Wool Tax (Nos. 1-5) Regulations (Amendment) 1991 No. 212
EXPLANATORY STATEMENT
STATUTORY RULES 1991 No. 212
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. 212, issued under the authority of the Treasurer, addresses the need to adjust the tax rates on wool produced in Australia and sold through various channels. This set of regulations amends the Wool Tax (Nos. 1-5) Regulations to set the tax rate at 12% of the sale value for shorn wool other than carpet wool and 3% for carpet wool, effective from 1 July 1991. These amendments were introduced following the Wool Tax (Nos. 1-5) Amendment Acts 1991, which reduced the maximum rate of tax on shorn wool other than carpet wool and increased the tax on carpet wool. The policy objective is to ensure that the tax rates are set at levels that are in line with the legislative amendments and are effective from the specified date.
Scope and Application
The Wool Tax (Nos. 1-5) Regulations (Amendment) 1991 No. 212 amends the existing regulations concerning the tax on shorn wool produced in Australia and sold through various marketing channels, including sales by wool brokers or registered wool dealers or manufacturers, and exported for sale. These regulations apply to entities and individuals involved in the sale of shorn wool, including carpet wool, and are effective from 1 July 1991. The legislation aims to set the rate of tax at 12% for shorn wool other than carpet wool and 3% for carpet wool, aligning with the Wool Tax Acts (Nos. 1-5) 1964. The amendment follows changes in the Wool Tax (Nos. 1-5) Amendment Acts 1991, which 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 regulations are made under the authority of the Treasurer and are intended to comply with constitutional requirements that laws imposing taxes should address one subject of taxation only. The new rates are set out in the amended regulations and come into effect on 1 July 1991.
Key Provisions
The Wool Tax (Nos. 1-5) Regulations (Amendment) 1991 No. 212 sets out specific rates for wool tax in accordance with section 6 of the Wool Tax Acts (Nos. 1-5) 1964 (paragraphs 5(1)(b) and 5(2)(b)). Regulation 1 specifies that these amendments take effect from 1 July 1991. Regulation 2 details the changes to the existing Wool Tax (Nos 1-5) Regulations, and Regulation 3 introduces new rates of tax. The new rates are 12% for shorn wool (other than carpet wool) and 3% for carpet wool, effective from 1 July 1991.
These regulations place obligations on wool producers, wool brokers, and dealers to adhere to the specified tax rates when selling shorn wool. For shorn wool other than carpet wool, the tax rate is 12% of the sale value, while for carpet wool, it is 3%. The sale of wool through various marketing channels must comply with these tax rates, including when the wool is manufactured or exported. These obligations extend to all transactions involving shorn wool occurring on or after 1 July 1991.
Breaches of these regulations could lead to civil or criminal consequences, though the specific penalties are not detailed in the provided text. However, under the general provisions of the Wool Tax Acts (Nos. 1-5) 1964, penalties for non-compliance can include fines and potential prosecution. The precise penalties would depend on the nature and severity of the breach, and the specific provisions of the applicable legislation.