EXPLANATORY STATEMENT
STATUTORY RULES 1990 No. 193
Issued By The Authority Of The Treasurer
Wool Tax Acts (Nos. 1-5) 1964
WOOL TAX (Nos. 1-5) REGULATIONS (AMENDMENT)
These regulations prescribe the rate of wool tax for the purposes of subsection 6(1) of each of the Wool Tax Acts (Nos. 1-5) 1964 (the Acts) at 18 per cent of the sale value of shorn wool, effective on and from 1 July 1990.
The Acts impose tax on shorn wool produced in Australia and sold through various marketing channels, namely, sold by a wool broker or through a registered wool dealer or manufacturer, subjected to a process of manufacture or exported for sale. The need for five separate Acts arises from a constitutional requirement that laws imposing taxes should deal with one subject of taxation only.
Amendments of the Acts by the Wool Tax (Nos. 1-5) Amendment Acts 1990 increased the rate of tax from 10 per cent to 20 per cent. The Governor-General, under section 6 of each of the Acts, is authorised to make regulations prescribing a lower rate of tax, being a rate not less than 5.25 per cent. Before making regulations under section 6, the Governor-General is required to take into consideration any recommendations with respect to the rate that is made to the Treasurer by the Wool Council of Australia.
The Wool Council of Australia recommended that the rate of wool tax for the 1990-91 financial year be set at 18 per cent. These regulations, which give effect to the recommendation, mean that the operative rate of wool tax will be 18 per cent of the sale value of shorn wool sold on or after 1 July 1990.
Details of the amending regulations are as follows:
Commencement
By regulation 1 the amendments to the Wool Tax (Nos. 1-5) Regulations come into effect on 1 July 1990.
Prescribed lower rate of tax
Regulation 2 in accordance with paragraph 5(b) of each of the Wool Tax Acts (Nos. 1-5) 1964, amended regulation 3 of the Wool Tax (Nos. 1-5) Regulations by increasing the operative rate of wool tax from 8 per cent to 18 per cent.