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The weighted vote from larger enterprises was against the levy 40.29% to 59.71%
The referendum closed on Friday, October 10.
"Preliminary results show the result is against the introduction of a levy. Final votes are yet to be counted, as some voting envelopes are still in transit and will be processed until Wednesday, however it seems unlikely the outcome will change now," said Sandra Faulkner, chair of the Wool Levy Group.
A statement will be released on Wednesday midday with the official results of the voting, when released by Electionz.com.
"Our challenge was to ensure that wool growers understood the proposal to introduce a levy under the Commodities Levy Act and get a strong voter turnout," says Faulkner.
"We are delighted with voter turnout of around 47% - most commodity levy act votes struggle to get over 35%," she says. "Wool growers have certainly seen the importance of getting involved in this event – I can only reiterate my sincere thanks to all those who took the time to read the proposal, ask questions and vote.
"Growers have elected to operate in a purely commercial environment and there will be some disappointment that this continues to see our $700 million wool industry without an independent, internationally recognised, non-commercial voice.
"However, the significant involvement in the conversation around this proposal and ultimately, in the future of our wool industry, from growers through to end use retailers, researchers and educators, across all wool types, has certainly been encouraging."
The results indicate there is greater appetite for levy funded activities from smaller sheep famers than larger enterprises.
The Wool Levy Referendum was open for a month. Voting packs were sent to 12201 sheep farmers.
