Further to our previous notifications on the progress of the
Federal Government's automotive policy "A New Car Plan for
a Greener Future", the ACIS Administration Amendment Bill 2009
("ACIS Amendment Bill") was passed on 14 September 2009
and the Automotive Transformation Scheme Bill 2009 ("ATS
Bill") was passed on 16 September 2009.
These Bills establish the framework for the Automotive
Transformation Scheme ("ATS") which will replace the
Automotive Competitiveness and Investment Scheme ("ACIS")
as the major support program for the Australian automotive
The ATS will be rolled out in two stages. Stage one runs from 1
January 2011 and ends on 31 December 2015 and replaces ACIS stage
three. Stage two runs from 1 January 2016 and ends on 31 December
It will operate by way of grant rather than by way of a duty
credit. This will have an important cash flow impact for those
involved in the industry and place a premium in ensuring that
applications for funding are made in advance and totally comply
with the Government's requirements.
Two types of assistance are provided for under the ATS:
Capped assistance, which subject to certain qualifications, may
not exceed a total of $300M in one year and is available to:
registered motor vehicle producers for the production of motor
vehicles, and investment in research and development and plant and
registered automotive supply chain participants for investment
in research and development and plant and equipment
Uncapped assistance which enables claims of up to a maximum of
15% for investment in plant and equipment and is available to:
participants registered as motor vehicle producers for the
production of approved motor vehicles, engines and engine
components as to 55%
registered automotive supply chain participants as to 45%
The previous ACIS loading has been abolished and those parties
in the supply chain can claim 50% of investment in approved
research and development (up from 45%), however, there is no
funding for recruitment and management expenditure.
Total funding for uncapped assistance is approximately $850M for
the period from 2011 to 2020.
All parties seeking to make a claim under the ATS will need to
demonstrate progress towards environmental outcomes and a
commitment to developing capabilities and skills in the
The transition from the ACIS scheme to the new ATS will need to
be properly timed and costed given that there will no longer be
duty credits available through ACIS and that funding will only be
provided by grants. This will have a potential cash flow impact on
those importing goods to assist with their automotive industry
The ATS Bill is structured so that the administrative details of
the ATS are to be dealt with in the regulations. This means that
many questions about the operation of the ATS will remain
unanswered until the regulations are released.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
An actuarial review of the Invensys Australia Superannuation Fund showed it to be in surplus to the tune of $189.2 million. In mid 2003, the Invensys Group proposed to the trustee that the surplus be repatriated to the principal employer in the group.
Lenders in New South Wales breathed a sigh of relief earlier this month when the Supreme Court ruled in Bank of Western Australia Ltd v. Primanzon  NSWSC 862 that two part-time commercial property investors could not claim relief under the Contracts Review Act 1980 (NSW) because the loans advanced to them were entered into in the course of a trade, business or profession carried on by them.
A key aspect of an innovation culture is keeping it active at all levels of management, from teams to board meetings.
Some comments from our readers… “The articles are extremely timely and highly applicable” “I often find critical information not available elsewhere” “As in-house counsel, Mondaq’s service is of great value”
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).