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1998-1999-2000
THE
PARLIAMENT OF THE COMMONWEALTH OF
AUSTRALIA
HOUSE OF
REPRESENTATIVES
AUSTRALIAN WOOL RESEARCH
AND PROMOTION ORGANISATION AMENDMENT (FUNDING AND WOOL TAX) BILL
2000
EXPLANATORY
MEMORANDUM
(Circulated
by the authority of the Minister for Agriculture, Fisheries and Forestry,
the Hon Warren Truss MP)
ISBN 0 642 42833 6
AUSTRALIAN WOOL RESEARCH AND PROMOTION ORGANISATION AMENDMENT (FUNDING
AND WOOL TAX) BILL 2000
GENERAL
OUTLINE
1. The proposed amendments to the Australian Wool
Research and Promotion Organisation Act 1993 (the AWRAP Act) will allow the
Australian Wool Research and Promotion Organisation (AWRAP) to plan, facilitate
and implement the Government decision taken in the light of the outcome of
WoolPoll 2000, which closes on 3 March 2000. WoolPoll 2000 provides woolgrowers
with the opportunity to vote on the preferred types of industry services they
want and indicated how much they are prepared to invest in those services.
2. The results of WoolPoll 2000 will assist Government in identifying
and developing the most appropriate structure to provide the preferred services
to Australian woolgrowers. This process will form an integral element of
implementing the wool industry Future Directions Taskforce
recommendations.
3. It is also proposed that the AWRAP Act be amended to
allow the Minister to determine the rate of wool tax having had regard to the
preferences of persons who have been liable to pay wool tax (including the
results of WoolPoll 2000), rather than having to duplicate the process with a
formal wool tax ballot which is very limited in the questions which can be put
to growers.
4. The Wool Tax Act (No.1) 1964, Wool Tax Act
(No.2) 1964, Wool Tax Act (No.3) 1964, Wool Tax Act (No.4)
1964 and Wool Tax Act (No.5) 1964 (Wool Tax Acts (1 – 5)) will
be amended to reduce the minimum rate of wool tax from 2.75% to nil in order to
allow the range of wool tax options put to growers in WoolPoll 2000 (that is
from the current 4 per cent down to a minimum of 0 per cent) to be
implemented.
FINANCIAL IMPACT STATEMENT
5. The
proposed amendments to the AWRAP Act and the Wool Tax Acts (1-5) will not impose
any additional costs on the Commonwealth.
NOTES ON
CLAUSES
Clause 1 - Short Title
6. Provides for the
Act to be called the Australian Wool Research and Promotion Organisation
Amendment (Funding and Wool Tax) Act 2000.
Clause 2 -
Commencement
7. Provides that the amendments to the Australian
Wool Research and Promotion Organisation Act 1993 will come into effect on
Royal Assent.
Clause 3 - Schedule(s)
8. Provides for
proposed amendments to the Australian Wool Research and Promotion
Organisation Act 1993 as set out in Schedule 1 of the Bill.
SCHEDULE 1 – AMENDMENTS
Australian Wool
Research and Promotion Organisation Act 1993
9. Item 1 imposes
additional functions on AWRAP. These functions are necessarily broad to allow
AWRAP to effectively implement Government policy having taken the results of
WoolPoll 2000 into account. Specifically, proposed subsection (1B) of this item
provides AWRAP with the additional function of planning, facilitating and
participating in the reform, privatisation or abolition of the Organisation, or
the establishment of a new body to perform its current functions, or both. This
function is constrained by any written directions from the Minister under
proposed subsection (1D).
10. Proposed subsection (1C) gives AWRAP the further function of providing
funds to reimburse persons or bodies (including the Commonwealth) for expenses
or liabilities it incurs in participating in the processes as outlined in
proposed subsection (1B). Again, this function is constrained in that it can
only be exercised in accordance with directions given under proposed subsection
(1D).
11. Proposed subsection (1D) specifies that AWRAP must comply with
any written directions from the Minister about the functions conferred on the
Organisation under proposed subsections (1B) or (1C). It distinguishes
Ministerial directions under proposed subsection 6(1D) from a section 68
Ministerial direction. Section 68 directions may only be given if the Minister
is satisfied that they are necessary because of exceptional circumstances and to
ensure the operations of AWRAP do not conflict with major Government policies.
This is not the case for directions under proposed subsection
(1D).
12. Proposed subsection (1E) further defines the scope of
Ministerial directions provided for in proposed subsection (1D). It allows
Ministerial directions to address both specific matters, or set out general
policies and require the Organisation to perform the relevant functions
consistently with those policies.
13. Proposed subsection (1F) allows the
Minister to delegate the power to give directions under proposed subsection (1D)
to an Agency Head within the meaning of the Public Service Act
1999.
14. Items 2 and 3 broaden the scope for developing the current
recommendation under section 51 of the AWRAP Act. Recommendations are
currently made by wool tax payers, by postal ballot conducted in accordance with
regulations, on the amount equal to the percentage of the sale value of shorn
wool, or shorn wool other than carpet wool, to be paid to AWRAP for promotion
and research and development. This does not allow the Minister to take the
results of WoolPoll 2000 into account in setting a wool tax rate, but rather
requires a much more limited wool tax ballot process as provided for under the
AWRAP Act regulations.
15. Item 2 is a minor technical amendment to
section 51(2) of the AWRAP Act to allow the current recommendation on the
percentages of wool tax receipts to be paid by the Commonwealth to the
Organisation for research and development and for promotion to be
“made” by the Minister (as specified under Item 3) rather than
“approved”.
16. Item 3 simply expands the Government’s
ability to determine the current recommendation in response to the
expressed wishes of wool growers. It repeals the existing paragraphs 51(2)(a)
and (b) and provides for a recommendation applying to a financial year to be
determined in two ways rather than only by wool tax ballot. The wool tax ballot
process will, however, be retained. The Minister will also be able to determine
the current recommendation having regard for the preferences of persons
who have been liable to pay wool tax, including the results of WoolPoll
2000.
17. If the Minister does not make a determination of the current
recommendation in a particular year as required under the AWRAP Act, then
the recommendation would be approved by means of a postal
ballot.
18. Proposed subparagraph 51(2)(b) provides for the
recommendation to be varied by another recommendation, either determined by the
Minister or approved by postal ballot.
19. Item 4 inserts proposed
subsection (3A) after subsection 51(3) to specify that the percentage specified
in a recommendation under subsection 51(3) may be nil.
20. Item 5
provides for minor technical amendments to paragraphs 51(4)(a), (b) and (c) of
the AWRAP Act to allow the current recommendation to be
“made” by the Minister (as specified under Item 3) rather than
“approved”.
21. Item 6 is a minor technical amendment to
paragraph 51(5) of the AWRAP Act to allow the current recommendation to
be “made” by the Minister (as specified under Item 3) rather than
“approved”.
22. Item 7 repeals the existing paragraph 6(4)(b) which sets the minimum
rate of wool tax at 2.75 per cent and allows the rate to be nil.
23. Item 8 repeals the existing paragraph 6(4)(b) which sets the minimum
rate of wool tax at 2.75 per cent and allows the rate to be nil.
24. Item 9 repeals the existing paragraph 6(4)(b) which sets the minimum
rate of wool tax at 2.75 per cent and allows the rate to be nil.
25. Item 10 repeals the existing paragraph 6(4)(b) which sets the minimum
rate of wool tax at 2.75 per cent and allows the rate to be nil.
26. Item 11 repeals the existing paragraph 6(4)(b) which sets the minimum
rate of wool tax at 2.75 per cent and allows the rate to be nil.
27. Item
12 specifies that the amendments made by items 2 to 6 apply in relation to
current recommendations that apply to financial years on or after 1 July
2000.
28. Item 12 further specifies that the amendments made by items 7
to 11 apply in determining the rate of wool tax in relation to financial years
beginning on or after 1 July 2000.