AWI investments are funded through a wool levy paid by woolgrowers (currently 2% of the sale price received for their shorn greasy wool) and a matching contribution from the Federal Government for eligible R&D activities, capped at 0.5% of the value of gross national value of wool production.

The sale of Woolmark licences contributes a further source of income for AWI.

Woolgrowers vote every three years on the percentage of wool sales they want invested in research and development and marketing. In the most recent vote - WoolPoll 2009 - 73% of votes cast were in favour of a levy of 2% or more.

In WoolPoll 2009 wool growers determined the funding split of their levies on the following ratios:

The wool levy paid by woolgrowers is collected by the Federal Government and passed on to AWI. An agreement with the Federal Government, called the Statutory Funding Agreement (PDF 273Kb), defines the conditions under which AWI may invest levy and government-matched funds. A new three-year Statutory Funding Agreement came into effect on 1 July 2010.

In addition to its statutory obligations AWI’s operations are governed by the following:

• AWI Constitution (PDF 255Kb)
• Federal Government Levy Principles & Guidelines (PDF 183Kb)
• AWI Corporate Governance Framework, including the AWI Board and Committee Charter
• Australian Stock Exchange's (ASX) Principles of Good Corporate Governance and Best Practice Recommendations (as far as applicable).