Commonwealth Numbered Acts

BOUNTY (AGRICULTURAL TRACTORS AND EQUIPMENT) ACT 1985 No. 134 of 1985 - SECT 7

7. (1) For the purposes of this Act, the value added to bountiable equipment
by a manufacturer of the equipment shall be deemed to be an amount ascertained
in accordance with the formula -
A - (B+C+D+E), where -
A is the factory cost incurred by the manufacturer in -

   (a)  carrying out a process or processes in the manufacture of the
        equipment; or

   (b)  preparing for, or arranging, the carrying out by another manufacturer
        of the equipment of a process or processes in the manufacture of the
        equipment;
B is the cost (included in that factory cost) of parts and materials delivered
into the store of the manufacturer, being parts and materials supplied to the
manufacturer for incorporation in the manufacture or packaging of the
equipment; C is the cost (included in that factory cost) of any process
carried out, or any production service provided, by -

   (a)  the manufacturer, or a person employed by the manufacturer, otherwise
        than at premises registered under section 23 in the name of the
        manufacturer; or

   (b)  a person other than -

        (i)    the manufacturer; or

        (ii)   a person employed by the manufacturer, not being a production
               service provided in Australia by or on behalf of the
               manufacturer;
D is interest (included in that factory cost) on money borrowed from another
person for the purpose of financing research or development, other than
research and development carried out in Australia by or on behalf of the
manufacturer;
E is such costs (if any) as are prescribed.

(2) Where, in relation to a claim for bounty or to a return in accordance with
section 19 or otherwise for the purposes of this Act, the Comptroller-General
-

   (a)  is unable to verify the value added to bountiable equipment by a
        manufacturer of the equipment; or

   (b)  forms the opinion that, having regard to sound accounting principles,
        costs included in factory cost by reference to which the value added
        to bountiable equipment by a manufacturer of the equipment is
        ascertained -

        (i)    are incorrect or overestimated;

        (ii)   are higher than would have been the case if the manufacturer
               had not marginally costed or similarly disproportionately
               costed the manufacture of goods in respect of which bounty is
               not payable;

        (iii)  have been fixed in order to obtain an increase in bounty;

        (iv)   are unduly higher than similar costs incurred by other
               manufacturers of similar equipment;

        (v)    have been increased as the result of the influence of a
               relationship between the manufacturer and an associate of the
               manufacturer; or

        (vi)   are higher than would have been the case if the manufacturer
               had provided services that were provided, and charged for, by
               an associate of the manufacturer, the Comptroller-General may,
               by instrument signed by him or her, determine the value added
               to that bountiable equipment by that manufacturer, being the
               value that, having regard to all relevant circumstances, the
               Comptroller-General considers to be appropriate, and the value
               added to that bountiable equipment by that manufacturer shall,
               for the purposes of this Act, be the value so determined.

(3) Where, in relation to a claim for bounty or to a return in accordance with
section 19 or otherwise for the purposes of this Act, the Comptroller-General
-

   (a)  is unable to verify a cost referred to in sub-section (1) in respect
        of bountiable equipment; or

   (b)  forms the opinion that, having regard to sound accounting principles,
        such a cost -

        (i)    is incorrect or underestimated;

        (ii)   is lower than would have been the case if the manufacturer had
               not marginally costed or similarly disproportionately costed
               the manufacture of goods in respect of which bounty is not
               payable;

        (iii)  has been fixed in order to obtain an increase in bounty;

        (iv)   is unduly lower than a similar cost incurred by other
               manufacturers of similar equipment;

        (v)    has been reduced as the result of the influence of a
               relationship between the manufacturer and an associate of the
               manufacturer; or

        (vi)   is lower than would have been the case if the manufacturer had
               provided services that were provided, and charged for, by an
               associate of the manufacturer, the Comptroller-General may, by
               instrument signed by him or her, determine that cost for the
               purposes of this Act, being the cost that, having regard to all
               relevant circumstances, the Comptroller-General considers to be
               appropriate, and that determination shall have effect
               accordingly.

(4) When making a determination under sub-section (2) or (3) in relation to
bountiable equipment, the Comptroller-General may, if he or she considers it
appropriate, disregard any costs charged to, or levied on, the manufacturer of
the equipment by an associate of the manufacturer, other than costs actually
incurred by the associate.