Commonwealth of Australia Explanatory Memoranda Commonwealth of Australia Explanatory Memoranda[Index] [Search] [Download] [Bill] [Help]
AF~THURROB~NCON& HEDDERW~C~
L~E~1A~Y
1997
THE PARLIAJvIENT OF THE COMMONWEALTH OF AUSTRALIA
SENATE
BOUNTY LEGISLATION AMENDMENT BILL 1997
REPLACEMENT EXPLANATORY MEMORANDUM
THIS MEMORANDUM TAKES ACCOUNT OF AMENDMENTS MADE BY THE
HOUSE OF REPRESENTATIVES TO THE BILL AS INTRODUCED.
(Circulated by authority ofthe Minister for Industry, Science and Tourism,
the Honourable John Moore, MP)
80787 Cat No. 967241 9 ISBN 0644 49824 2
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9 780644 498241
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Printed by Authority by the Commonwealth Government Printer
BOUNTY LEGISLATION AMENDMENT BILL 1997
OUTLINE
This Bill amends 4 Bounty Acts to achieve savings announced by the Government in
the 1996-97 Budget. The Bill also incorporates amendments made in the House of
Representatives to give effect to the Government's announcement of
16 December 1997 to extend the operation of the Bounty (Ships) Act 1989 to
31 December 1997 and to defer the termination ofthe Bounty (Books) Act 1986 from
20 August 1996 to 30 June 1997. In particular, the Bill amends:
· the Bounty (Books) Act 1986 to terminate the bounty with effect from
30 June 1997;
· the Bounty (Machine Tools and Robots) Act 1985 to terminate the Bounty with
effect from 20 August 1996 and provide for limited eligibility for production after
20 August 1996 up until 20 February 1997 on condition that the production had
already commenced before the Budget night announcement or was the subject of a
contract entered into before that time;
· the Bounty (Ships) Act 1989 to extend the operation of the bounty by 6 months to
31 December 1997; and
· the Bounty (Computers) Act 1984 to terminate the Bounty with effect from
30 June 1997.
FINANCIAL IMPACT STATEMENT
The amendments to the 4 Bounty Acts are expected to have the following financial
impact:
· Bounty (Books) Act 1986 expected savings of:
-
1996-97 1997-98 1998-99
$0.00 $3.80m $0.8m
· Bounty (Machine Tools and Robots) Act 1986 expected savings of:
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1996-97 1997-98
$0.00 $1.2m
· Bounty (Ships) Act 1989 expected savings of:
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1996-97 and costs of: 1997-98 1998-99
$1.OOm $4.OOm $1.OOm
· Bounty (Computers) Act 1984 expected savings of
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1997-98 1998-99 1999-2000 thereafter
$20.OOm $44.7m $46.4m $31.2m
BOUNTY LEGISLATION AMENDMENT BILL 1997
NOTES ON CLAUSES
Clause 1 - Short Title
This clause provides for the Bill to be cited as the Bounty Legislation Amendment Act
1997.
Clause 2 - Commencement
This clause provides for the amendments in Schedule 1 to be taken to have commenced at
7.30 pm by standard time in the Australian Capital Territoiy on 20 August 1996, being
the time ofthe Budget night announcements in relation to these bounties (subclause (2)
refers).
Subclause (1) provides for the remaining provisions ofthe Bill (the short title,
commencement and formal enabling provisions) to commence upon Royal Assent.
Clause 3 - Schedule(s)
This clause is the formal enabling provision for the Schedule to the Bill, providing that
each Act specified in the Schedule (in this case the Bounty (Books) Act 1986, the Bounty
(Computers) Act 1984, the Bounty (Machine Tools and Robots) Act 1985 and the Bounty
(Ships) Act 1989) is amended in accordance with the applicable items ofthe Schedule.
The clause also provides that the other items ofthe Schedules have effect according to
their terms. This is a standard enabling clause for transitional, savings and application
items in amending legislation. This Bill, however, has no such items.
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Schedule 1 Amendment of Bounty Acts
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Bounty (Books) Act 1986
Item 1 - Subsection 4(1) (definition of bountyperiod)
This item amends the definition of bounty period in subsection 4(1) of the Bounty Books
Act 1986 (the Books Act) to give effect to the Government's announcement of
16 December 1996 that the termination of the Books Bounty would be deferred from
20 August 1997 (as announced in the Budget) until 30 June 1997. All eligible books
the production of which is completed by 30 June 1997 will be eligible for payment of
bounty.
Item 2 Paragraph 14(4)(d)
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This item amends section 14 ofthe Bounty (Books) Act 1986 (the Books Act) to
introduce an absolute end date of 30 September 1997 (being 90 days after the end ofthe
bounty period proposed in item 1 above) for claims for bounty to be lodged with
Customs.
To ensure that the majority ofbounty payments for eligible production under this bounty
are made as soon as possible after the end of the period for eligible production and the
administration ofthe scheme is wound-up quickly, this amendment will require claims to
be lodged with Customs within 12 months after completion ofproduction ofbountiable
goods, or before 1 October 1997, whichever occurs first.
Item 3 - Paragraph 15(2)(d)
For the same reasons detailed for item 2 above, this item amends section 15 of the Books
Act to introduce an absolute end date of 30 September 1997 for bounty claimants to
lodge a variation of an initial inadequate claim for bounty.
Bounty (Computers) Act 1984
Item 4 Subsection 3(1) (definition of bounty period)
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This item gives effect to the Government's decision to terminate the Computers Bounty
with effect from 1 July 1997 by amending the definition of bounty period, being the
period during which the production of bountiable equipment must be completed before
bounty is payable. The new definition defines the bountyperiod to mean the period
commencing on 6 July 1984 and ending on 30 June 1997, as opposed to the current end
date of 31 December 2000.
Item 5 Paragraph 10(h)
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This item effects a technical amendment to the "rate ofbounty" provision in section 10 of
the Bounty (Computers) Act 1984 to provide that the bounty rate of 5% ofthe value
added is payable on bountiable equipment produced on or after 1 January 1997 and
before 1 July 1997.
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Bounty (Machine Tools andRobots) Act 1985
Item 6 - Subsection 4(1) (definition of bounty period)
This item gives effect to the Government's decision to terminate the Machine Tools and
Robots Bounty with effect from Budget night 1996 by amending the definition ofbounty
period, being the period during which the manufacture or modification ofbountiable
equipment must be completed before bounty is payable. Paragraph (a) of the new
definition provides for the bounty period to end on 20 August 1996 for the manufacture
or modification bountiable equipment generally.
In accordance with the Government's announcement to provide an additional 6 months
for eligible production for certain work-in-progress, paragraph (b) ofthe new definition
provides for the bounty period to end on 20 February 1997 in the case of the
manufacture or modification ofbountiable equipment:
(i) that had commenced before 730pm by standard time in the Australian Capital
Territory (ACT) on 20 August 1996 (ie the time of the Budget announcement); OR
(ii) for which a contract for that manufacture or modification had been entered into
before the Budget announcement.
Item 7 - Subsection 4(1) (definition of terminating day)
This item repeals the definition ofterminating day (previously defined to mean 30 June
1997) as the definition has become redundant due to the inclusion of the new end dates
for eligible production in the definition of bountyperiod proposed in item 6 above.
Item 8 Paragraph 21(2)(d)
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This item amends section 21 ofthe Bounty (Machine Tools and Robots) Act 1985 (the
MTR Act) to introduce an absolute end date of 20 May 1997 (being 90 days after the
final day for the special class of eligible manufacture or modification of bountiable
equipment outlined in item 6) for claims for bounty to be lodged with Customs.
To ensure that the majority ofbounty payments for eligible manufacture or modification
under this bounty are made before the end of the 1996-97 financial year and the
administration ofthe scheme is wound-up as soon as possible after that, this amendment
to the MTR Act requires claims to be lodged with Customs within 12 months after
completion ofproduction of bountiable goods, or before 21 May 1997, whichever occurs
first. I
Item 9- Paragraph 22(2)(d)
For the same reasons detailed for item 8 above, this item amends the section 22 ofthe
MTR Act to introduce an absolute end date of 20 May 1997 for bounty claimants to
lodge a variation of an initial inadequate claim for bounty.
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Bounty (Ships) Act 1989
Item 10 - Subsection 4(1) (definition of period to which this Act applies)
This item amends the definition ofperiod to which this Act applies in subsection 4(1) of
the Bounty (Ships) Act 1989 (the Ships Act) to implement the Government's
announcement of 16 December 1996 that it had decided to extend the operation of the
Ships Bounty from 30 June 1997 to 31 December 1997.
Items 11 and 12 - Section 10
These items effect consequential amendments to section 10 of the Ships Act to provide
that bounty is payable at a rate of 1.2 x 5% ofthe amount of eligible costs incurred up
until 31 December 1997.
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