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Thursday, 30 September 1971
Page: 1834

Mr Garrick (BATMAN, VICTORIA) asked the Minister for Primary Industry, upon notice:

(1)   What percentage of intended recipients of the proposed wool subsidy could be expected to receive taxable incomes $500 per annum or more, lower than the average for the wool growing community.

(2)   What percentage of the subsidy could these people be expected to receive.

(3)   On what basis will the subsidy be distributed.

Mr Sinclair - The answer to the honourable member's question is as follows:

(1)   and (2) Available information on taxable incomes of woolgrowers is not of such a nature that any realistic estimate can be made of their likely level in the current year. Figures of net farm income obtained by the Bureau of Agricultural Economics provide a basis for an estimate of current net farm income but the circumstances of individual woolgrowers differ, in regard to the amount of concessional deductions to which they are entitled and to losses in prior years which can be deducted from taxable income, to such an extent that there is no fixed relationship between net farm income and taxable income.

(3)   The basis on which it is intended that the wool deficiency payments will be made was outlined in my statement to the House on 20th August 1971. In summary the deficiency payment due to a grower will be a percentage of the gross proceeds from the sale of his wool, with the exception of specified excluded types which altogether make up approximately 10 per cent of the whole Australian clip. The percentage will be calculated so that when applied to the average auction price of wool this will be brought to a level equivalent to an all clip average of 36c per lb or, expressed in metric terms, 79.37c per kilo. The deficiency payments percentage will be calculated on auction sales in each selling week and will apply to all sales of wool which take place in the week. It is estimated that the deficiency payment percentage for the first week of auction sales will be slightly in excess of 20 per cent.

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