Wool Tax (No. 5) Further Amendment Act 1990

Administered by Department of the Treasury

Legislation au C2004A04026 Not in force Act

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Wool Tax (No. 5) Further Amendment
Act 1990

No. 95 of 1990

 

An Act to amend the Wool Tax Act (No. 5) 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. 5) Further Amendment Act 1990.

(2) In this Act, “Principal Act” means the Wool Tax Act (No. 5) 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 the 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 exported from Australia.”.

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, exported from Australia.

“(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 Section 6 of the Principal Act is repealed and the following section is substituted: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. 29, 1964, as amended. For previous amendments, see No. 68, 1973; No. 70, 1974; No. 90, 1975; Nos. 37 and 76, 1976; No. 48, 1977; No. 76, 1978; No. 36, 1979; No. 55, 1980; No. 89, 1985; No. 50, 1987; and No. 67, 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. 5) Further Amendment Act 1990 was enacted by the Parliament of Australia to amend the Wool Tax Act (No. 5) 1964, addressing gaps in the regulation of wool tax rates and the imposition of additional taxes on specific types of wool exports. The Act introduced amendments to the existing framework, including adjustments to the tax rates and conditions under which additional taxes are payable, and established a mechanism for the temporary fixing of tax rates until new regulations come into effect. This legislative update aimed to ensure that the taxation of wool exports remains consistent with the economic policies and industry standards of the time.

Scope and Application

The Wool Tax (No. 5) Further Amendment Act 1990 applies to the imposition of tax on shorn wool exported from Australia, specifically amending the Wool Tax Act (No. 5) 1964. This Act pertains to both natural persons and legal entities involved in the export of shorn wool, such as woolgrowers, exporters, and any intermediaries. The amendment imposes a tax on shorn wool exported from Australia, with the tax rate set at 30%, or a lower rate prescribed by regulations. Additionally, a surcharge of 20% on the sale value, or a lower rate as specified in regulations, is imposed on shorn wool other than carpet wool. The Act applies throughout Australia, with the Commonwealth having jurisdiction over the tax imposed on exported wool. The Act does not specify any exclusions or exemptions, although it does allow for variations in the tax rate through regulations. The application of the Act is extended through subordinate instruments, which allow for the setting of specific tax rates by the Governor-General, taking into consideration recommendations from the Wool Council of Australia and the Australian Wool Corporation.

Key Provisions

The Wool Tax (No. 5) Further Amendment Act 1990 (hereafter referred to as the "Act") amends the Wool Tax Act (No. 5) 1964 (the "Principal Act") to modify the tax rates and conditions on the export of shorn wool from Australia. Section 3 of the Act amends the Principal Act to alter the conditions under which tax is imposed on shorn wool, with a specific exemption for wool that was taxed under another Wool Tax Act as carpet wool and is subsequently exported. Section 4 adjusts the tax rate for shorn wool, raising it from 20% to 30%, and introduces a new provision (section 5a) imposing an additional tax of 20% on shorn wool, excluding carpet wool, exported from Australia. Furthermore, section 6 replaces the previous regulatory framework with new provisions allowing the Governor-General to make regulations for tax rates, subject to certain conditions and minimum rates specified in the Act. The Act imposes several obligations on parties involved in the export of shorn wool. Firstly, it mandates that the Governor-General consider recommendations from the Wool Council of Australia when prescribing tax rates for shorn wool other than carpet wool and from the Australian Wool Corporation for the additional tax on shorn wool. Secondly, the Act requires that any tax rates prescribed for shorn wool adhere to minimum thresholds set out in section 6(4). The minimum rate for shorn wool other than carpet wool is 5.25%, and for carpet wool, it is 2.75%. Additionally, section 6(5) requires the Governor-General to take into account specified recommendations when making regulations for tax rates. This ensures a systematic and consultative approach in setting tax rates, aiming to balance industry input with statutory requirements. Breaches of the Act can result in significant consequences. Although the Act itself does not explicitly detail offences or penalties for non-compliance, the imposition of tax and additional tax under sections 4 and 5a would typically be enforced through the administrative and legal frameworks of the Principal Act and related tax legislation. Failure to comply with tax obligations, including the timely payment of taxes and adherence to prescribed rates, could result in civil or criminal penalties under broader tax laws. These penalties might include fines or other sanctions, depending on the severity and intent behind the non-compliance. The exact penalties would be determined by the applicable tax legislation, such as the Taxation Administration Act 1953, which provides for enforcement measures and penalties for tax evasion or non-compliance.

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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.