This Order is the Automotive Transformation Scheme Order 2010.
1.2 Commencement
This Order commences on 1 July 2010.
1.3 Interpretation
In this Order, unless the contrary intention appears:
ATS means the Automotive Transformation Scheme prescribed for section 5 of the Act.
ATS stage means stage 1 or stage 2 (as the case requires) within the meaning of the Act.
final quarter means the period from 1 October to 31 December in an ATS year.
MVP modulation rate means the modulation rate for MVPs worked out in accordance with Part 3.
Note: The MVP modulation rate is used to modulate an amount, in relation to an MVP, to ensure that the funding for the relevant ATS year and relevant ATS stage is not exceeded.
non–MVP means an ATS participant who is an ACP, AMTP or ASP.
Note: ATS participant is defined in the Act.
non–MVP modulation rate means the modulation rate for non‑MVPs worked out in accordance with Part 3.
Note: The non‑MVP modulation rate is used to modulate an amount, in relation to a non‑MVP, to ensure that the funding for the relevant ATS year and relevant ATS stage is not exceeded.
other Commonwealth assistance has the meaning given by section 4.1.
registration quarter means the quarter in which a person’s registration as a participant under ACIS took effect.
Regulations means the Automotive Transformation Scheme Regulations 2010.
relevant quarter means:
(a) in relation to an ATS participant to whom the transitional arrangements under Part 7 of the Regulations do not apply and who provides a return for a particular quarter under regulation 3.1, each of the quarters included within the period comprising:
(i) if the quarter is the first quarter in an ATS year after an application for registration is granted, the 8 quarters before the quarter; and
(ii) if the quarter is the second quarter in an ATS year after an application for registration is granted, the 9 quarters before the quarter; and
(iii) if the quarter is the third quarter in an ATS year after an application for registration is granted, the 10 quarters before the quarter; and
(iv) if the quarter is the fourth quarter in an ATS year after an application for registration is granted, or any later quarter, the 11 quarters before the quarter; and
(b) in relation to a participant in ACIS whom becomes an ATS participant and who provides a return for a particular quarter under regulation 3.1:
(i) until the end of ATS year 3, each of the quarters included within a period set out in column 3 of Schedule 2; and
(ii) after the end of ATS year 3, the 11 quarters before the particular quarter.
Note: Schedule 2 sets out the number of quarters under ACIS that may be treated as eligible investment under the Scheme.
Scheme means the ATS.
Scheme debt capped offset amount means the amount of capped assistance that is Scheme debt being recovered by offsetting under regulation 4.2.
Scheme debt uncapped offset amount means the amount of uncapped assistance that is Scheme debt being recovered by offsetting under regulation 4.2.
Note: Several other words and expressions used in these Orders have the meaning given by regulation 1.5 of the Regulations. For example:
ACP
allowable plant and equipment
allowable research and development
AMTP
ASP
ATS year
automotive component
automotive machine tools
automotive services
automotive tooling
eligible investment
engine
engine components
MVP
MVP’s own use.
Part 2—Working out production and investment amounts for ATS participants
General notes:
There are several matters for which provision is made by the Regulations that are taken into account in working out amounts in the Order, including the following:
Regulation 1.18 provides for a maximum claimable value for allowable plant and equipment for an MVP and regulation 1.19 does the same for a non‑MVP. Regulation 1.17 defines allowable plant and equipment.
Regulation 1.21 provides for a maximum claimable value for allowable research and development for an MVP and regulation 1.22 does the same for a non‑MVP. Regulation 1.20 defines allowable research and development.
Regulation 1.25 provides for maximum claimable value for allowable production for an MVP.
Regulation 3.11 provides for a sales‑based cap for the payment of assistance.
Also, under regulation 3.10, capped assistance is to be divided 55% to 45% in an ATS year in favour of MVPs over non‑MVPs.
Payment of capped investment amounts under the Order are to be worked out using a rolling average based on the number of relevant quarters applicable to the ATS participant. Division 3.1 of the Regulations requires an ATS participant to prepare and lodge quarterly returns and provides for the content of those returns.
2.1 Working out production amounts for MVPs
(1) As soon as practicable after an MVP provides a return to the Secretary for a quarter, the Secretary must work out the uncapped production amount for the MVP for the quarter in accordance with the formula:
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where:
A is the maximum claimable value for allowable production for an MVP in the quarter.
B is the assistance multiplier, if any, for the ATS year mentioned in column 1 of the following table, being the multiplier, if any, mentioned in column 3 for the year.
C is the assistance rate, if any, for the ATS year mentioned in column 1 of the following table, being the rate mentioned in column 4 for the year.
ATS year
ATS Stage
Assistance multiplier (B) (%)
Assistance rate (C) (%)
1
1
10.0
15
2
1
8.5
15
3
1
7.0
15
4
1
5.5
15
5
1
4.0
15
6
2
2.5
15
7
2
1.0
15
8
2
0.0
0
9
2
0.0
0
10
2
0.0
0
(2) As soon as practicable after an MVP provides a return to the Secretary for a quarter, the Secretary must work out the capped production amount for the MVP for the quarter in accordance with the formula:
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where:
A is the maximum claimable value for allowable production for an MVP in the quarter.
CA is the total amount of other Commonwealth assistance, if any, received by the MVP in relation to the allowable production described in component A of the formula.
Note: Section 4.3 sets out how the amount of other Commonwealth assistance is worked out.
2.2 Working out capped investment amounts for MVPs
(1) As soon as practicable after an MVP provides a return for a quarter, the Secretary must work out the capped investment amounts for the MVP for the quarter for investments to which regulation 1.18 or 1.21 applies.
(2) The Secretary must work out the investment amount for the MVP for the quarter for allowable plant and equipment to which regulation 1.18 applies in accordance with the formula:
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where:
CA is the total amount of other Commonwealth assistance, if any, received by the MVP in relation to investment mentioned in components D and E of the formula.
Note: Section 4.3 sets out how the amount of other Commonwealth assistance is worked out.
D is the amount of investment in allowable plant and equipment, to which regulation 1.18 applies, undertaken by the MVP in the quarter.
E is the total investment in the allowable plant and equipment undertaken by the MVP in all relevant quarters before the quarter.
RQ is the total number of relevant quarters in relation to the quarter.
(3) The Secretary must work out the investment amount for the MVP for the quarter for allowable research and development to which regulation 1.21 applies in accordance with the formula:
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where:
CA is the total amount of other Commonwealth assistance, if any, received by the MVP in relation to investment mentioned in components F and G of the formula.
Note: Section 4.3 sets out how the amount of other Commonwealth assistance is worked out.
F is the amount of investment in allowable research and development to which regulation 1.21 applies undertaken by the MVP in the quarter.
G is the total amount of investment in the allowable research and development undertaken by the MVP in all relevant quarters before the quarter.
RQ is the total number of relevant quarters in relation to the quarter.
2.3 Working out capped investment amounts for non‑MVPs
(1) As soon as practicable after a non‑MVP provides a return for a quarter, the Secretary must work out the capped investment amounts for the non‑MVP for the quarter for investments to which regulation 1.19 or 1.22 applies.
(2) The Secretary must work out the investment amount for the non‑MVP for the quarter for allowable plant and equipment to which regulation 1.19 applies in accordance with the formula:
Image unavailable in extracted text
where:
CA is the total amount of other Commonwealth assistance, if any, received by the non‑MVP in relation to investment mentioned in components H and I of the formula.
Note: Section 4.3 sets out how the amount of other Commonwealth assistance is worked out.
H is the amount of investment in allowable plant and equipment, to which regulation 1.19 applies, undertaken by the non‑MVP in the quarter.
I is the total investment in the allowable plant and equipment undertaken by the non‑MVP in all relevant quarters before the quarter.
RQ is the total number of relevant quarters in relation to the quarter.
(3) The Secretary must work out the investment amount for the non‑MVP for the quarter for allowable research and development to which regulation 1.22 applies in accordance with the formula:
Image unavailable in extracted text
where:
CA is the total amount of other Commonwealth assistance, if any, received by the non‑MVP in relation to investment mentioned in components J and K of the formula.
Note: Section 4.3 sets out how the amount of other Commonwealth assistance is worked out.
J is the amount of investment in allowable research and development, to which regulation 1.22 applies, undertaken by the non‑MVP in the quarter.
K is the total eligible investment in the allowable research and development undertaken by the non‑MVP in all relevant quarters before the quarter.
RQ is the total number of relevant quarters in relation to the quarter.
Part 3—Working out quarterly modulation rates and assistance for an ATS year
Division 3.1—General
3.1 Secretary to work out modulation rates and assistance for ATS participants
The Secretary must work out the modulation rates and assistance for MVPs and non‑MVPs in accordance with the relevant steps set out in Divisions 3.2 to 3.5.
Division 3.2—MVP modulation rate for a quarter
3.2 Working out of modulation rate for certain quarters
(1) For working out the MVP modulation rate for each of the first 3 quarters in an ATS year, the Secretary is to use steps 1 to 6 in this Division. For working out the MVP modulation rate for the final quarter in an ATS year, the Secretary is to use steps 2, 3, 4 and 6 in this Division.
(2) The MVP modulation rate for a quarter for the ATS year is the rate determined under step 6(c) worked out as soon as practicable after the last day of the quarter for which MVPs are required to make a return for the quarter under regulation 3.1.
<table cellspacing="0" cellpadding="0" style="border-collapse:collapse"><thead><tr><td colspan="3" style="width:410.25pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableHeading"><span>Steps</span></p></td></tr></thead><tbody><tr><td style="width:38.85pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableHeading"><span>Step 1</span></p></td><td colspan="2" style="width:360.6pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableHeading"><span>Work out forecast capped and uncapped amounts for all MVPs for use in working out sales</span><span>‑</span><span>based cap rate and modulation rate for current quarter in an ATS year</span></p></td></tr><tr><td style="width:38.85pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>1(a)</span></p></td><td colspan="2" style="width:360.6pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>Work out the forecast capped production amounts for each MVP for the remaining quarters in the ATS year under subsection</span><span> </span><span>2.1(2) using the information included in the MVP’s business plans under subregulation</span><span> </span><span>2.12(3) and regulation</span><span> </span><span>2.27.</span></p></td></tr><tr><td style="width:38.85pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>1(b)</span></p></td><td colspan="2" style="width:360.6pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>Work out the forecast capped investment amounts for each MVP for the remaining quarters in the ATS year under section</span><span> </span><span>2.2 using the information included in the MVP’s business plans under subregulation</span><span> </span><span>2.12(3) and regulation</span><span> </span><span>2.27.</span></p></td></tr><tr><td style="width:38.85pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>1(c)</span></p></td><td colspan="2" style="width:360.6pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>Add together the amounts worked out under steps 1(a) and 1(b) for each MVP.</span></p></td></tr><tr><td style="width:38.85pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>1(d)</span></p></td><td colspan="2" style="width:360.6pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>Work out the forecast uncapped production amounts for each MVP for the remaining quarters in the ATS year under subsection</span><span> </span><span>2.1(1) using the information included in the MVP’s business plans under subregulation</span><span> </span><span>2.12(3) and regulation</span><span> </span><span>2.27.</span></p></td></tr><tr><td style="width:38.85pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>1(e)</span></p></td><td colspan="2" style="width:360.6pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>Add together the amounts worked out under steps 1(c) and 1(d) for each MVP.</span></p></td></tr><tr><td style="width:38.85pt; border-top:1.5pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableHeading"><span>Step 2</span></p></td><td colspan="2" style="width:360.6pt; border-top:1.5pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableHeading"><span>Work out individual MVPs capped and uncapped amounts for working out sales</span><span>‑</span><span>based cap for the current quarter in an ATS year</span></p></td></tr><tr><td style="width:38.85pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>2(a)</span></p></td><td style="width:360.25pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>Work out the capped production amount for each MVP for the current quarter of the ATS year under subsection</span><span> </span><span>2.1</span><span> </span><span>(2).</span></p></td><td style="border-top:1.5pt solid #000000; vertical-align:top"></td></tr><tr><td style="width:38.85pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>2(b)</span></p></td><td style="width:360.25pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>Work out, under section</span><span> </span><span>2.2, the capped investment amounts for each MVP for the current quarter in the ATS year.</span></p></td><td style="vertical-align:top"></td></tr><tr><td style="width:38.85pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>2(c)</span></p></td><td style="width:360.25pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>Add together the amounts worked out under steps 2(a) and 2(b) for each MVP.</span></p></td><td style="vertical-align:top"></td></tr><tr><td style="width:38.85pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>2(d)</span></p></td><td style="width:360.25pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>Work out the uncapped production amount for each MVP for the current quarter of the ATS year under subsection</span><span> </span><span>2.1</span><span> </span><span>(1).</span></p></td><td style="vertical-align:top"></td></tr><tr><td style="width:38.85pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>2(e)</span></p></td><td style="width:360.25pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>Add together the amounts worked out under steps 2(c) and 2(d) to obtain the total of the MVP’s capped and uncapped amounts for the quarter.</span></p></td><td style="border-bottom:1.5pt solid #000000; vertical-align:top"></td></tr><tr><td style="width:38.85pt; border-top:1.5pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableHeading"><span>Step 3</span></p></td><td colspan="2" style="width:360.6pt; border-top:1.5pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableHeading"><span>Work out the ceiling rate for an MVP for the current quarter in an ATS year</span></p></td></tr><tr style="height:19.85pt"><td style="width:38.85pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>3(a)</span></p></td><td style="width:360.25pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>Determine the sales</span><span>‑</span><span>based cap for each MVP under regulation</span><span> </span><span>3.11.</span></p></td><td style="border-top:1.5pt solid #000000; vertical-align:top"></td></tr><tr style="height:19.85pt"><td style="width:38.85pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>3(b)</span></p></td><td style="width:360.25pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>Determine the total capped and uncapped amounts paid to the MVP in previous quarters in the ATS year.</span></p></td><td style="vertical-align:top"></td></tr><tr style="height:19.85pt"><td style="width:38.85pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>3(c)</span></p></td><td style="width:360.25pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>Work out the ceiling rate for each MVP for the current quarter by:</span></p><p class="Tablea"><span>(a) subtracting the amount obtained under step 3(b) from the sales</span><span>‑</span><span>based cap amount for the MVP determined under step 3(a); and</span></p><p class="Tablea"><span>(b) dividing the result by the total of the MVP’s capped and uncapped amounts for the quarter (obtained by adding together the amounts worked out under steps 1(e) and 2(e)).</span></p><p class="Tabletext"><span>If the result of the calculation is equal to or greater than 1, the ceiling rate for the MVP is 1.</span></p><p class="Tabletext"><span>If the result of the calculation is less than 1, the ceiling rate for the MVP is that result.</span></p></td><td style="border-bottom:1.5pt solid #000000; vertical-align:top"></td></tr><tr><td style="width:38.85pt; border-top:1.5pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableHeading"><span>Step 4</span></p></td><td colspan="2" style="width:360.6pt; border-top:1.5pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableHeading"><span>Limit the capped amount for each MVP for the current quarter in an ATS year</span></p></td></tr><tr><td style="width:38.85pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><a id="BK_S3P9L3C1"><span>4(a)</span></a></p></td><td style="width:360.25pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>Work out the current quarter limited capped amount for each MVP for the ATS year by multiplying the amount obtained under step 2(c) by the ceiling rate for the MVP obtained under step 3(c).</span></p></td><td style="border-top:1.5pt solid #000000; vertical-align:top"></td></tr><tr><td style="width:38.85pt; border-top:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>4(b)</span></p></td><td style="width:360.25pt; border-top:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>Add together the results obtained under step 4(a) for all MVPs.</span></p></td><td style="vertical-align:top"></td></tr><tr style="height:0pt"><td style="width:49.65pt"></td><td style="width:371.05pt"></td><td style="width:0.35pt"></td></tr></tbody></table>
Step 5
Limit the capped amount for each MVP for the remaining quarters in an ATS year
5(a)
Work out the remaining quarters limited capped amounts for each MVP for the ATS year by multiplying the amount obtained under step 1(c) by the ceiling rate for the MVP obtained under step 3(c).
5(b)
Add together the results obtained under step 5(a) for all MVPs.
Step 6
Work out the modulation rate for the MVP for a quarter in an ATS year
6(a)
Determine the ATS year cap from regulations 3.9 and 3.10 for the ATS year concerned.
6(b)
Combine the capped amounts (if any) paid to all MVPs in previous quarters of the ATS year.
6(c)
Work out the modulation rate for the MVP for the quarter by:(a) subtracting the combined capped amount worked out under step 6(b) from the amount worked out under step 6(a); and(b) dividing the result by:(i) if the current quarter is the final quarter of the ATS year—the amount obtained under step 4(b); or(ii) for any other quarter—the amount obtained by adding the result obtained under step 4(b) to the result obtained under step 5(b) for that ATS year.If the result of the calculation is equal to or greater than 1, the modulation rate for the MVP is 1.If the result of the calculation is less than 1, the modulation rate for the MVP is that result.
Division 3.3—Individual MVP quarterly assistance
3.3 Working out of quarterly assistance for all quarters
For working out the individual MVPs capped and uncapped amounts for all quarters in an ATS year, the Secretary is to use the following steps.
<table cellspacing="0" cellpadding="0" style="border-collapse:collapse"><thead><tr><td colspan="2" style="width:410.25pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableHeading"><span>Steps</span></p></td></tr></thead><tbody><tr><td style="width:38.85pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableHeading"><span>Step 1</span></p></td><td style="width:360.6pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableHeading"><span>Modulate the capped amount for each MVP for a quarter in an ATS year</span></p></td></tr><tr><td style="width:38.85pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>1</span></p></td><td style="width:360.6pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>Apply the modulation rate for each MVP for the current quarter by multiplying the amount obtained from Division</span><span> </span><span>3.2, step 6(c) by the amount obtained from Division</span><span> </span><span>3.2, step 4(a).</span></p></td></tr><tr><td style="width:38.85pt; border-top:1.5pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableHeading"><span>Step 2</span></p></td><td style="width:360.6pt; border-top:1.5pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableHeading"><span>Work out the total capped amount to be paid for each MVP for a quarter in an ATS year</span></p></td></tr><tr><td style="width:38.85pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>2(a)</span></p></td><td style="width:360.6pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>Determine the Scheme debt capped offset amount for each MVP for the current quarter, mentioned in regulation</span><span> </span><span>4.3.</span><span></span></p></td></tr><tr><td style="width:38.85pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>2(b)</span></p></td><td style="width:360.6pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>Determine the total capped amount to be paid for each MVP by subtracting the Scheme debt capped offset amount</span><span> </span><span>determined under step 2(a) from the modulated capped amount determined under step 1.</span></p></td></tr><tr><td style="width:38.85pt; border-top:1.5pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableHeading"><span>Step 3</span></p></td><td style="width:360.6pt; border-top:1.5pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableHeading"><span>Limit the uncapped amounts for each MVP for the quarter in an ATS year</span></p></td></tr><tr><td style="width:38.85pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>3</span></p></td><td style="width:360.6pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>Limit the uncapped amount for each MVP for the current quarter by multiplying the amount determined under Division</span><span> </span><span>3.2, step 2(d) by the ceiling rate obtained under Division</span><span> </span><span>3.2, step 3(c).</span></p></td></tr><tr><td style="width:38.85pt; border-top:1.5pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableHeading"><span>Step 4</span></p></td><td style="width:360.6pt; border-top:1.5pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableHeading"><span>Work out the total uncapped amount to be paid for each MVP for a quarter in an ATS year</span></p></td></tr><tr><td style="width:38.85pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>4(a)</span></p></td><td style="width:360.6pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>Determine the Scheme debt uncapped offset amount, if any, for each MVP, for the current quarter, under regulation</span><span> </span><span>4.3.</span></p></td></tr><tr style="height:19.85pt"><td style="width:38.85pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>4(b)</span></p></td><td style="width:360.6pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>Determine the total uncapped amount to be paid for each MVP for the current quarter by subtracting the Scheme debt uncapped offset amount arrived at under step 4(a) from the limited uncapped amount for each MVP worked out under step 3.</span></p></td></tr><tr><td style="width:38.85pt; border-top:1.5pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableHeading"><span>Step 5</span></p></td><td style="width:360.6pt; border-top:1.5pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableHeading"><span>Work out the total amount to be paid for each MVP for a quarter in an ATS year</span></p></td></tr><tr><td style="width:38.85pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>5</span></p></td><td style="width:360.6pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>Add together the total capped amount to be paid for each MVP worked out under step 2(b) and the total uncapped amount to be paid for each MVP worked out under step 4(b) to determine the total amount to be paid for each MVP for the current quarter.</span></p></td></tr></tbody></table>
Note: Payments are made in accordance with regulation 3.13.
Division 3.4—Non‑MVP modulation rate for a quarter
3.4 Working out of modulation rate for certain quarters
(1) For working out the non‑MVP modulation rate for the first 3 quarters in an ATS year, the Secretary is to use steps 1 to 6 in this Division. For working out the non‑MVP modulation rate for the final quarter in an ATS year, the Secretary is to use steps 2, 3, 4 and 6 in this Division.
(2) The non‑MVP modulation rate for a quarter for an ATS year is the rate determined under step 6(c) as soon as practicable after the last day of the quarter for which non‑MVPs are required to make a return for the quarter under regulation 3.1.
Steps
Step 1
Work out forecast capped amounts for all non‑MVPs for use in working out the modulation rate for the current quarter in an ATS year
1(a)
Work out the forecast capped investment amounts for each non‑MVP for the remaining quarters in the ATS year under section 2.3 using the information included in the non‑MVP’s business plans under subregulations 2.12 (3) and 2.27.
1(b)
Add together the amounts from step 1(a) for all non‑MVPs.
Step 2
Work out individual non‑MVPs capped amounts for working out the sales‑based cap in the current quarter of an ATS year
2
Work out the capped investment amount for each non‑MVP for the current quarter of the ATS year under section 2.3.
Step 3
Work out the ceiling rate for a non‑MVP for the current quarter in an ATS year
3(a)
Determine the sales‑based cap for each non‑MVP under regulation 3.11
3(b)
Determine the total capped amounts paid to each non‑MVP in previous quarters in the ATS year.
3(c)
Work out the ceiling rate for each non‑MVP for the current quarter by:(a) subtracting the amount obtained under step 3(b) from the sales‑based cap for the non‑MVP determined under step 3(a); and(b) dividing the result by the total of the non‑MVP’s capped amounts for the quarter (obtained by adding together the amounts worked out under steps 1(b) and 2).If the result of the calculation is equal to or greater than 1, the ceiling rate for the non‑MVP is 1.If the result of the calculation is less than 1, the ceiling rate for the non‑MVP is the result.
Step 4
Limit the capped amounts for each non‑MVP for the current quarter in an ATS year
4(a)
Work out the current quarter limited capped amount for each non‑MVP for the ATS year by multiplying the capped amounts for working out the sales‑based cap obtained from step 2 by the ceiling rate for the non‑MVP obtained under step 3(c).
4(b)
Add together the results obtained under step 4(a) for all non‑MVPs.
Step 5
Limit the capped amount for each non‑MVP for the remaining quarters in an ATS year
5(a)
Work out the remaining quarters limited capped amounts for each non‑MVP for the ATS year by multiplying the amount obtained under step 1(a) by the ceiling rate for the non‑MVP obtained under step 3(c).
5(b)
Add together the results obtained under step 5(a) for all non‑MVPs.
Step 6
Work out the modulation rate for the non‑MVP for a quarter in an ATS year
6(a)
Determine the proportion of the ATS year cap for non‑MVPs from regulations 3.9 and 3.10 for the ATS year concerned.
6(b)
Combine the capped amounts (if any) paid to all non‑MVPs in previous quarters of the ATS year.
6(c)
Work out the modulation rate for the non‑MVP for the quarter by:(a) subtracting the combined capped amount worked out under step 6(b) from the amount worked out under step 6(a); and(b) dividing the result by:(i) if the current quarter is the final quarter of the ATS year—the amount obtained under step 4(b); or(ii) for any other quarter—the amount obtained by adding the result obtained under step 4(b) to the result obtained under step 5(b) for that ATS year.If the result of the calculation is equal to or greater than 1, the modulation rate for the non‑MVP is 1.If the result of the calculation is less than 1, the modulation rate for the non‑MVP is that result.
3.5 Working out of quarterly assistance for all quarters
For working out the individual non‑MVPs capped amounts for all quarters in an ATS year, the Secretary is to use the following steps.
<table cellspacing="0" cellpadding="0" style="border-collapse:collapse"><thead><tr><td colspan="3" style="width:410.25pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableHeading"><span>Steps</span></p></td></tr></thead><tbody><tr><td style="width:40.3pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableHeading"><span>Step 1</span></p></td><td colspan="2" style="width:359.15pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableHeading"><span>Modulate the capped amount for each non</span><span>‑</span><span>MVP for a quarter in an ATS year</span></p></td></tr><tr><td style="width:40.3pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><a id="BK_S3P12L1C1"><span>1</span></a></p></td><td style="width:358.6pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>Apply the modulation rate for each non</span><span>‑</span><span>MVP for the current quarter by multiplying the amount obtained from Division</span><span> </span><span>3.4, step 6(c) by the amount obtained from Division</span><span> </span><span>3.4, Step 4(a).</span></p></td><td style="border-top:1.5pt solid #000000; border-bottom:1.5pt solid #000000; vertical-align:top"></td></tr><tr><td style="width:40.3pt; border-top:1.5pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableHeading"><span>Step 2</span></p></td><td colspan="2" style="width:359.15pt; border-top:1.5pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableHeading"><span>Work out the total amount to be paid for each non</span><span>‑</span><span>MVP for a quarter in an ATS year</span></p></td></tr><tr><td style="width:40.3pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><a id="BK_S3P12L7C1"><span>2(a)</span></a></p></td><td style="width:358.6pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>Determine the Scheme debt capped offset amount for each non</span><span>‑</span><span>MVP for the current quarter, mentioned in regulation</span><span> </span><span>4.3</span></p></td><td style="border-top:1.5pt solid #000000; vertical-align:top"></td></tr><tr><td style="width:40.3pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>2(b)</span></p></td><td style="width:358.6pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>Determine the total amount to be paid for each non</span><span>‑</span><span>MVP for the current quarter by subtracting the Scheme debt capped offset amount arrived at under step 2(a) from the capped amount for each non</span><span>‑</span><span>MVP worked out under step 1.</span></p></td><td style="vertical-align:top"></td></tr><tr style="height:0pt"><td style="width:51.1pt"></td><td style="width:369.4pt"></td><td style="width:0.55pt"></td></tr></tbody></table>
Note: Payments are made in accordance with regulation 3.13.
Part 4—Other Commonwealth assistance
4.1 Meaning of other Commonwealth assistance
(1) For the Scheme, an ATS participant has received other Commonwealth assistance if the participant has received, and is entitled to, financial assistance (other than assistance under the Scheme) in relation to MVP production, or in relation to eligible investment, of a kind giving rise to an entitlement to an amount under the Scheme.
(2) However, other Commonwealth assistance includes financial assistance an MVP is taken to have received, and to which the MVP was entitled, in relation to unsold motor vehicles, engines or engine components.
(3) For subsection (1), neither assistance under the Scheme nor assistance mentioned in section 4.2 is to be regarded as other Commonwealth assistance.
4.2 Other Commonwealth assistance that is not financial assistance
For the Scheme, the following forms of assistance provided by the Commonwealth are not financial assistance:
(a) the income tax offset, known as the R&D tax offset, in respect of research and development activities as set out in the following provisions:
(i) Division 355 of the Income Tax Assessment Act 1997;
(ii) Subdivision 20-A of the Income Tax Assessment Act 1997;
(iii) Part III of the Industry Research and Development Act 1986;
Note: The new R&D tax credit arrangements replace the R&D tax concession arrangements for income years commencing on or after 1 July 2011.
(b) financial assistance under the Commonwealth Government program known as Commercialising Emerging Technologies (or ‘COMET’);
(c) financial assistance under the Commonwealth Government program known as the Cooperative Research Centres Program;
(d) financial assistance under the Strategic Investment Coordination process;
(e) financial assistance under the Structural Adjustment Fund for South Australia (SAFSA);
(f) financial assistance under the Automotive Industry Structural Adjustment Program (AISAP);
(g) financial assistance under the Geelong Investment and Innovation Fund;
(h) financial assistance under the South Australia Innovation and Investment Fund (SAIIF);
(i) financial assistance under the North East Tasmania Innovation and Investment Fund (NETIIF).
4.3 Working out the amount of other Commonwealth assistance
(1) For section 4.1, the amount of other Commonwealth assistance received by an ATS participant in relation to eligible investment in allowable research and development is worked out using the formula:
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where:
A is the total amount of the other Commonwealth assistance received in the quarter.
B is the total amount of the other Commonwealth assistance received in all relevant quarters before the quarter.
RQ is the total number of relevant quarters in relation to the quarter.
Note: Allowable research and development is defined in regulation 1.20.
(2) For section 4.1, the amount of other Commonwealth assistance received by an ATS participant in relation to eligible investment in allowable plant and equipment is worked out using the formula:
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where:
E is the total amount of the other Commonwealth assistance received in the quarter in relation to eligible investment in allowable plant and equipment.
F is the total amount of the other Commonwealth assistance received in all relevant quarters before the quarter in relation to eligible investment in allowable plant and equipment.
RQ is the total number of relevant quarters in relation to the quarter.
Note: Allowable plant and equipment is defined in regulation 1.17.
(3) For section 4.1, the amount of other Commonwealth assistance received by an MVP in relation to allowable production for an MVP is worked out using the formula:
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where:
G is the total amount of the other Commonwealth assistance received in the quarter in relation to allowable production for an MVP.
Note: Allowable production for an MVP is defined in regulation 1.24.
Part 5—Miscellaneous
5.1 Particulars to be included in business plan etc
(1) For regulation 6.7, an ATS participant must set out in the participant’s business plan and any update of the business plan, information detailing relevant issues against the reporting criteria set out in Schedule 1.
(2) Information referred to in subsection (1) may be included in the Department’s annual report of progress towards achieving economic sustainability of the Australian automotive industry.
5.2 Transitional: relevant quarter for recognition of eligible investments
For regulation 3.12, eligible investment made in a relevant quarter by an ATS participant under ACIS that is mentioned, or included in a range of quarters, in column 3 of an item in Schedule 2 is to be regarded as eligible investment for the purpose of working out a quarterly payment under the Scheme for the quarter mentioned in column 1 of the item.
Note: Subregulation 7.3 (1) sets out when investment under ACIS may be treated as eligible investment under the Scheme.
Part 6—Savings and transitional provisions
6.1 Amendments made by the Automotive Transformation Scheme Amendment Order 2013 (No. 1)
The amendments of this Order made by Schedule 1 to the Automotive Transformation Scheme Amendment Order 2013 (No. 1) do not apply in relation to a calculation for, or referring to, assistance in the 2011 or 2012 ATS year.