Wool Tax (No. 1) Further Amendment Act 1990

Administered by Department of Agriculture

Legislation au C2004A04022 Not in force Act

Legislation content

Wool Tax (No. 1) Further Amendment Act 1990

No. 91 of 1990

 

An Act to amend the Wool Tax Act (No. 1) 1964,
and for related purposes

[Assented to 29 November 1990]

The Parliament of Australia enacts:

Short title etc.

1. (1) This Act may be cited as the Wool Tax (No. 1) Further Amendment Act 1990.

(2) In this Act, “Principal Act” means the Wool Tax Act (No. 1) 19641.

Commencement

2. This Act is to be taken to have commenced on 4 October 1990.

Imposition of tax

3. Section 4 of the Principal Act is amended by omitting from subsection (1) “a tax” and substituting “tax”.


Rate of tax

4. Section 5 of the Principal Act is amended:

(a) by omitting “the tax” and substituting “tax, other than additional tax,”;

(b) by omitting “20%” and substituting “30%”;

(c) by omitting paragraph (b) and substituting the following paragraph:

“(b) if a lower rate is applicable to the wool under the regulations—that lower rate.”.

5. After section 5 of the Principal Act the following section is inserted:

Surcharge in respect of certain wool

“5a. (1) On and after a date to be fixed by the regulations, additional tax is payable in respect of shorn wool, other than carpet wool, sold by a wool-broker.

“(2) The rate of additional tax is:

(a) 20% of the sale value of the wool; or

(b) if a lower rate is applicable to the wool under the regulations— that lower rate.”.

6. Section 6 of the Principal Act is repealed and the following section is substituted:

Regulations

“6. (1) The Governor-General may make regulations, not inconsistent with this Act, prescribing matters:

(a) required or permitted by this Act to be prescribed; or

(b) necessary or convenient to be prescribed for carrying out or giving effect to this Act.

“(2) A rate prescribed for the purpose of paragraph 5 (b) or 5a (2) (b) must be a rate that is a particular percentage of the sale value of the shorn wool on which tax, or additional tax, as the case requires, is payable.

“(3) Regulations made for the purpose of paragraph 5 (b) may prescribe different rates for:

(a) shorn wool other than carpet wool; and

(b) carpet wool;

or may prescribe only a rate for shorn wool other than carpet wool or only a rate for carpet wool.

“(4) A percentage specified in a rate of tax prescribed for the purpose of paragraph 5 (b):

(a) in the case of a rate applicable to shorn wool other than carpet wool—must not be less than 5.25%; and


(b) in the case of a rate applicable to carpet wool—must not be less than 2.75%; and

(c) must not be such that, at any time, the percentage is different from a percentage specified in a rate of tax prescribed for the purpose of paragraph 5 (b) of another Wool Tax Act in respect of the same kind of wool.

“(5) Before making regulations under this section prescribing a rate of tax, the Governor-General is required to take into consideration:

(a) in the case of regulations to prescribe a rate for the purpose of paragraph 5 (b)—any recommendations with respect to that rate made to the Minister by the Wool Council of Australia, being the organisation that was formed under that name on 19 July 1979; or

(b) in the case of regulations to prescribe a rate for the purpose of paragraph 5a (2) (b)—any recommendations with respect to that rate made to the Minister by the Australian Wool Corporation.”.

Temporary fixing of rate of tax

7. (1) The Principal Act, as amended by this Act:

(a) has effect, in relation to shorn wool other than carpet wool, as if a rate of 25% had been prescribed, with effect on and from 4 October 1990, for the purpose of paragraph 5 (b); and

(b) so has effect until regulations prescribing a rate for the purpose of paragraph 5 (b) first come into operation after the commencement of this Act.

(2) The Principal Act, as amended by this Act:

(a) has effect, in relation to carpet wool, as if a rate of 3.85% had been prescribed, with effect on and from 4 October 1990, for the purpose of paragraph 5 (b); and

(b) so has effect until regulations prescribing a rate for the purpose of paragraph 5 (b) first come into operation after the commencement of this Act.

NOTE

1. No. 25, 1964, as amended. For previous amendments, see No. 64, 1973; No. 66, 1974; No. 86, 1975; Nos. 37 and 72, 1976; No. 44, 1977; No. 72, 1978; No. 32, 1979; No. 51, 1980; No. 85, 1985; No. 46, 1987; and No. 63, 1990.

[Minister’s second reading speech made in—

House of Representatives on 13 November 1990

Senate on 15 November 1990]

Overview

The Wool Tax (No. 1) Further Amendment Act 1990, enacted by the Parliament of Australia, amends the Wool Tax Act (No. 1) 1964 to update the tax rates and introduce an additional tax on certain types of shorn wool. The legislation was introduced to address discrepancies and gaps in the existing tax structure, ensuring a more equitable and efficient system for taxing wool. This Act not only revises the tax rates but also establishes new regulations for the imposition of additional tax on wool sold by wool-brokers, with specific percentages to be determined through regulation. The policy objective of this amendment is to refine the tax framework in a manner that aligns with current economic conditions and industry standards, ensuring both revenue generation and fairness in the taxation of wool. The Act empowers the Governor-General to make regulations that are necessary for the implementation of these amendments, including setting specific minimum tax rates for different types of wool and allowing for different rates to be applied based on recommendations from industry bodies such as the Wool Council of Australia and the Australian Wool Corporation. The temporary fixing of tax rates ensures continuity in the tax system during the transition period before the new regulations come into effect.

Scope and Application

The Wool Tax (No. 1) Further Amendment Act 1990 applies to the entities and individuals involved in the sale of shorn wool, with particular emphasis on the role of wool-brokers in the transaction chain. This Act amends the Wool Tax Act (No. 1) 1964, extending its application to encompass the imposition of tax on wool sold by wool-brokers and modifying the tax rate structure. The jurisdiction of this Act is federal, applying across the Commonwealth of Australia. It includes provisions for the temporary fixing of tax rates until further regulations are made, ensuring continuity in tax application pending the establishment of new rates through subordinate legislation. This Act does not specify any exclusions or exemptions; however, it does provide for the possibility of different tax rates being applied to different types of wool, such as shorn wool and carpet wool, through regulations. The Act empowers the Governor-General to make regulations prescribing the tax rates, subject to certain conditions and minimum thresholds, reflecting the importance of the wool industry to the Australian economy.

Key Provisions

The Wool Tax (No. 1) Further Amendment Act 1990 primarily serves to revise the tax rates and mechanisms under the Wool Tax Act (No. 1) 1964. The Act modifies the tax imposition and rates, introduces a surcharge on wool sold by wool-brokers, and delineates the regulatory framework for tax rates (sections 1, 3, 4, 5a, and 6). These amendments are designed to update and refine the fiscal structure governing the taxation of wool in Australia. The Act imposes several obligations on entities involved in the sale of wool. Firstly, it mandates that a tax rate of 30% applies to shorn wool, with an additional 20% tax or a lower rate as specified by regulations for wool sold by wool-brokers (sections 4 and 5a). The Act also requires the Governor-General to consider recommendations from the Wool Council of Australia or the Australian Wool Corporation when prescribing tax rates (section 6(5)). The temporary fixing of tax rates ensures that the existing rates remain in effect until new regulations are established (section 7). The Act outlines specific consequences for non-compliance with its provisions. While the Act does not explicitly state penalties, breaches of tax regulations under the Wool Tax Act (No. 1) 1964, as amended by this Act, may incur penalties prescribed under that Act. These penalties could include fines or other civil or criminal consequences as outlined in the Wool Tax Act. The exact penalties would depend on the nature and severity of the breach, but they could potentially include substantial financial penalties.

Legal classification tags

Area of Law
Taxation Law
Instrument
Act
Concepts
Definitions & Interpretation
Commencement Provisions
Repeal & Amendment
Regulations
Offence Provisions

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.