Federal Register of Legislation - Australian Government

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Guides & Guidelines as made
Amend the method by which duty credits in the Automotive Competitiveness and Investment Scheme are modulated.
Administered by: DITR
Registered 17 Oct 2005
Tabling HistoryDate
Tabled HR27-Mar-2003
Tabled Senate27-Mar-2003
Gazetted 27 Mar 2003
Date of repeal 09 Aug 2013
Repealed by Industry, Innovation, Climate Change, Science, Research and Tertiary Education (Spent and Redundant Instruments) Repeal Regulation 2013

I, IAN ELGIN MACFARLANE, Minister for Industry, Tourism and Resources, make these Guidelines under subsection 55 (1) of the ACIS Administration Act 1999.

Dated 25 March 2003

IAN MACFARLANE

Minister for Industry, Tourism and Resources

 


1              Name of Guidelines

                These Guidelines are the ACIS Administration (Modulation) Amendment Guidelines 2003 (No. 1).

2              Commencement

                These Guidelines commence on gazettal.

3              Amendment of ACIS Administration (Modulation) Guidelines 2000

                Schedule 1 amends the ACIS Administration (Modulation) Guidelines 2000.


Schedule 1        Amendments

(section 3)

  

[1]           Section 4, definition of 2 billion cap rate

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[2]           Section 4, after definition of final year

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investment modulation rate means the rate worked out under section 9, 15 or 19.

Note   The investment modulation rate is used to modulate an amount of credit, in relation to an ACP, ASP, AMTP or MVP, to ensure that the $2 000 000 000 cap on ACIS mentioned in section 53 of the Act is not exceeded.

modulation rate means the investment modulation rate and the production modulation rate.

production modulation rate means the rate worked out under section 9, 15 or 19.

Note   The production modulation rate is used to modulate an amount of credit, in relation to an MVP, to ensure that the $2 000 000 000 cap on ACIS mentioned in section 53 of the Act is not exceeded.

[3]           Subparagraph 5 (1) (b) (i)

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the 2 billion cap rate

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the production modulation rate

[4]           Paragraph 5 (4) (a)

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the 2 billion cap rate

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the production modulation rate

[5]           Paragraph 6 (1) (a)

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the 2 billion cap rate

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the investment modulation rate

[6]           Paragraph 6 (3) (a)

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the 2 billion cap rate

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the investment modulation rate

[7]           Part 3, heading

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Part 3                 Determination of modulation rates

[8]           Part 3, Division 1, heading

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Division 1          Modulation rates for a quarter other than the final quarter

[9]           Section 7, definition of remaining quarter

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a 2 billion cap rate,

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an investment modulation rate or a production modulation rate,

[10]         Section 7, definition of remaining quarter

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the 2 billion cap rate.

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the investment modulation rate or production modulation rate.

[11]         Sections 8 and 9

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8              Process for determining modulation rates for a quarter (other than the final quarter)

         (1)   The investment modulation rate for a quarter in an ACIS year (other than the final quarter) is the rate for that year determined under subsection 9 (2) as soon as practicable after 31 October immediately preceding that year but before 1 April in that year.

         (2)   The production modulation rate for a quarter in an ACIS year (other than the final quarter) is the rate for that year determined under subsection 9 (4) as soon as practicable after 31 October immediately preceding that year but before 1 April in that year.

         (3)   However:

                (a)    if the investment modulation rate or production modulation rate for a quarter in an ACIS year is no longer appropriate for achieving the purpose of modulating the credit mentioned in paragraph 3 (2) (a), a new modulation rate may be determined under section 9 before modulated credit for that quarter has been issued to participants as duty credit; and

               (b)    if a new investment modulation rate or production modulation rate is determined, the rate for each remaining quarter in that year is the new rate.

Example

The modulation rate for a quarter may no longer be appropriate if new participants enter the scheme.

9              Steps involved in determining modulation rates for a quarter (other than the final quarter)

         (1)   The modulation rates for a quarter (other than the final quarter) are worked out as follows:

                (a)    for each participant:

                          (i)    determine the expected unmodulated uncapped production credit, expected unmodulated capped production credit and expected unmodulated investment credit for the participant for each remaining quarter under section 10;

                         (ii)    determine the total expected credit for each remaining ACIS year;

                         (iii)    determine the 5% of sales cap for each remaining ACIS year under Part 5;

                        (iv)    determine the total available capped credit for each remaining ACIS year under section 11;

               (b)    divide the total available capped credit determined under subparagraph (a) (iv) into:

                          (i)    the total available capped investment credit relating to all ACPs, ASPs and AMTPs; and

                         (ii)    the total available capped investment credit relating to all MVPs; and

                         (iii)    the total available capped production credit relating to all MVPs;

                (c)    use subsection (2) to work out the investment modulation rate for all ACPs, ASPs, AMTPs and MVPs;

               (d)    use subsection (3) to work out the derived investment credit for all ACPs, ASPs, AMTPs and MVPs;

                (e)    use subsection (4) to work out the production modulation rate for all MVPs.

Investment modulation rate

         (2)   The investment modulation rate is worked out as follows:

 

Step 1

Work out the allocated investment credit of all ACPs, ASPs and AMTPs by:

(a)   using Part 9 of the Act to work out the total unearned credit liability imposed on ACPs, ASPs, AMTPs and MVPs in respect of unearned duty credit; and

(b)   adding $2 000 000 000; and

(c)   subtracting from that total the total amount of modulated credit paid to ACPs, ASPs, AMTPs and MVPs; and

(d)   multiplying the result by 0.45.

Step 2

Divide the allocated investment credit worked out under step 1 by the total available capped investment credit relating to ACPs, ASPs and AMTPs worked out under subparagraph (1) (b) (i).

Round the result down to 2 decimal places.

Step 3

The investment modulation rate is the lesser of:

(a)   the rate worked out under step 2; and

(b)   1.

Derived investment credit

         (3)   The derived investment credit for each class of participant is worked out for each class of participant by multiplying the total available capped investment credit worked out under subparagraphs (1) (b) (i) and (ii) by the investment modulation rate.

Production modulation rate

         (4)   The production modulation rate is worked out as follows:

 

Step 1

Work out the allocated MVP production and investment credit for all MVPs by:

(a)   working out the total unearned credit liability imposed on ACPs, ASPs, AMTPs and MVPs in respect of unearned duty credit; and

(b)   adding $2 000 000 000; and

(c)   subtracting from that total the amount of modulated credit paid to ACPs, ASPs, AMTPs and MVPs; and

(d)   subtract from that total the total amount of derived investment credits for ACPs, ASPs and AMTPs.

Step 2

Work out the production modulation rate for all MVPs by:

(a)   taking the allocated MVP production and investment credit worked out in step 1; and

(b)   subtracting the derived investment credits for all MVPs; and

(c)   dividing the result by the total available capped credit, relating to production, for all MVPs as worked out in subparagraph (1) (b) (iii).

Round the result down to 2 decimal places.

Step 3

The production modulation rate is the lesser of:

(a)   the rate worked out under step 2; and

(b)   1.

[12]         Section 12

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[13]         Part 3, Division 2, heading

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Division 2              Modulation rates for the final quarter

[14]         Sections 14 and 15

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14            Process for determining modulation rates for the final quarter

         (1)   The investment modulation rate for the final quarter is the rate determined under subsection 15 (2) as soon as practicable after the period referred to in section 35 of the Act within which participants are required to lodge quarterly returns for the final quarter.

         (2)   The production modulation rate for the final quarter is the rate determined under subsection 15 (4) as soon as practicable after the period referred to in section 35 of the Act within which participants are required to lodge quarterly returns for the final quarter.

15            Steps involved in determining modulation rates for the final quarter

         (1)   The modulation rates for the final quarter are worked out as follows:

                (a)    for each participant:

                          (i)    determine the expected unmodulated uncapped production credit, expected unmodulated capped production credit and unmodulated investment credit for the participant for the final quarter under Part 4 of the Act; and

                         (ii)    determine the total expected credit; and

                         (iii)    determine the 5% of sales cap for the final year under Part 5; and

                        (iv)    determine the available capped credit under section 16;

               (b)    divide the available capped credit determined under subparagraph (a) (iv) into:

                          (i)    the total available capped investment credit relating to all ACPs, ASPs and AMTPs for the final quarter; and

                         (ii)    the total available capped investment credit relating to all MVPs for the final quarter; and

                         (iii)    the total available capped production credit relating to all MVPs for the final quarter;

                (c)    use subsection (2) to work out the investment modulation rate for all ACPs, ASPs, AMTPs and MVPs;

               (d)    use subsection (3) to work out the derived investment credit for all ACPs, ASPs, AMTPs and MVPs;

                (e)    use subsection (4) to work out the production modulation rate for all MVPs.

Investment modulation rate

         (2)   The investment modulation rate is worked out as follows:

 

Step 1

Work out the allocated investment credit of all ACPs, ASPs and AMTPs by:

(a)   using Part 9 of the Act to work out the total unearned credit liability imposed on ACPs, ASPs and AMTPs in respect of unearned duty credit for the final quarter; and

(b)   adding $2 000 000 000; and

(c)   subtracting from that total the amount of modulated credit paid to ACPs, ASPs and AMTPs during the final quarter; and

(d)   multiplying the result by 0.45.

Step 2

Divide the allocated investment credit worked out under step 1 by the total available capped investment credit relating to ACPs, ASPs and AMTPs for the final quarter worked out under subparagraph (1) (b) (i).

Round the result down to 2 decimal places.

Step 3

The investment modulation rate is the lesser of:

(a)   the rate worked out under step 2; and

(b)   1.

Derived investment credit

         (3)   The derived investment credit for each class of participant is worked out for each class of participant by multiplying the total available capped investment credit worked out under subparagraphs (1) (b) (i) and (ii) by the investment modulation rate.

Production modulation rate

         (4)   The production modulation rate is worked out as follows:

 

Step 1

Work out the allocated MVP production and investment credit for all MVPs by:

(a)   using Part 9 of the Act to work out the total unearned credit liability imposed on ACPs, ASPs, AMTPs and MVPs in respect of unearned duty credit for the final quarter; and

(b)   adding $2 000 000 000; and

(c)   subtracting from that total the amount of modulated credit paid to ACPs, ASPs, AMTPs and MVPs for the final quarter; and

(d)   subtract from that total the total amount of derived investment credits for ACPs, ASPs and AMTPs for the final quarter.

Step 2

Work out the production modulation rate for all MVPs by:

(a)   taking the allocated MVP production and investment credit worked out in step 1; and

(b)   subtracting the derived investment credits for all MVPs for the final quarter; and

(c)   dividing the result by the total available capped credit, relating to production, for all MVPs for the final quarter as worked out in subparagraph (1) (b) (iii).

Round the result down to 2 decimal places.

Step 3

The production modulation rate is the lesser of:

(a)   the rate worked out under step 2; and

(b)   1.

[15]         Section 17

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[16]         Part 3, Division 3, heading

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Division 3              Modulation rates for any additional amount of unmodulated credit

[17]         Sections 19, 20 and 21

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19            Process for determining modulation rates for any additional amount of unmodulated credit

         (1)   The investment modulation rate for an additional amount of unmodulated investment credit is:

                (a)    if the additional amount is worked out in a quarter that starts:

                          (i)    after the commencement of this section; and

                         (ii)    before 1 January 2006;

                        the investment modulation rate for that quarter, determined under Division 1 or 2; or

               (b)    if the additional amount is worked out on or after 1 January 2006, but before any modulated credit for the final quarter has been issued to participants as duty credit — the investment modulation rate for the final quarter, determined under Division 2; or

                (c)    in any other case — the investment modulation rate for the day on which the additional amount is worked out.

         (2)   The production modulation rate for an additional amount of unmodulated capped production credit is:

                (a)    if the additional amount is worked out in a quarter that starts:

                          (i)    after the commencement of this section; and

                         (ii)    before 1 January 2006;

                        the production modulation rate for that quarter, determined under Division 1 or 2; or

               (b)    if the additional amount is worked out on or after 1 January 2006, but before any modulated credit for the final quarter has been issued to participants as duty credit — the production modulation rate for the final quarter, determined under Division 2; or

                (c)    in any other case — the production modulation rate for the day on which the additional amount is worked out.

20            How to determine modulation rates for a particular day

                The investment modulation rate or production modulation rate for a particular day is the rate determined under section 21 as soon as practicable after that day.

21            Steps involved in determining modulation rates for a particular day

         (1)   The modulation rates for a particular day are worked out as follows:

                (a)    for each participant for which an additional amount of unmodulated capped production credit or unmodulated investment credit has been worked out on that day:

                          (i)    determine the total expected credit; and

                         (ii)    determine the 5% of sales cap for the final year under Part 5; and

                         (iii)    determine the available capped credit under section 22;

               (b)    divide the available capped credit determined under subparagraph (a) (iv) into:

                          (i)    the total available capped investment credit relating to all ACPs, ASPs and AMTPs for that day; and

                         (ii)    the total available capped investment credit relating to all MVPs for that day; and

                         (iii)    the total available capped production credit relating to all MVPs for that day;

                (c)    use subsection (2) to work out the investment modulation rate for all ACPs, ASPs, AMTPs and MVPs;

               (d)    use subsection (3) to work out the derived investment credit for all ACPs, ASPs, AMTPs and MVPs;

                (e)    use subsection (4) to work out the production modulation rate for all MVPs.

Investment modulation rate

         (2)   The investment modulation rate is worked out as follows:

 

Step 1

Work out the allocated investment credit of all ACPs, ASPs and AMTPs by:

(a)   using Part 9 of the Act to work out the total unearned credit liability imposed on ACPs, ASPs and AMTPs in respect of unearned duty credit; and

(b)   adding $2 000 000 000; and

(c)   subtracting from that total the amount of modulated credit paid to ACPs, ASPs and AMTPs; and

(d)   multiplying the result by 0.45.

Step 2

Divide the allocated investment credit worked out under step 1 by the total available capped investment credit relating to ACPs, ASPs and AMTPs worked out under subparagraph (1) (b) (i).

Round the result down to 2 decimal places.

Step 3

The investment modulation rate is the lesser of:

(a)   the rate worked out under step 2; and

(b)   1.

Derived investment credit

         (3)   The derived investment credit for each class of participant is worked out for each class of participant by multiplying the total available capped investment credit worked out under subparagraphs (1) (b) (i) and (ii) by the investment modulation rate.

Production modulation rate

         (4)   The production modulation rate is worked out as follows:

 

Step 1

Work out the allocated MVP production and investment credit for all MVPs by:

(a)   using Part 9 of the Act to work out the total unearned credit liability imposed on ACPs, ASPs, AMTPs and MVPs in respect of unearned duty credit; and

(b)   adding $2 000 000 000; and

(c)   subtracting from that total the amount of modulated credit paid to ACPs, ASPs, AMTPs and MVPs; and

(d)   subtract from that total the total amount of derived investment credits for ACPs, ASPs and AMTPs.

Step 2

Work out the production modulation rate for all MVPs by:

(a)   taking the allocated MVP production and investment credit worked out in step 1; and

(b)   subtracting the derived investment credits for all MVPs; and

(c)   dividing the result by the total available capped credit, relating to production, for all MVPs as worked out in subparagraph (1) (b) (iii).

Round the result down to 2 decimal places.

Step 3

The production modulation rate is the lesser of:

(a)   the rate worked out under step 2; and

(b)   1.

[18]         Section 23

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[19]         Subsection 24 (2), definition of factor D, subparagraph (c) (ii)

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the 2 billion cap rate

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the production modulation rate

[20]         Subsection 24 (2), definition of factor D, subparagraph (d) (ii)

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the 2 billion cap rate

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the production modulation rate

[21]         Subsection 24 (2), definition of factor D, subparagraph (e) (ii)

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the 2 billion cap rate

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the investment modulation rate

[22]         Subsection 24 (2), definition of factor D, subparagraph (f) (ii)

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the 2 billion cap rate

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the investment modulation rate

[23]         Subsection 24 (3), definition of factor H, subparagraph (c) (ii)

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the 2 billion cap rate

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the production modulation rate

[24]         Subsection 24 (3), definition of factor H, subparagraph (d) (ii)

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the 2 billion cap rate

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the production modulation rate

[25]         Subsection 24 (3), definition of factor H, subparagraph (e) (ii)

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the 2 billion cap rate

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the investment modulation rate

[26]         Subsection 24 (3), definition of factor H, subparagraph (f) (ii)

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the 2 billion cap rate

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the investment modulation rate

[27]         Section 27, definition of factor L, subparagraph (b) (ii)

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the 2 billion cap rate

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the production modulation rate

[28]         Section 27, definition of factor L, subparagraph (c) (ii)

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the 2 billion cap rate

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the investment modulation rate

[29]         Paragraph 28 (1) (a)

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a 2 billion cap rate

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a modulation rate

[30]         Paragraph 28 (1) (a)

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the 2 billion cap rate; or

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the modulation rate; or