Legislation
AWI operates under and adheres to the guidance of all relevant Commonwealth legislation.
Australian Wool Innovation Limited (AWI) operates under the following Commonwealth legislation:
Wool Privatisation Act 2000 (Cth) (WPA)
This act of the Federal Parliament privatised the Australian wool industry research information organisation (AWRAP) and set up two divisions; a promotion company (AWS/TWC) and a research and development company (AWI). The Minister declared AWI the research company under this Act and this Act introduced a new wool levy to replace the wool tax. The WPA provides that the Commonwealth Government may contract with AWI and the Commonwealth will make payments to AWI of the wool levy collected together with a matching research and development contribution from the Government (on behalf of all Australian taxpayers) and in return AWI will carry out research, development and innovation activities for:
- the benefit of Australian wool growers, and
- the Australian community generally.
Wool Services Privatisation (Wool Levy Poll) Regulations 2003 (Cth) (WSR)
The WSR directs the conduct of a poll of all wool levy payers and enables AWI to make recommendations in relation to the setting of that wool levy. AWI is required to propose to woolgrowers three to five rates of wool levy, including a zero per cent levy. AWI's recommendations must be made no later than the third anniversary of the previous recommendation setting the wool levy.
Primary Industries (Excise) Levies Act 1919 (Cth) (ELA)
The ELA provides guidelines for the imposition of levies on primary industry produce sold within Australia. The Commonwealth Government is permitted to impose a levy on primary products if such a levy is requested by the majority of producers of a particular industry; the wool industry being one such industry. This Act allows the levy rate to be altered by the Minister who must first consider AWI's recommendations on levy rate.
Primary Industries (Customs) Charges Act 1999 (Cth) (CCA)
The Commonwealth Government is permitted under the CCA to impose a levy on primary products if requested by the majority of producers of a particular industry; the wool industry being one such industry. This Act allows for the Minister to alter the levy rate after considering the recommendations of AWI.
Primary Industries (Excise) Levies Regulation 1999 (Cth) (ELR)
The ELR is established under the ELA. The ELR imposed a levy on the wool produced in Australia if the producer of the wool sells the wool or uses the wool in the production of other goods. The levy is payable by the producer of the wool, the rate of the levy imposed is two per cent of the sale value of the wool. This regulation allows the two per cent levy collected by the Department of Agriculture Fisheries and Forestry (DAFF) to be paid to AWI for research, development and innovation activities carried out by AWI for the benefit of Australian wool growers and the Australian community generally.
Primary Industries (Customs) Charges Regulation 2000 (Cth) (CCR)
The CCR imposes a customs charge on wool produced in Australia which is exported from Australia. This charge is payable by the producer of the wool, the rate imposed is two per cent of the value of the wool immediately before export. This regulation allows the two per cent levy collected by DAFF to paid to AWI for research, development and innovation activities carried out by AWI for the benefit of Australian wool growers and the Australian community generally.
Statutory Funding Agreement
The Statutory Funding Agreement 2007-2010 between The Commonweatlh of Australia and Australian Wool Innovation Limited was signed on 28 June 2007 and came into effect on 1 July 2007.
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