Commonwealth Numbered Acts

BOUNTY (AGRICULTURAL TRACTORS AND EQUIPMENT) ACT 1985 No. 134 of 1985 - SECT 8

8. (1) For the purposes of this Act, the factory cost of bountiable equipment
includes -

   (a)  overhead charges (including rent, hire or leasing costs in relation to
        factory buildings, plant or equipment) apportioned on the basis of a
        full accounting period of the manufacturer of the equipment; and

   (b)  other costs incurred by the manufacturer in connection with the
        manufacture and packaging of the equipment including -

        (i)    salaries, wages and other remunerations;

        (ii)   costs (including the cost of wastage) of parts and materials
               delivered into the store of the manufacturer; and

        (iii)  the cost of any process carried out, or any production service
               provided, by the manufacturer or another person.

(2) For the purposes of this Act, where in an accounting period of a
manufacturer of bountiable equipment, the manufacturer -

   (a)  meets expenditure on research and development; or

   (b)  incurs design, system engineering, computer software and testing
        costs, in respect of bountiable equipment of a kind that is, or is
        likely to be, manufactured in Australia by the manufacturer, the
        factory cost incurred by the manufacturer in that period in connection
        with the process or processes in the manufacture of
        bountiable equipment carried out at registered premises shall include
        that expenditure or those costs, as the case may be, but no other
        factory costs shall include that expenditure or those costs, as the
        case may be.

(3) For the purposes of this Act, where in an accounting period of a
manufacturer of bountiable equipment, the manufacturer receives from the
Commonwealth, from a State, a Territory or from an authority of the
Commonwealth, of a State or of a Territory a grant in respect of the
manufacture of, research relating to, or the development of, bountiable
equipment of a particular kind, the factory cost incurred by the manufacturer
in that period in connection with the process or processes in the manufacture
of bountiable equipment of that kind carried out at registered premises shall
be reduced by the amount of that grant.

(4) For the purposes of this Act, the factory cost incurred by a manufacturer
of bountiable equipment in connection with processes in the manufacture of
bountiable equipment does not include -

   (a)  costs of general administration (other than factory administration),
        including, where the manufacturer is a body corporate, corporate
        expenses;

   (b)  selling and service charges;

   (c)  sales tax in respect of completed bountiable equipment;

   (d)  tax on income, other than tax on income deducted in respect of the
        wages, salaries or other remuneration of employees;

   (e)  costs incurred after the completion of the manufacture of the
        equipment, other than costs of, or relating to, the testing or
        packaging of the equipment at registered premises;

   (f)  without limiting paragraph (e), the commissioning and installation of
        completed equipment for the intended user of the equipment, whether or
        not the user is the manufacturer;

   (g)  the value of perquisites provided to employees of the manufacturer
        (including, where the manufacturer is a body corporate, staff of that
        body corporate) that does not form part of their taxable income;

   (h)  profit;

   (j)  bonuses paid out of profits;

   (k)  costs charged or levied on the manufacturer by an associate of the
        manufacturer that are not costs actually incurred by the associate;

   (m)  interest, other than interest on money borrowed from another person
        for the purpose of financing -

        (i)    bought-in material and stock;

        (ii)   work in progress;

        (iii)  research and development; or

        (iv)   the purchase of production plant, production equipment, or
               factory buildings, owned by the manufacturer;

   (n)  depreciation of buildings, other than depreciation at a rate of 4% per
        annum, or, if another rate is prescribed, that other rate, on the
        historic cost of factory buildings owned by the manufacturer;

   (p)  depreciation of machinery, plant or equipment other than depreciation
        of machinery, plant or equipment, owned by the manufacturer that is
        depreciation allowed by the Commissioner of Taxation for the purposes
        of a law of the Commonwealth relating to taxation;

   (q)  losses incurred on the sale or other disposal of buildings, machinery,
        plant or equipment;

   (r)  long service leave, other than provision for such leave;

   (s)  severance pay, other than severance pay in relation to service during
        a period that is within the bounty period and during which the
        manufacturer was a manufacturer of bountiable equipment;

   (t)  freight, and costs relating to vehicles, incurred in respect of the
        delivery of completed equipment;

   (u)  royalties;

   (w)  the cost of the right to use a patent, manufacturing design or process
        including computer software;

   (x)  the cost of superannuation and similar schemes, other than such cost
        allowed by the Commissioner of Taxation for the purposes of a law of
        the Commonwealth relating to taxation;

   (y)  workers compensation, other than insurance premiums for such
        compensation;

   (z)  the cost of acquiring, reconditioning or repairing any used machine,
        components, parts or materials that form part of the
        bountiable equipment;

   (za) the cost of any parts or materials on which bounty has been paid or is
        to become payable to the manufacturer under the
        Bounty (Computers) Act 1984 or the Bounty (Tractor Cabs) Act 1983;

   (zb) the cost of air conditioning equipment, implements, pneumatic tubes,
        pneumatic tyres, radio equipment, sound reproducing equipment, tools
        or winches that are a part or an accessory for bountiable equipment;
        and

   (zc) such costs (if any) as are prescribed.