Company funding

The majority of AWI funding comes from the Wool Levy collected from Australian woolgrowers. Secondary contributions are largely gathered from Government and collected from royalties.

Wool Levy

Our main source of income is the wool levy collected by the DAFF Levies Revenue Service. The monies collected are invested in sheep and wool research and development.

The levy rate is two per cent of the sale price received for shorn greasy wool.

AWI is accountable to levy payers and the Federal Government through tabling annual reports (with audited financial statements) and the Annual General Meetings, so shareholders can question performance and financing.

If you would like to register as an AWI shareholder please contact the AWI share registry at Link Market Services on tel 1800 113 373 (free call).

Statutory Funding Agreement (SFA)

The Statutory Funding Agreement 2007 to 2010 between The Commonwealth of Australia and Australian Wool Innovation Limited was signed on 28 June 2007 and came into effect on 1 July 2007.

In relation to the application of funds, the SFA states the following:

The Company may spend or otherwise apply the Wool Levy Funds, for the benefit of Australian woolgrowers, only for or in relation to:

Research and Development Activities: examples of activities which may be determined to be Research and Development Activities include:

  • the training of people to carry out Research and Development; 
  • the investigation and evaluation of the requirements for Research and Development and, on the basis of such investigation and evaluation, the preparation, reviewing and revising of Research and Development plans;
  • the carrying out, and the coordination and funding of the carrying out, of Research and Development;
  • the monitoring, evaluating and the reporting to the Commonwealth and the Industry, on Research and Development;
  • facilitating the dissemination, adoption and commercialisation of the results of Research and Development or of practices or technological developments that have been designed or adapted to improve the operation or efficiency of the Industry;
  • the dissemination of information related to any aspect of Research and Development, whether electronically, by print or by any other means;
  • improving the accountability for expenditure on Research and Development activities in relation to the Industry;
  • the development in the Industry of an awareness of the contribution that can be made by Research and Development in improving its efficiency and competitiveness;
  • the collection of statistical information on the Industry;
  • such other activities as may be approved by the Commonwealth in writing from time to time;
  • engaging directors, employees, consultants and agents of the Company and in meeting administration, operating or capital expenses (including, but not limited to, lease costs and legal and other professional expenses) reasonably necessary or appropriate to be incurred by the Company to support its activities in relation to paragraphs (a) to (k); and
  • any activity incidental but considered important to an activity referred to in paragraphs (a) to (k).

costs associated with consulting with Industry and the international wool industry;

managing the Funds and risks related to the Company’s expenditure and ongoing funding;

providing Industry services not otherwise widely commercially available to woolgrowers including, but not limited to:

  • activities in relation to animal health and welfare;
  • market access initiatives;
  • product development;
  • wool quality assurance;
  • chemical and pharmaceutical residues standards compliance;
  • economic and non technical research;
  • any other service which the Minister, in writing, approves for the purposes of this paragraph;
  • collaborating with government and with government departments and agencies, both Federal and State, in relation to animal health and welfare, crisis and issues management, regulatory activities and other activities that may be necessary or convenient for the improvement of the productivity or the performance of the Industry;
  • maintaining a register of shareholders of the Company;
  • holding an annual general meeting of the Company;
  • maintaining a record of names and addresses of all Levy Payers and their voting entitlements on a Poll;
  • conducting a Poll in accordance with the Act and the Poll Regulations;
  • making payments to the Commonwealth in accordance with clauses 3.7 and 3.8;
  • complying with obligations imposed on the Company under this Agreement or the Act;
  • such other purposes as may be approved by the Commonwealth in writing from time to time;
  • paying remuneration and allowances to directors, employees, consultants and agents of the Company and in meeting administrative, operating or capital expenses (including, but not limited to, lease costs and legal and other professional expenses) reasonably necessary or appropriate to be incurred by the Company to support its activities in relation to the above points; and
  • the repayment of money borrowed by the Company, and the payment of interest and other financing costs incurred in relation to money borrowed by the Company, for purposes related to an activity referred to in the above points.

Commonwealth Matching Funds must be paid to the Company to reimburse the Company for amounts already spent by the Company on Research and Development Activities.

The Company must spend the Funds in a manner that is consistent with the:

  • outcomes of the most recent Poll of Australian woolgrowers (Schedule 3). This does not preclude the Company from spending funds to address issues which may emerge between Polls. Any significant changes to Company activities should be dealt with in consultation with the Minister;
  • Company’s strategic plan;
  • Company’s operational plan;
  • Guidelines (to the extent applicable to the type of expenditure concerned);

and must apply the Funds in a manner that is otherwise efficient, effective and ethical.

The Company must not engage in Agri-Political Activity. To avoid doubt, Agri-Political Activity does not include any of the following:

  • subject to the Corporations Act 2001 (Cth) and the general law, the Company, or an officer of the Company:
    • recommending a candidate for election to the board of the Company;
    • making statements or providing information to the Industry on matters related to the Company’s objects in the proper performance of the Company’s functions and the proper furtherance of its objects;
  • use by another person, for political purposes, of a report or other publication prepared or financed by the Company in accordance with this Agreement; and
  • the use by an officer of the Company or an employee of the Company of his or her own funds to conduct a campaign for election to the Board of the Company or any entity engaging in Agri-Political Activity, provided no Company funds are used for that purpose.

The Company shall not spend the Funds on making payments to Industry representative bodies which are established for the purpose of, or are substantially engaged in, Agri-Political Activity. 

The above clause does not preclude:

  • payments by way of membership fees where that membership contributes to the Company pursuing its objects; or
  • payments on an arms-length value for money basis to acquire goods or services or fund Research and Development or promotion projects.

The Company may, at any time, seek consultations with the Secretary or his or her nominee in relation to any matter connected with this Agreement (including whether a proposed expenditure would amount to engaging in Agri-Political Activity).

Download the Statutory Funding Agreement (PDF 261Kb)

Income and investment

Income projections 2007-2008$m
 Levy income  41.6
 Australian R&D contribution  12
 AWI operations  4.5
 TOTAL  58.1

Projected expenditure 2007-2008$m
RDI Program expenditure 37.22
 Operating costs  11.61
 TOTAL  48.82

 

AWI Global Sites