Wool Tax (Nos. 1-5) Regulations (Amendment) 1991 No. 211
EXPLANATORY STATEMENT
STATUTORY RULES 1991 No. 211
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 section 6 of each of the Wool Tax Acts (Nos. 1-5 1964 (the Acts) at 12% of the sale value of the wool for shorn wool other than carpet wool and 3% for carpet wool, effective on and from 1 July 1991.
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 1991 reduced the maximum rate of tax on shorn wool other than carpet wool from 30% to 15% and increased the maximum rate of tax on carpet wool from 3.85% to 4%. The GovernorGeneral, 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 2.75%.
It is proposed that the rate of wool tax for shorn wool other than carpet wool be set at 12% and the rate of tax for carpet wool be set at 3% for the 1991-92 financial year. These regulations, which give effect to the proposal, mean that the operative rate of wool tax will be 12% of the sale value of shorn wool other than carpet wool and 3% of the sale value of carpet wool sold on or after 1 July 1991.
Details of the amending regulations are as follows :
By regulation 1 the amendments to the Wool Tax (Nos 1-5) Regulations come into effect on 1 July 1991.
By regulation 2 the Wool Tax (Nos 1-5) Regulations are amended as set out in these regulations.
Regulation 3 is omitted and a new regulation is inserted to prescribe lower rates of tax.
New Regulation 3(1), in accordance with paragraph 5(1)(b) of each of the Wool Tax Acts (Nos 1-5) 1964, prescribes the rate of tax payable on shorn wool (other than carpet wool) to be 12% of the sale value of the wool for the financial year commencing on 1 July 1991.
New regulation 3(2), in accordance with paragraph 5(2)(b) of each of the Wool Tax Acts (Nos 1-5) 1964, prescribes the rate of tax payable on carpet wool to be 3% of the sale value of the wool for the financial year commencing on 1 July 1991.
Overview
The Wool Tax (Nos. 1-5) Regulations (Amendment) 1991 No. 211, issued under the authority of the Treasurer and pursuant to section 6 of the Wool Tax Acts (Nos. 1-5) 1964, aim to amend the tax rates on shorn wool produced in Australia. These regulations were enacted to address the need for adjusting the tax rates on wool, specifically shorn wool and carpet wool, in light of legislative changes made by the Wool Tax (Nos. 1-5 Amendment Acts 1991. The primary objective of these amendments was to set new tax rates that reflect the reduced maximum rates set by the amending Acts while ensuring that the tax rates remain within the prescribed limits. Effective from 1 July 1991, the new regulations establish a wool tax rate of 12% for shorn wool other than carpet wool and 3% for carpet wool, aligning with the financial year commencing on that date.
Scope and Application
The Wool Tax (Nos. 1-5) Regulations (Amendment) 1991 No. 211 pertains to the imposition of tax on shorn wool produced in Australia and sold through various channels, including by wool brokers, registered wool dealers or manufacturers, subjected to manufacturing processes, or exported for sale. The legislation applies to the sale value of shorn wool other than carpet wool and carpet wool. The rates of tax prescribed by these regulations are 12% for shorn wool other than carpet wool and 3% for carpet wool, effective from 1 July 1991. These regulations give effect to amendments to the Wool Tax Acts (Nos. 1-5) 1964, reducing the maximum tax rate on shorn wool other than carpet wool and increasing the maximum tax rate on carpet wool. The Governor-General, under section 6 of each of the Wool Tax Acts, has the authority to make these regulations, which prescribe a lower rate of tax not less than 2.75%. The amendments are applicable nationally, reflecting the Commonwealth's jurisdiction over the imposition of such taxes.
Key Provisions
The Wool Tax (Nos. 1-5) Regulations (Amendment) 1991 No. 211 amends the existing regulations under the Wool Tax Acts (Nos. 1-5) 1964. It introduces new rates for wool tax, effective from 1 July 1991. Section 3(1) of the amendment sets the tax rate at 12% for shorn wool other than carpet wool, while Section 3(2) sets the tax rate at 3% for carpet wool. This change reflects a modification from the previous maximum rates of 30% for shorn wool and 4% for carpet wool, as reduced by the Wool Tax (Nos. 1-5 Amendment Acts 1991. These new rates are intended to align with the legislative framework that mandates a tax rate of not less than 2.75%.
The obligations under these regulations require wool producers, brokers, dealers, and manufacturers to calculate and remit the appropriate tax on the sale value of the wool they handle. The tax must be paid to the relevant authorities, and records must be maintained to demonstrate compliance with these tax obligations. This includes detailed accounting of sales transactions to accurately determine the tax payable.
Breaches of these tax obligations can result in civil and criminal consequences. Section 6 of the Wool Tax Acts (Nos. 1-5) 1964 stipulates that failure to comply with the tax regulations can lead to penalties. The maximum penalties for non-compliance include fines and potential imprisonment, reflecting the seriousness with which the legislation treats tax evasion and non-compliance. The exact penalties can vary based on the severity and frequency of the breach, but they are designed to enforce adherence to the stipulated tax rates and reporting requirements.