Commonwealth Numbered Regulations - Explanatory Statements

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WOOL INTERNATIONAL REGULATIONS (AMENDMENT) 1996 NO. 143

EXPLANATORY STATEMENT

STATUTORY RULES 1996 No. 143

Issued by the Authority of the Minister For Primary Industries and Energy

Wool International Regulations (Amendment)

The Wool International Act 1993 (the Act) provides for, amongst other things, the disposal management of, the wool stockpile and elimination of the debt associated with the stockpile.

When the Act came into force in 1993, it could not be anticipated that the stockpile would necessarily have a net positive value. In order to effect debt repayment, in addition to proceeds from sales of wool from the stockpile, a wool tax of 4.5 per cent of the value of shorn wool (except carpet wool) was imposed, payable to Wool International.

The need for the wool tax was reviewed early in 1996 and, in light of a positive net stockpile value now anticipated, it was decided the wool tax could be removed. This has been achieved first by amending the Act to replace the provision to set the rate by regulation. Second, these Wool International Regulations (Amendment) provide for setting the rate of wool tax for debt repayment to zero.

The Wool Council of Australia supports the removal of this component of the wool tax.

Details of the regulations are as follows:

Regulation 1 provides for commencement to be on the date the amendments to the Wool International Act 1993 which set the wool tax for debt by regulation come into force.

Regulation 2 states that the Wool International Regulations are amended as provided for in these regulations.

Regulation 3 inserts a new regulation 4A which sets the rate of wool tax for a financial year starting after 1 July 1996 at zero.