Bounty (Machine Tools and Robots) Act 1985
11Value added—modification
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11 Value added—modification
(1) For the purposes of this Act, the value added to bountiable equipment B by a modifier of the equipment in the course of the modification of the equipment shall be deemed to be an amount ascertained in accordance with the formula:
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where:
F is the factory cost incurred by the modifier:
(a) in carrying out a process or processes in the modification of the equipment; or
(b) in preparing for, or arranging, the carrying out by another modifier of the equipment of a process or processes in the modification of the equipment;
G is the cost (included in that factory cost) of parts and materials delivered into the store of the modifier, being parts and materials supplied to the modifier for use in the modification or packaging of the equipment;
H is the cost (included in that factory cost) of any process carried out, or any production service provided by:
(a) the modifier, or a person employed by the modifier, otherwise than at premises registered under section 28 in the name of the modifier; or
(b) a person other than:
(i) the modifier; or
(ii) a person employed by the modifier;
not being a production service carried out in Australia by or on behalf of the modifier;
I 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 modifier;
J is such costs (if any) as are prescribed.
(2) For the purposes of this Act, where bountiable equipment B is modified: (a) the value added to the equipment by a modifier of the equipment in the course of the modification of the equipment does not include any value added by the modifier to the equipment before the modification; and (b) the factory cost incurred by a modifier in the course of the modification of the equipment does not include any factory cost incurred by the modifier in respect of the equipment before the modification.