Wool Tax (No. 4) Further Amendment Act 1990

Administered by Department of the Treasury

Legislation au C2004A04025 Not in force Act

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Wool Tax (No. 4) Further Amendment
Act 1990

No. 94 of 1990

 

An Act to amend the Wool Tax Act (No. 4) 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. 4) Further Amendment Act 1990.

(2) In this Act, “Principal Act” means the Wool Tax Act (No. 4) 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:

(a) by omitting from subsection (1) “a tax” and substituting “tax”;

(b) by omitting from subsection (4) “If” and substituting “Subject to subsection (4a), if”;


(c) by adding at the end the following subsection:

“(4a) Subsection (4) does not apply to shorn wool if:

(a) the tax imposed on the wool by another Wool Tax Act was imposed at a rate applicable to carpet wool; and

(b) when tax was imposed on the wool by that other Wool Tax Act, the wool was carpet wool because of the operation of paragraph (b) or (c) of the definition of ‘carpet wool’ in subsection 4 (1) of the Wool Tax (Administration) Act 1964; and

(c) the wool is subjected to a process of manufacture for the purpose of the manufacture of goods other than carpet or carpet yarn.”.

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, subjected by a manufacturer to a process of manufacture.

“(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 Section 6 of the Principal Act is repealed and the following section is substituted: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. 28, 1964, as amended. For previous amendments, see No. 67, 1973; No. 69, 1974; No. 89, 1975; Nos. 37 and 75, 1976; No. 47, 1977; No. 75, 1978; No. 35, 1979; No. 54, 1980; No. 88, 1985; No. 49, 1987; and No. 66, 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. 4) Further Amendment Act 1990 was enacted by the Parliament of Australia to further amend the Wool Tax Act (No. 4) 1964. This Act was introduced to address the need to adjust the rates of tax on wool and to introduce additional tax on certain types of wool. The primary objective was to ensure that the tax rates on wool are aligned with the changing economic conditions and the needs of the wool industry. The Act also sought to provide a temporary rate of tax until new regulations could be established, thereby ensuring a smooth transition in the application of the tax laws.

Scope and Application

The Wool Tax (No. 4) Further Amendment Act 1990 amends the Wool Tax Act (No. 4) 1964, and applies to entities involved in the wool industry, specifically those who manufacture goods from shorn wool. This Act applies across the Commonwealth of Australia and imposes a tax on shorn wool, except for carpet wool, which is subjected to a manufacturing process. The Act further specifies that a surcharge is applicable to certain wools, subject to regulations. The tax rate is set at 30%, but can be varied by regulation, with a minimum rate of 5.25% for shorn wool other than carpet wool and 2.75% for carpet wool. The Act allows for temporary fixing of tax rates until the regulations come into operation, and these rates are set at 25% for shorn wool other than carpet wool and 3.85% for carpet wool. The Act is subject to modifications and further specifications through subordinate legislation.

Key Provisions

The Wool Tax (No. 4) Further Amendment Act 1990 (hereafter referred to as the Act) amends the Wool Tax Act (No. 4) 1964 (the Principal Act) by modifying the tax rate and introducing additional tax for certain wool products. Section 3 of the Act modifies the tax imposed on shorn wool by omitting "a tax" and substituting "tax" in subsection (1) and altering the conditions under which tax is imposed by omitting "If" and substituting "Subject to subsection (4a), if" in subsection (4). It also adds a new subsection (4a) which exempts certain shorn wool from the tax if it was previously taxed as carpet wool and is now being manufactured into goods other than carpet or carpet yarn. Section 4 increases the tax rate from 20% to 30% for shorn wool and introduces a new section 5a, which imposes an additional tax on shorn wool subjected to a process of manufacture, at a rate of 20% of the sale value of the wool, or a lower rate as prescribed in the regulations. The Act imposes several obligations on parties involved in the wool industry. Firstly, it requires the Governor-General to consider recommendations from the Wool Council of Australia and the Australian Wool Corporation when prescribing rates of tax under the regulations. This is stipulated in section 6(5) of the Act. Secondly, the regulations made under section 6 must specify tax rates that meet certain minimum percentages, with a minimum of 5.25% for shorn wool other than carpet wool and 2.75% for carpet wool, as outlined in section 6(4). Additionally, the Act mandates temporary tax rates of 25% for shorn wool other than carpet wool and 3.85% for carpet wool until new regulations come into operation, as stated in section 7. Failure to comply with the provisions of the Act may result in civil or criminal penalties. While the Act does not explicitly detail the specific penalties for breach, under Australian law, non-compliance with tax regulations can lead to fines and, in severe cases, imprisonment. The precise penalties would be determined based on the nature and severity of the breach, in accordance with the relevant tax laws and regulations. The Act’s amendments and the imposition of additional taxes underscore the importance of adhering to the specified obligations and requirements to avoid potential legal consequences.

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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.