Wool Tax (No. 3) Further Amendment Act 1990

Administered by Department of the Treasury

Legislation au C2004A04024 Not in force Act

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Wool Tax (No. 3) Further Amendment
Act 1990

No. 93 of 1990

 

An Act to amend the Wool Tax Act (No. 3) 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. 3) Further Amendment Act 1990.

(2) In this Act, “Principal Act” means the Wool Tax Act (No. 3) 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, purchased by a manufacturer from a person other than a wool-broker or a registered wool-dealer.

“(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 Section 6 of the Principal Act is repealed and the following section is substituted: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. 27, 1964, as amended. For previous 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 No. 65, 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. 3) Further Amendment Act 1990, enacted by the Parliament of Australia, serves to amend the Wool Tax Act (No. 3) 1964, addressing issues related to the tax imposed on wool. The primary purpose of this Act is to adjust the rate of tax and introduce additional tax on certain types of wool, thereby ensuring that the revenue generated from wool taxes remains aligned with the evolving needs of the wool industry. The Act also establishes a temporary tax rate until new regulations are implemented, ensuring continuity in tax collection. The policy objective is to maintain a fair and effective taxation system that supports the industry while generating necessary revenue.

Scope and Application

The Wool Tax (No. 3) Further Amendment Act 1990 applies to the imposition and collection of tax on the sale of wool within Australia. Specifically, it amends the Wool Tax Act (No. 3) 1964 by changing the rate of tax on shorn wool and introducing a surcharge for certain wool transactions. The Act applies to all persons and entities involved in the sale of shorn wool, including manufacturers, wool-brokers, and registered wool-dealers, and it has a Commonwealth reach. The Act provides for the temporary application of a fixed tax rate until regulations are made to set new rates, with a minimum rate of 5.25% for shorn wool other than carpet wool and 2.75% for carpet wool, as per the recommendations of relevant industry bodies. The Act extends its application through subordinate regulations which can prescribe different rates and specify the circumstances under which the tax or surcharge applies.

Key Provisions

The Wool Tax (No. 3) Further Amendment Act 1990 primarily focuses on amending the Wool Tax Act (No. 3) 1964. Key sections include the imposition of tax (section 3) and the rate of tax (section 4). Section 3 removes the term "a tax" and replaces it with "tax" in the Principal Act, while section 4 adjusts the tax rate from 20% to 30%. Additionally, section 5 introduces a surcharge on shorn wool purchased by a manufacturer from non-brokers or non-dealers at a rate of 20%, or a lower rate as specified in regulations. Section 6 outlines the regulatory framework, allowing the Governor-General to make regulations that are not inconsistent with this Act and necessary for its implementation, including setting tax rates. The obligations imposed by this Act on the parties it governs include the requirement to pay the specified tax rates on shorn wool. Manufacturers purchasing shorn wool from entities other than wool-brokers or registered wool-dealers must also account for the additional surcharge. The regulations must be considered and potentially incorporate recommendations from the Wool Council of Australia or the Australian Wool Corporation when setting tax rates. The Act also mandates that the Governor-General must take into account these recommendations before prescribing tax rates. Failure to comply with the provisions of this Act may result in legal consequences. While specific penalties are not detailed within the Act, breaches of tax regulations can typically lead to fines and other financial penalties. The maximum penalties would depend on the specific circumstances of the breach and any relevant tax or regulatory legislation. Additionally, ongoing non-compliance could result in further legal action, including potential prosecution, depending on the severity and intent of the breach.

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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.