1985

SENATE

BOUNTY (METAL WORKINGMACHINES AND ROBOTS) BILL 1985

EXPLANATORYMEMORANDUM

(Circulated by Authority of the Minister for Industry,Technology and Commerce, Senator the Honourable John N. Button)

14941/85 Cat No 8546955

Prinledby Authorityby thuCommonwealth Covcrnmtrtr Printer

BOUNTY (METAL WORKINGMACHINES AND ROBOTS) BILL 1985

OUTLINE

This Bill replaces the Bounty (Metal—working Machine Tools) Act1978 and proposes the introduction of new bounty assistancearrangements for the metal working machine tools industry From1. July 1985 until 30 June 1991, as a consequence of theGovernment’s decision announced on 30 May 1985 to accept theIndustries Assistance Commission’s major recommendations onlong—term assistance measures to the Australian metal workingmachine tools and robotics industries.

In addition, the Bill gives effect to the Government’s decisionto extend bounty assistance to:

the manufacture of advanced technology machinery, such ascomputer controlled flame or laser cutting machines andtheir parts, Flexible manufacturing cells and systems.and programmable control panels used solely orprincipally with these goods,

exports of advanced technology machinery, and

machine modification and retrofitting (the conversion ofpower operated standard or numeric controlled metalworking machine tools to power fed computer controlledmachine tools) activities,

and to introduce different rates of bounty assistance forproducers of high and low technology machines.

The new assistance arrangements proposed by this Bill providefor —

(i) bounty to be paid on the production of advancedtechnology power operated metal working machine tools,robots, laser and flame cutting machines and their parts,flexible manufacturing cells and systems, andprogrammable control panels at the following rates(Clause 17):

(a) for the period 1 July 1985 to 30 June 1986 — 4Ot ofthe value added by the manufacturer,

(b) for the period on or after 1 July 1986 — 35t of thevalue added by the manufacturer,

(ii) bounty to be paid on the production of low technologymetal working machine tools (ie machine tools withstandard controls), parts and accessories for suchmachine tools, machine modification and retrofittingactivities, where such bountiable tools are used, sold ordisposed of for use in Australia or sold to theCommonwealth, at the following rates (Clause 17):

(a) for the period 1 July 1985 to 30 June 1986 — 301 ofthe value added by the manufacturer,

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(b) for the period on or after 1 July 1986 — 251 of the

value added by the manufacturer,

(iii) bounty to be payable only if the value added by themanufacturer is not less than 20% of the total factorycost incurred by the manufacturer to make, modify orretrofit the goods, and, in the case of machinemodification and retrofitting, the factory cost incurredper machine is not less than $20,000 (Clause 16).

The Bill also empowers;

(i) the Comptroller—General of Customs to register premisesunder the Act where such premises were not engaged in theproduction of bountiable equipment on 30 May 1985 (theday of the Government’s announcement of the new bountyarrangements) unless the Minister has informed theComptroller—General that such registration will notpermit the orderly development of the Australian industry(Clause 28),

(ii) the Minister to vary by Gazette notice, the assistancearrangements under the Bounty scheme, including theproduct coverage of the Bounty and the rates ofassistance, without reference to the IndustriesAssistance Commission (Clauses 6, 7, 8 and 9).

Financial Impact Statement

The Government proposes to limit expenditure under the BountyScheme to $16 million in the first year of operation from 1July 1985 to 30 June 1986 and $14 million in each of years 2and 3. A proportion of the $16 million allocation in year 1will be expended to meet payments outstanding from the previousBounty Scheme.

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NOTES ON CLAUSES

PART I — PRELIMINARY

Short Title

Clause 1 Is a formal machinery clause.

Commencement

Clause 2 Provides for the Act to be deemed to come intooperation on 1 July 1985, the day following theexpiry of the Bounty (Metal Working Machine Tools)Act 1978.

General Administration of the Act

Clause 3 Provides for the Comptroller—General of Customs to

have the general administration of the Act.

Interpretation

Clause 4 Sub—clause (1) defines a number of words andexpressions for the purposes of the legislation, andin particular defines:

— the range of equipment that is to be“bountiable equipment”, eligible forassistance for the purposes of the Act. Theterm includes:

“Bountiable equipment AA”, which is defined tomean,

computer controlled machines, robots,computer controllers, flexiblemanufacturing systems, numericallycontrolled metal working machines. andcertain related parts and accessories(for bountiable goods PA and AB). Thesegoods are subject to high technologyrates of bounty on completion ofmanufacture, whether or not subsequentlyused in Australia or exported(sub—clause 17(1) and 17(5), whichprescribes the rates of assistance as40% or 351. of value added)

paragraphs (h) and (j) of the definitionprovide, subject to disallowance, forthe Minister to Gazette new equipmentthat may emerge as a result of changesin technology (sub—clauses 6(1), 6(2)and 6(12)),

“bountiable equipment AB”, which is defined tomean,

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a standard metal working machine tool(defined as an “independent machine”)and original equipment parts. Thesegoods are subject to the low technologyrates of bounty on the manufacture andsate or disposal for use in theAustralia or for sale to theCommonwealth (sub—clauses 16(5), 16(6)and 17(3) and Il(S), which prescribesthe rates of assistance as 30% or 25% ofvalue added,

“bountiable equipment B”, which is defined toinclude,

various types of machines that have beenused in Australia in the commercialproduction of goods. These goods aresubject to the low—technology rates ofbounty when either modified to increasethe machines capacity and capability, oradapted as part of a flexiblemanufacturing system and used inAustralia or sold to the Commonwealth(sub—clauses 16(8) and 17(4)),

— “bounty period” as the period commencing on 1July 1985 and ending on the terminating day,

— “flexible manufacturing system” which, inconjunction with the definitions of “systemequipment” and “system machine”, limits suchsystems to re—programmable computer controlledsystems predominately for the working andassembly of metal goods,

— “manufacturer”, which in relation tobountiable equipment (bountiable equipment AAand AB) means

(a) a person who at premises registered inhis or her name under the Act carriesout a substantial process or substantialprocesses in the manufacture of theequipment. Persons in Australia whoonly produce software, carry out design,research or development, develop or testprototypes or carry on systemsengineering are not regarded asmanufacturers. However, the cost ofthese activities are allowable asoverhead costs by manufacturers of theequipment if carried out on their behalf,

or

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(b) a person who arranges with anothermanufacturer of the equipment for thecarrying out at registered premises of asubstantial process or substantialprocesses in the manufacture of theequipment.

— “modifier” which in relation to bountiableequipment (bountiable equipment B), is definedin similar form to manufacturer,

— “retrofit manufacture” to mean the version(upgrading) of a standard metal workingmachine tool (independent machine) or anumerically controlled machine tool to acomputer controlled machine- Such activitiesare subject to the low technology rates ofbounty assistance (sub—clause 11(2)),

— “robotic machine”, which specifies the minimumcharacteristics of a hi—technology robot.Paragraph (h) provides for the Minister,subject to disallowance, to Gazette newequipment that may emerge as a result ofchanges in technology (sub—clauses 6(4) and6(12).

— “terminating date” to mean 30 June 1991 orsuch later day, not being a day later than 30June 1992, as is fixed by the Minister bynotice published in the Gazette before 30 June1991.

This is a mechanism to enable the Minister toextend, for up to 12 months, the bountyassistance under the Act, to accommodatepotential unforseen delays which might arisein the process of Industries AssistanceCommiss ion reporting and Governmentconsideration of the appropriate assistancearrangements, if any, to apply followingtermination of the Act,

— “variable definition” and “variableprovision”, which are consequential to Clauses6 and 1, relating to the Minister’s power tovary assistance arrangements under the scheme.

Sub—clause (2) “defines” production to mean areference to the manufacture of bountiable equipmentAA or AS, or the modification of bountiableequipment B.

Sub—clauses (3) and (4) are consequential on Clauses6 and 7, relating to the Minister’s power to varyassistance arrangements.

Sub—clause (5) deems the Act to be amended on thesame day on which a Customs Tariff alterationproposal in the Parliament to amend Schedule 3 isdeemed to take effect.

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Sub—clause (6) expands the definition of “flexiblemanufacturing system” for the purposes of the Act.

Sub—clauses (7) and (81 clarifies the completiondate of the manufacture of equipment or themodification of equipment in certain specialsituations.

Sub—clause (9L excludes from bountiable modificationactivities, in respect of “bountiable equipment B”,the reconditioning or repair of used parts ormaterials, and the supply of tooling.

Sub—clause (1OA sets out the circumstances underwhich two persons are to be deemed associates ofeach other for the purposes of the Act.

Amendments to Tariff Act

Clause 5 Protects manufacturers who have commencedmanufacturing or modifying “bountiable” equipmentfrom losing their eligibility for bounty through anamendment to the Tariff Act, which results in theparticular goods ceasing to be classified within thetariff item nominated in the definition for“bountiable equipment”, and thus falling outside theAct;

— where the manufacture or modification of suchequipment is commenced before the day of the TariffAct amendment, and completed after that day, theequipment will be deemed to have been completedbefore the relevant day, and thus eligible forbounty, as long as the manufacture or modificationwas commenced in pursuance of a firm order placedbefore the amendment day (sub—clauses (1), (2). (4)and (5)).

for the purposes of the section, the manufacture ormodification of goods will only be taken to havecommenced where a process in the manufacture ormodification of the goods has been commenced at 4registered premises (Sub—clauses (3) and (6)).

Declarations relating to definitions

Clause 6 Sub—clauses (1) to (6) empower the Minister to varythe products covered by the bounty scheme bydeclaring additional classes of machines, or partsor components for such machines, or retrofittingactivities on such machines, as eligible for bountyassistance. The declarations shall be by notice inthe Gazette, and shall be subject to tabling anddisallowance in Parliament (Sub—clause (ifl). Theprovisions are similar in form to Section 5 of the

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Bounty Comptuters Act 1984, and are designed toallow the bounty scheme to cater for rapidtechnological changes in the metal working machinetools and robotics industries.

Sub—clause 7 empowers the Minister to redefine thedefinitions (referred to as “variable definitions”)for classes of equipment, classes of goods,processes or persons, effectively altering thecoverage of the Act to such items or persons.Again, such a change is subject to notification inthe Gazette, and to tabling and disallowance byParliament and is designed to cater for rapid changein the industry.

sub—clauses (9), (10) and (11) protect the rightsand entitlements of existing bounty claimantsfollowing such Ministerial changes by deeming themanufacture or modification of goods commenced priorto the date of such changes to have been completedprior to that date, thus preserving the applicationof the Act to those goods if those goods are nolonger eligible for bounty as a consequence of theMinisterial change.

Declarations relating to specification, value or costs

Clause 1 empowers the Minister to reconstitute variousprovisions in the Act (referred to as “variableprovisions”), relating to the value-added andfactory cost formulas and the eligibility criteriafor the payment of bounty.

Similar to Clause 6, such changes shall be by noticein the Gazette, and shall be subject to tabling anddisallowance in Parliament (Sub—clause 1). Thisvariation ability is again designed to keep theassistance package up to date with the rapidity oftechnological change in this area.

Sub—clauses (5) and (6) preserve the application ofthe Act to particular bountiable equipment in thecourse of manufacture or modification on the day ofthe Ministerial variation.

Decjarations of percentages

Clause 8 Sub—clauses (1) to (4) empower the Minister to varythe rates of assistance applicable to the productionof the various high and low technology machinesdescribed in the interpretation clause (clause 4)similar in form to Sub—section 9(7) of the Bounty

~‘ (Steel Mill Products) Act 1983. Such variationsshall be by notice published in the Gazette, andshall be subject to tabling and disallowance inParliament (Sub—clause 8)). The variations arenecessary to cater for immediate changes in theeconomic circumstances affecting the industry.

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Sub—clause Xfl preserves the rates of bountyapplicable prior to the commencement date of thevariation, for those bountiable goods in the courseof manufacture or modification on that date.

Industries Assistance Commission Act

Clause 9 Is a provision to place beyond doubt that theMinister can take action under the Act to vary theassistance arrangements under this Bounty schemewithout first having received a report from theIndustries Assistance Commission. Due to therapidity of technological change in theseindustries, the facility to review and varyassistance arrangements without the need for an IACinquiry on each occasion is considered essential forthe viability of the scheme.

Value added - manufacture

Clause 10 Sub—clause (1) deems the value added to “bountiableequipment” AA or AR by a manufacturer of theequipment, for the purposes of calculating theamount of bounty payable on that equipment, to bethe amount ascertained in accordance with theformula A — (B + C + D + 5) where:

-- A is the factory cost incurred by themanufacturer, either in connection with themanufacture of bountiable equipment or in thecourse of arranging for another to manufacturebountiable equipment

— B, C, D, and S are the various costs includedin that factory cost, which are deemed not tobe part of the in—house value added by themanufacturer to the equipment in Australia;specifically excluded is

the cost of parts and materials suppliedto the manufacturer for use in themanufacture of the equipment

the cost of any manufacturing processcarried out by the manufacturer atnon—registered premises and the cost ofany production services carried out bythe manufacturer or by a person, onbehalf of the manufacturer, outsideAustralia, sub—clause 4(1) definition of“production service” and

the interest on money provided for thepurpose of financing research ordevelopment outside Australia.

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Sub—clauses (2) and (3) further exclude from thevalue added and factory cost determinations anyvalue added to or factory cost incurred on goods inrespect of which bounty under this Act or anotherAct has or will become payable. This is designed toprevent any “double dipping” in respect of paymentsof bounty.

Value added — modification

Clause 11 Deems the value added to “bountiable equipment” B bya modifier of the equipment, to be the amountascertained in accordance with the formula F — (G -I-

H + I + J), where the components of the formula arein exactly the same form as the value added formulain Clause 10.

Factory Cost

Clause 12 Identifies the various costs that are to be includedor excluded from the factory cost incurred by aproducer in the manufacture or modification of“bountiable equipment”, for the purposes ofcomponent A or F in the respective value addedformulas in Clauses 10 and 11;

— factory cost can include;

overhead charges, salaries, wages andother remunerations, the costs of partsand materials delivered into theproducers’ store and the cost of anyprocess carried out or productionservice provided by the producer oranother person (pub—clause 1).

expenditure on research and development,or design, system engineering, softwareor testing costs, where such costs areincurred by the manufacturer or modifierin respect of bountiable equipment of akind that is, or is likely to be,manufactured or modified in Australia bythat person (aub—clauses (2) and (3)),

— factory cost is to specifically exclude;

the amounts of any Government grantsreceived by the manufacturer or modifierin respect of the manufacture,modification, research or development of“bountiable equipment” (sub—clauses (4)and (5)),

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twenty—four other classes of costs,charges or receipts in connection withthe manufacture or modification ofbountiable equipment (sub—clause ±61).

Determination of factory cost. etc

Clause 13 Provides that where the Comptroller—General cannotverify the value added or factory costs in respectof “bountiable equipment”, or where he or she formsthe opinion that those costs are incorrect.over—estimated or under—estimated, he or she maydetermine the relevant cost (sub—clauses (1) aMjfl). Such determinations are reviewable by theAdministrative Appeals Tribunal (clause 40).

Accounting period

Clause 14 Provides that the accounting period of amanufacturer of bountiable equipment, for thepurposes of the Act, is to be the 12 monthaccounting period of the manufacturer. If themanufacturer has no such accounting period, theaccounting period for the purposes of the Act is tobe the financial year.

Un i formt~y

Clause 15 Prohibits the exercise of any power under the Act ina manner which would result in bounty not beinguniform throughout the Commonwealth.

PART II - BOUNTY

Specification of bounty

Clause 16 Provides the eligibility criteria for the payment ofbounty to the manufacturers (including retrofitters)or modifiers of “bountiable equipment”:

— Sub—clauses (1), (2) and £31 provide thatbounty is payable to manufacturers ormodifiers on the production in Australia ofbountiable equipment

for manufacturers, bounty is payable, if,

(a) all processes in the manufactureof the equipment carried out inAustralia by the manufacturer arecarried out at registered premises;

(b) the last substantial process inthe manufacture of the equipmentwas carried out at registeredpremises;

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(c) the manufacture of the equipmentwas completed during the bountyperiod; and

(d) the amount of value added to theequipment by the manufacturer isnot less than 20t of the totalfactory cost incurred by themanufacturer in respect of thebountiable equipment; (sub—clause 4)

— sub—Clauses (5) and (6) provide that bounty isnot payable on low—technology metal workingmachine tools (ie. machine tools with standardcontrols, described as independent machines),or retrofitting activities, unless theequipment is used, sold or disposed of for usein Australia or sold to the Commonwealth.

Sub—clause (7) provides that bounty is not payablein respect of retrofitting activities on bountiableequipment unless the factory cost incurred by themanufacturer on the machine inv&lved is not lessthan $20,000 per machine.

Sub—clause (8) provides that bounty is not payablein respect of the modification of bountiableequipment unless the criteria similar to sub—clause(4) are met, and in addition, the factory costincurred by the modifier of the machine involved isnot less than $20,000 per machine.

Sub—clauses (9) precludes the payment of bounty toGovernment or to claimants in respect of equipmenton which bounty has been paid or will become payableunder the previous Act or the Bounty Computers Act1984.

Sub—clause (10) precludes the payment of bounty onany hand—held equipment.

Sub—clauses (12) and (13) are transitional type

provisions.

Amount of Bounty

Clause 1? Provides for the amount of bounty payable to be:

— sub—clause (1) — in respect of the productionof advanced technology power operated metalworking machine tools, robots, laser and flamecutting machines and their parts, flexiblemanufacturing cells and systems, andprogrammable control panels, at the followingrates:

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(a) for the period 1 July 1985 to 30 June1986 — 40% of the value added by themanufacturer,

(b) for the period on or after 1 July 198635% of the value added by themanufacturer,

— sub—clause (2) — in respect of retrofittingactivtties,at the following rates;

(a) for the period 1 July 1985 to 30 June1986 — 307,, of the value added by themanufacturer

(b) for the period on or after 1 July 1986 —

25% of the value added by themanufacturer

— sub—clauses (3) andj41, in respect of theproduction of low technology metal workingmachine tools (ie machine tools with standardcontrols), parts and accessories for suchmaohine tools, and machine modificationactivities, at the following rates;

(a) for the period 1 July 1985 to 30 June1986 — 30% of the value added by themanufacturer

(b) for the period on or after 1 July 1986 —

25% of the value added by themanufacturer.

Availability of bounty

Clause 1.8 Provides the method of payment of bounty where theComptroller—General is of the opinion that theamount available for payment of bounty in a givenyear will be insufficient to meet all valid claimsin that year. Sub—clause (2) provides that if fundshave not been appropriated by the Parliament for thepurposes of the bounty in a financial year thenbounty is not payable to a person in that year.

Good quality of bountiable eouioment

Clause 19 Provides that equipment is to be of good andmerchantable quality to be eligible for the paymentof bounty:

— where the Comptroller—General declares inwriting that~, in his or her opinion, theequipment is not of such quality, bounty isnot payable in respect of that equipment.That declaration is reviewable by theAdministrative Appeals Tribunal(sub—clause 40(1)(a)).

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PART III — PAYMENT OF BOUNTY

Advances on account of bounty

Clause 20 Authorises the payment of advances on account ofbounty, on such terms and conditions as are approvedby the Comptroller—General in writing (sub—clausejflj:

— where the amount of bounty received by way ofadvances exceeds the amount of bounty thatsubsequently becomes payable on the bountiableequipment, or where bounty does not becomepayable in respect of the equipment, theamount of the excess, or the entire amount, asthe case may be, is repayable to theCommonwealth (sub—clauses (2) to (4)).

Claims for payment of bounty

Clause 21 Sets out the procedures to be followed in claiming

bounty:

— a claimant is required to (sub—clause (2)):

(a) lodge a claim for bounty on anapproved form, providing suchinformation as is and suchestimates as are, required by theform,

(b) sign and witness the form asrequired, and

(c) lodge the form with a Collectorfor a State or Territory or theComptroller—General within 12months after the sale, disposal oruse of the bountiable equipment.as per sub—clauses 16(5), (6), or(8);

— the Comptroller—General is then obligedto examine the claim and either(sub—clause (3)):

(a) approve the payment of bounty inrespect of the equipment to whichthe claim relates, or,

(b) refuse to approve such payment;

(c) The above decisions of theComptroller— General arereviewable by the AdministrativeAppeals Tribunal (clause 40(l)b)and (c));

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— the Comptroller—General is obliged tofurnish the claimant with a notice inwriting setting out the decision wherethere is a delay in processing the claimor the claim is unsuccessful (sub—clause

Variation of inadequate claims

Clause 22 Provides a mechanism for the variation of claims forthe payment of bounty where the claimant considersthat, by reason of inadvertent error, the originalclaim is less than the claimant’s entitlement(sub—clause (1)):

— the procedure for the lodgement of asubsequent claim for the balance of bountywhich is considered to be owing is identicalto the procedures that apply to originalclaims for bounty (see sub—clause 21(2)(sub—clause (2));

— again, similar to the procedures that apply tooriginal claims for bounty, (see sub—clause21(3)), the Comptroller—General is obliged toexamine the further claim for bounty andeither approve or refuse the further paymentof bounty (sub—clause (3)):

- The above decisions of the Comptroller—General are reviewable by theAdministrative Appeals Tribunal (clause40(1)(d) and (e)),

— the Comptroller—General is obliged to furnishthe claimant with a notice in writing settingout the decision where there is a delay in theprocessing of the claim or the claim isunsuccessful (sub—clause (5));

Variation of excessive claims

Clause 23 Imposes an obligation on a recipient of bounty tolodge an acknowledgement of error, within 28 days,where the recipient becomes aware that the originalclaim for bounty exceeds by more than $100 theclaimant’s entitlement (sub—clause (1)):

— the penalty for contravening sub—clause (1) is$1,000,

— the procedure for the lodgement of anacknowledgement form is similar to thatgoverning original claims (see sub—clause21(2)) (sub—clause (2)).

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— upon examination of the acknowledgement, wherethe Comptroller—General is satisfied there hasbeen an overpayment by more than $100, heshall cause to be served on the claimant ademand for the repayment of the amount of theoverpayment (sub—clause (4)):

the decision of the Comptroller—Generalfor the above purposes is reviewable bythe Administrative Appeals Tribunal(clause 40(l)(f)).

Producers to furnish returns of costs

Clause 24 Imposes an obligation on producers of bountiableequipment to furnish returns, within six months oftheir accounting periods, setting out particulars ofthe factory costs incurred by them in relation tobountiable equipment manufactured or modified inthat period (sub—clause (1)):

— the procedure for the lodgement of a return ofcosts is similar to that governing originalclaims (see sub—clause 21(2)) (sub—clause12Th

— the Comptrolier—Genral may require a producerwho furnishes a return to provide acertificate, signed by a qualified accountantapproved by the Comptroller—General, to theeffect that the particulars set out in thereturn are correct (sub—clause (3)):

when considering whether a producer ofbountiable equipment should be requestedto furnish a certificate, theComptroller—General shall have regard to(sub—clause (4)):

(a) the extent of the claims forbounty made by the manufacturerduring the relevant period,

(b) the expense of obtaining such acertificate, and

(c) the relation that expense bears tothe claims;

the Comptroller—General shall not refuseto approve a qualified accountant,unless it is considered inappropriate todo so because of an association betweenthe accountant and the producer(sub—clause (5));

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where a producer:

refuses or fails to furnish a return ofcosts in accordance with the appropriateapproved form, he or she shall be liableto a penalty of $1.000 (sub—clause (6));

furnishes information or estimateswhich, to the knowledge of the producer.are false or misleading in a materialparticular, he or she shall be liable toa penalty of $1,000, or six monthsimprisonment, or both (sub—clause (7)).

Adjustment of claims following returns

Clause 25 Provides a procedure for the adjustment of claimsfor bounty resulting from any differences in factorycosts which appear in a producer’s claim for bounty(clause 21), and that producer’s subsequent returnof costs (clause 24):

— in the event of such a difference, theproducer is required to lodge with his returnof costs a statement in respect of thedifference. Failure to do so renders theclaimant liable to a penalty of $1,000(sub—clause (1));

— the procedure for the lodgement of anadjusting statement is similar to thatgoverning original claims (see sub—clause21(2)) (sub—clause (2));

— after examining the statement theComptroller—General may either (sub—clause

(a) approve the payment of any additionalamount owing to the producer as a resultof balancing the claim and return; or

(b) serve on the producer a demand for therepayment of the overpayment was inexcess of $100; or

(c) decline to adjust the payments of bountymade in respect of claims lodged by theproducer;

(d) decisions of the Comptroller—General forthe above purposes are reviewable by theAdministrative Appeals Tribunal (clause40(1)(g),(h), and (j)));

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— the Comptroller—General is required to givenotice in writing to the producer setting outthe decision under sub—clause (3) (sub—clause£3jj.

Other adlustments of claims

Clause 26 Provides that the Comptroller—General shall serve ademand for repayment of an overpayment of the totalamount of a claim for bounty in excess of $100.where the Comptroller—General discovers such anoverpayment in a situation other than through anacknowledgement under clause 23 or a statement underclause 25:

the decision of the Comptroller-General isreviewable by the Administrative AppealsTribunal (clause 40(l)(k)).

Recovery of repayments

Clause 2/ Allows the Commonwealth to recover amounts owing toit (by an action in a court for a debt due) insituations where:

— a person claims bounty by way of an advancewhich is not or does not become payable to him(clause 20). a person has overclaimed forbounty (clause 23), an overpayment isdiscovered following adjustment to claims madeafter returns have been lodged (clause 25), orthe Comptroller—General discovers anoverpayment of bounty (clause 26) (sub—clausefUl;

— amounts owing to the Commonwealth by a personin any of the situations described insub—clause (1) may be deducted from any amountthat is payable to that person under the Act,and where such a deduction is made, thebalance which is paid will be deemed to havebeen the full amount (sub—clause (2)).

PART IV — ADMINISTRATION

Registration of premises

Clause 28 Sets out the requirements for the registration ofpremises under the Act. A pre—requisite for thepayment of bounty under the Act is that thebountiable equipment is manufactured or modified atregistered premises (see clause (16)):

— registrable premises are restricted topremises that are used soleiy or principallyfor industrial or commercial purposes(sub—clause (1));

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— applications for the registration of premisesare to be made to the Comptroller-General inwriting (sub—clause (21);

the Comptroller—General may require anapplicant for registration to furnishsuch further information as he or sheconsiders necessary and may refuseregistration until such furtherinformation is provided (sub—clause (8));

— on receipt of an application for registration,the Comptroller-General shall either(sub—clause (3)):

register the premises and cause a noticeto that effect to be served on theapplicant; or

refuse to register the premises andcause a notice to that effect to beserved on the applicant;

— where premises are registered, theregistration shall date from the date theNotice of Registration is signed by theComptroller—General or such earlier date as isspecified in the Notice not being a dateearlier than 1 July 1985 (sub—clause (4));

— a Notice of Registration is to specify whetherregistration is in respect of all bountiableequipment or restricted to a specified classof bountiabie equipment and may specify theperiod of registration (sub—clause ~

— regulations may prescribe conditions to becomplied with in connection with theproduction of bountiable equipment atregistered premises (sub—clause (611;

if the conditions prescribed are not orwill not be complied with theComptroller—General shall not registerthe premises (sub—clause (7));

— the registration of premises which were notengaged in the production of bountiableequipment prior to 30 May 1985 (the day of theGovernment’s announcement of the new bountyarrangements) will be permitted unless theMinister informs the Comptroller—General thatthe registration of the premises will notpermit the orderly development in Australia ofthe industry manufacturing bountiableequipment (sub—clause (9));

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— regulations may prescribe conditions to be metby an applicant far the registration ofpremises (sub—clause 10));

if the conditions prescribed are not orwill not be complied with, theComptroller—General shall not registerthe premises (sub—clause(ll));

— registrations may be transferred on thesubmission of a joint application to theComptroller—General and shall take effect notearlier than 6 months before the day on whichthe application for the transfer was made(sub—clauses (12) and (14));

— the Comptroller—General may cancel theregistration of premises where he or shebecomes satisfied that any one of thefollowing applies (sub—clause (15)):

(a) bountiable equipment is not beingproduced at the premises;

(b) bountiable equipment of the class forwhich the premises are registered is notbeing produced at the premises;

(c) the production of bountiable equipmentis being carried on by someone otherthan the person in whose name thepremises are registered;

(d) the production is not being carried outin accordance with prescribedconditions; or

(e) the premises are not being used solelyor principally for industrial orcommercial purposes;

— decisions of the Comptroller—General refusingthe registration of premises (sub—clause (3)),cancelling the registration of premises(sub—clause (15)) or transferring theregistration (sub—clauses (12), (13) and (14))are reviewable by the Administrative AppealsTribunal (clause 40(l)(m), (n) and (p)).

Accounts

Clause 29 Makes eligibility for bounty conditional upon themaintenance of appropriate commercial records. Suchrecords are required to be:

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— kept in writing in the English language (or bereadily accessible and convertible intowriting in the English language (sub—clauseflfl; and

— retained for at least 3 years after the dateof lodgement of a claim for bounty pursuant toclause 21 (sub—clause (1)).

Securities

Clause 30 Confers upon the Comptroller—General the power torequire a person to whom bounty could become payableto give security for compliance with the Act andregulations. Payment of bounty may be withhelduntil the required security is given:

— a decision of the Comptroller-Generalrequiring a person to give a security isreviewable by the Administrative AppealsTribunal (clause 40(l)(g)).

~ippointment of author ised officers

Clause 31 Empowers the Comptroller—General to appoint officersof the Australian Customs Service as authorizedofficers upon whom administrative functions may beconferred for the purposes of the Act.

Stocktaking and inspection of production and accounts. etc

Clause 32 Empowers an authorized officer to enter premises.inspect or take stock of any bountiable equipment.inspect any process in the manufacture ormodification of any bountiable equipment, inspectand take copies of accounts, books, documents andother records involving such bountiable equipment(sub—clause (1)):

— if the occupier or person in charge ofregistered premises fails to provide theauthorised officer with all reasonablefacilities and assistance he or she is liableto a penalty of $1,000 (sub—clause (2)).

Power to require persons to answer questions and producedocuments

Clause 33 Empowers a Collector or an authorised officer torequire certain persons to attend before him or herto answer questions and produce documents inrelation to bountiable equipment, and provides forthe withholding of bounty payments until therequirements of this clause are met. The Collectoror an authorized officer must believe on reasonablegrounds that the person is capable of givinginformation relevant to the operation of the Act.

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Persons who are capable of giving such informationmay be persons who purchased the equipment from themanufacturer. However, the purchase of equipmeptfrom a manufacturer in itself would not besufficient ground to require a purchaser to provideinformation.

Sub—clause (3) creates an offence for not disclosingfalse or misleading records prepared by anotherperson and produced in pursuance of a notice undersub—clause (1) where the person producing suchrecords knows them to be false or misleading.

Sub—clause (5) prevents the use, in criminalproceedings against the person, except undersub—clause (3) or paragraph 35(3)(a) of the Act, ofself—incriminating answers given and documentsproduced by that person.

Power to examine on oath, etc

Clause 34 Provides for a Collector or an authorized officer toexamine, on oath or affirmation, persons attendingbefore him or her.

Off enc es

Clause 35 Creates offences for:

— refusing or failing to attend before aCollector or an authorized officer, to take anoath or make an affirmation, to answerquestions or produce documents when sorequired under the Act (sub—clause (I)—penalty $1,000);

— obtaining or attempting to obtain bounty thatis not payable (sub—clause (2) — penalty$2,000 or imprisonment for 12 months, orboth); and

— presenting certain records or making certainstatements that are known to be false ormisleading in a material particular(sub—clause (3) — penalty $1,000 orimprisonment for 6 months, or both).

Sub—clause (4) prevents a person being convictedtwice for offences in respect of the same claim forbounty where those of fences are against bothsub—clause (2) and sub—clause 23(1) or against bothsub—clause (2) and sub—clause (3).

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Sub—clause (5) provides that where a Court issatisfied a charge against a person is proven butdoes not proceed to a conviction, the order of theCourt under section l9B of the Crimes Act 1914 isconsidered to be a conviction for the purposes ofsub-clause (4).

Time for prosecutions

Clause 36 Limits the commencement of prosecutions for of fencesagainst the Act to within 3 years after thecommission of an offence.

Recovery of bounty on conviction

Clause 37 Empowers a court to order a person convicted of anoffence under sub—clauses 23(1) or 35(2) or (3) torefund to the Commonwealth the amount of bountywrongfully obtained, in addition to imposing thepenalty prescribed in those sub—sections againstthat person (sub—section (1));

Sub—clauses (2) to (6) provide a procedure to ensurethat amounts of bounty to be refunded undersub—section (1) do not fail to be recovered due tojurisdictional difficulties.

PART V - MISCELLANEOUS

Return for Parliament

Clause 38 Provides for the furnishing by theComptroller—General to the Minister (sub—clausejJJj, and the tabling in Parliament by the Minister(sub—clause (2)), of returns in relation to thepayment of bounty.

Delegation

Clause 39 Provides powers of delegation for the Minister. TheComptroller—General has a power of delegation forthe purposes of this Act pursuant to the CustomsAdministration Act 1985 (Section 14).

Application for review

Clause 40 Provides a right to apply to the AdministrativeAppeals Tribunal for review of specifiedadministrative decisions affecting the rights orentitlements of persons under the Act.

Statement to accompany notice of decisions

Clause 41 Requires persons whose interests are affected by anadministrative decision of a kind referred to inclause 40 to be notified of the rights of review ofthose decisions by the Administrative AppealsTribunal.

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Money to be appropriated

Clause 42 Provides for payments of bounty and advances onaccount of bounty to be made out of moneyappropriated by the Parliament.

Transitional

Clause 43 Provides that the penal provisions of the Act do notoperate prior to the day on which this Bill receivesthe Royal Assent.

Regulations

Clause 44 Provides the power to make regulations for the

purposes of the Act.

PART Vt - AMENDMENTOF BOUNTY

(METAL WORKINGMACHINE TOOLS) ACT 1978

Principal Act

Clause 45 Its a technical drafting clause, which formallydefines the Bounty (Metal—working Machine Tools) Act1978 as the Principal Act for the purposes of thispart of the Bill.

Specification of bounty

Clause 46 Amends section 6 of the Principal Act to providethat where the manufacture of a bountiable machinetool which comes within the definition of“bountiable equipment” AA or AB of this Bill

(a) was commenced before the commencement of thisBill and

(b) was completed after that commencement date (1July 1985), and

(c) the maufacture was not undertaken in pursuanceof a firm order placed before 1 July 1985,

the nanufacturer is not entitled to bounty under thenew bounty assistance arrangements contained in thisBill

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