When levies and export charges apply
Levy
Levy applies to wool harvested from a live sheep or lamb in Australia if the person who owns it immediately after harvest:
- sold the wool, or
- used the wool in Australia in the production of other goods.
Export charge
Export charge applies to wool harvested from a live sheep or lamb in Australia and exported.
Exemptions
Levy
Levy does not apply to wool if the export charge has already been applied.
Export charge
Export charge does not apply to wool if the levy has already been applied or if the export charge has previously been imposed on the wool.
Records must be maintained to confirm that the exemption applies.
Who collects and pays
The levy or export charge may be paid via a third party (collection agent) or directly to us. This depends on whether there is a collection agent involved in the sale or export of the wool.
Collected and paid via a third party (collection agent)
The levy or export charge is collected by the person associated with the sale or export of the wool. We call this person the collection agent.
The collection agent can be the:
- selling agent, buying agent (if no selling agent is involved), or business purchaser (if no selling or buying agent is involved) where the wool is sold to a business purchaser, or
- exporting agent.
This person deducts or recovers the levy or export charge from the levy or export charge payer and then pays that amount to us as part of a return.
Paid directly to us (levy or export charge payer)
The levy is paid by the person who owns the wool immediately after harvest. We call this person the levy payer.
The export charge is paid by the person who exports the wool from Australia. We call this person the export charge payer.
The levy or export charge payer pays directly to us as part of a return if they:
- sold the wool themselves
- used the wool to produce other goods
- export the wool themselves, or
- there are no collection agents involved.
Rates
| Product | Levy rate | |
|---|---|---|
| Wool | Sold | 1.5% of the sale price |
| Used | 1.5% of the market price | |
| Exported | 1.5% of the free on board value | |
GST is not applied to Australian Government levies and export charges.
See full details of the levy and export charge rates.
Return and payment dates
Monthly
Monthly returns and payments are for wool sold, used in the production of other goods or exported.
Return and payment must be received by:
- Last day of the next month
Example: For wool sold, used to produce other goods or exported in July in a financial year, the return and payment must be received by 31 August in the same financial year.
You may not need to lodge a monthly return.
You can apply to lodge an annual return if you believe the total amount of levy you will (or will be likely to) pay on wool in a financial year will be less than $500 (GST exclusive).
To apply for an annual return and payment, contact the levies team in your state or territory.
Annual
Annual returns and payments for wool are only available if we have approved your application to lodge and pay once a year.
Return and payment must be received by:
- 31 August each year (for the previous financial year)
For wool sold or used to produce other goods in a financial year where we have approved your application to lodge and pay annually, the return and payment must be received by 31 August in the next financial year.
Late payment penalties apply
Penalties are calculated daily at a compounding rate of 2% of the unpaid amount each month, including any outstanding debt, until the amount is paid in full.
How to lodge a return
You can lodge your return via Levies Online.
After you log in:
- select the return type and period
- complete the information
- lodge your return
- make payment to us by electronic funds transfer (EFT) or cheque.
First time lodging with us
You will need to register with us before you can lodge your first return.
You will receive a unique LRS number that you need to include in your return.
If you can’t use Levies Online
To lodge a manual return:
- download and complete the wool return form
- email or post your return
- make payment to us by electronic funds transfer (EFT) or cheque.
Return information
Wool is part of the:
- Wool monthly return
- Wool annual return
To lodge a return, you will need to know the:
- quantity (kilograms) of wool sold, used to produce other goods or exported
- value (sale price, market price or free on board value) of wool sold, used or exported
- amount of levy and export charge payable for each type
- levy payer information and business details (name, address, phone or email, ABN/ACN).
Record keeping
You must keep records relating to each return for five (5) years. The records must:
- be set out for each financial year
- include details of each transaction.
Heavy penalties could apply if you fail to meet the record keeping requirements.
Who uses this levy and export charge
Recipient body for the wool levy and export charge is:
Definitions
Business purchaser
A person who buys products, goods or services from levy payers while carrying on a business (including as a processor or feedlot operator).
Calculating the value
For wool sold, the value is the sale price excluding handling, storage and transport costs.
For wool used to produce other goods, the value is the market price of the same quality that is most recently sold at a market closest to the premises at which the wool begins to be used. Note, the Australian Wool Exchange (AWEX) publishes market prices for wool.
For wool exported, 1.5% of the free on board value of the wool immediately before export.
Levies and related legislation
This information is a guide only. You must be aware of your obligations under relevant levy and export charge laws.
This includes:
- Primary Industries (Excise) Levies Act 2024
- Primary Industries (Customs) Charges Act 2024
- Primary Industries Levies and Charges Collection Act 2024
- Regulatory Powers (Standard Provisions) Act 2014
See more on levy and export charge laws.
Stay updated
Check latest updates in our levy notices.
Contact us
For more on levies and export charges, levies accounts or how to lodge your return, contact the Levies team.