126Subsection 31(7)

126  Subsection 31(7)

Retention limit for category B payments

 (7) The category B payments made to the research body during a particular financial year are subject to the condition that, if:

 (a) before the end of 31 October next following the financial year, the Minister determines the amount of the gross value of eligible wool produced in Australia in the financial year; and

 (b) as at the end of 31 October next following the financial year, the sum of the category B payments that were paid to the research body during the financial year exceeds the lesser of:

 (i) 0.5% of the amount of the gross value of eligible wool produced in Australia in the financial year as determined by the Minister; and

 (ii) 50% of the amount spent by the research body in the financial year on activities that qualify, under the contract, as research and development activities;

the research body will pay to the Commonwealth an amount equal to the excess.

Note: This ensures that the sum of the category B payments that are retained by the research body in relation to the financial year does not exceed the lesser of the amounts calculated under subparagraphs (b)(i) and (b)(ii).

 (7A) If:

 (a) before the end of 31 October next following a financial year, the Minister has not determined under subsection (7) the amount of the gross value of eligible wool produced in Australia in the financial year; and

 (b) the Minister has determined under subsection (7) the amount of the gross value of eligible wool produced in Australia in the previous financial year;

the Minister is taken to have made, immediately before the end of that 31 October, a determination under subsection (7) that the amount of the gross value of eligible wool produced in Australia in the financial year is equal to the amount of the gross value of eligible wool produced in Australia determined under subsection (7) for the previous financial year.

 (7B) An amount payable under subsection (7) by the research body:

 (7C) A determination made under subsection (7) is not a legislative instrument.