Are you involved in the automotive industry either as a motor vehicle producer, component producer, automotive tool producer or a service provider? Then you may be eligible for Government funding designed to encourage competitive investment and innovation via the Automotive Transformation Scheme ("ATS").
ATS participants will be entitled to receive cash payments to assist with Research and Development and investments in plant and equipment depending on the category the participant falls into. Each category has its own criteria and definitions.
For example you qualify as an automotive component producer if, in Australia, you produce at least one kind of component annually for use in at least 30,000 motor vehicles or 30,000 engines and the last 12 months value of your production was at least $500,000. If in this example you spent $300,000 on research and development, you can claim $150,000 back from the Government.
As an automotive service provider for example, if you provide services in Australia with a production value of at least $500,000 p.a. and half of the value was for services related to the production of motor vehicles or original equipment, you qualify. Therefore if you spent $150,000 on new plant and equipment you can claim back $22,500.
Stage 2 of the ATS will run from 1 January 2016 to 31 December 2017 and all applications must be lodged before 1 January of the year for which registration is sought. Overall there is $1.6 billion capped assistance and $348 million uncapped assistance with stage 2 providing $300 million capped assistance.
If you are interested and would like to know more or think you may be eligible please contact your local Moore Stephens office. As with all grants, the application must be well thought through, written concisely, have clear objectives and purpose and show clear links to the objectives of the ATS guidelines.
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