16Specification of bounty

#### 16 Specification of bounty (1) Bounty is payable in accordance with this Act on the production in Australia of bountiable equipment. (2) Bounty in respect of the manufacture of bountiable equipment A is payable to the manufacturer, or the manufacturers, of the equipment. (3) Bounty in respect of the modification of bountiable equipment B is payable to the modifier, or the modifiers, of the equipment. (4) A manufacturer of bountiable equipment A is not entitled to receive payment of bounty in respect of the manufacture of bountiable equipment A unless: (a) all the processes in the manufacture of the equipment carried out in Australia by the manufacturer (if any) were carried out at registered premises; (b) the last substantial process in the manufacture of the equipment was carried out at registered premises; (c) the manufacture of the equipment was completed during the bounty period; and (d) the amount that is the value added to the equipment by the manufacturer in the course of the manufacture of the equipment is not less than the amount that is 20% of the factory cost incurred by the manufacturer in respect of the manufacture of the equipment. (5) A manufacturer of bountiable equipment A is not entitled to receive a payment of bounty in respect of the manufacture of bountiable equipment A (other than bountiable goods AB) unless, during the bounty period, the equipment: (a) was sold, or otherwise disposed of, by the manufacturer for use in the production of other goods; or (b) was sold, or otherwise disposed of, to the Commonwealth. (6) A manufacturer of bountiable equipment A is not entitled to receive a payment of bounty in respect of the manufacture of bountiable goods AB, unless, during the bounty period, the goods were sold, or otherwise disposed of, by the manufacturer for use by another manufacturer of bountiable equipment A as an original component in other equipment manufactured at registered premises. (7) A manufacturer of bountiable equipment A is not entitled to receive a payment of bounty in respect of the retrofit manufacture of bountiable equipment A unless the amount that is the factory cost incurred by the manufacturer in carrying out a process or processes in the retrofit manufacture of the equipment is not less than $20,000 or, if another amount is prescribed, that other amount. (8) A modifer of bountiable equipment B is not entitled to receive a payment of bounty in respect of the modification of bountiable equipment B unless: (a) all the processes in the modification of the equipment carried out in Australia by the modifier (if any) were carried out at registered premises; (b) the last substantial process in the modification of the equipment was carried out at registered premises; (c) the modification of the equipment was completed during the bounty period; (d) the amount that is the value added to the equipment by the modifier in the course of the modification is not less than the amount that is 20% of the factory cost incurred by the modifier in respect of the modification of the equipment; (e) during the bounty period, the equipment: (i) was sold, or otherwise disposed of, by the modifier or a modifier of the equipment for use in the production of other goods; or (ii) was sold, or otherwise disposed of, to the Commonwealth; (f) where the modification of the equipment was by way of the conversion of the equipment from equipment that was not designed to form part of a flexible manufacturing system into equipment designed to form part of such a system—during the bounty period, the equipment: (i) was sold, or otherwise disposed of, by the modifier or a modifier of the equipment for use in such a system; or (ii) was sold, or otherwise disposed of, to the Commonwealth; and (g) the amount that is the factory cost incurred by the modifier in carrying out the processes in the modification of the equipment is not less than $20,000 or, if another amount is prescribed for the purposes of this paragraph, that other amount. (9) Bounty is not payable to the Commonwealth, a State, a Territory or an authority of the Commonwealth, of a State or of a Territory (including an educational institution established by the Commonwealth, a State or a Territory). (10) Bounty is not payable in respect of any equipment designed to carry out a task on a work piece if the carrying out of that task requires the equipment to be held in the hand of a human being. (11) Bounty is not payable in respect of equipment on which bounty has become, or will become, payable (whether or not it has been paid) under the Bounty (Metal‑working Machine Tools) Act 1978 or the Bounty (Computers) Act 1984. (11A) Bounty is not payable in respect of bountiable equipment that the CEO is satisfied was, or will be, after 1 July 1990, exported, either directly or indirectly through another country or other countries, to New Zealand. (12) Where: (a) by virtue of subsection 28(4), the CEO determines that the registration of premises shall be deemed to have taken effect on and from 1 July 1985; and (b) on that day, the person who applied for the registration of the premises is the owner of bountiable equipment A, being equipment that: (i) is a machine‑tool within the meaning of the Bounty (Metal‑working Machine Tools) Act 1978 on which bounty under that Act has not, and will not, become payable; or (ii) was not manufactured in pursuance of a firm order placed before 30 May 1985; the equipment shall, for the purposes of this Act, be deemed to have been manufactured by the first‑mentioned person at the registered premises on 1 July 1985. (13) Where: (a) by virtue of subsection 28(4), the CEO determines that the registration of premises shall be deemed to have taken effect on and from 1 July 1985; and (b) on that day, the person who applied for the registration of the premises is the owner of partly manufactured bountiable equipment A, being equipment that: (i) when completed, will be a machine‑tool within the meaning of the Bounty (Metal‑working Machine Tools) Act 1978 on which bounty under that Act will not become payable; or (ii) is not being manufactured in pursuance of a firm order placed before 30 May 1985; the manufacture of that equipment shall, for the purposes of this Act, be deemed to have been commenced on 1 July 1985.