8Specification of bounty

8 Specification of bounty

(1) Bounty is payable in accordance with this Act on the production, that is to say, the construction or modification, in Australia, of bountiable vessels. Eligible costs bounty (2) Bounty in respect of the construction or modification of a bountiable vessel is payable to the shipbuilder, or each shipbuilder, who incurs an eligible cost in undertaking, or undertaking a part of, the construction or modification. (3) However, bounty is not payable under subsection (2) in respect of a construction or modification completed after 31 December 2003. Eligible research and development expenditure bounty (3A) Bounty in respect of the construction or modification of a bountiable vessel is payable to the shipbuilder, or each shipbuilder who: (a) undertakes, or undertakes a part of, the construction or modification; and (b) incurs eligible research and development expenditure before the completion of the construction or modification. (3B) However, bounty is not payable under subsection (3A) in respect of a construction or modification completed after 30 June 2004. Entitlement to eligible costs bounty for vessels completed on or before 31 December 2000 (3C) If a shipbuilder completes the construction or modification of a bountiable vessel on or before 31 December 2000, the shipbuilder is not entitled to a payment of eligible costs bounty in respect of the construction or modification unless the shipbuilder is a registered shipbuilder at all times during the construction or modification. Entitlement to eligible costs bounty for vessels completed after 31 December 2000 and on or before 31 December 2003 (3D) If a shipbuilder completes the construction or modification of a bountiable vessel after 31 December 2000 and on or before 31 December 2003, the shipbuilder is not entitled to a payment of eligible costs bounty in respect of the construction unless: (a) the shipbuilder is a registered shipbuilder at all times during the construction or modification; and (b) the vessel is delivered on or before 31 December 2003 into the possession of the vessel’s owner or the owner’s agent; and (c) the construction or modification is carried out as a result of a contract entered into before 1 January 2001; and (d) the following documents are lodged with the Minister before 14 January 2001: (i) a copy of the contract or other evidence that satisfies the Minister of the existence of the contract; (ii) the approved form. (3E) The approved form referred to in paragraph (3D)(d) must contain the following details: (a) the amount to be paid to the shipbuilder under the contract; (b) an estimate of each of the eligible costs of the construction or modification; (c) the specifications of the vessel, including the gross construction tonnage worked out according to the formula in subsection 4(3); (d) the timetable for carrying out the construction or modification, including commencement and completion date; (e) the place where the construction or modification is being or will be carried out; (f) the name of the person intending to purchase the vessel, or for whom the vessel is being modified; (g) the date and place of delivery of the vessel upon completion. Entitlement to eligible research and development expenditure bounty for vessels completed on or before 30 June 2004 (3F) A shipbuilder who incurs eligible research and development expenditure before the construction or modification of a bountiable vessel undertaken by the shipbuilder is completed is not entitled to a payment of eligible research and development expenditure bounty in respect of the construction or modification unless the shipbuilder is a registered shipbuilder at all times during the construction or modification. (4) Where bounty is payable on the construction, or a modification, of a vessel, being a construction or modification commenced before 1 July 1989, this Act shall have effect as if the costs incurred by a shipbuilder before 1 July 1989 in respect of the undertaking of that construction or modification had been incurred by that shipbuilder on 1 July 1989. (5) A registered shipbuilder is not entitled to receive bounty in respect of the modification of a vessel unless the eligible costs incurred in performing the modification by that shipbuilder, or by that shipbuilder and all other registered shipbuilders undertaking parts of the modification, are, or would, if the modification were completed, be, not less than $1,000,000.