is amended from 1 July 2000 with the new rate of wool tax for carpet wool of 3% on which the tax is payable. This is a reduction of 1 %on the current rate.

Schedule 3

Item 1

Regulation 1 provides that the Regulations are cited as the Wool Tax (No. 3) Regulations 1987 (the Regulations No 3).

Subregulation 3(1) of the Regulations No. 3 is amended from 1 July 2000 with the new rate of wool tax of 3% for shorn wool (other than carpet wool) on which the tax is

payable on the sale value of the wool. This is a reduction of 1 % on the current rate.

Subregulation 3(2) of the Regulations No. 3 is amended from 1 July 2000 with the new rate of wool tax for carpet wool of 3% on which the tax is payable. This is a reduction of 1 % on the current rate.

Schedule 4

Item 1

Regulation 1 provides that the Regulations are cited as the Wool Tax (No. 4) Regulations 1987 (the Regulations No 4).

Item 2

Subregulation 3(1) of the Regulations No. 4 is amended from 1 July 2000 with the new rate of wool tax of 3% for shorn wool (other than carpet wool) on which the tax is

payable on the sale value of the wool. This is a reduction of 1% on the current rate.

Subregulation 3(2) of the Regulations No. 4 is amended from 1 July 2000 with the new rate of wool tax for carpet wool of 3% on which the tax is payable. This is a reduction of 1 % on the current rate.

Schedule 5

Item 1

Regulation 1 provides that the Regulations are cited as the Wool Tax (No. 5) Regulations 1987 (the Regulations No 5).

Item 2

Subregulation 3(1) of the Regulations No. 5 is amended from 1 July 2000 with the new rate of wool tax of 3% for shorn wool (other than carpet wool) on which the tax is payable on the sale value of the wool. This is a reduction of 1% on the current rate.

Subregulation 3(2) of the Regulations No. 5 is amended from 1 July 2000 with the new rate of wool tax for carpet wool of 3% on which the tax is payable. This is a reduction of 1% on the current rate.

 

Overview

The Wool Tax Amendment Regulations 2000 (No. 1) were enacted in 2000 by the Commonwealth Parliament to amend the existing Wool Tax Acts and corresponding regulations, as per the authority granted in section 6 of the Wool Tax Acts (No 1 to 5) 1964. The primary purpose of these regulations was to implement a reduction in the wool tax rate from 4 per cent to 3 per cent, effective from 1 July 2000. This reduction applied to both shorn wool and carpet wool produced in Australia and was in response to recommendations from the 1999 Future Directions Taskforce Report, which was established to explore the future of the Australian wool industry. The amendments aimed to facilitate the transition from the Australian Wool Research and Promotion Organisation (AWPRO) to private sector arrangements, ensuring the costs of this transition were fully met. The Minister for Agriculture, Fisheries and Forestry had portfolio responsibility for the wool industry and the reform process, and the regulations were issued under the Australian Wool Research and Promotion Organisation Act 1993, as amended.

Scope and Application

The Wool Tax Amendment Regulations 2000 (No. 1) apply to various stakeholders in the Australian wool industry, including brokers, dealers, manufacturers, and exporters. These regulations amend the existing Wool Tax Regulations to reduce the wool tax rate from 4 per cent to 3 per cent, effective from 1 July 2000. This reduction applies to both shorn wool and carpet wool produced in Australia, aligning with the decision made by the Australian Government following the Future Directions Taskforce Report. The amendments are designed to support the transition to a new industry structure, replacing the Australian Wool Research and Promotion Organisation (AWPRO) with private sector arrangements. The Minister for Agriculture, Fisheries and Forestry, who holds responsibility for the wool industry, has authority to recommend changes to the wool tax rate, although the tax itself is levied under the Wool Tax Acts administered by the Treasurer. The new rate is effective as of 1 July 2000, and the regulations also specify that the Regulations should be cited with the year 1987 included in their names.

Key Provisions

The Wool Tax Amendment Regulations 2000 (No. 1) amend the existing Wool Tax Regulations by reducing the tax rate from 4% to 3% for shorn wool and carpet wool, effective from 1 July 2000. These amendments apply to the Wool Tax (No. 1) Regulations, Wool Tax (No. 2) Regulations, Wool Tax (No. 3) Regulations, Wool Tax (No. 4) Regulations, and Wool Tax (No. 5) Regulations, which govern different entities within the wool industry such as brokers, dealers, manufacturers, and exporters. The new tax rate of 3% applies to the sale value of both shorn wool and carpet wool produced in Australia. The Regulations also specify that the name of these Regulations should include the year 1987, which was the year they were first gazetted. The primary obligations imposed by the Regulations include the requirement for relevant entities in the wool industry to adjust their tax calculations to reflect the new rate of 3%. This involves updating their accounting systems and records to ensure compliance with the new tax rate from 1 July 2000. The Regulations mandate that all transactions involving the sale of shorn wool and carpet wool be subject to the new tax rate, with no exceptions unless otherwise specified. Furthermore, entities must ensure that any previous tax filings are adjusted if they were made under the old tax rate before the effective date of the new regulations. Failure to comply with the new tax rate as stipulated in the Regulations can result in civil penalties. The specific consequences for non-compliance are not detailed in the explanatory statement, but typically, penalties for tax non-compliance in Australia can include fines, interest on unpaid taxes, and potential legal action to recover the owed amount. Given the context of the Wool Tax Amendment Regulations, the penalties for non-compliance would likely be in line with those applicable to other tax-related offences under Australian law. While the maximum penalties are not explicitly stated in the explanatory statement, it is reasonable to expect that they could include substantial fines and interest charges, which could accumulate over time if the non-compliance is not rectified promptly.

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