Wool Tax (No. 3) Amendment Act 1991
No. 104 of 1991
An Act to amend the Wool Tax Act (No. 3) 1964 and the Wool Tax (No. 3) Further Amendment Act 1990
[Assented to 27 June 1991]
The Parliament of Australia enacts:
PART 1—PRELIMINARY
Short title
1. This Act may be cited as the Wool Tax (No. 3) Amendment Act 1991.
Commencement
2. This Act comes into force on 1 July 1991.
PART 2—AMENDMENTS OF THE WOOL TAX ACT (No. 3) 1964
Principal Act
3. In this Part, “Principal Act” means the Wool Tax Act (No. 3) 19641.
Rate of tax
4. Section 5 of the Principal Act is amended:
(a) by omitting “tax, other than additional tax, imposed on shorn wool” and substituting “tax imposed on shorn wool other than carpet wool”;
(b) by omitting from paragraph (a) “30%” and substituting “15%”;
(c) by adding at the end the following subsection:
“(2) The rate of tax imposed on carpet wool purchased by a manufacturer from a person other than a wool-broker or a registered wool-dealer is:
(a) 4% of the sale value of the wool; or
(b) if a lower rate is applicable to the wool under the regulations—that lower rate.”.
Repeal of section
5. Section 5a of the Principal Act is repealed.
Regulations
6. Section 6 of the Principal Act is amended:
(a) by omitting from subsection (2) “5 (b) or 5a (2) (b)” and substituting “5 (1) (b) or 5 (2) (b)”;
(b) by omitting from subsection (2) “shorn” and “, or additional tax, as the case requires,”;
(c) by omitting subsection (3);
(d) by omitting from subsection (4) “5 (b)” (first occurring) and substituting “5 (1) (b) or 5 (2) (b)”;
(e) by omitting paragraph (4) (a);
(f) by omitting from paragraph (4) (b) “in the case of a rate applicable to carpet wool—”;
(g) by omitting from paragraph (4) (c) “paragraph 5 (b)” and substituting “the corresponding paragraph”;
(h) by inserting in subsection (5) “that is to be applicable on or after 1 July 1992” after “tax”;
(i) by omitting paragraphs (5) (a) and (b) and substituting the following paragraphs:
“(a) in the case of regulations to prescribe a rate for the purposes of paragraph 5 (1) (b):
(i) the recommendations in relation to the prescription of that rate made by:
(a) the Australian Wool Realisation Commission; and
(b) the annual or special general meeting of wool-tax payers last held under Part 6 of the Australian Wool Corporation Act 1991; and
(C) the annual general meeting last held by the Wool Research and Development Corporation under Division 7 of Part 2 of the Primary Industries and Energy Research and Development Act 1989; and
(ii) any views in relation to that rate expressed by the Wool Council of Australia to the Australian Wool Realisation Commission; or
(b) in the case of regulations to prescribe a rate for the purpose of paragraph 5 (2) (b)—any recommendation in relation to the prescription of that rate made by:
(i) the annual or special general meeting of wool-tax payers last held under Part 6 of the Australian Wool Corporation Act 1991; and
(ii) the annual general meeting last held by the Wool Research and Development Corporation under Division 7 of Part 2 of the Primary Industries and Energy Research and Development Act 1989”.
PART 3—AMENDMENT OF THE WOOL TAX (No. 3) FURTHER AMENDMENT ACT 1990
Principal Act
7. In this Part, “Principal Act” means the Wool Tax (No. 3) Further Amendment Act 19902.
Repeal of section
8. Section 7 of the Principal Act is repealed.
NOTES
- No. 27, 1964, as amended. For further amendments, see No. 66, 1973; No. 68, 1974; No. 88, 1975; Nos. 37 and 74, 1976; No. 46, 1977; No. 74, 1978; No. 34, 1979; No. 53, 1980, No. 87, 1985; No. 48, 1987; and Nos. 65 and 93, 1990.
2. No. 93, 1990.
[Minister’s second reading speech made in—
House of Representatives on 31 May 1991 a.m.
Senate on 5 June 1991]
Overview
The Wool Tax (No. 3) Amendment Act 1991 was enacted by the Parliament of Australia to address issues related to the taxation of shorn wool, particularly in light of evolving industry practices and stakeholder feedback. This Act amended the Wool Tax Act (No. 3) 1964 and the Wool Tax (No. 3) Further Amendment Act 1990, primarily to adjust the rate of tax imposed on shorn wool and to modify the regulatory framework for setting tax rates. The policy objective was to ensure the tax system remained fair and responsive to the needs of the wool industry, including adjustments to better reflect the changing economic landscape and stakeholder input. The Act came into force on 1 July 1991, introducing significant changes to the tax rates and the process for determining those rates, thereby seeking to provide clarity and stability within the industry.
Scope and Application
The Wool Tax (No. 3) Amendment Act 1991 is a Commonwealth Act that amends the Wool Tax Act (No. 3) 1964 and the Wool Tax (No. 3) Further Amendment Act 1990. This Act applies to the taxation of shorn wool, specifically altering the tax rates for shorn wool and carpet wool. The amendments reduce the tax rate on shorn wool from 30% to 15% and introduce a new tax rate for carpet wool, which is set at 4% of the sale value or a lower rate as prescribed by regulations. Additionally, it repeals certain sections of the Principal Acts and modifies the regulatory framework for determining tax rates, incorporating recommendations from specified entities such as the Australian Wool Realisation Commission and the Wool Research and Development Corporation. The Act’s amendments are effective from 1 July 1991, with some provisions applying from 1 July 1992. The scope of the Act is confined to the taxation of wool within Australia, impacting entities involved in the wool industry, including wool producers, manufacturers, and tax payers.
Key Provisions
The Wool Tax (No. 3) Amendment Act 1991 introduces significant changes to the existing Wool Tax Act (No. 3) 1964 and the Wool Tax (No. 3) Further Amendment Act 1990. The primary changes involve alterations to the rate of tax imposed on shorn wool and carpet wool, as well as modifications to the regulatory framework governing these taxes. Section 4 of the Act amends the Principal Act by reducing the tax rate on shorn wool from 30% to 15% and introducing a new rate for carpet wool. Specifically, the Act introduces a 4% tax rate on the sale value of carpet wool when purchased by a manufacturer from a person other than a wool-broker or a registered wool-dealer, subject to any lower rate applicable under the regulations (Section 4(2)). Additionally, section 5a of the Principal Act is repealed, eliminating any previous provisions that may have been in conflict with the new rates (Section 5).
The Act imposes certain obligations on parties involved in the wool industry, particularly on manufacturers purchasing carpet wool. These parties must ensure compliance with the new tax rates and any relevant regulations. The Act also updates the regulatory framework by amending section 6 of the Principal Act. This includes changes to the process for setting tax rates, such as requiring recommendations from the Australian Wool Realisation Commission, the Australian Wool Corporation, and the Wool Research and Development Corporation, and considering views from the Wool Council of Australia (Section 6(5)). Furthermore, the Act repeals section 7 of the Wool Tax (No. 3) Further Amendment Act 1990, aligning the legislative framework with the new provisions introduced by this amendment.
Breaches of the provisions of the Wool Tax (No. 3) Amendment Act 1991 may lead to civil and criminal consequences. While the Act does not explicitly state penalties, failure to comply with the new tax rates or regulatory requirements could result in fines or other civil penalties under the existing legislation. Additionally, wilful or negligent non-compliance might be subject to criminal penalties, including imprisonment, as provided under the general tax laws of Australia. The specific penalties would depend on the nature and extent of the breach, as well as any applicable regulations or subsidiary legislation.