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This is a Bill, not an Act. For current law, see the Acts databases.
1998-99
The Parliament of
the
Commonwealth of
Australia
HOUSE OF
REPRESENTATIVES
Presented and read a first
time
Bounty (Ships)
Amendment Bill 1999
No. ,
1999
(Industry, Science and
Resources)
A Bill for an Act to amend the
Bounty (Ships) Act 1989, and for related purposes
ISBN: 0642 389373
Contents
A Bill for an Act to amend the Bounty (Ships) Act
1989, and for related purposes
The Parliament of Australia enacts:
This Act may be cited as the Bounty (Ships) Amendment Act
1999.
This Act commences on the day on which it receives the Royal
Assent.
Each Act that is specified in a Schedule to this Act is amended or
repealed as set out in the applicable items in the Schedule concerned, and any
other item in a Schedule to this Act has effect according to its
terms.
(1) If:
(a) a person commenced the construction or modification of a bountiable
vessel in Australia after 31 December 1997 and before the commencing day;
and
(b) the person was not a registered shipbuilder during a part or all of
the period of construction or modification that occurred before the commencing
day; and
(c) the person is a body corporate incorporated under a law of the
Commonwealth or of a State or Territory;
the person may apply for registration as a registered shipbuilder under
this section within 30 days after the commencing day.
(2) The application must be in accordance with the appropriate approved
form.
(3) If a person makes an application under this section, the Minister
must:
(a) register the applicant as a registered shipbuilder; or
(b) refuse to register the applicant as a registered shipbuilder, and
cause a notice in writing to be served on the applicant stating that the
Minister has refused to register the applicant.
(4) The Minister registers the applicant as a registered shipbuilder
by:
(a) signing a notice stating that the applicant is registered as a
registered shipbuilder for the period:
(i) commencing on the first day on which the person was not a registered
shipbuilder in the period referred to in paragraph (1)(b); and
(ii) ending on the day of issue of the notice; and
(b) causing the notice to be served on the applicant.
(5) The Minister may require an applicant to give such information as the
Minister considers necessary for the purposes of this Act and may refuse to
register the applicant unless the information is given to the satisfaction of
the Minister.
(6) The registration of a person in respect of whom the Minister has
issued a notice under paragraph (4)(a) has effect according to the terms of the
notice.
If:
(a) a person claims to be entitled to be paid an amount of bounty in
respect of the construction or modification of a vessel; and
(b) the construction or modification was completed:
(i) after 31 December 1997; and
(ii) more than 12 months before the commencing day;
a claim in respect of the construction or modification may, in spite of
paragraph 11(2)(d) of the Bounty (Ships) Act 1989, be lodged under
section 11 of that Act within 30 days after the commencing day.
Paragraph 8(3)(a) of the Bounty (Ships) Act 1989 as in force
immediately before the commencing day is to be taken not to apply to any
construction or modification completed after 31 December 1997.
In this Act:
commencing day means the day on which this Act receives the
Royal Assent.
1 Section 3
Omit “Chief Executive Officer of Customs”, substitute
“Secretary”.
2 Subsection 4(1) (definition of approved
form)
Omit “CEO”, substitute “Secretary”.
3 Subsection 4(1)
Insert:
approved hydrographic test facility is a facility that
is:
(a) located outside Australia; and
(b) used for hydrographic design and testing; and
(c) approved by the Secretary for the purposes of subsection
10(3).
4 Subsection 4(1) (definition of authorised
officer)
Repeal the definition, substitute:
authorised officer means a person appointed to be an
authorised officer under section 20.
5 Subsection 4(1) (definition of
bounty)
Repeal the definition, substitute:
bounty means an eligible costs bounty or an eligible research
and development expenditure bounty.
6 Subsection 4(1) (definition of
CEO)
Repeal the definition.
7 Subsection 4(1) (definition of
Collector)
Repeal the definition.
8 Subsection 4(1)
Insert:
eligible costs has the meaning given in section 5.
9 Subsection 4(1)
Insert:
eligible costs bounty means the bounty referred
to in subsection 8(2).
10 Subsection 4(1)
Insert:
eligible research and development expenditure has the meaning
given in section 5A.
11 Subsection 4(1)
Insert:
eligible research and development expenditure bounty means
the bounty referred to in subsection 8(3A).
12 Subsection 4(1)
Insert:
forecast eligible costs, in relation to the construction or
modification of a vessel, means the amounts constituting the estimate lodged
with the Minister under subsection 8(3E) in relation to the construction or
modification.
13 Subsection 4(1)
Insert:
officer means an officer of the Department.
14 Subsection 4(1)
Insert:
other Commonwealth assistance has the meaning given in
section 5C.
15 Subsection 4(1) (definition of period to
which this Act applies)
Omit “30 June 1999”, substitute “30 June
2004”.
16 Subsection 4(1) (at the end of the definition
of registered shipbuilder)
Add “of this Act or section 4 of the Bounty (Ships) Amendment Act
1999”.
17 Subsection 4(1)
Insert:
Secretary means the Secretary to the Department.
18 Subsection 4(2)
Repeal the subsection, substitute:
(2) The construction or modification of a bountiable vessel is taken, for
the purposes of this Act, to have been completed on the date the Secretary
determines to be the date on which that construction or modification was
completed.
19 Subsection 5(1)
Omit “, or business plan evidencing a firm commitment to,”
(wherever occurring).
20 After section 5
Insert:
(1) For the purposes of this Act, eligible research and development
expenditure is expenditure incurred by a shipbuilder in respect of
eligible research and development activities (see section 5B).
(2) The expenditure must be incurred during the period commencing on 1
July 1999 and ending on 30 June 2004.
(3) If a shipbuilder incurs expenditure in respect of eligible research
and development activities that are carried on by the shipbuilder on behalf of
another person, the expenditure is not eligible research and development
expenditure of the shipbuilder carrying on the activities.
(1) For the purposes of section 5A, eligible research and
development activities are research and development
activities:
(a) carried on by or on behalf of a shipbuilder during the period
commencing on 1 July 1999 and ending on 30 June 2004; and
(b) relating to the construction or modification of bountiable vessels;
and
(c) to which one of the following applies:
(i) some or all of the activities are carried on in Australia;
(ii) the activities are design and testing activities carried on at an
approved hydrographic test facility.
(2) The activities must be:
(a) systematic, investigative or experimental in nature and carried on for
the purposes of improving the shipbuilder’s business through:
(i) acquiring knowledge (whether or not that knowledge will have a
specific practical application to that business); or
(ii) creating new or improved materials, products, devices, processes or
services for that business; or
(b) carried on for a purpose directly related to the carrying on of
activities of a kind referred to in paragraph (a).
(3) The Minister may determine, in writing, that a class of activity is
not an eligible research and development activity for the purposes of this
section.
(4) A determination under subsection (3) is a disallowable instrument for
the purposes of section 46A of the Acts Interpretation Act
1901.
(1) For the purposes of this Act, a shipbuilder has received other
Commonwealth assistance if the shipbuilder has received, and is entitled
to, financial assistance (other than bounty) provided by the Commonwealth for
eligible research and development activities.
(2) The Minister may determine, in writing, that a specified form of
assistance provided by the Commonwealth:
(a) is not financial assistance for the purposes of this section;
or
(b) is financial assistance for the purposes of this section.
(3) If the determination specifies that a form of assistance is financial
assistance, the determination may also specify the method by which the amount of
the assistance received is to be worked out.
(4) A determination under subsection (2) is a disallowable instrument for
the purposes of section 46A of the Acts Interpretation Act
1901.
Note: The amount of other Commonwealth assistance received
by a shipbuilder is relevant to working out the amount of eligible research and
development expenditure bounty to which the shipbuilder is entitled (see
subsection 10(3)).
21 Subsection 6(1)
Omit “CEO” (wherever occurring), substitute
“Secretary”.
22 After subsection 6(1)
Insert:
(1A) Where the Secretary:
(a) is unable to verify the eligible research and development expenditure
incurred by a shipbuilder in relation to the construction or modification of
bountiable vessels; or
(b) having regard to sound accounting principles, forms the opinion that
the expenditure included in the eligible research and development
expenditure:
(i) is incorrect or overestimated; or
(ii) should not have been characterised as eligible research and
development expenditure; or
(iii) is unduly higher than expenditure incurred by other shipbuilders in
respect of similar eligible research and development activities; or
(iv) has been fixed in order to obtain an increase in eligible research
and development expenditure bounty; or
(v) has been increased as the result of the influence of a relationship
between the shipbuilder and an associate of the shipbuilder; or
(vi) is higher than would have been the case if the shipbuilder had
provided the services that were provided, and charged for, by an associate of
the shipbuilder;
the Secretary may, in writing, determine the expenditure that is, for the
purposes of this Act, to be taken to be the eligible research and development
expenditure incurred by a shipbuilder in relation to the construction or
modification of bountiable vessels.
23 Subsection 6(2)
Omit “CEO” (wherever occurring), substitute
“Secretary”.
24 Subsection 6(2)
After “eligible costs were” (wherever occurring), insert
“, or eligible research and development expenditure was,”.
25 Subsection 6(3)
Omit “CEO”, substitute “Secretary”.
26 Subsection 6(3)
After “subsection (1)”, insert “or (1A)”.
27 Section 7
Omit “CEO”, substitute “Secretary”.
28 Subsections 8(2) to (3B)
Repeal the subsections, substitute:
Eligible costs bounty
(2) Bounty in respect of the construction or modification of a bountiable
vessel is payable to the shipbuilder, or each shipbuilder, who incurs an
eligible cost in undertaking, or undertaking a part of, the construction or
modification.
(3) However, bounty is not payable under subsection (2) in respect of a
construction or modification completed after 31 December 2003.
Eligible research and development expenditure bounty
(3A) Bounty in respect of the construction or modification of a bountiable
vessel is payable to the shipbuilder, or each shipbuilder who:
(a) undertakes, or undertakes a part of, the construction or modification;
and
(b) incurs eligible research and development expenditure before the
completion of the construction or modification.
(3B) However, bounty is not payable under subsection (3A) in respect of a
construction or modification completed after 30 June 2004.
Entitlement to eligible costs bounty for vessels completed on or before
31 December 2000
(3C) If a shipbuilder completes the construction or modification of a
bountiable vessel on or before 31 December 2000, the shipbuilder is not entitled
to a payment of eligible costs bounty in respect of the construction or
modification unless the shipbuilder is a registered shipbuilder at all times
during the construction or modification.
Entitlement to eligible costs bounty for vessels completed after 31
December 2000 and on or before 31 December 2003
(3D) If a shipbuilder completes the construction or modification of a
bountiable vessel after 31 December 2000 and on or before 31 December 2003, the
shipbuilder is not entitled to a payment of eligible costs bounty in respect of
the construction unless:
(a) the shipbuilder is a registered shipbuilder at all times during the
construction or modification; and
(b) the vessel is delivered on or before 31 December 2003 into the
possession of the vessel’s owner or the owner’s agent; and
(c) the construction or modification is carried out as a result of a
contract entered into before 1 January 2001; and
(d) the following documents are lodged with the Minister before 14 January
2001:
(i) a copy of the contract or other evidence that satisfies the Minister
of the existence of the contract;
(ii) the approved form.
(3E) The approved form referred to in paragraph (3D)(d) must contain the
following details:
(a) the amount to be paid to the shipbuilder under the contract;
(b) an estimate of each of the eligible costs of the construction or
modification;
(c) the specifications of the vessel, including the gross construction
tonnage worked out according to the formula in subsection 4(3);
(d) the timetable for carrying out the construction or modification,
including commencement and completion date;
(e) the place where the construction or modification is being or will be
carried out;
(f) the name of the person intending to purchase the vessel, or for whom
the vessel is being modified;
(g) the date and place of delivery of the vessel upon
completion.
Entitlement to eligible research and development expenditure bounty for
vessels completed on or before 30 June 2004
(3F) A shipbuilder who incurs eligible research and development
expenditure before the construction or modification of a bountiable vessel
undertaken by the shipbuilder is completed is not entitled to a payment of
eligible research and development expenditure bounty in respect of the
construction or modification unless the shipbuilder is a registered shipbuilder
at all times during the construction or modification.
29 Subsection 9(1)
Omit “CEO”, substitute “Secretary”.
30 Subsection 10(1)
Omit all the words before paragraph (a), substitute:
Eligible costs bounty
(1) Eligible costs bounty in respect of the construction or modification
of a bountiable vessel that is completed before 31 December 2003 is an amount
equal to such amounts set out below as is, or to the sum of such amounts set out
below as are, appropriate:
31 At the end of subsection
10(1)
Add:
; (g) in respect of any eligible costs incurred between 1 July 1999 and 31
December 2000, inclusive—the product of:
(h) in respect of any eligible costs incurred between 1 January 2001 and
31 December 2003, inclusive—the lesser of the following amounts:
(i) the product of:
(ii) the product of:
Note: For forecast eligible costs see
subsection 4(1).
32 Subsection 10(2)
Repeal the subsection, substitute:
Eligible research and development expenditure bounty
(2) Eligible research and development expenditure bounty in respect of the
construction or modification of a vessel that is completed before 1 July 2004 is
an amount equal to the lesser of the following amounts:
(a) the shipbuilder’s adjusted eligible research and development
expenditure;
(b) the product of:
(3) A shipbuilder’s adjusted eligible research and development
expenditure is worked out using the following formula:
where:
bounty already paid is the amount of eligible research and
development expenditure bounty that has been paid to the shipbuilder.
eligible research and development expenditure incurred is an
amount equal to such amount set out below as is, or to the sum of such amounts
set out below as are, appropriate:
(a) in respect of eligible research and development activities that are
design and testing activities carried on at an approved hydrographic testing
facility—the amount of the eligible research and development
expenditure incurred by the shipbuilder in relation to those activities by the
time of the completion of the construction or modification of the
vessel;
(b) in respect of other eligible research and development
activities—the lesser of the following amounts:
(i) the eligible research and development expenditure incurred by the
shipbuilder by the time of the completion of the construction or modification of
the vessel;
(ii) the eligible research and development expenditure incurred by the
shipbuilder by the time of completion of the construction or modification of the
vessel, in relation to eligible research and development activities carried on
in Australia, multiplied by a factor of 1.2.
other assistance, in relation to the construction or
modification of a vessel, is the amount of other Commonwealth assistance
received by the shipbuilder for the eligible research and development activities
carried on by or on behalf of the shipbuilder by the time of completion of the
construction or modification.
Note 1: For eligible research and development
activities see section 5B.
Note 2: For other Commonwealth
assistance received see section 5C.
33 Paragraph 11(2)(d)
Repeal the paragraph, substitute:
(d) be lodged with an authorised officer, or with the Secretary, within 12
months after the construction or modification was completed.
34 Subsection 11(3)
Omit “CEO” (wherever occurring), substitute
“Secretary”.
35 Subsection 11(4)
Omit “CEO” (wherever occurring), substitute
“Secretary”.
36 Section 12
Before “bounty” (wherever occurring), insert “eligible
costs”.
37 Subsection 12(1)
Omit “CEO”, substitute “Secretary”.
38 Paragraph 13(2)(d)
Repeal the paragraph, substitute:
(d) be lodged with an authorised officer, or with the Secretary, within 12
months after the construction or modification was completed.
39 Subsection 13(4)
Omit “CEO” (wherever occurring), substitute
“Secretary”.
40 Subsection 13(5)
Omit “CEO” (wherever occurring), substitute
“Secretary”.
41 Paragraph 14(2)(d)
Repeal the paragraph, substitute:
(d) be lodged with an authorised officer, or with the Secretary.
42 Subsection 14(4)
Omit “CEO” (wherever occurring), substitute
“Secretary”.
43 Subsection 15(1)
Omit “CEO” (wherever occurring), substitute
“Secretary”.
44 Subsection 15(2)
Omit “CEO” (wherever occurring), substitute
“Secretary”.
45 Subsection 15(3)
Omit “CEO” (wherever occurring), substitute
“Secretary”.
46 Subsections 17(7A), (7B), (7C) and
(7D)
Repeal the subsections.
47 Paragraph 18(1)(a)
Omit “CEO” (wherever occurring), substitute
“Secretary”.
48 Subparagraph 18(1)(a)(i)
Before “bounty”, insert “eligible costs”.
49 After subparagraph
18(1)(a)(i)
Insert:
(ia) such particulars relating to the incurring of eligible research and
development expenditure in respect of which eligible research and development
expenditure bounty is, or may become, payable as are specified by the Secretary
in a notice published in the Gazette; and
50 Section 19
Omit “CEO” (wherever occurring), substitute
“Secretary”.
51 Section 20
Repeal the section, substitute:
The Secretary may, by writing signed by him or her, appoint:
(a) a specified officer; or
(b) the officer for the time being holding, or performing the duties of, a
specified office; or
(c) officers included in a specified class of officers;
to be an authorised officer, or authorised officers, for the purposes of a
provision, or provisions, of this Act.
52 Paragraph 21(1)(a)
Repeal the paragraph, substitute:
(a) inspect any bountiable vessel in respect of which a relevant activity
or an eligible research and development activity has been, is being, or is
intended to be, carried out; and
53 After paragraph 21(1)(b)
Insert:
(ba) inspect any step in the carrying out of an eligible research and
development activity; and
54 At the end of subsection
21(1)
Add:
; and (d) inspect the accounts, books, documents and other records
relating to an eligible research and development activity, and may make and take
copies of, or take extracts from, any such accounts, books, documents or other
records.
55 Paragraph 22(2)(a)
Repeal the paragraph, substitute:
(a) premises where there is a bountiable vessel in respect of which a
relevant activity or an eligible research and development activity has been, is
being, or is intended to be, carried out; or
56 After paragraph 22(2)(b)
Insert:
(ba) premises on which any step in the carrying out of an eligible
research and development activity is taking, or is intended to take, place;
or
57 After paragraph 22(2)(c)
Insert:
or (d) premises where there are kept any accounts, books, documents or
other records relating to an eligible research and development activity;
58 Paragraph 22(4)(a)
Repeal the paragraph, substitute:
(a) to inspect any bountiable vessel in respect of which a relevant
activity or an eligible research and development activity has been, is being, or
is intended to be, carried out; and
59 After paragraph 22(4)(b)
Insert:
(ba) to inspect any step in the carrying out of an eligible research and
development activity; and
60 After paragraph 22(4)(c)
Insert:
and (d) to inspect accounts, books, documents and other records relating
to an eligible research and development activity;
61 Subsection 23(1)
After “bountiable vessel,”, insert “or in relation to an
eligible research and development activity,”.
62 Subsection 23(6)
Omit “CEO”, substitute “Secretary”.
63 Subsection 27(3)
Omit “CEO”, substitute “Secretary”.
64 Subsection 29(1)
Omit “CEO”, substitute “Secretary”.
65 Subsection 30(1)
Omit “Officer of Customs within the meaning of the Customs Act
1901”, insert “officer”.
66 Subsection 31(1)
Omit “CEO” (wherever occurring), substitute
“Secretary”.
67 Paragraph 31(1)(aa)
Repeal the paragraph.
68 At the end of paragraph
31(1)(g)
Add “or subsection 4(3) of the Bounty (Ships) Amendment Act
1999”.
69 Paragraph 31(2)(a)
Repeal the paragraph, substitute:
(a) if a determination under section 6 in respect of the amount of
eligible costs, the amount of eligible research and development expenditure, or
the time that those eligible costs were, or the eligible research and
development expenditure was, incurred has been made in respect of that
construction or modification, either:
(i) set aside that determination; or
(ii) set aside that determination and make a further determination under
that section in respect of the construction or modification to which the
determination so set aside applied; or
70 Subsection 32(1)
Omit “CEO”, substitute “Secretary”.