10Value added—manufacture

10 Value added—manufacture

(1) For the purposes of this Act, the value added to bountiable equipment A by a manufacturer of the equipment in the course of the manufacture of the equipment shall be deemed to be an amount ascertained in accordance with the formula:

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where:

A is the factory cost incurred by the manufacturer:

(a) in carrying out a process or processes in the manufacture of the equipment; or
(b) in preparing for, or arranging, the carrying out by another manufacturer of the equipment of a process or processes in the manufacture of the equipment;

B is the cost (included in that factory cost) of parts and materials delivered into the store of the manufacturer, being parts and materials supplied to the manufacturer for use in the manufacture or packaging of the equipment;

C is the cost (included in that factory cost) of any process carried out, or any production service provided by:

(a) the manufacturer, or a person employed by the manufacturer, otherwise than at premises registered under section 28 in the name of the manufacturer; or
(b) a person other than:
(i) the manufacturer; or
(ii) a person employed by the manufacturer;

not being a production service carried out in Australia by or on behalf of the manufacturer;

D is interest (included in that factory cost) on money borrowed from another person for the purpose of financing research or development other than research and development carried out in Australia by or on behalf of the manufacturer;

E is such costs (if any) as are prescribed.

(2) For the purposes of this Act, where bountiable equipment A (in this subsection referred to as the relevant equipment) is manufactured from other bountiable equipment A or from goods in respect of which bounty under this Act or another Act has, or will become payable: (a) the value added to the relevant equipment by a manufacturer of the relevant equipment in the course of the manufacture of the relevant equipment does not include any value added by the manufacturer to the other equipment or goods; and (b) the factory cost incurred by a manufacturer of the relevant equipment in the course of the manufacture of the relevant equipment does not include any factory cost incurred by the manufacturer in respect of the other equipment or goods. (3) For the purposes of this Act, where bountiable equipment A is retrofit manufactured: (a) the value added to that equipment by the manufacturer of that equipment in the course of the retrofit manufacture of that equipment does not include any value added by that manufacturer to the equipment from which the first‑mentioned equipment was retrofit manufactured; and (b) the factory cost incurred by a manufacturer of the first‑mentioned equipment in the course of the retrofit manufacture of that first‑mentioned equipment does not include any factory cost incurred by that manufacturer in the manufacture of the equipment from which the first‑mentioned equipment was retrofit manufactured.