Commonwealth Numbered Regulations - Explanatory Statements

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AUSTRALIAN WOOL RESEARCH AND PROMOTION ORGANISATION REGULATIONS (AMENDMENT) 1994 NO. 44

EXPLANATORY STATEMENT

STATUTORY RULES 1994 No. 44

Issued by the authority of the Minister for Primary Industries and Energy

AUSTRALIAN WOOL RESEARCH AND PROMOTION ORGANISATION ACT 1993

AUSTRALIAN WOOL RESEARCH AND PROMOTION ORGANISATION REGULATIONS (AMENDMENT)

The Australian Wool Research and Promotion Organisation Act 1993 (the Act) provides for the Governor-General to make regulations for the purpose of prescribing all matters required or permitted by this Act to be prescribed.

The Act provides for the establishment of the Australian Wool Research and Promotion Organisation (AWRAP) and its functions, powers, membership and related matters. AWRAP, which is responsible for generic promotion and research and development, was established on 1 December 1993 when the relevant parts of the Act commenced by Proclamation.

Subsections 74(1) and 74(2) of the Act provide that AWRAP is subject to taxation (other than income tax) under the laws of the Commonwealth but not subject to State or Territory taxation laws. However, subsection 74(3) of the Act provides that AWRAP may be subject to taxation under a specified law of a State or Territory if it is provided for in the regulations.

The purpose of the proposed regulations is to make AWRAP subject to State and Territory payroll tax by removing the exemption from State and Territory taxation laws relating to pay-roll tax.

Removing AWRAP from the exemption of State and Territory pay-roll is in line with Commonwealth Government policy on this matter. In addition, such regulations will also mean that AWRAP will not have an exemption to pay-roll tax as an apparent advantage over commercial enterprises.

The proposed Regulations prescribe relevant State and Territory pay-roll taxes for this purpose and will have effect from 1 December 1993.


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