Commonwealth Numbered Regulations - Explanatory Statements

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WOOL TAX (NOS. 1-5) REGULATIONS (AMENDMENT) 1991 NO. 210

STATUTORY RULES 1991 No. 210

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 120 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.