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Guides & Guidelines as made
The ACIS Administration (Modulation) Guidelines 2006 are made under section 55 of the ACIS Administration Act 1999. These Guidelines set out how certain types of assistance, to be given to the Australian automotive industry under the Automotive Competitiveness and Investment Scheme (ACIS), are to be modulated before being distributed to ACIS participants. Modulation is essentially the process whereby claims for ACIS assistance are reduced, by being multiplied by a certain percentage, so as not to exceed the total funding allocated for ACIS.
Administered by: Industry
Registered 27 Mar 2006
Tabling HistoryDate
Tabled HR29-Mar-2006
Tabled Senate29-Mar-2006
Date of repeal 19 Mar 2014
Repealed by Spent and Redundant Instruments Repeal Regulation 2014

I, IAN ELGIN MACFARLANE, Minister for Industry, Tourism and Resources, make these Guidelines under section 55 and paragraph 60A (2) (c) of the ACIS Administration Act 1999.

Dated 13 March 2006

IAN MACFARLANE


Contents

Part 1                    Preliminary

                        1     Name of Guidelines                                                                             3

                        2     Commencement                                                                                  3

                        3     Objects and purpose — modulating credit                                              3

                        4     Definitions                                                                                           3

Part 2                    Modulating and limiting credit

Division 1                MVPs

                        5     Unmodulated uncapped production credit                                               6

                        6     Unmodulated capped production credit                                                  6

                        7     Unmodulated investment credit                                                             7

                        8     Unmodulated type J investment credit                                                   7

Division 2                Non‑MVPs

                        9     Unmodulated investment credit                                                             8

Part 3                    Determination of modulation rates

Division 1                Modulation rates for a quarter

                       10     Definitions for Division 1                                                                       9

                       11     Modulation rate for a quarter (other than the final quarter) — MVP            9

                       12     Working out modulation rate for a quarter (other than the final quarter) — non–MVP      10

                       13     Determination of expected unmodulated uncapped production credit, etc 12

                       14     Determination of total claims for capped credit adjusted for the 5% of sales limit           13

Division 2                Modulation rates for the final quarter of ACIS Stage 2

                       15     Definitions                                                                                         13

                       16     Working out modulation rate for the final quarter — MVP                       14

                       17     Working out modulation rate for the final quarter — non–MVP                16

                       18     Determination of expected unmodulated uncapped production credit, etc for the final quarter      18

                       19     Determination of total claims for capped credit for the final quarter adjusted for the 5% of sales limit                                                                                                        18

Division 3                Modulation rates for additional amount of unmodulated credit

                       20     Definitions for Division 3                                                                      20

                       21     Modulation rate for additional amount of unmodulated credit — MVP      20

                       22     Modulation rate for additional amount of unmodulated credit — non–MVP 22

                       23     Determination of total claims for capped credit for an additional amount of unmodulated credit adjusted for the 5% of sales limit                                                         23

Part 4                    Determination of the ceiling rate

                       24     Determination of the ceiling rate for a participant for a quarter                 25

                       25     Ceiling rate for a quarter other than the final quarter — MVP                  25

                       26     Ceiling rate for a quarter other than the final quarter — non‑MVP            26

                       27     Ceiling rate for the final quarter — MVP                                               27

                       28     Ceiling rate for final quarter — non–MVP                                              28

                       29     Determination of the ceiling rate for a participant for any additional amount of unmodulated credit                                                                                                        28

                       30     Determination of the ceiling rate for a participant for a particular day — MVP    29

                       31     Determination of the ceiling rate for a participant for a particular day — non–MVP         29

Part 5                    Determination of the 5% of sales limit

                       32     Determination of the 5% of sales limit for a participant for an ACIS year  31

 


Part 1                 Preliminary

  

1              Name of Guidelines

                These Guidelines are the ACIS Administration (Modulation) Guidelines 2006.

2              Commencement

                These Guidelines commence on 1 January 2006.

3              Objects and purpose — modulating credit

Modulation of credit

         (1)   These Guidelines set out how the following kinds of credit are to be modulated:

                (a)    unmodulated investment credit issued to MVPs;

               (b)    unmodulated investment credit issued to non–MVPs;

                (c)    unmodulated capped production credit.

Note   The kinds of credit are mentioned in subsection 55 (1) of the Act.

         (2)   The purpose of modulating the credit is to ensure that:

                (a)    the funding cap for ACIS Stage 2 is not exceeded; and

               (b)    the limits on the MVP and non–MVP funding pools, into which the total ACIS Stage 2 funding is divided, are not exceeded.

Note   The funding cap for ACIS Stage 2 is set out in subsection 53 (1) of the Act. The division of the total ACIS Stage 2 funding is required by subsection 53 (2) of the Act.

Limiting totals for 5% sales limit

         (3)   These Guidelines also set out how the total of the following kinds of credit are to be limited for each participant, and in respect of each ACIS year, to ensure that the 5% of sales limit mentioned in section 54 of the Act is not exceeded:

                (a)    modulated credit;

               (b)    unmodulated uncapped production credit;

                (c)    unmodulated type J investment credit.

Note   Unmodulated type J investment credit is issued in accordance with the Scheme mentioned in section 60A of the Act.

4              Definitions

                In these Guidelines:

Act means the ACIS Administration Act 1999.

business plan credits means the total of all credits or particular credits, as the case may be, for all remaining quarters of ACIS Stage 2 worked out using particulars collected from annual business plan updates provided in accordance with section 109 of the Act.

ceiling rate means the rate worked out in accordance with Part 4.

Note   The ceiling rate is applied to limit the total of all ACIS credit issued to a participant in an ACIS year so that, as required by section 54 of the Act, the total ACIS credit issued to a participant does not exceed 5% of the sales value of the participant’s ACIS goods and services in the preceding year.

final year means the year starting on 1 January 2010.

Note   This is the start of the final year of ACIS Stage 2.

MVP modulation rate means the modulation rate for MVPs worked out in accordance with section 11.

Note 1   The MVP modulation rate is applied in order to modulate:

(a)   unmodulated investment credit issued to MVPs; and

(b)   unmodulated capped production credit issued to MVPs.

Note 2   The MVP modulation rate is used to modulate an amount of credit, in relation to an MVP, to ensure that the funding for Stage 2 of ACIS mentioned in section 53 of the Act, and reserved in the MVP pool, is not exceeded.

MVP pool means the amount of ACIS Stage 2 funding that is reserved to provide assistance solely for MVPs.

Note   The MVP pool is 55% of the total ACIS Stage 2 funding mentioned in section 53 of the Act.

MVP unearned credit liability means a liability imposed in relation to an MVP under the ACIS (Unearned Credit Liability) Act 1999.

Note   This liability must be returned to the MVP pool.

non–MVP means a participant who is not an MVP.

non–MVP modulation rate means the modulation rate for non-MVPs worked out in accordance with section 12.

Note   The non-MVP modulation rate is used to modulate an amount of credit, in relation to a non-MVP, to ensure that the funding for Stage 2 of ACIS mentioned in section 53 of the Act, and reserved in the non-MVP pool, is not exceeded.

non–MVP pool means the amount of ACIS Stage 2 funding that is reserved to provide assistance solely for non–MVPs.

Note   The non‑MVP pool is 45% of the total ACIS Stage 2 funding mentioned in section 53 of the Act.

non–MVP unearned credit liability means a liability imposed in relation to a non-MVP under the ACIS (Unearned Credit Liability) Act 1999.

Note   This liability must be returned to the MVP pool.

remaining ACIS year means a year that includes at least 1 remaining quarter.

remaining quarter, in relation to the determination of an MVP modulation rate or a non-MVP modulation rate, means a quarter in an ACIS year for which modulated credit has not been issued to participants as duty credit at the time of determining the MVP modulation rate or the non-MVP modulation rate.

total expected capped credit means the total expected capped credit, adjusted for the 5% of sales limit, worked out in accordance with section 13.

total expected uncapped credit, for a participant for an ACIS year, is worked out under section 13.

total limited credit means the total of all credit mentioned in section 54 of the Act to which the ceiling rate has been applied.

Note   A number of words and phrases used in these Guidelines are defined in the Act, including:

ACIS year

final quarter

modulated credit

MVP

participant

unearned credit liability

unmodulated capped production credit

unmodulated investment credit

unmodulated type J investment credit

unmodulated uncapped production credit

Part 2                 Modulating and limiting credit

Division 1              MVPs

5              Unmodulated uncapped production credit

         (1)   For section 54 of the Act, unmodulated uncapped production credit for an MVP for a quarter is limited by multiplying the amount of the unmodulated uncapped production credit by the ceiling rate for the MVP for the quarter.

         (2)   If:

                (a)    the Secretary is required to amend the ACIS ledger in respect of the MVP under paragraph 66 (1) (d) of the Act; and

               (b)    the result is that the amount, as amended, is more than the amount of unmodulated investment credit that was limited under subsection (1);

the Secretary must apply subsection (1) to the amount that is the difference between those amounts.

Note   Paragraph 66 (1) (d) of the Act deals with amendment of the ACIS ledger to give effect to a decision of the Administrative Appeals Tribunal or a court, or to correct an error in the ledger.

6              Unmodulated capped production credit

         (1)   For sections 54 and 56 of the Act, unmodulated capped production credit for an MVP for a quarter is modulated and limited by:

                (a)    multiplying the amount of unmodulated capped production credit by the MVP modulation rate for the MVP for the quarter; and

               (b)    multiplying the result by the ceiling rate for the quarter.

Note   Unmodulated capped production credit is worked out by the Secretary, for an MVP for a particular quarter, in accordance with subsection 42 (2) of the Act. The MVP modulation rate is worked out using Part 3 and the ceiling rate is worked out using Part 4.

         (2)   If:

                (a)    the Secretary is required to amend the ACIS ledger in respect of the MVP under paragraph 66 (1) (d) of the Act; and

               (b)    the result is that the amount, as amended, is more than the amount of unmodulated investment credit that was modulated under subsection (1);

the Secretary must apply subsection (1) to the amount that is the difference between those amounts.

Note   Paragraph 66 (1) (d) of the Act deals with amendment of the ACIS ledger to give effect to a decision of the Administrative Appeals Tribunal or a court, or to correct an error in the ledger.

7              Unmodulated investment credit

         (1)   For sections 54 and 57 of the Act, unmodulated investment credit for an MVP for a quarter is modulated and limited by:

                (a)    multiplying the amount of the unmodulated investment credit by the MVP investment modulation rate for the MVP for the quarter; and

               (b)    multiplying the result by the ceiling rate for the quarter.

Note   Unmodulated investment credit is worked out by the Secretary, for an MVP for a particular quarter, in accordance with sections 43, 44 and 45 of the Act. The MVP modulation rate is worked out using Part 3 and the ceiling rate is worked out using Part 4.

         (2)   If:

                (a)    the Secretary is required to amend the ACIS ledger in respect of the MVP under paragraph 66 (1) (d) of the Act; and

               (b)    the result is that the amount, as amended, is more than the amount of unmodulated investment credit that was modulated under subsection (1);

the Secretary must apply subsection (1) to the amount that is the difference between those amounts.

Note   Paragraph 66 (1) (d) of the Act deals with amendment of the ACIS ledger to give effect to a decision of the Administrative Appeals Tribunal or a court, or to correct an error in the ledger.

8              Unmodulated type J investment credit

         (1)   For paragraph 60A (2) (c) the Act, unmodulated type J investment credit for an MVP for a quarter limited by multiplying the credit by the ceiling rate for the quarter.

Note   Unmodulated type J investment credit is worked out under the R&D scheme formulated by the Minister under subsection 60A (1) of the Act.

         (2)   If:

                (a)    the Secretary is required to amend the ACIS ledger in respect of the MVP under paragraph 66 (1) (d) of the Act; and

               (b)    the result is that the amount, as amended, is more than the amount of unmodulated type J investment credit that was modulated under subsection (1);

the Secretary must apply subsection (1) to the amount that is the difference between those amounts.

Note   Paragraph 66 (1) (d) of the Act deals with amendment of the ACIS ledger to give effect to a decision of the Administrative Appeals Tribunal or a court, or to correct an error in the ledger.

Division 2              Non‑MVPs

9              Unmodulated investment credit

         (1)   For sections 54 and 59 of the Act, unmodulated investment credit for a non‑MVP for a quarter is modulated and limited by:

                (a)    multiplying the amount of the unmodulated investment credit by the non–MVP investment modulation rate for the non–MVP for the quarter; and

               (b)    multiplying the result by the ceiling rate for the quarter.

Note   Unmodulated investment credit is worked out in accordance with sections 43, 44 and 45 of the Act. The non–MVP modulation rate is worked out using Part 3 and the ceiling rate is worked out using Part 4.

         (2)   If:

                (a)    the Secretary is required to amend the ACIS ledger in respect of the non–MVP under paragraph 66 (1) (d) of the Act; and

               (b)    the result is that the amount, as amended, is more than the amount of unmodulated investment credit that was modulated under subsection (1);

the Secretary must apply subsection (1) to the amount that is the difference between those amounts.

Note   Paragraph 66 (1) (d) of the Act deals with amendment of the ACIS ledger to give effect to a decision of the Administrative Appeals Tribunal or a court, or to correct an error in the ledger.

Part 3                 Determination of modulation rates

Division 1              Modulation rates for a quarter

10            Definitions for Division 1

                In this Division:

total expected capped and uncapped credit, for a participant for an ACIS year, means the sum of:

                (a)    the total amount of modulated credit and unmodulated type J investment credit that has been issued to the participant as duty credit during the ACIS year; and

               (b)    the total expected uncapped credit for the participant for the ACIS year; and

                (c)    the total expected capped credit for the participant for the ACIS year.

11            Modulation rate for a quarter (other than the final quarter) — MVP

         (1)   If a modulation rate for MVPs has been worked out for a quarter under this section, not later than the last day of the quarter on which a particular MVP is permitted to make a return for the quarter, that modulation rate is the modulation rate for the quarter for the MVP.

         (2)   If a modulation rate has not been worked out for the MVP for the quarter by that day, the modulation rate for the quarter is the modulation rate that was applicable for the preceding quarter.

Note   Section 35 of the Act identifies the last day of the quarter on which an MVP is permitted to make a return for a quarter. It is intended that a modulation rate will be worked out for MVPs for a quarter as soon as practicable before that day.

         (3)   The following amounts must be worked out for the MVP for each remaining quarter (other than the final quarter):

                (a)    the expected unmodulated uncapped production credit;

               (b)    the expected unmodulated capped production credit;

                (c)    the expected unmodulated investment credit;

               (d)    the expected unmodulated type J investment credit.

Note   These are worked out using section 6 of the Act.

         (4)   The total expected capped credit must be worked out for the MVP for each remaining ACIS year.

         (5)   The 5% of sales limit must be worked out for the MVP for each remaining ACIS year.

Note   This is worked out using Part 5.

         (6)   Work out capped limited credits for all MVPs for all remaining quarters of ACIS Stage 2 and add them together. The result is the total capped limited credit.

Note   This is worked out using subsection 53 (2) of the Act and section 13.

         (7)   Work out the business plan credits for all MVPs for all remaining quarters of ACIS Stage 2 for:

                (a)    expected unmodulated capped production credit; and

               (b)    expected unmodulated investment credit.

         (8)   The modulation rate is then worked out using the table.

 

Modulation rate for MVPs

Step 1

Work out the residual credit for MVPs:

   (a)  Identify the total funding allocated to the MVP pool for ACIS Stage 2.

   (b)  Except for the final quarter subtract the total funding that has been reserved for the MVP Research and Development Scheme.

   (c)  Then subtract:

         (i)   the total amount of modulated, limited credit that has been issued to MVPs in relation to Stage 2 of ACIS.

            Note   Type J investment credit is only limited credit, so it is not included in these calculations.

   (d)  Then add the amount relating to MVPs that is worked out using Part 9 of the Act.

            Note   Part 9 of the Act relates to the total MVP unearned credit liability imposed in respect of unearned duty credit in ACIS Stage 2.

   (e)  Then subtract the total MVP unearned credit liability arising from type J investment credit.

Step 2

Divide the amount worked out under step 1 by the business plan credits relating to MVPs, as worked out under subsection (7).

Round the result down to 2 decimal places.

Step 3

The modulation rate for MVPs is the lesser of:

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

   (b)  1.

12            Working out modulation rate for a quarter (other than the final quarter) — non–MVP

         (1)   If a modulation rate for non‑MVPs has been worked out for a quarter under this section, not later than the last day of the quarter on which a particular non–MVP is permitted to make a return for the quarter, that modulation rate is the modulation rate for the quarter for the non‑MVP.

         (2)   If a modulation rate has not been worked out for the non–MVP for the quarter by that day, the modulation rate for the quarter is the modulation rate that was applicable for the preceding quarter.

Note   Section 35 of the Act identifies the last day of the quarter on which a non–MVP is permitted to make a return for a quarter. It is intended that a modulation rate will be worked out for non–MVPs for a quarter as soon as practicable before that day.

         (3)   The following amounts must be worked out for the non–MVP for each remaining quarter (other than the final quarter):

                (a)    the expected unmodulated investment credit;

               (b)    the expected unmodulated type J investment credit.

Note   These are worked out using section 6 of the Act.

         (4)   The total expected capped credit must be worked out for the non–MVP for each remaining ACIS year.

         (5)   The 5% of sales limit must be worked out for the non–MVP for each remaining ACIS year.

Note   This is worked out using Part 5.

         (6)   Work out capped limited credits for all non–MVPs for all remaining quarters of ACIS Stage 2 and add them together. The result is the total capped limited credit.

Note   This is worked out using subsection 53 (2) of the Act and section 13.

         (7)   Work out the business plan credits for expected unmodulated investment credit for all non‑MVPs for all remaining quarters of ACIS Stage 2.

         (8)   The modulation rate is then worked out using the table.

 

Modulation rate for non–MVPs

Step 1

Work out the residual credit for non–MVPs:

   (a)  Identify the total funding allocated to the non–MVP pool for ACIS Stage 2.

   (b)  Subtract:

         (i)   the total amount of modulated, limited credit that has been issued to all non–MVPs in relation to ACIS Stage 2.

   (c)  Then add the amount relating to non–MVPs that is worked out using Part 9 of the Act.

            Note   Part 9 of the Act relates to the total non–MVP unearned credit liability imposed in respect of unearned duty credit in ACIS Stage 2.

Step 2

Divide the amount worked out under step 1 by the business plan credits relating to non–MVPs, as worked out under subsection (7).

Round the result down to 2 decimal places.

Step 3

The modulation rate for non–MVPs is the lesser of:

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

   (b)  1.

13            Determination of expected unmodulated uncapped production credit, etc

         (1)   For these Guidelines, the amount of a type of credit mentioned in the table is worked out in accordance with the table.

 

Types of credit

The type of credit …

for …

is worked out for the quarter …

Expected unmodulated uncapped production credit

a participant for a quarter

using the formula for that credit in subsection 42 (1) of the Act

Expected unmodulated capped production credit

a participant for a quarter

using the formula for that credit in subsection 42 (2) of the Act

Expected unmodulated investment credit

an MVP for a quarter

using the formulae for that credit in sections 43, 44 and 45 of the Act

Expected unmodulated investment credit

an ACP for a quarter

using the formulae for that credit in sections 46 and 47 of the Act

Expected unmodulated investment credit

an AMTP for a quarter

using the formulae for that credit in sections 48 and 49 of the Act

Expected unmodulated investment credit

an ASP for a quarter

using the formulae for that credit in sections 50 and 51 of the Act

Expected unmodulated type J investment credit

a participant for a quarter

in the same way as in the R&D scheme established under section 60A of the Act

         (2)   A value or an amount for a quarter that is required by a formula mentioned in the table is:

                (a)    if the value or amount is known — that value or amount; or

               (b)    if the value or amount is not known — a value or amount worked out on the basis of estimates in the latest business plan provided by the participant that includes information about the value or amount.

         (3)   In determining an amount of expected unmodulated investment credit for a quarter, the quarter that is to be used in a formula mentioned in the table is the quarter:

                (a)    described in section 6 of the Act; and

               (b)    applied to the formula as if the participant had provided a return for that quarter as a participant under section 35 of the Act.

14            Determination of total claims for capped credit adjusted for the 5% of sales limit

         (1)   The total claims for capped credit for a participant for an ACIS year, adjusted for the 5% of sales limit, is worked out under this section.

Total claims for capped credit — total expected credit not more than 5% of sales limit

         (2)   If the total expected credit determined under Part 5 of the Act for a participant for an ACIS year is not more than 5% of sales limit, the total claims for capped credit for the participant for the year is the total expected capped credit for the participant for the year.

Total claims for capped credit — total expected credit more than 5% of sales limit

         (3)   If the total expected credit determined under Part 5 of the Act for a participant for an ACIS year is more than 5% of sales limit, the total claims for capped credit for the participant for the year is worked out in accordance with the following formula:

where:

A is the total expected capped credit for the participant for the year; and

B is the 5% of sales limit for the participant for the year, determined under Part 5 of the Act.

C is the total of the following amounts issued to the participant as duty credit since the beginning of the year:

                (a)    modulated credit;

               (b)    unmodulated uncapped production credit;

                (c)    unmodulated type J investment credit.

D for the participant for the year, in all quarters except the final quarter, is the total of:

                (a)    the total expected uncapped credit; and

               (b)    the total expected capped credit.

Division 2              Modulation rates for the final quarter of ACIS Stage 2

15            Definitions

total expected capped and uncapped credit, for a participant in the final quarter, means the total of the following amounts described in the table.

 

The type of credit …

description...

modulated credit

issued since the beginning of the final year

any additional amount of unmodulated uncapped production credit

worked out since the beginning of the final quarter

any additional amount of unmodulated capped production credit

worked out since the beginning of the final quarter

any additional amount of unmodulated investment credit

worked out since the beginning of the final quarter

any additional amount of unmodulated type J investment credit

worked out since the beginning of the final quarter

unmodulated uncapped production credit

for the final quarter

unmodulated capped production credit

for the final quarter

unmodulated investment credit

for the final quarter

unmodulated type J investment credit

for the final quarter

unmodulated capped credit, for a participant in the final quarter means the sum of the following amounts for the participant for the final quarter:

                (a)    unmodulated capped production credit;

               (b)    unmodulated investment credit;

                (c)    unmodulated type J investment credit.

16            Working out modulation rate for the final quarter — MVP

         (1)   If a modulation rate has been worked out for an MVP for the final quarter under this section, not later than the last day on which the MVP is permitted to make a return for the final quarter, that modulation rate is the modulation rate for the final quarter.

         (2)   If a modulation rate has not been worked out for the MVP for the final quarter by that day, the modulation rate for the final quarter is the modulation rate that was applicable for the preceding quarter.

Note   Section 35 of the Act identifies the last day of the quarter on which an MVP is permitted to make a return for a quarter. It is intended that a modulation rate will be worked out for MVPs for a quarter as soon as practicable before that day.

         (3)   The following amounts must be worked out for the MVP for the final quarter:

                (a)    the expected unmodulated uncapped production credit;

               (b)    the expected unmodulated capped production credit;

                (c)    the expected unmodulated investment credit.

Note 1   These are worked out using section 6 of the Act.

Note 2   Under section 6 of the ACIS Stage 2 Motor Vehicle Producer Research and Development Scheme 2004 no type J investment credits may be claimed in relation to the final quarter of ACIS Stage 2.

         (4)   The total expected capped credit must be worked out for the MVP for the final quarter.

         (5)   The 5% of sales limit must be worked out for the MVP for the final quarter.

Note   This is worked out using Part 5.

         (6)   Work out capped limited credits for all MVPs for the final quarter and add them together. The result is the total capped limited credit for the final quarter.

Note   This is worked out using subsection 53 (2) of the Act and section 15.

         (7)   Work out the business plan credits for all MVPs for the final quarter of ACIS Stage 2 for:

                (a)    expected unmodulated capped production credit; and

               (b)    expected unmodulated investment credit.

         (8)   The modulation rate is then worked out using the table.

 

Modulation rate for MVPs

Step 1

Work out the residual credit for MVPs:

   (a)  Identify the total funding allocated to the MVP pool for ACIS Stage 2, including the total funding initially reserved for the MVP Research and Development Scheme.

   (b)  Then subtract:

         (i)   the total amount of modulated, limited credit that has been issued to MVPs in relation to Stage 2 of ACIS; and

        (ii)   the total amount of limited unmodulated type J investment credit that has been issued to MVPs in relation to Stage 2 of ACIS.

   (c)  Then add the amount relating to MVPs that is worked out using Part 9 of the Act.

            Note   Part 9 of the Act relates to the total MVP unearned credit liability imposed in respect of unearned duty credit in ACIS Stage 2, and includes unearned credit liability arising from type J investment credit.

Step 2

Divide the amount worked out under step 1 by the business plan credits relating to MVPs, as worked out under subsection (7).

Round the result down to 2 decimal places.

Step 3

The modulation rate for MVPs is the lesser of:

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

   (b)  1.

17            Working out modulation rate for the final quarter — non–MVP

         (1)   If a modulation rate has been worked out for a non–MVP for the final quarter under this section, not later than the last day on which the non–MVP is permitted to make a return for the final quarter, that modulation rate is the modulation rate for the final quarter.

         (2)   If a modulation rate has not been worked out for the non–MVP for the final quarter by that day, the modulation rate for the final quarter is the modulation rate that was applicable for the preceding quarter.

Note   Section 35 of the Act identifies the last day of the quarter on which a non–MVP is permitted to make a return for a quarter. It is intended that a modulation rate will be worked out for non–MVPs for a quarter as soon as practicable before that day.

         (3)   The expected unmodulated investment credit must be worked out for the non–MVP for the final quarter.

Note 1   This is worked out using section 6 of the Act.

Note 2   Under section 6 of the ACIS Stage 2 Motor Vehicle Producer Research and Development Scheme 2004 no type J investment credits may be claimed in relation to the final quarter of ACIS Stage 2.

         (4)   The total expected capped credit must be worked out for the non–MVP for the final quarter.

         (5)   The 5% of sales limit must be worked out for the non–MVP for the final quarter.

Note   This is worked out using Part 5.

         (6)   Work out capped limited credits for each non‑MVP for the final quarter and add them together. The result is the total capped limited credit for the final quarter.

Note   This is worked out using subsection 53 (2) of the Act and section 15.

         (7)   Work out the business plan credits for expected unmodulated investment credit for all non‑MVPs for the final quarter of ACIS Stage 2.

         (8)   The modulation rate is then worked out using the table.

 

Modulation rate for non–MVPs

Step 1

Work out the residual credit for non–MVPs:

   (a)  Identify the total funding allocated to the non–MVP pool for ACIS Stage 2.

   (b)  Then subtract the total amount of modulated, limited credit that has been issued to non–MVPs in relation to Stage 2 of ACIS.

   (c)  Then add the amount relating to non–MVPs that is worked out using Part 9 of the Act.

            Note   Part 9 of the Act relates to the total non–MVP unearned credit liability imposed in respect of unearned duty credit in ACIS Stage 2, and includes unearned credit liability arising from type J investment credit.

Step 2

Divide the amount worked out under step 1 by the business plan credits relating to non–MVPs, as worked out under subsection (7).

Round the result down to 2 decimal places.

Step 3

The modulation rate for non–MVPs is the lesser of:

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

   (b)  1.

18            Determination of expected unmodulated uncapped production credit, etc for the final quarter

         (1)   For these Guidelines, the amount of a type of credit mentioned in the table for the final quarter is worked out in accordance with the table.

 

Types of credit

The type of credit …

for …

is worked out for the final quarter …

Expected unmodulated uncapped production credit

a participant for the final quarter

using the formula for that credit in subsection 42 (1) of the Act

Expected unmodulated capped production credit

a participant for the final quarter

using the formula for that credit in subsection 42 (2) of the Act

Expected unmodulated investment credit

an MVP for the final quarter

using the formulae for that credit in sections 43, 44 and 45 of the Act

Expected unmodulated investment credit

an ACP for the final quarter

using the formulae for that credit in sections 46 and 47 of the Act

Expected unmodulated investment credit

an AMTP for the final quarter

using the formulae for that credit in sections 48 and 49 of the Act

Expected unmodulated investment credit

an ASP for the final quarter

using the formulae for that credit in sections 50 and 51 of the Act

         (2)   A value or an amount for the final quarter that is required by a formula mentioned in the table is:

                (a)    if the value or amount is known — that value or amount; or

               (b)    if the value or amount is not known — a value or amount worked out on the basis of estimates in the latest business plan provided by the participant that includes information about the value or amount.

19            Determination of total claims for capped credit for the final quarter adjusted for the 5% of sales limit

         (1)   For calculations under this Division that relate to the final quarter, the total claims for capped credit for a participant, adjusted for the 5% of sales limit, for an ACIS year, is worked out under this section.

Total claims for capped credit — total expected credit not more than 5% of sales limit

         (2)   If the total expected credit determined under Part 5 of the Act for a participant for an ACIS year is not more than 5% of sales limit, the total claims for capped credit for the participant for the ACIS year is:

                (a)    the total expected capped credit for the participant for the year; and

               (b)    the total of the following amounts for the participant, worked out since the beginning of the final quarter:

                          (i)    any additional amount of unmodulated capped production credit;

                         (ii)    any additional amount of unmodulated investment credit;

                         (iii)    any additional amount of unmodulated type J investment credit.

Total claims for capped credit — total expected credit more than 5% of sales limit

         (3)   If the total expected credit determined under Part 5 of the Act for a participant for an ACIS year is more than 5% of sales limit, the total claims for capped credit for the participant for the year is worked out in accordance with the following formula:

where:

A is the total of:

                (a)    the total expected capped credit for the participant for the year; and

               (b)    the total of the following amounts for the participant, worked out since the beginning of the final quarter:

                          (i)    any additional amount of unmodulated capped production credit;

                         (ii)    any additional amount of unmodulated investment credit;

                         (iii)    any additional amount of unmodulated type J investment credit.

B is the 5% of sales limit for the participant for the year, determined under Part 5 of the Act.

C is the total of the following amounts issued to the participant as duty credit since the beginning of the year:

                (a)    modulated credit;

               (b)    unmodulated uncapped production credit;

                (c)    unmodulated type J investment credit.

D for the participant in the final quarter, is the difference between:

                (a)    the total expected credit for the participant; and

               (b)    the total of the following issued to the participant since the beginning of the final year:

                          (i)    the total amount of modulated credit;

                         (ii)    the total unmodulated type J investment credit.

Division 3              Modulation rates for additional amount of unmodulated credit

20            Definitions for Division 3

                In this Division:

total expected credit, for a participant for a particular day, means the sum of:

                (a)    the total amount of modulated credit and unmodulated type J investment credit that has been issued to the participant as duty credit since the beginning of the final year; and

               (b)    the total for the participant, on that day, of the following:

                          (i)    any additional amount of unmodulated uncapped production credit;

                         (ii)    any additional amount of unmodulated capped production credit;

                         (iii)    any additional amount of unmodulated investment credit;

                        (iv)    any additional amount of unmodulated type J investment credit.

21            Modulation rate for additional amount of unmodulated credit — MVP

         (1)   For an MVP, for a particular day, the modulation rate for an additional amount of unmodulated capped production credit is worked out in accordance with the table.

 

if the additional amount is worked out...

the rate is...

for a quarter that starts:

   (a)  after the commencement of this section; and

   (b)  before 1 January 2011

the rate for the quarter, determined under Division 1 or Division 2

for a quarter that starts:

   (a)  on or after 1 January 2011; and

   (b)  before any modulated credit for the final quarter has been issued to MVPs as duty credit

the MVP modulation rate for the final quarter, determined under Division 2

for any case not covered elsewhere in this table

the MVP modulation rate for the day on which the additional amount is worked out

         (2)   If a rate is to be worked out under this section for a particular day, the rate must be worked out as soon as practicable after that day.

         (3)   In relation to the MVP pool, a rate must be worked out using the steps in this section, for each MVP in respect of which the following amounts have been worked out for the MVP:

                (a)    an additional amount of unmodulated capped production credit;

               (b)    an additional amount of unmodulated investment credit;

                (c)    an additional amount of unmodulated type J investment credit.

Steps for working out MVP modulation rate

         (4)   The total expected credit must be worked out for the MVP.

         (5)   The 5% of sales limit must be worked out for the MVP.

Note   This is worked out using Part 5.

         (6)   The total capped limited credit must be worked out for the MVP under section 23.

Note   This is worked out using subsection 53 (2) of the Act and section 23.

         (7)   Work out the business plan credits for all MVPs for ACIS Stage 2 for:

                (a)    the additional amount of unmodulated capped production credit; and

               (b)    the additional amount of unmodulated investment credit.

         (8)   The modulation rate for MVPs is then worked out using the table.

 

Modulation rate for MVPs

Step 1

Work out the credit of all MVPs:

   (a)  Identify the total funding allocated to the MVP pool for ACIS Stage 2.

   (b)  Then subtract the total amount of modulated, limited credit that has been issued to MVPs in relation to Stage 2 of ACIS.

   (c)  Then add the amount relating to MVPs that is worked out using Part 9 of the Act.

            Note   Part 9 of the Act relates to the total MVP unearned credit liability imposed in respect of unearned duty credit in ACIS Stage 2.

Step 2

Divide the amount worked out under step 1 by the business plan credits relating to MVPs, as worked out under subsection (7).

Round the result down to 2 decimal places.

Step 3

The modulation rate for MVPs is the lesser of:

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

   (b)  1.

22            Modulation rate for additional amount of unmodulated credit — non–MVP

         (1)   For a non–MVP, for a particular day, the modulation rate for an additional amount of unmodulated capped production credit is worked out in accordance with the table.

 

if the additional amount is worked out...

the rate is...

for a quarter that starts:

   (a)  after the commencement of this section; and

   (b)  before 1 January 2011

 

the rate for the quarter, determined under Division 1 or Division 2

for a quarter that starts:

   (a)  on or after 1 January 2011; and

   (b)  before any modulated credit for the final quarter has been issued to non–MVPs as duty credit

 

the non–MVP modulation rate for the final quarter, determined under Division 2

for any case not covered elsewhere in this table

the non–MVP modulation rate for the day on which the additional amount is worked out

         (2)   If a rate is to be worked out under this section for a particular day, the rate must be worked out as soon as practicable after that day.

         (3)   In relation to the non–MVP pool, a rate must be worked out using the steps in this section, for each non–MVP in respect of which the following amounts have been worked out for the non–MVP:

                (a)    an additional amount of unmodulated investment credit;

               (b)    an additional amount of unmodulated type J investment credit.

Steps for working out non–MVP modulation rate

         (4)   The total expected credit must be worked out for the non–MVP.

         (5)   The 5% of sales limit must be worked out for the non–MVP.

Note   This is worked out using Part 5.

         (6)   The total capped limited credit must be worked out for the non–MVP under section 23.

Note   This is worked out using subsection 53 (2) of the Act and section 23.

         (7)   Work out the business plan credits for the additional amount of unmodulated investment credit for all non-MVPs for ACIS Stage 2.

         (8)   The modulation rate for non–MVPs is then worked out using the table.

 

Modulation rate for non–MVPs

Step 1

Work out the credit of all non–MVPs:

   (a)  Identify the total funding allocated to the non–MVP pool for ACIS Stage 2.

   (b)  Then subtract the total amount of modulated, limited credit that has been issued to non–MVPs in relation to Stage 2 of ACIS.

   (c)  Then add the amount relating to non–MVPs that is worked out using Part 9 of the Act.

            Note   Part 9 of the Act relates to the total non–MVP unearned credit liability imposed in respect of unearned duty credit in ACIS Stage 2.

Step 2

Divide the amount worked out under step 1 by the business plan credits relating to non–MVPs, as worked out under subsection (7).

Round the result down to 2 decimal places.

Step 3

The modulation rate for non–MVPs is the lesser of:

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

   (b)  1.

23            Determination of total claims for capped credit for an additional amount of unmodulated credit adjusted for the 5% of sales limit

         (1)   For calculations under this Division that relate an additional amount for a particular day, the total claims for capped credit for a participant, adjusted for the 5% of sales limit, for the day, is worked out under this section.

Total claims for capped credit — total expected credit not more than 5% of sales limit

         (2)   If the total expected credit determined under Part 5 of the Act for a participant for the final year is not more than 5% of sales limit, the total claims for capped credit for the participant for the final year is:

                (a)    the total expected capped credit for the participant for the year; and

               (b)    the total of the following amounts for the participant, worked out since the beginning of the final year:

                          (i)    any additional amount of unmodulated capped production credit;

                         (ii)    any additional amount of unmodulated investment credit;

                         (iii)    any additional amount of unmodulated type J investment credit.

Total claims for capped credit — total expected credit more than 5% of sales limit

         (3)   If the total expected credit determined under Part 5 of the Act for a participant for the final year is more than 5% of sales limit, the total claims for capped credit for the participant for a day during the final year is worked out in accordance with the following formula:

where:

A is the total of:

                (a)    the total expected capped credit for the participant for the year; and

               (b)    the total of the following amounts for the participant worked out on the day:

                          (i)    any additional amount of unmodulated capped production credit;

                         (ii)    any additional amount of unmodulated investment credit;

                         (iii)    any additional amount of unmodulated type J investment credit.

B is the 5% of sales limit for the participant for the year, determined under Part 5 of the Act.

C is the total of the following amounts issued to the participant as duty credit since the beginning of the year:

                (a)    modulated credit;

               (b)    unmodulated uncapped production credit;

                (c)    unmodulated type J investment credit.

D is the total of the following, worked out on the day:

                (a)    unmodulated uncapped production credit;

               (b)    unmodulated capped production credit;

                (c)    unmodulated investment credit;

               (d)    unmodulated type J investment credit.

Part 4                 Determination of the ceiling rate

  

24            Determination of the ceiling rate for a participant for a quarter

         (1)   The ceiling rate, for a participant for a quarter in an ACIS year, is worked out under this Part.

         (2)   The ceiling rate is worked out under this Part as soon as practicable after all of the following have been worked out for the quarter:

                (a)    unmodulated uncapped production credit;

               (b)    unmodulated capped production credit;

                (c)    unmodulated investment credit;

               (d)    unmodulated type J investment credit.

25            Ceiling rate for a quarter other than the final quarter — MVP

                The ceiling rate for an MVP, for a quarter other than the final quarter, is the lesser of:

                (a)    1; or

               (b)    the rate worked out in accordance with the following formula and rounded down to 2 decimal places:

where:

A is the 5% of sales limit determined under Part 5 for the MVP for the quarter.

B is the total of the following amounts issued to date to the MVP during the ACIS year in which the quarter lies:

                (a)    modulated credit;

               (b)    unmodulated uncapped production credit;

                (c)    unmodulated type J investment credit.

C is the total amount of unearned credit liability received by the Commonwealth during ACIS Stage 2 (whether as payments or as offsets of duty credit) in respect of amounts mentioned in B.

D is the total of the following for the MVP for the quarter:

                (a)    unmodulated uncapped production credit;

               (b)    any additional amount of unmodulated uncapped production credit;

                (c)    the product of:

                          (i)    unmodulated capped production credit; and

                         (ii)    the MVP modulation rate worked out under section 11;

               (d)    the product of:

                          (i)    any additional amount of unmodulated capped production credit; and

                         (ii)    the MVP modulation rate worked out under section 21;

                (e)    the product of:

                          (i)    unmodulated investment credit; and

                         (ii)    the MVP modulation rate worked out under section 11;

                (f)    the product of:

                          (i)    any additional amount of unmodulated investment credit; and

                         (ii)    the MVP modulation rate worked out under section 21;

                (g)    unmodulated type J investment credit;

                (h)    any additional amount of unmodulated type J investment credit.

26            Ceiling rate for a quarter other than the final quarter — non‑MVP

                The ceiling rate for a non–MVP, for a quarter other than the final quarter, is the lesser of:

                (a)    1; or

               (b)    the rate worked out in accordance with the following formula and rounded down to 2 decimal places:

where:

A is the 5% of sales limit determined under Part 5 for the non–MVP for the quarter.

B is the total modulated credit issued to date to the non-MVP during the ACIS year in which the quarter lies.

C is the total amount of unearned credit liability received by the Commonwealth during ACIS Stage 2 (whether as payments or as offsets of duty credit) in respect of amounts mentioned in B.

D is the total of the following for the non–MVP for the quarter:

                (a)    the product of:

                          (i)    unmodulated investment credit; and

                         (ii)    the non–MVP modulation rate worked out under section 12;

               (b)    the product of:

                          (i)    any additional amount of unmodulated investment credit; and

                         (ii)    the non–MVP modulation rate worked out under section 22;

                (c)    unmodulated type J investment credit;

               (d)    any additional amount of unmodulated type J investment credit.

27            Ceiling rate for the final quarter — MVP

                The ceiling rate for an MVP, for the final quarter, is the lesser of:

                (a)    1; or

               (b)    the rate worked out in accordance with the following formula and rounded down to 2 decimal places:

where:

E is the 5% of sales limit determined under Part 5 for the MVP for the final year.

F is the total of the following amounts for the issued to the MVP since the beginning of the final year:

                (a)    modulated credit;

               (b)    unmodulated uncapped production credit;

                (c)    unmodulated type J investment credit.

G is the total amount of unearned credit liability received by the Commonwealth during ACIS Stage 2 (whether as payments or as offsets of duty credit) in respect of amounts mentioned in F.

H is the total of the following for the MVP:

                (a)    unmodulated uncapped production credit for the final quarter;

               (b)    any additional amount of unmodulated uncapped production credit worked out since the beginning of the final quarter;

                (c)    the product of:

                          (i)    unmodulated capped production credit for the final quarter; and

                         (ii)    the MVP modulation rate worked out under section 16;

               (d)    the product of:

                          (i)    any additional amount of unmodulated capped production credit for the MVP worked out since the beginning of the final quarter; and

                         (ii)    the MVP modulation rate worked out under section 21;

                (e)    the product of:

                          (i)    unmodulated investment credit for the final quarter; and

                         (ii)    the MVP modulation rate worked out under section 16;

                (f)    the product of:

                          (i)    any additional amount of unmodulated investment credit for the final quarter; and

                         (ii)    the MVP modulation rate worked out under section 21.

28            Ceiling rate for final quarter — non–MVP

                The ceiling rate for a non–MVP, for the final quarter, is the lesser of:

                (a)    1; or

               (b)    the rate worked out in accordance with the following formula and rounded down to 2 decimal places:

where:

E is the 5% of sales limit determined under Part 5 for the non–MVP for the final year.

F is the total modulated credit issued to the non–MVP since the beginning of the final year.

G is the total amount of unearned credit liability received by the Commonwealth during ACIS Stage 2 (whether as payments or as offsets of duty credit) in respect of amounts mentioned in F.

H is the total of the following for the non–MVP:

                (a)    the product of:

                          (i)    unmodulated investment credit for the final quarter; and

                         (ii)    the non–MVP modulation rate worked out under section 17;

               (b)    the product of:

                          (i)    any additional amount of unmodulated investment credit for the final quarter; and

                         (ii)    the non–MVP modulation rate worked out under section 22.

29            Determination of the ceiling rate for a participant for any additional amount of unmodulated credit

                The table sets out the ceiling rate for a participant an additional amount of:

                (a)    unmodulated uncapped production credit; or

               (b)    unmodulated capped production credit; or

                (c)    unmodulated investment credit.

 

if the additional amount is worked out...

the rate is...

for a quarter that starts:

   (a)  after the commencement of this section; and

   (b)  before 1 January 2011

 

 

   (a)  for an MVP — section 25

   (b)  for a non‑MVP — section 26

   (a)  on or after 1 January 2011; and

   (b)  before any modulated credit for the final quarter has been issued as duty credit

   (a)  for an MVP — section 27

   (b)  for a non‑MVP — section 28

for any case not covered elsewhere in this table

the ceiling rate for the participant for the day on which the additional amount is worked out

30            Determination of the ceiling rate for a participant for a particular day — MVP

                The ceiling rate for an MVP, for a particular day, is the lesser of:

                (a)    1; or

               (b)    the rate worked out in accordance with the following formula and rounded down to 2 decimal places:

where:

I is the 5% of sales limit determined under Part 5 for the MVP for the final year.

J is the total of the following amounts for the MVP for the final year:

                (a)    modulated credit;

               (b)    unmodulated uncapped production credit;

                (c)    unmodulated type J investment credit.

K is the total amount of unearned credit liability received by the Commonwealth during ACIS Stage 2 (whether as payments or as offsets of duty credit) in respect of amounts mentioned in J.

L is the total of the following for the MVP for the particular day on which the ceiling rate is worked out:

                (a)    any additional amount of unmodulated uncapped production credit;

               (b)    any additional amount of unmodulated capped production credit;

                (c)    the product of:

                          (i)    any additional amount of unmodulated investment credit; and

                         (ii)    the MVP modulation rate worked out under section 21;

               (d)    any additional amount of unmodulated type J investment credit.

31            Determination of the ceiling rate for a participant for a particular day — non–MVP

         (1)   The ceiling rate for a non–MVP, for a particular day, is the lesser of:

                (a)    1; or

               (b)    the rate worked out in accordance with the following formula and rounded down to 2 decimal places:

where:

I is the 5% of sales limit determined under Part 5 for the non–MVP for the final year.

J is the total of the following amounts for the non–MVP for the final year:

                (a)    modulated credit;

               (b)    unmodulated type J investment credit.

K is the total amount of unearned credit liability received by the Commonwealth during ACIS Stage 2 (whether as payments or as offsets of duty credit) in respect of amounts mentioned in J.

L is the total of the following for the non–MVP for the particular day on which the ceiling rate is worked out:

                (a)    the product of:

                          (i)    any additional amount of unmodulated capped investment credit; and

                         (ii)    the non–MVP modulation rate worked out under section 22;

               (b)    any additional amount of unmodulated type J investment credit.

Part 5                 Determination of the 5% of sales limit

  

32            Determination of the 5% of sales limit for a participant for an ACIS year

Determining a 5% of sales limit for a modulation rate under Part 3

         (1)   For a modulation rate under Part 3 that applies to a participant in an ACIS year, the 5% of sales limit is the amount in the table, at the time of determining the modulation rate.

Determining a 5% of sales limit for a ceiling rate under Part 4

         (2)   For a ceiling rate under Part 4 that applies to a participant in an ACIS year, the 5% of sales limit is the amount in the table, at the time of determining the ceiling rate.

if the participant is...

the amount of the limit is...

a person to whom any of the following provisions of the Act applied:

   (a)  paragraph (16) (1) (a);

   (b)  paragraph (17) (1) (a);

   (c)  paragraph (17) (2) (a);

   (d)  paragraph (18) (1) (a);

   (e)  paragraph (19) (1) (a)

5% of the sales value of the participant’s ACIS goods and services for the year immediately preceding the ACIS year

a person to whom any of the following provisions of the Act applied:

   (a)  paragraph (16) (1) (b);

   (b)  paragraph (16) (1) (c);

   (c)  paragraph (17) (1) (b);

   (d)  paragraph (17) (1) (c);

   (e)  paragraph (17) (2) (b);

   (f)  paragraph (17) (2) (c);

   (g)  paragraph (18) (1) (b);

   (h)  paragraph (18) (1) (c);

    (i)  paragraph (19) (1) (b);

    (j)  paragraph (19) (1) (c)

   (a)  for the ACIS year in which the participant is registered as a participant — 5% of the sales value of the participant’s ACIS goods and services for the ACIS year;

   (b)  for an ACIS year following the ACIS year in which the participant is registered as a participant — 5% of the sales value of the participant’s ACIS goods and services for the ACIS year immediately before the ACIS year

         (3)   In determining the sales value of a participant’s goods and services under this section, the following values are to be used:

                (a)    for a quarter in a year for which the actual sales value of the goods and services is known for the quarter — the actual sales value;

               (b)    for any other quarter — the value estimated as the sales value in a current business plan:

                          (i)    provided by the participant; and

                         (ii)    that contains information about the quarter.

         (4)   In this Part:

sales value of ACIS goods and services, for a participant, has the meaning given by subsection 54 (4) of the Act.