The Australian Competition and Consumer Commission has issued a final determination authorising* arrangements to establish a levy on bales of wool sold at auction or by private treaty.
The Federation of Australian Wool Organisations (FAWO) applied for authorisation in order to raise funds for a test marketing campaign for the promotion of Australian wool in the United States. The National Council of Wool Selling Brokers of Australia Ltd and the Private Treaty Wool Merchants of Australia Inc are also parties to the arrangements.
The levy of $1.50 per bale of wool will be added to the post-sale service charge paid by wool purchasers, to selling agents, at the point of sale. The FAWO estimates the levy to equate to less than 0.2 per cent of the average sale price of a bale of wool.
ACCC Chairman, Mr Graeme Samuel said the ACCC is satisfied that the proposed arrangements are likely to improve the international demand for wool, resulting in increased exports of wool, increased employment and broader commercial activity across rural and regional Australia.
"The ACCC is of the view that there are likely to be little, if any, public detriments arising from the proposed arrangements", Mr Samuel said.
More information regarding the application and a copy of the determination is available from the Related public register records link.