5Specification of bounty

5 Specification of bounty

(1) Bounty is payable in accordance with this Act on the production in Australia of bountiable yarns. (2) For the purposes of this Act, the production of bountiable yarn shall not be taken to have been carried out in Australia unless: (a) the last major process carried out in the production of the yarn was carried out in Australia at registered premises; and (b) at least one other major process carried out in the production of the yarn was carried out in Australia. (3) In subsection (2), major process, in relation to the production of bountiable yarn, means a process: (a) that comprises: (i) an operation that imparts, a series of operations that impart, an operation that produces a change in, or a series of operations that produce a change in, the characteristics of the yarn or of fibres (in this paragraph referred to as the principal part of the process); (ii) the operation or operations (if any) carried out to prepare the yarn or fibres for the principal part of the process; and (iii) the operation or operations (if any) carried out to recover the yarn or fibres after the completion of the principal part of the process; and (b) that, in the opinion of the CEO: (iv) involves the use of a significant quantity of equipment; and (v) adds significant value to the yarn or fibres. (4) Bounty in respect of bountiable yarn is payable to the producer, or the producers, of the bountiable yarn. (5) A producer is not entitled to receive a payment of bounty in respect of bountiable yarn unless: (a) all the processes in the production of the yarn carried out by him or her were carried out at registered premises during the bounty period; and (b) the production of the yarn was completed during the bounty period; and (ba) the production was carried out, in its entirety, using assets that are not included in the identified assets register referred to in section 21G; and (c) the yarn has been used during the bounty period, or sold or otherwise disposed of during the bounty period for use, in the production of prescribed textiles in a registered textile factory. (6) A producer is not entitled to receive a payment of bounty in respect of bountiable yarn that is prescribed wool yarn unless the prescribed textiles in the production of which the yarn has been used, or is proposed to be used, are textiles other than carpet. (7) Where bountiable yarn is produced from other bountiable yarn of a different kind, bounty may become payable in respect of the bountiable yarn so produced notwithstanding that bounty has been paid, or has become payable, in respect of the other bountiable yarn. (8) If, on 1 January 1982, a person who applied successfully for the registration of premises has in stock any bountiable yarn the production of which has completed on or after 1 October 1981, being yarn the last process in the production of which was carried out on those premises by that person, all the processes in the production of that yarn shall, for the purposes of this Act, be deemed to have been carried out on 1 January 1982. (9) If, on 1 January 1982, there are on registered premises any fibres (not being fibres in bountiable yarn) on which any of the processes involved in the production of bountiable yarn has been carried out, that process and any preceding process or processes in the production of that yarn shall, for the purposes of this Act, be deemed to have been carried out on that date.