Part 1
Preliminary
Part 1 Preliminary
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Commonwealth legislation
This Act has been repealed and is no longer in force. It is retained for historical reference.
The Steel Transformation Plan 2012 sets out how the Commonwealth will pay cash assistance to registered Australian steel manufacturers for eligible investment, eligible innovation and eligible production. It creates registration rules, half‑yearly reporting, formulaic claim calculations, caps on annual and per‑participant payments, and recovery rules for overpayments.
The Commonwealth (via the Secretary) decides who registers, values transactions (including treating related‑party deals as non‑arm’s‑length), approves payments and enforces record‑keeping, offsets and interest on debts, affecting recipients’ cash flow and compliance costs.
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Direct links to the current provisions in Steel Transformation Plan 2012.
Part 1 Preliminary
Division 1.1 Introduction
1.1 Name of plan
1.2 Commencement
1.3 Object of plan
1.4 Overview of plan
1.5 Definitions
1.6 Meaning of production
Division 1.2 Sale of goods, eligible investment, eligible innovation and eligible production
Subdivision 1.2.1 Sale of goods
1.7 When sale of goods is taken to occur
1.8 When sale of goods is taken not to occur
Subdivision 1.2.2 Eligible investment
1.9 Eligible investment
1.10 Maximum claimable value for eligible investment
1.11 Working out investment amounts
Subdivision 1.2.3 Eligible innovation
1.12 Eligible innovation
1.13 Maximum claimable value for eligible innovation activities
1.14 Working out eligible innovation amounts
1.15 Meanings of labour costs and cost of training and development
Subdivision 1.2.4 Eligible production
1.16 Eligible production for STP participants
1.17 Maximum claimable value for eligible production
1.18 Working out production amounts for STP participants
Division 1.3 Determining eligible investments, eligible innovations and value of arm’s length transactions
Subdivision 1.3.1 Recognising eligible investment and eligible innovation
1.19 When investment or eligible innovation is taken to have occurred
Subdivision 1.3.2 Arm’s length transactions
1.20 Production value or sales value of eligible investment or eligible innovation, determined as if transaction at arm’s length
1.21 Determining the circumstances when parties treated as not being at arm’s length
1.22 Production value or sales value: parties treated as not being at arm’s length
1.23 Value of eligible innovation: parties treated as not being at arm’s length
1.24 Value of investment: parties treated as not being at arm’s length
1.25 Methods for determining value of transactions: parties treated as not being at arm’s length
Part 2 Registration under plan
Division 2.1 Rules about registration
2.1 Number of registrations available under plan
2.2 Registration under plan must further object of Act
Division 2.2 Applications for registration
2.3 Application for registration
Division 2.3 Participation in plan by groups of companies
2.4 Group of companies may apply for registration as single entity
2.5 Dealing with application by group of related bodies corporate
2.6 Legal status of a group permitted to make application for registration
Division 2.4 Formal requirements for, and consideration of, applications for registration
2.7 Content of application for registration
2.8 Lodgement of applications
2.9 When to apply
2.10 Consideration of registration applications
2.11 Fit and proper person
2.12 Secretary may seek further information
2.13 Period of effect of registration
2.14 Registration does not confer entitlement
Division 2.5 Conditions of registration
2.15 General compliance
2.16 Condition of eligible corporation registration
2.17 Document retention obligations
2.18 Update of business plan
Division 2.6 Deregistration
2.19 Deregistration
Part 3 Working out half‑yearly assistance for an STP participant
3.1 Secretary to work out assistance for STP participants
3.2 Working out assistance for STP participant for half‑year
Part 4 Payments under plan
Division 4.1 Making of half‑yearly returns
4.1 STP participants to make half‑yearly returns
4.2 Making half‑yearly return does not confer entitlement
4.3 Contents of STP participant’s return
4.4 Rules concerning returns
4.5 Further information about half‑yearly return
Division 4.2 Caps on plan and STP participants
4.6 Capped assistance for STP years
4.7 Annual assistance divided between STP participants
4.8 Sales‑based cap for payment of assistance
Division 4.3 Making of payments of assistance
4.9 Half‑yearly payments
4.10 Inalienability of payments
4.11 Condition of payment of assistance
Division 4.4 Limit on entitlement to assistance
4.12 Persons not entitled to certain assistance
Part 5 Recovery of overpayments
5.1 Plan debt
5.2 Recovery by offsetting
5.3 Secretary to issue notice
5.4 Interest payable on plan debt
5.5 Extension of time for payment of plan debt
Part 6 Administrative review of decisions
6.1 Request for reconsideration of decision by Secretary
6.2 Reconsideration by Secretary
6.3 Review of decisions affecting payment of assistance
6.4 Limitations on implementation of court decisions concerning payment of assistance
6.5 Limitations on implementation of AAT decisions concerning payment of assistance
6.6 Review of other decisions
Part 7 Other Commonwealth assistance
7.1 Meaning of other Commonwealth assistance
7.2 Other Commonwealth assistance that is not financial assistance
7.3 Working out the amount of other Commonwealth assistance
Part 8 Miscellaneous
8.1 Particulars to be included in business plan etc.
8.2 Approved forms
8.3 Ongoing obligation to maintain records
8.4 Publication of information relating to STP participants
Schedule 1 Reporting criteria: meeting object in section 3 of the Act
Part 1 Preliminary
Division 1.1 Introduction
1.1 Name of plan
This plan is the Steel Transformation Plan 2012.
1.2 Commencement
This plan commences on 1 May 2012.
1.3 Object of plan
The object of this plan is the same as the object set out in subsection 3 (1) of the Act.
1.4 Overview of plan
Note Part 2 of the Act provides for the payment of financial assistance before this plan commences. This assistance is by way of competitiveness assistance advances, up to a total of $164 million. It is intended that any competitiveness assistance advance is an advance of payments to an eligible corporation under this plan. It is also intended that eligible corporations lodge half‑yearly returns as they conduct eligible activities during the plan years.
(1) Under this plan, STP participants are entitled to cash payments of assistance for eligible innovation, eligible investment and eligible production activities.
(2) Entitlements under this plan for an STP participant are to be reduced by the amount of any competitiveness assistance advance provided to the STP participant.
(3) An applicant for registration under this plan must be an eligible corporation that is part of the Australian steel manufacturing industry.
(4) STP payments are conditional on compliance with the Act and this plan.
(5) An STP participant may be deregistered in certain circumstances (Division 2.6).
(6) In relation to payments of assistance:
(a) once registered, an STP participant must provide to the Secretary a half‑yearly return to be entitled to assistance; and
(b) the total amount of assistance paid in an STP year must not exceed the limit mentioned in subsection 13 (3) of the Act; and
(c) Part 3 sets limits on assistance for an STP participant for each plan year; and
(d) a method set out in this plan is to be used to determine how much an STP participant is entitled to be paid (Part 3).
(7) This plan provides that overpayments may be recovered and an STP participant may be required to pay interest on overpaid amounts.
(8) This plan provides for administrative review of certain decisions.
(9) This plan sets out document retention obligations and requirements for publication of information.
1.5 Definitions
(1) In this plan:
acquire includes:
(a) acquire by purchase; and
(b) acquire under a finance lease, operating lease or hire purchase agreement.
Act means the Steel Transformation Plan Act 2011.
approved form means a form approved under section 8.2.
associate has the meaning given by section 318 of the Income Tax Assessment Act 1936.
Australian Accounting Standards means the accounting standards made by the Australian Accounting Standards Board under subsection 334 (1) of the Corporations Act 2001.
direct tax means a tax on:
(a) wages, profits, interest, rents, royalties or any other form of income; or
(b) the ownership of property.
electronic communication has the meaning given by subsection 5 (1) of the Electronic Transactions Act 1999.
eligible innovation has the meaning given by section 1.12.
eligible investment has the meaning given by section 1.9.
eligible production has the meaning given by section 1.16.
finance lease has the meaning given by the Australian Accounting Standards.
group of related bodies corporate means a group of related bodies corporate within the meaning of sections 9 and 50 of the Corporations Act 2001.
GST has the meaning given by section 195‑1 of the A New Tax System (Goods and Services Tax) Act 1999.
half‑year means a period of 6 months commencing on 1 January or 1 July in a year.
hire purchase agreement has the meaning given by the Australian Accounting Standards.
indirect tax means any tax except a direct tax or import charge, and includes the following:
(a) GST or value‑added tax;
(b) luxury car tax;
(c) sales tax;
(d) excise tax;
(e) turnover tax;
(f) franchise tax;
(g) stamp tax or duty;
(h) transfer tax or duty;
(i) inventory or equipment tax;
(j) border tax.
industrial property rights include:
(a) rights (including equitable rights) possessed by a person under the law of Australia as:
(i) the patentee of a patent in force for an invention; or
(ii) the owner of a registered trade mark; or
(iii) the owner of a registered design; and
(b) rights possessed by a person under a law of a foreign country that are equivalent to the rights mentioned in paragraph (a).
insolvent under administration means a person who:
(a) under the Bankruptcy Act 1966 or the law of an external Territory, is a bankrupt in respect of a bankruptcy from which the person has not been discharged; or
(b) under the law of an external Territory or the law of a foreign country, has the status of an undischarged bankrupt.
Examples for definition of insolvent under administration
A person is insolvent under administration if any of the person’s property is subject to control under:
(a) section 50 or Division 2 of Part X of the Bankruptcy Act 1966; or
(b) a corresponding provision of the law of an external Territory or the law of a foreign country.
A person is insolvent under administration if, at any time during the preceding 3 years, the person has executed a personal insolvency agreement under:
(a) Part X of the Bankruptcy Act 1966; or
(b) the corresponding provisions of the law of an external Territory or the law of a foreign country.
investment undertaken by an STP participant has the meaning given by section 1.19.
maximum claimable value for eligible innovation means a value in respect of a kind of eligible innovation arrived at using the method set out in sections 1.13 and 1.14 for that kind of eligible innovation.
maximum claimable value for eligible investment means a value in respect of a kind of eligible investment arrived at using the method set out in section 1.10 for that kind of investment.
maximum claimable value for eligible production means a value in respect of a kind of eligible production arrived at using the method set out in section 1.17.
net inventory change, for an STP participant, means the closing stock value, less the opening stock value, calculated in accordance with the Australian Accounting Standards.
operating lease has the meaning given by the Australian Accounting Standards.
plan debt has the meaning given by section 5.1.
previous investment, in relation to an investment undertaken by an STP participant by way of acquiring plant and equipment under a sale and leaseback arrangement, means whichever of the following that applies:
(a) the investment in the plant and equipment undertaken by the STP participant by way of acquiring the plant and equipment by purchase before it was sold and leased back;
(b) the investment in the plant and equipment undertaken by the STP participant by way of building or making the plant and equipment before it was sold and leased back.
production has the meaning given by section 1.6.
production value means the value of production worked out in accordance with section 1.17.
rent, in relation to plant and equipment acquired under an operating lease, means an amount, however described, payable under the lease as consideration for leasing the plant and equipment, but does not include any deposit payable under the lease.
sale has the meaning given by sections 1.7 and 1.8.
sale and leaseback arrangement, in relation to an investment in plant and equipment undertaken by an STP participant, means an arrangement under which plant and equipment acquired by purchase, or built or made, by the STP participant is sold to, and immediately leased back under a finance lease from, another person.
sales value, for the sale of goods produced in Australia by an STP participant, means the value of the goods sold, reduced by the amount of sales tax payable on those goods
Note Section 1.6 sets out the meaning of production.
STP year means a year identified in the following table for which eligible investments or eligible production may be claimed by an STP participant.
| Item | STP year | | 1 | 1 July 2012–30 June 2013 | | 2 | 1 July 2013–30 June 2014 | | 3 | 1 July 2014–30 June 2015 | | 4 | 1 July 2015–30 June 2016 |
STP year cap has the meaning given by section 4.6.
(2) In this plan, a reference to a person registered as an STP participant includes a reference to a group that is so registered under Division 2.3.
(3) In this plan, all money amounts are expressed in Australian dollars.
1.6 Meaning of production
(1) Except for net inventory change, a person is taken to produce a thing only at the time when the person sells the thing produced.
(2) For subsection (1), production includes the manufacture of crude carbon steel using a method mentioned in the definition of Australian steel manufacturing industry in section 4 of the Act, being the crude product used in the production of marketable steel products.
(3) For subsection (1), production includes the manufacture of marketable steel products including slab, hot rolled coil, cold rolled coil, billets, blooms, ingots, rods, bar, hot rolled structurals, merchant bar, plate and higher value added products such as coated and painted steel products, wire products, rail, rail wheels, pipe and tube products and grinding media.
(4) To avoid doubt, if the manufacture of a thing could be counted as an act of production under both subsections (2) and (3), or could be counted as an act of production more than once under one of those subsections, the manufacture is to be counted as only one act of production.
Division 1.2 Sale of goods, eligible investment, eligible innovation and eligible production
Subdivision 1.2.1 Sale of goods
1.7 When sale of goods is taken to occur
A sale of goods is taken to have occurred if it would be recognised as a sale by the Australian Accounting Standards.
1.8 When sale of goods is taken not to occur
Despite section 1.8, a transaction involving goods is taken not to be a sale of the goods in a circumstance mentioned in the table.
| Item | Circumstance | | 1 | The goods are lent by a person to another person, with the intention that they be returned to the lender, and the lender retains title to the goods | | 2 | A corresponding credit for the goods is issued after the transaction | | 3 | The goods have previously been treated as having been sold for the purposes of this plan |
Subdivision 1.2.2 Eligible investment
1.9 Eligible investment
(1) Each of the following is eligible investment:
(a) investment in new plant and equipment, buildings or structures for the production of crude carbon steel and marketable steel products;
(b) investment to upgrade existing plant and equipment, buildings or structures for the production of crude carbon steel and marketable steel products that is limited to the actual costs of the upgrade.
Note There is a maximum claimable value for eligible investment, worked out under section 1.10. The investment to which this section and section 1.10 relates must reflect costs, based on normal commercial values and arm’s length transactions.
(2) The investment mentioned in paragraph (1) (b) does not include expenditure on maintenance mentioned in paragraph 1.12 (2) (f).
Note Section 1.12 treats the expenditure as eligible innovation.
(3) Without limiting subsection (1), the plant and equipment mentioned in that subsection includes the following:
(a) computer hardware and software, to the extent that the hardware or software is used for a function or process mentioned in paragraph (a) or (b);
(b) shelter and housing that is integral to the production process for marketable products;
(c) a spare or replacement part for the plant and equipment;
(d) existing plant and equipment purchased on arm’s‑length terms.
(4) Without limiting subsection (1), the plant and equipment mentioned in that subsection does not include the following:
(a) plant and equipment not in Australia;
(b) land;
(c) plant and equipment that has a value of less than $300 when new.
(5) Plant and equipment purchased with funding under this plan must be operated in Australia for the remaining life of this plan.
(6) However, subsection (5) does not apply to plant and equipment that is consumed in the process in which it is used.
1.10 Maximum claimable value for eligible investment
(1) This section sets out the method of working out the maximum claimable value for eligible investment by an STP participant.
(2) If the STP participant acquires the investment by purchase, the maximum claimable value for the investment is:
View image in the official source
A is the purchase price for the investment.
B is the sum of each of the following that relates to the purchase and that has not been included in the purchase price:
(a) freight charges;
(b) insurance costs;
(c) import charges;
(d) clearance charges;
(e) GST;
(f) sales taxes;
(g) any other expense that would be recognised as a purchase cost under the Australian Accounting Standards;
(h) any other expense that would be recognised under the Australian Accounting Standards in determining the depreciable value of plant and equipment.
(3) If the STP participant acquires the investment under a finance lease or hire purchase agreement (other than a sale and leaseback arrangement), the maximum claimable value for the investment is the capital value of the investment shown on the lease document or hire purchase agreement.
(4) If the STP participant acquires the investment under a sale and leaseback arrangement, the maximum claimable value for the investment is:
(a) the amount claimed for the previous investment; or
(b) if the previous investment has not been taken into account in a previous return—the maximum claimable value, worked out under subsection (2) or (5), for the investment in relation to the previous investment.
(5) If the STP participant builds or makes the investment, the maximum claimable value for the investment, for a half‑year, is:
(a) the value of the investment recorded in the STP participant’s accounts or register of assets; or
(b) if the investment (the new plant and equipment) is part of an existing plant and equipment—the total net increase, recorded in the STP participant’s accounts or register of assets for that half‑year, in the value of the existing plant and equipment as a result of the building and making of the new plant and equipment.
(6) Despite subsections (2) to (5), expenditure is limited to the actual costs of the upgrade, alterations, repairs or maintenance if the expenditure, however described, is in relation to upgrading a building or structure or undertaking alterations, repairs or maintenance to an existing building or structure.
(7) For subsection (6), the expenditure:
(a) is taken to be the value of the building or structure that may be recognised as an expense, or capitalised, in the STP participant’s accounts; and
(b) in spite of paragraph (a), is limited to expenditure necessary for the efficient housing and operation of new plant or equipment mentioned in section 1.9; and
(c) is taken to have been incurred only when:
(i) payment has been made; and
(ii) if a certificate of occupancy is required—the certificate has been issued.
Note 1 If an investment involves the STP participant entering into a transaction with another person, section 1.20 states that the value of the investment is to be determined on the basis that the STP participant and the other person are at arm’s length.
Note 2 See Subdivision 1.3.2 for how to determine arm’s length amounts.
1.11 Working out investment amounts
(1) As soon as practicable after an STP participant provides a return for a half‑year, the Secretary must work out the investment amounts for the STP participant for the half‑year for investments to which section 1.10 applies.
(2) The Secretary must work out the investment amount for the STP participant for the half‑year for investment to which section 1.10 applies in accordance with the formula:
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CA is the total amount of other Commonwealth assistance, if any, received by the STP participant in relation to investment mentioned in component D of the formula.
Note Section 7.3 sets out how the amount of other Commonwealth assistance is worked out.
D is the amount of eligible investment, to which section 1.10 applies, undertaken by the STP participant in the half‑year.
Subdivision 1.2.3 Eligible innovation
1.12 Eligible innovation
(1) An STP participant may claim, as eligible innovation, activities that relate to research and development:
(a) to which section 1.6 applies; and
(b) that are undertaken for the purpose of:
(i) acquiring new knowledge; or
(ii) creating new or improved materials, products, devices, production or processes.
(2) Without limiting subsection (1), eligible innovation of a kind mentioned in that subsection includes the following activities:
(a) basic and strategic research;
(b) industrial and engineering design;
(c) production engineering;
(d) development activities relating to the building and testing of prototypes;
(e) re‑engineering and modification of existing products and processes;
(f) maintenance of existing materials, products, devices, production or processes, for the purpose of maintaining or improving the efficiency of existing products or processes;
(g) development and installation of purpose‑designed systems for:
(i) quality assurance and process control; or
(ii) materials or movement control;
(h) testing and modification of new production systems, whether purpose‑built or interchangeable, to achieve repeatability within specified tolerances;
(i) acquiring technology, or the right to use technology;
(j) obtaining industrial property rights, including:
(i) preparing and lodging applications and other documents that are required to be lodged, in Australia or elsewhere, for the initial grant or registration of the rights; and
(ii) the initial grant or registration of the rights, in Australia or elsewhere.
(3) However, eligible innovation of a kind mentioned in subsection (1) does not include the following activities:
(a) the design of buildings (whether or not the buildings are to be used to house a research and development activity);
(b) the design and installation of financial management systems;
(c) market research, market testing, market development or sales promotion, including customer surveys;
(d) routine quality control;
(e) management studies or efficiency surveys;
(f) routine collection of information, other than for the purpose of research and development;
(g) the acquisition from another STP participant of technology or the rights to use technology;
(h) the protection of industrial property rights by legal action.
(4) Eligible innovation of the kind mentioned in subsection (1):
(a) includes research and development conducted by another person (other than a Cooperative Research Centre) on behalf of the STP participant under a contract with the STP participant if:
(i) the STP participant contributes to the direction and management of the research and development; and
(ii) the STP participant has a proportionate share in any intellectual property resulting from the research and development; and
(iii) the STP participant is not required to conduct the research and development on behalf of:
(A) another person under a contract with the other person; or
(B) another STP participant under a contract with the other STP participant; and
(b) includes research and development conducted by a Cooperative Research Centre under a contract with the STP participant if:
(i) the STP participant contributes to the direction and management of the research and development; and
(ii) the STP participant has the right to use any intellectual property resulting from the research and development; and
(iii) the STP participant is not required to conduct the research and development on behalf of another person under a contract with the other person.
1.13 Maximum claimable value for eligible innovation activities
(1) For an STP participant, this section and section 1.14 set out the method of working out the maximum claimable value for eligible innovation activities of the kind mentioned in subsection 1.12 (1).
(2) The maximum claimable value for eligible innovation activities, for a half‑year, is: the sum of each of the following amounts of expenditure that have been recognised in the STP participant’s accounts, in accordance with Australian Accounting Standards:
(a) labour costs, within the meaning of subsection 1.15 (1), in relation to:
(i) employees carrying out research and development in relation to an eligible innovation activity; and
(ii) skilled or unskilled craftspersons, secretarial staff, clerical staff or executive staff participating in the management of scientific or technical aspects of research and development in relation to an eligible innovation activity;
(b) the cost, within the meaning of subsection 1.15 (2), of training and developing employees referred to in paragraph (a);
(c) if the eligible innovation activities involve an activity that has been carried out by a person under a contract for services with the STP participant—the amount payable, under the contract, to the person for the activity;
(d) the cost of purchasing, for the purposes of the eligible innovation activities, any plant and equipment that is consumed or tested to destruction within 12 months after its purchase;
(e) the cost of purchasing, for the purposes of the eligible innovation activities, any work order materials.
Note The acquisition of plant and equipment for research and development that is recognised in the STP participant’s accounts as an asset, in accordance with Australian Accounting Standards, is dealt with in section 1.19.
(3) However, if the eligible innovation activities are conducted by another person (other than a Cooperative Research Centre) on behalf of the STP participant, under a contract with the STP participant, the maximum claimable value for eligible innovation activities, for a half‑year, is the total amount of claims, enforceable by the other person against the STP participant, that arise, in that half‑year, for any work done in relation to the activities.
(4) If the eligible innovation activities are conducted by a Cooperative Research Centre, under a contract with the STP participant, the maximum claimable value for the activities for a half‑year, is the total amount of contribution made, in that half‑year, by the STP participant to the Centre in relation to the eligible innovation activities.
1.14 Working out eligible innovation amounts
As soon as practicable after an STP participant provides a return for a half‑year, the Secretary must work out:
(a) the innovation amount for the STP participant, for the half‑year, for eligible innovation activities to which section 1.13 applies; and
(b) the eligible innovation amount for the half‑year for eligible innovation activities to which section 1.13 applies, in accordance with the formula:
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CA is the total amount of other Commonwealth assistance, if any, received by the STP participant in relation to investment mentioned in component F of the formula.
Note Section 7.3 sets out how the amount of other Commonwealth assistance is worked out.
F is the amount of expenditure by the STP participant in the half‑year on eligible innovation activities to which section 1.13 applies.
1.15 Meanings of labour costs and cost of training and development
(1) For working out the maximum claimable value for eligible innovation, labour costs in respect of an employee includes each of the following that applies to the employee:
(a) salary or wages;
(b) allowances, bonuses, overtime and penalty rate payments;
(c) leave payments for annual leave, sick leave and long service leave;
(d) superannuation fund contributions, payroll tax and workers’ compensation insurance premiums;
(e) the cost, other than the cost of any fringe benefits tax, of providing a vehicle or any other benefit included in the employee’s remuneration package.
(2) Without limiting paragraph 1.13 (2) (b), the cost of training and development of an employee of an STP participant includes the following:
(a) the cost of graduate development programs;
(b) the cost of training to use software specifically related to the research and development;
(c) labour costs in respect of employees directly supporting or assisting, or directly involved in, the training and development of the employee.
(3) Despite section 1.13:
(a) if an amount mentioned in that section relates to activities other than those covered by eligible innovation, only the part of the amount that relates to the eligible innovation is to be taken into account; and
(b) if an expenditure, however described, is to be taken into account in working out the maximum claimable value for eligible innovation and the expenditure includes an amount of GST payable on the supply to which the expenditure relates, the expenditure is to be reduced by the amount of GST for the purpose of working out the maximum claimable value for eligible innovation activities.
Example for paragraph 3 (a)
If an employee transfers from the area of the corporation responsible for sales to the area responsible for research and development, leave payments for any leave accrued while the employee was with the sales area cannot be included in the labour costs in respect of the employee for the purposes of working out the maximum claimable value for eligible innovation activities under section 1.13.
Note 1 If an investment involves the STP participant entering into a transaction with another person, section 1.17 states that the value of the investment is to be determined on the basis that the STP participant and the other person are at arm’s length.
Note 2 See Subdivision 1.3.2 for how to determine arm’s length amounts.
(4) In this section:
fringe benefits tax has the meaning given by subsection 136 (1) of the Fringe Benefits Tax Assessment Act 1986.
Subdivision 1.2.4 Eligible production
1.16 Eligible production for STP participants
An STP participant may claim the production referred to in section 1.6 as eligible production.
1.17 Maximum claimable value for eligible production
(1) For an STP participant, the method of working out the maximum claimable value for eligible production (the production value) is worked out in accordance with subsection (2).
(2) The maximum claimable value, for a half‑year, of the STP participant’s production is:
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A is the total revenue from eligible production by the STP participant in the half‑year, including:
(a) revenue from products made in Australia by the STP participant and sold to unrelated or related parties at arm’s length market prices in Australia, plus the free on‑board value of steel products exported to entities overseas, whether related or unrelated to the STP participant; and
(b) the amount of any indirect taxes incurred by the STP participant in respect of STP participant production in the half‑year, and not recoverable by the STP participant.
B is the sum of the direct production costs in relation to eligible production, whether sold or not sold, being the following amounts:
(a) the amount, based on recorded invoice prices or, if the products are produced by the STP participant, based on the cost incurred by the STP participant in the half‑year for the purchase of products contributing to the STP participant’s production, being scrap steel, coal, iron ore and the utilities of natural gas and electricity necessary for the production of marketable steel products to the point of sale;
(b) the amount of any indirect taxes incurred by the STP participant in respect of STP participant production in the half‑year, and not recoverable by the STP participant.
C is the participant’s net inventory change from eligible production by the STP participant for STP participant production in the half‑year, determined in accordance with Australian Accounting Standards.
(3) For subsection (2), steel products includes slab, hot rolled coil, cold rolled coil, billets, blooms, ingots, rods, bar, hot rolled structurals, merchant bar, plate and higher value added products such as coated and painted steel products, wire products, rail, rail wheels, pipe and tube products and grinding media.
(4) For the purpose of working out, for the half‑year, total revenue from sales from STP participant production, the sale price of the goods produced is taken to be:
(a) if an invoice has been issued for the sale in the half‑year—the invoice price; or
(b) if a sale is taken to have occurred but no invoice has been issued—the arithmetic mean average invoice price, in the half‑year, for products of that kind.
1.18 Working out production amounts for STP participants
As soon as practicable after an STP participant provides a return to the Secretary for a half‑year, the Secretary must work out the production amount for the STP participant for the half‑year, in accordance with the formula:
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A is the maximum claimable value for eligible production for an STP participant in the half‑year.
CA is the total amount of other Commonwealth assistance, if any, received by the STP participant in relation to the eligible production described in component A of the formula.
Note Section 7.3 sets out how the amount of other Commonwealth assistance is worked out.
Division 1.3 Determining eligible investments, eligible innovations and value of arm’s length transactions
Subdivision 1.3.1 Recognising eligible investment and eligible innovation
1.19 When investment or eligible innovation is taken to have occurred
(1) An investment in plant and equipment undertaken by an STP participant is taken to have occurred:
(a) if the investment is by way of acquiring the plant and equipment by purchase under a finance lease, operating lease or hire purchase agreement, other than under a sale and leaseback arrangement:
(i) at the time when the plant and equipment is recognised in the STP participant’s accounts as an asset, or as an expense, in accordance with Australian Accounting Standards; or
(ii) if, at the time referred to in subparagraph (i), the plant and equipment is not in Australia—at the time when the plant and equipment is imported into Australia; or
(b) if the investment is by way of acquiring the plant and equipment under an operating lease:
(i) in relation to each payment of rent under the lease; or
(ii) if, at a time referred to in subparagraph (i), the plant and equipment is not in Australia—at the time when the plant and equipment is imported into Australia and in relation to each payment of rent under the lease after the plant and equipment has been so imported; or
(c) if the investment is by way of building or making the plant and equipment:
(i) at the time when the plant and equipment is recognised in the STP participant’s accounts as an asset, or as an expense, in accordance with Australian Accounting Standards, or at the time when the plant or equipment is recognised in the STP participant’s register of assets, whichever is the earlier; or
(ii) if the plant and equipment (the new plant and equipment) is part of an existing plant and equipment—at the time when the building or making of the new plant and equipment is recognised, in the STP participant’s accounts, as an increase in asset value in accordance with Australian Accounting Standards, or at the time when the building or making of the new plant or equipment is recorded in the STP participant’s register of assets, whichever is the earlier; or
(d) if the investment is by way of acquiring a spare or replacement part mentioned in paragraph 1.9 (3) (c)—at the time when the spare or replacement part is recognised in the STP participant’s accounts as an asset, or as an expense, in accordance with Australian Accounting Standards.
(2) An investment in plant and equipment undertaken by an STP participant by way of acquiring the plant and equipment under a sale and leaseback arrangement is taken to have occurred at the time when the previous investment would have been taken to have occurred under this plan.
(3) Expenditure for eligible innovation incurred by an STP participant is taken to have occurred:
(a) if the eligible innovation is conducted by the STP participant—on each occasion that expenditure incurred in relation to the eligible innovation is recognised, in the STP participant’s accounts, in accordance with Australian Accounting Standards; or
(b) if the expenditure is by way of eligible innovation conducted by another person (other than a Cooperative Research Centre) on behalf of the STP participant under a contract with the STP participant—on each occasion that a claim, enforceable by the other person against the STP participant, arises for any work done in relation to the eligible innovation; or
(c) if the eligible innovation is conducted by a Cooperative Research Centre under a contract with the STP participant—on each occasion that the STP participant makes a contribution to the Centre in relation to the eligible innovation.
Subdivision 1.3.2 Arm’s length transactions
1.20 Production value or sales value of eligible investment or eligible innovation, determined as if transaction at arm’s length
(1) If an STP participant sells a product, or any other goods, to another person, the production value or sales value of the product or goods is to be determined on the basis that the STP participant and other person are at arm’s length.
(2) If an STP participant enters into a transaction with another person for the purpose of undertaking an eligible investment or eligible innovation, the value of the eligible investment or eligible innovation is to be determined on the basis that the STP participant and the other person are at arm’s length.
1.21 Determining the circumstances when parties treated as not being at arm’s length
(1) The Secretary must decide that the parties to a transaction mentioned in subsection 1.20 (1) or (2) are to be treated as not being at arm’s length if the parties are related or associated parties.
(2) Without limiting subsection (1), parties are taken to be related or associated parties if:
(a) they are a group of related bodies corporate; or
(b) one party controls the other, within the meaning of section 50AA of the Corporations Act 2001; or
(c) both of the following apply:
(i) the parties are parties to a contract, arrangement or understanding containing a cartel provision, within the meaning of section 44ZZRD of Schedule 1 to the Competition and Consumer Act 2010;
(ii) one or more of the parties has been convicted of an offence under, or ordered to pay a pecuniary penalty for contravening, attempting to contravene or being involved in a contravention of, Division 1 of Part 1 of Schedule 1 to the that Act in respect of the contract, arrangement or understanding.
1.22 Production value or sales value: parties treated as not being at arm’s length
(1) To determine what would have been the production value or sales value of products to which the transaction relates had the parties been at arm’s length, the Secretary must:
(a) consider the value determined by the STP participant to be the production value or sales value; and
(b) either:
(i) accept the value determined by the STP participant; or
(ii) reject the value determined by the STP participant and determine a different value.
(2) The STP participant and the Secretary must use a method set out in section 1.25 to determine the production value or sales value of the transaction.
1.23 Value of eligible innovation: parties treated as not being at arm’s length
(1) To determine what would have been the value of eligible innovation to which the transaction relates had the parties been at arm’s length, the Secretary must:
(a) consider the value determined by the STP participant to be the value of eligible innovation; and
(b) either:
(i) accept the value determined by the STP participant; or
(ii) reject the value determined by the STP participant and determine a different value.
(2) The STP participant and the Secretary must use a method set out in section 1.25 to determine the value of the eligible innovation.
1.24 Value of investment: parties treated as not being at arm’s length
(1) To determine what would have been the value of investment to which the transaction relates had the parties been at arm’s length, subsections (2) to (4) must be complied with.
(2) If the value of investment estimated by the STP participant, using a method set out in section 1.25, is less than $500 000, the Secretary must accept the value.
(3) If the value of investment estimated by the STP participant, using a method set out in section 1.25, is $500 000 or more:
(a) the STP participant must obtain a certification of the valuation from an independent valuer who is professionally qualified to make a certification in relation to investments in plant and equipment; and
(b) the Secretary must:
(i) accept the certification of the valuation by the STP participant’s valuer; or
(ii) reject the certification by that valuer; and
(c) if the Secretary rejects the certification, the Secretary must attempt to arrange with the STP participant for another independent valuer to make a new valuation and certify the valuation; and
(d) if the Secretary and the STP participant do not agree on appointment of another independent valuer, the Secretary must arrange for an independent valuer to make a new valuation and certify the valuation.
(4) If a new valuation is arranged under paragraph (3) (c) or (d), the Secretary must accept the value certified by the valuer as the value that would have been the value of investment in plant and equipment had the parties been at arm’s length.
1.25 Methods for determining value of transactions: parties treated as not being at arm’s length
For sections 1.22 to 1.24, the table sets out methods for determining the value of a transaction (the relevant transaction).
| Item | Method | | 1 | A method that involves: | | | (a) referring to the value of another transaction (a comparable transaction), between parties who are not related or associated parties, that: | | | (i) is of the same kind as the relevant transaction; and | | | (ii) takes place about the same time as the relevant transaction; and | | | (iii) involves the same or similar terms as the relevant transaction; and | | | (b) working out an adjusted value by adding to, or subtracting from, the value referred to in paragraph (a), any necessary adjustment to take into account any difference between the relevant transaction and the comparable transaction; and | | | (c) determining the value the relevant transaction would have been, based on the adjusted values, had the parties been at arm’s length | | 2 | A method, or combination of methods, that can accurately assess the value in the particular case and that takes into account the following: | | | (a) the kind of transaction; | | | (b) the terms of the relevant transaction; | | | (c) the business structure, strategy and processes of the STP participant; | | | (d) the market conditions at the time of the relevant transaction; | | | (e) other commercial and economic realities at the time of the relevant transaction; | | | (f) whether the method, or combination of methods, produces the highest degree of comparability in the particular case |
Part 2 Registration under plan
Division 2.1 Rules about registration
2.1 Number of registrations available under plan
(1) A registered eligible corporation may only have one current registration under the plan as an STP participant.
(2) If an eligible corporation is registered as an STP participant under the plan, a group of related bodies corporate of which the STP participant is a member must not be registered as an STP participant while the registered eligible corporation is registered individually.
(3) If an STP participant is a group of related bodies corporate, a member of the group must not be registered as an individual STP participant under the plan while:
(a) the member remains a member of the group; and
(b) the group is an STP participant.
2.2 Registration under plan must further object of Act
(1) This section applies to an applicant for registration under the plan.
(2) If a registered eligible corporation to which this section applies meets all of the requirements for registration as an STP participant under the plan, the Secretary, under section 2.10, must not grant the application for registration unless the Secretary is satisfied that registering the applicant would further the object set out in subsection 3 (1) of the Act.
Division 2.2 Applications for registration
2.3 Application for registration
(1) An eligible corporation may apply to the Secretary for registration as an STP participant if, in the 12 months preceding that application, the corporation was an eligible corporation within the meaning of section 4 of the Act.
(2) The application must be made in accordance with Division 2.4.
Division 2.3 Participation in plan by groups of companies
2.4 Group of companies may apply for registration as single entity
(1) If a group, or a member of a group, of related bodies corporate is to operate as an STP participant, the group must apply to the Secretary for permission to seek registration as an STP participant as if the group were a single entity.
(2) For subsection (1), acceptance of a competitiveness assistance advance by one of the group of related bodies is to be regarded as operating as an STP participant.
(3) The application must:
(b) be in an approved form; and
(c) contain such information as the form requires; and
(d) be accompanied by such documents as are necessary to establish that the companies are related; and
(e) without limiting the generality of paragraph (b), must nominate the member of the group who:
(i) is a resident of Australia; and
(ii) is to act as the nominated contact person; and
(iii) is to receive payments on behalf of the group.
(4) For this section:
(a) a reference to an STP participant, if the STP participant is a group, is a reference to the group’s subsidiaries, from time to time; and
(b) if an entity ceases to be part of the group, the entity ceases to be an STP participant from the time that it ceases to be part of the group.
2.5 Dealing with application by group of related bodies corporate
(1) The Secretary:
(a) may consider an application by a group of related bodies corporate for permission to seek registration as an STP participant at the same time as considering an application by the group for registration, under section 2.10; and
(b) must determine whether to grant permission before the end of the consideration period referred to in subsection 2.10 (4).
(2) The Secretary must grant permission if the Secretary is satisfied that:
(a) the group has provided the information and documents required by the approved form; and
(b) the group is made up of related bodies corporate; and
(c) no corporation in the group is registered as an STP participant, or is an applicant for registration as an STP participant, other than as a member of the group.
(3) If the Secretary is not satisfied about a matter set out in paragraph (2) (a), (b) or (c), the Secretary must refuse permission.
(4) A decision to grant permission must specify the conditions, if any, to which the application is subject.
(5) A decision to grant permission takes effect:
(a) on a day specified in the decision; or
(b) if no day is specified—on the day on which the decision is given.
2.6 Legal status of a group permitted to make application for registration
(1) If the Secretary grants a group permission to make an application to be registered as an STP participant, the matters in subsection (2) are to be determined:
(a) as if the group possessed legal personality; and
(b) as if any act or thing done by or to the nominated contact person were an act or thing done by or to the group.
(2) For subsection (1), the matters are:
(a) the group’s eligibility to make an application for registration; and
(b) if the application for registration is refused—the group’s right to seek a review of the decision; and
(c) if the application for registration is granted—the group’s rights and liabilities under the Act and this plan.
(3) In dealing with an application by a group given permission to apply for registration as an STP participant, the Secretary may treat all acts or things done by or to members of the group as if they were acts or things done by or to the group considered together.
(4) The Secretary may decide that the group is not a fit and proper person within the meaning of section 2.11 if, at any time, the Secretary is satisfied that, in relation to a group of companies given permission to seek registration as an STP participant, or in relation to a group of companies that are registered as an STP participant:
(a) any corporation in the group would not be a fit and proper person if that corporation were making application for registration in its own right; or
(b) any director of a corporation in the group, or any officer or shareholder of a corporation in the group having the capacity to influence the management of that corporation, would not be a fit and proper person if that director, officer or shareholder were making an application for registration in his or her own right.
Division 2.4 Formal requirements for, and consideration of, applications for registration
2.7 Content of application for registration
(1) An application for registration as an STP participant must:
(b) be in an approved form; and
(c) be accompanied by such documentation (if any) as the form requires; and
(d) be signed in the manner indicated on the form; and
(e) be lodged in accordance with section 2.8.
(2) Without limiting paragraph (1) (c), an application for registration must include:
(a) information or documents as required by the form that relates to the applicant’s capability to comply with the document retention obligations mentioned in section 2.17; and
(b) a business plan for the application that includes:
(i) details of the strategies that will enable the applicant to carry on efficient, sustainable operations in the Australian steel manufacturing industry for the period of the plan; and
(ii) operational plans, details of financial commitment and controls, financial projections and assumptions on which forecasts are based; and
(iii) details about how the applicant will meet the object of the Act to encourage investment, innovation and competitiveness in the Australian steel manufacturing industry in order to assist the industry to transform into an efficient and economically sustainable industry in a low-carbon economy in a way that will improve environmental outcomes and promote the development of workforce skills; and
(iv) any other particulars or information mentioned in paragraph (2) (a), in relation to the period or periods specified in the form.
(3) A business plan for an application must be lodged on or before 30 September of the STP year in which registration is sought.
(4) For subparagraph (2) (iv), a period specified in the form in relation to a business plan may commence on or after 1 July of the STP year in which registration is sought.
2.8 Lodgement of applications
(1) An application for registration as an STP participant must be lodged in accordance with this section.
(2) The application may:
(a) be left at a place allocated for lodgement of applications specified in the approved form; or
(b) be posted by pre‑paid post to a postal address specified in the approved form; or
(c) be sent by fax to a fax number specified in the approved form; or
(d) be sent to the Department by electronic transmission.
2.9 When to apply
(1) A person may apply for registration before 1 July of the STP year for which registration is sought.
(2) The Secretary must not accept an application for registration for an STP year after 1 July of that year.
2.10 Consideration of registration applications
(1) The Secretary must examine each application for registration and, as soon as practicable, before the end of the consideration period, decide whether to grant the application.
(2) If the Secretary is satisfied:
(a) that the applicant is a corporation that is eligible to apply for that registration; and
(b) that the applicant has provided the information and documents (if any) required by the approved form; and
(c) that the applicant is able to comply with the relevant document retention obligations set out in section 2.17; and
(d) that the corporation is a fit and proper person; and
(e) that each of the directors, and each officer or shareholder who is in a position to influence the management of the corporation, is a fit and proper person; and
(f) that registering the applicant would, as required by subsection 2.2 (2), further the object set out in subsection 3 (1) of the Act;
the Secretary must grant the application and inform the applicant accordingly.
Note Section 2.11 sets out the matters to which the Secretary must have regard in determining whether a person is a fit and proper person.
(3) If the Secretary is not satisfied of a matter set out in paragraphs (2) (a) to (f), the Secretary must refuse the application and inform the applicant in accordance with subsection 6.1 (1).
(4) For subsection (1), the consideration period is the period starting on the day the application is lodged and ending:
(a) unless paragraph (b) applies—60 days after that day; or
(b) if the Secretary requires the applicant, under section 2.12, to provide further information by a specified day and the applicant duly provides the information or explains why the information cannot be provided—at the end of the period of 60 days referred to in paragraph (a), extended by the period taken to comply with the requirement or provide the explanation.
2.11 Fit and proper person
(1) For paragraph 2.10 (2) (d), in determining whether a corporation is a fit and proper person, the Secretary must have regard to the following matters:
(a) any conviction of the corporation for an offence punishable by a fine of $5 000 or more:
(i) against a law of the Commonwealth; or
(ii) against a law of a State or Territory;
(b) any conviction of the corporation for an offence against the law of a foreign country for an offence punishable by a fine in foreign currency equivalent to or more than $5 000;
(c) whether that offence was committed:
(i) within the 10 years immediately before the application for registration under the plan; and
(ii) at a time when any person who is presently a director of the corporation, or an officer or shareholder of the corporation who presently is in a position to influence the management of the corporation, was such a director, officer or shareholder;
(d) whether the corporation is under administration, within the meaning of the Corporations Act 2001;
(e) whether the corporation has executed a deed of company arrangement under Part 5.3A of that Act that has not yet terminated;
(f) the corporation is being wound up;
(g) whether a receiver of the property, or part of the property, of the corporation has been appointed.
(2) For paragraph 2.10 (2) (e), in determining whether a person is a fit and proper person, the Secretary must have regard to the following matters:
(a) any conviction of the person for an offence punishable by imprisonment for one year or longer:
(i) against a law of the Commonwealth; or
(ii) against a law of a State or Territory;
if that offence was committed within the 10 years immediately before the application for registration under the plan;
(b) any conviction of the person of an offence against the law of a foreign country if that offence was committed within the 10 years immediately before the application for registration under the plan;
(c) whether the person is an insolvent under administration;
(d) whether a misleading statement was made by, or in relation to, the person in the application for registration;
(e) if the misleading statement was false, whether the person making the statement knew that it was false.
(3) Nothing in this section affects the operation of Part VIIC of the Crimes Act 1914 (which includes provisions that, in certain circumstances, relieve persons from the requirement to disclose spent convictions and require persons aware of such convictions to disregard them).
2.12 Secretary may seek further information
(1) If the Secretary, on examination of an application, considers that he or she needs further information before being able to make a decision under subsection 2.10 (1), the Secretary may, by notice in writing given to the applicant, require the applicant to provide the information to the Secretary within a period specified in the notice.
(2) If the applicant fails or refuses, within the period specified, either to provide the further information or a reasonable explanation as to why it cannot be provided, the applicant is taken, at the end of that period, to have withdrawn the application.
2.13 Period of effect of registration
If an application for registration is granted, the registration has effect:
(a) on and from 1 July of the STP year in relation to which it is made; and
(b) unless the STP participant is deregistered under Division 2.6—for the duration of the plan.
2.14 Registration does not confer entitlement
Registration under the plan does not, by itself, confer an entitlement on an STP participant to assistance under the plan.
Division 2.5 Conditions of registration
2.15 General compliance
It is a condition of registration for an STP participant that the STP participant complies with the requirements of the Act and the plan.
2.16 Condition of eligible corporation registration
It is a condition of registration for a registered eligible corporation to meet the requirements mentioned in the definition of eligible corporation in the Act and otherwise conform with the Act and the plan.
2.17 Document retention obligations
(1) It is a condition of registration that an STP participant must maintain, or create and maintain, documents that evidence all the particulars contained in each half‑yearly return provided by the STP participant.
(2) The documents must be maintained by the STP participant for 5 years after the lodging of the return concerned.
(3) A person is taken to have complied with the requirements under subsection (1) if:
(a) the STP participant is required to give to another person a document that must be maintained under subsection (1):
(i) by a law of the Commonwealth, of a State or a Territory; or
(ii) in accordance with ordinary commercial practice; and
(b) after giving the document to that other person, the STP participant maintains a true copy of the document certified in accordance with subsection (4) for the period that the document would be required to be maintained under subsection (2).
(4) The STP participant may certify a true copy of the document for the purposes of subsection (3) by attaching to the copy a certificate signed by the STP participant:
(a) stating that the copy is a true copy of the original document; and
(b) stating that the original document has been given to another person for a reason set out in that subsection; and
(c) providing particulars of that reason.
Note Section 8.3 imposes an ongoing obligation to retain certain records after a person ceases to be an STP participant.
2.18 Update of business plan
(1) It is a condition of registration that an STP participant provide the Secretary with an update of the business plan provided by the STP participant under subsection 2.7 (3), in accordance with the approved form.
(2) The update must include:
(a) details about how the STP participant is meeting the object set out in subsection 3 (1) of the Act, particularly in regard to an efficient and economically sustainable industry; and
(b) information concerning any activities of the STP participant directed to improving environmental outcomes and promoting the development of workforce skills; and
(c) any other information for the relevant STP year that is required in the approved form.
(3) The STP participant must provide the update within 60 days, or such longer period as the Secretary allows, after the end of June in the STP year in which the STP participant is registered.
(4) Each update must cover the 4 years immediately succeeding the update.
Division 2.6 Deregistration
2.19 Deregistration
(1) The reasons for deregistration are set out in this section.
(2) The Secretary may deregister an STP participant if, at any time the Secretary is satisfied that the STP participant is not likely, or has failed, to comply with a condition of registration in Division 2.5.
(3) The Secretary must deregister an STP participant if, at any time:
(a) the Secretary is satisfied that, were the STP participant to be applying for registration at that time, the STP participant would not be a fit and proper person, within the meaning of section 2.11; or
(b) the STP participant asks the Secretary to be deregistered as an STP participant.
(4) In determining whether or not, if an STP participant were applying for registration at a particular time, the STP participant would or would not be a fit and proper person within the meaning of section 2.11, that section has effect as if a misleading statement made in a half‑yearly return were a misleading statement made in the application for registration.
(5) The Secretary may deregister an STP participant if the STP participant fails to comply with a provision of the Act or this plan or if, at any time during the 12 months following the application for registration, the Secretary determines that it is unlikely that the STP participant will be able to do those things.
(6) The Secretary may deregister an STP participant if:
(a) the STP participant was registered on the basis that the STP participant’s registration would further the object set out in subsection 3 (1) of the Act (as required by subsection 2.2 (2)); and
(b) the registration does not further the object of the Act.
Part 3 Working out half‑yearly assistance for an STP participant
3.1 Secretary to work out assistance for STP participants
Subject to section 4.7, the Secretary must work out assistance for STP participants in accordance with the relevant steps set out in this Part.
3.2 Working out assistance for STP participant for half‑year
(1) To work out the half‑yearly assistance for an STP participant, for the first half‑year in an STP year, the Secretary must use steps 1, 2, 3, 5 and 6 in subsection (4).
(2) To work out the half‑yearly assistance for an STP participant for the second half‑year in an STP year, the Secretary must use steps 1, 2, 4, 5 and 6 in subsection (4).
(3) The Secretary must work out the half‑yearly assistance for the STP participant as soon as practicable after the last day on which a return may be made by the STP participant under section 4.1 for the half‑year.
Note Payments are made in accordance with Division 4.3.
(4) The steps are:
Step 1 Work out investment amount, innovation amount and production amount for a half‑year for the STP participant
| 1(a) | Work out the investment amount for the STP participant for the half‑year of the STP year under Subdivision 1.2.2. | | 1(b) | Work out the innovation amount for the STP participant for the half‑year of the STP year under Subdivision 1.2.3. | | 1(c) | Work out the production amount for the STP participant for the half‑year of the STP year under Subdivision 1.2.4. | | 1(d) | Add together the amounts worked out in steps 1(a), (b) and (c) to obtain the total amount for the STP participant. |
Step 2 Work out the modulated claim for an STP participant
| 2(a) | Determine the amount of assistance available for the STP participant for the STP year calculated under section 4.7 . | | 2(b) | Divide the result of step 2(a) by 2. | | 2(c) | If the amount worked out in step 2(b) is greater than the amount worked out in step 1(d), the modulated amount is the amount worked out in step 1(d). If the amount worked out in step 2(b) is less than the total amount worked out in step 1(d), the modulated amount is the amount worked out in step 2(b). |
Step 3 Limit the modulated claim for an STP participant for the first half‑year in an STP year
| 3(a) | Determine the sales‑based cap for the STP participant under section 4.8. | | 3(b) | If the sales‑based cap for the STP participant is greater than the amount worked out in step 2(c), the limited modulated amount is the amount worked out in step 2(c). If the sales‑based cap for the STP participant is less than the modulated amount worked out in step 2(c), the limited modulated amount is the sales‑based cap for the STP participant determined in step 3(a). |
Step 4 Limit the modulated claim for an STP participant for the second half‑year in an STP year
| 4(a) | Determine the amount of assistance paid to the STP participant in the half‑year preceding the current half‑year. | | 4(b) | Add the amount worked out in step 2(c) to the amount determined in step 4(a). | | 4(c) | If the sales‑based cap for the STP participant determined under section 4.8 is greater than the amount worked out in step 4(b), the limited modulated amount is the result worked out in step 2(c). If the sales‑based cap for the STP participant determined under section 4.8 is less than the modulated amount worked out in step 4(b), the limited modulated amount is obtained by subtracting the amount determined in step 4(a) from the sales‑based cap for the STP participant. |
Step 5 Reduce limited modulated claim by the amount of competitiveness assistance advance payments made to the STP participant
| 5(a) | Determine the total amount of entitlements in steps 3(b) and 4(c) for the STP participant in previous half‑years. | | 5(b) | Determine the total amount of competitiveness assistance advance payments made to the STP participant. | | 5(c) | Subtract the amount determined in step 5(a) from the amount determined in step 5(b). | | 5(d) | Determine the limited modulation amount for the STP participant for the half‑year from step 3(b) (for the first half‑year of an STP year) or step 4(c) (for the second half‑year of an STP year). | | 5(e) | Subtract the amount determined in step 5(c) from the amount determined in step 5(d). If the result is zero or less, then the amount for step 5(c) is zero. | | 5(f) | If the amount worked out in step 5(e) is greater than zero, the reduced claim for the STP participant is the amount worked out in step 5(e). If the amount worked out in step 5(e) is not greater than zero, the reduced claim for the STP participant for the current half‑year is zero. |
Step 6 Work out the amount of assistance to be paid to the STP participant in the current half‑year
| 6(a) | Determine the plan debt offset amount for the current half‑year. | | 6(b) | Determine the advance debt offset amount for the current half‑year. | | 6(c) | Determine the plan debt cash amount for the current half‑year. | | 6(d) | Determine the advance debt cash amount for the current half‑year. | | 6(e) | Calculate the total debt amount by adding the results of steps 6(a), (b), (c) and (d). | | 6(f) | If the amount worked out in step 5(f) is greater than zero, the total amount of assistance to be paid to the STP participant for the current half‑year is the amount worked out by subtracting the amount worked out in step 6(e) from the amount worked out in step 5(f). If the amount worked out in step 5(f) is not greater than zero, the total amount of assistance to be paid to the STP participant for the current half‑year is zero. If the amount worked out in step 5(f) less the amount worked out in step 6(e) is less than zero, the total amount of assistance to be paid to the STP participant for the current half‑year is zero. |
(5) In this section:
advance debt cash amount means the amount of competitiveness assistance advance that is payable to, or recoverable by, the Commonwealth as a debt, under section 29 of the Act.
advance debt offset amount means the amount of competitiveness assistance advance that is being recovered by offsetting, under section 4.11 or 5.2.
plan debt cash amount means the amount of assistance that is a plan debt under section 5.1.
plan debt offset amount means the amount of assistance that is a plan debt that is being recovered by offsetting, under section 5.2.
Part 4 Payments under plan
Division 4.1 Making of half‑yearly returns
4.1 STP participants to make half‑yearly returns
(1) An STP participant must provide a return to the Secretary within 60 days (or within such longer period as the Secretary, in special circumstances, allows) after the end of each half‑year in an STP year.
(2) Each half‑yearly return must:
(a) be made in writing, in a manner set out in subsection (3); and
(b) be in an approved form.
(3) An STP participant must make a half‑yearly return by one of the following means:
(a) if the approved form for the half‑yearly return specifies a place where returns may be made—by leaving the return at that place;
(b) if the approved form specifies a postal address to which a return may be posted—by sending the return by prepaid post to that address;
(c) if the approved form specifies a fax number to which a fax of the return can be sent—by sending a fax of the return to that number;
(d) if the Department establishes or modifies an information system (within the meaning given by subsection 5 (1) of the Electronic Transactions Act 1999) to receive an electronic communication of the return—by sending the return by electronic communication in a manner indicated in the approved form or otherwise approved by the Secretary.
4.2 Making half‑yearly return does not confer entitlement
The making of a half‑yearly return under the plan does not, by itself, confer an entitlement on an STP participant to assistance under the plan.
4.3 Contents of STP participant’s return
An STP participant’s half‑yearly return must set out:
(a) particulars of all of the STP participant’s eligible production achieved by the STP participant in that half‑year and the production value of that production; and
(b) particulars of the expenditure on eligible innovation and eligible investment undertaken by the STP participant in that half‑year; and
(c) particulars of the sales value of the production of steel products by the STP participant in that half‑year; and
(d) particulars of any other Commonwealth assistance mentioned in section 7.1, provided in relation to the production referred to in paragraph (a) and the innovation and investment referred to in paragraph (b); and
(e) any other particulars required by the form.
Note Section 1.17 provides for working out the maximum claimable value for STP production.
4.4 Rules concerning returns
(1) An STP participant may, in providing a return for a half‑year for an STP year, provide details of any of the following matters that the STP participant failed to provide in any earlier return for a half‑year in the same STP year:
(a) any production achieved by the STP participant;
(b) any eligible investment undertaken;
(c) any eligible innovation undertaken;
(d) any sales value achieved.
(2) If the item is covered in a later return as provided for in subsection (1), it is to be treated, for all purposes of the plan, as if it were achieved or undertaken in the half‑year in which it is reported and not in the half‑year in which it was actually achieved or undertaken.
(3) If the item is not covered in a later return as provided for in subsection (1), it is to be treated, for all purposes of the plan, as if it had never been achieved, undertaken or spent.
(4) For the purposes of this plan:
(a) if the return for the final half‑year of an STP year does not include details of production achieved by the STP participant in that half‑year or the earlier half‑year of the STP year, the production is to be treated as if it had never been achieved; and
(b) if the return for the final half‑year of an STP year does not include details of eligible investment undertaken by the STP participant in that half‑year or the earlier half‑year of the STP year, the investment is to be treated as if it had never been undertaken; and
(c) if the return for the final half‑year of an STP year does not include details of eligible innovation undertaken by the STP participant in that half‑year or the earlier half‑year of the STP year, the innovation is to be treated as if it had never been undertaken; and
(d) if the return for the final half‑year of an STP year does not include details of sales value achieved by the STP participant in that half‑year or the earlier half‑year of the STP year, the sales value is to be treated as if it had never been achieved.
4.5 Further information about half‑yearly return
(1) The Secretary may send a written notice to an STP participant who has lodged a half‑yearly return, requiring the STP participant to provide the information specified in the notice by the day specified in the notice.
(2) The STP participant must comply with a notice under subsection (1) within the time specified by the Secretary in the notice.
(3) The Secretary is not required to assess the return, or make a payment of assistance, until the STP participant complies with the notice.
Division 4.2 Caps on plan and STP participants
4.6 Capped assistance for STP years
Subject to section 13 of the Act, for each STP year of the plan mentioned in the table below, the Secretary must not make a payment of assistance that in total exceeds the amount specified for the STP year (the STP year cap).
| STP year | STP year cap ($) | | 1 | 75 million | | 2 | 75 million | | 3 | 75 million | | 4 | 75 million |
Note 1 Subsection 13 (1) of the Act provides that total assistance under the plan must not exceed $300 million.
Note 2 Subsection 13 (4) of the Act allows payment of unspent assistance in a later plan year.
4.7 Annual assistance divided between STP participants
(1) Assistance for an STP participant for an STP year is to be calculated by multiplying the amount of the STP year cap by the percentage of that amount available to the STP participant, and then adding any amount not spent in any previous year by the corporation.
(2) For subsection (1):
(a) the percentage of the STP year cap available to an STP participant is to be the same as the percentage of the total available competitiveness assistance advances received by the STP participant; and
(b) any amounts recovered by the Commonwealth under the plan are not included in the total available competitiveness assistance advances received by the STP participant.
(3) A competitiveness assistance advance that has been paid for an STP year must be acquitted before an STP participant receives any further financial assistance under the plan.
(4) If an STP participant does not utilise the STP year cap for an STP year:
(a) the amount of the STP year cap that is not utilised must be added to the STP year cap, for the STP participant, for the following STP year; and
(b) the failure of the STP participant to utilise the STP year cap will not affect the STP assistance available, in the STP year, to support any other STP participant.
Note It is intended by the application of this formula that the quantity of STP funding allocated to each entity under the plan each year will be set out at the beginning of the 4‑year period and fixed at the level determined by this formula.
4.8 Sales‑based cap for payment of assistance
For an STP year, the payment of assistance under the plan to an STP participant must not exceed 5% of the sales value of the STP participant’s production for the previous financial year.
Note Under sections 1.7 and 1.8, a sale between members of a group may be included in the sales value for this section, if the sale is made at arm’s length.
Division 4.3 Making of payments of assistance
4.9 Half‑yearly payments
(1) An STP participant is entitled to an STP payment for a half‑year if the STP participant has:
(a) made an eligible investment or undertaken eligible innovation or eligible production in accordance with Division 1.2; and
(b) made a return for the half‑year within the time permitted under subsection 4.1 (1); and
(c) complied with the conditions of registration set out in Division 2.5.
(2) If the Secretary decides that an STP participant is entitled to be paid assistance for the half‑year under subsection (1), the Secretary must make a payment of assistance for the half‑year to the STP participant, worked out in accordance with Part 3.
(3) The payment under subsection (2) must be made before the end of the following half‑year.
(4) Subject to Part 6, payments of assistance for the second half‑year of an STP year must not be made after 31 December of the year following the half‑year.
Note The table below sets out when payments are to be made for eligible investment, innovation or production in an STP year.
STP YEAR
| 1 | 1 January 2013‑31 December 2013 | | 2 | 1 January 2014‑31 December 2014 | | 3 | 1 January 2015‑31 December 2015 | | 4 | 1 January 2016‑31 December 2016 |
(5) If the Secretary decides that the STP participant is not entitled to be paid assistance in relation to a period covered by a half‑yearly return, the Secretary must give the STP participant a notice in accordance with subsection 6.1 (1).
Note Section 6.1 deals with the right of an STP participant to have a decision reviewed.
4.10 Inalienability of payments
(1) A payment of assistance under the plan may only be made to an STP participant.
(2) An STP participant’s payment, or entitlement to a payment, is inalienable, except with the written approval of the Secretary.
(3) To avoid doubt, subsection (2) prohibits a transfer by means of, or in consequence of, a sale, assignment, charge, execution, bankruptcy, insolvency, or by any other means.
4.11 Condition of payment of assistance
(1) A payment of assistance to an STP participant may only be made on the condition that all or part of the payment may be offset or recovered by the Commonwealth.
(2) The Secretary may refuse to make a payment of assistance if the Secretary is satisfied that the STP participant has failed, or is likely to fail, to comply with the conditions of registration.
Note It is intended that, if necessary, competitiveness assistance advances paid to an eligible corporation may be recovered by way of offset—see subsection 6 (4) of the Act.
Division 4.4 Limit on entitlement to assistance
4.12 Persons not entitled to certain assistance
(1) A person who has been paid assistance under the plan is not entitled to the assistance if the person received the payment for any of the following reasons:
(a) because of an error made in calculating the amount of the payment (including during the modulation process) or a mistake of fact;
(b) because information given to the Minister, Secretary or a delegate of the Secretary was inaccurate or incomplete;
(c) because of a clerical error or mistake;
(d) because the payment:
(i) was for a transaction for which the person was a party that was not at arm’s length within the meaning of Subdivision 1.3.2; and
(ii) is referrable to a production value, sales value, innovation or investment to which the transaction relates that has not been determined as if the parties were at arm’s length.
(2) A person who has been paid assistance under the plan is not entitled to the assistance if the payment was made for an innovation, investment or production that was not an eligible innovation, eligible investment or eligible production.
(3) The Secretary may determine that a person is not entitled to assistance under the plan if:
(a) the person has been paid certain assistance under the plan; and
(b) an authorised officer, under section 18 of the Act, asks the person:
(i) to answer a question relating to the assistance; or
(ii) to produce a document relating to the assistance; and
(c) the person does not answer the question or produce the document when asked.
(4) If the Secretary decides that an STP participant was not entitled to be paid assistance under the plan, the Secretary must give the STP participant notice in accordance with subsection 6.1 (1).
Note Section 6.1 deals with the right of an STP participant to have a decision reviewed.
Part 5 Recovery of overpayments
5.1 Plan debt
(1) All or part of an amount of a half‑yearly payment of assistance to an STP participant that exceeds the amount to which the STP participant is entitled is recoverable by the Commonwealth as a debt due to the Commonwealth in a court of competent jurisdiction and is to take precedence over other debts that the participant may owe the Commonwealth under the Act.
(2) A debt under subsection (1) is a plan debt.
5.2 Recovery by offsetting
(1) If an STP participant is liable to pay a plan debt, the plan debt may be offset against one or more half‑yearly payments of assistance to which the STP participant is currently entitled under the plan.
(2) The Secretary may refuse to make a recovery under subsection (1) if the Secretary believes that the STP participant is unlikely to have sufficient entitlements in future half‑years to cover the plan debt and any interest payable under section 5.4.
Note It is intended that, if necessary, competitiveness assistance advances paid to the eligible corporations may be recovered by way of offset—see subsection 6 (4) of the Act.
5.3 Secretary to issue notice
(1) If the Secretary determines that there is a plan debt in relation to an STP participant, the Secretary must give the STP participant a notice in writing setting out the following matters:
(a) the amount of the STP participant’s plan debt;
(b) the interest payable on the plan debt under section 5.4;
(c) the requirement that the plan debt and interest payable:
(i) be paid, no more than 30 days after the day on the notice; or
(ii) be recovered by offsetting, under section 5.2, in the next half‑year and any subsequent half‑year (where the STP participant’s entitlement in the next half‑year is insufficient to cover the plan debt);
(d) if the STP participant chooses recovery by offsetting under section 5.2—the requirement that the STP participant make a request for offsetting to the Secretary no more than 30 days after the day on the notice.
(2) If the STP participant:
(a) does not comply with the notice under subsection (1); and
(b) has not made an application for review of the Secretary’s decision under subsection (1) in the time specified in paragraph 6.1 (4) (c);
the plan debt may be offset under section 5.2.
5.4 Interest payable on plan debt
(1) If an STP participant has a plan debt, interest is payable on the debt in accordance with this section.
(2) The amount of interest payable on the plan debt is the 90 day bank accepted bill rate, less 10 basis points, worked out on the debt from the day the assistance was paid to the STP participant, if:
(a) the STP participant pays the plan debt and interest worked out under this subsection no more than 30 days after the day on the notice mentioned in section 5.3; or
(b) each of the following occurs:
(i) the STP participant requests, no more than 30 days after the day on the notice mentioned in section 5.3, that the plan debt be recovered by offsetting under subsection 5.2 (1);
(ii) the Secretary accepts that request; or
(c) each of the following occurs:
(i) the STP participant obtains an extension of time under section 5.5;
(ii) the STP participant pays the plan debt and interest within the extended time.
(3) If the STP participant’s request for recovery by offsetting under subsection 5.2 (1) is refused, or the plan debt or interest payable under subsection (2) has not been paid by the payable day, the amount of interest payable on the plan debt is the sum of:
(a) the amount worked out at the rate set out in subsection (2), payable on the plan debt from the day the assistance was paid to the STP participant until the end of the payable day; and
(b) the amount worked out at the rate of 20% per year on:
(i) any part of the plan debt that is unpaid at the end of the payable day; and
(ii) any part of the interest mentioned in paragraph (a) that is unpaid at the end of the payable day until the debt and interest are paid in full.
(4) In this section:
payable day means:
(a) the day that is 30 days after the day on the notice mentioned in section 5.3; or
(b) the day that payment has been extended to under section 5.5.
(5) However, interest is not payable on the plan debt if:
(a) the Secretary is satisfied that the payment of interest would cause the STP participant financial hardship; or
(b) the Secretary is satisfied that there was an error made by the Department in the payment of the assistance, and the Department has corrected the error.
(6) Interest payable under this section is recoverable by the Commonwealth as a debt due to the Commonwealth.
(7) Interest payable under this section for a plan debt must be paid in cash and not be offset under section 5.2.
5.5 Extension of time for payment of plan debt
(1) The Secretary may extend the time for payment of a plan debt and interest payable under subsection 5.4 (2).
(2) The following provisions apply in relation to extensions of time under subsection (1):
(a) the STP participant liable to pay the debt may apply for an extension;
(b) an application is to be in writing, setting out the reasons for the application, and it is to be made to the Secretary;
(c) the Secretary’s decision on the application is to be in accordance with subsection 6.1 (1).
Part 6 Administrative review of decisions
6.1 Request for reconsideration of decision by Secretary
(1) If the Secretary makes a decision of a kind mentioned in section 6.3 or 6.6, the Secretary must give the person affected by the decision notice in writing of the decision setting out the reasons for the decision.
(2) The notice must include a statement to the effect that:
(a) if the person is dissatisfied with the decision, the person may request a reconsideration of the decision by the Secretary; and
(b) if the person is dissatisfied with a decision made by the Secretary on that reconsideration confirming or varying the first decision, the person, subject to the Administrative Appeals Tribunal Act 1975, may apply to the Administrative Appeals Tribunal for a review of the decision.
(3) If the person affected by a decision of the Secretary is dissatisfied with the decision, the person may request the Secretary to reconsider the decision.
(4) A request must:
(b) set out the reasons for the request; and
(c) be given to the Secretary within 30 days after the person is notified of the decision or within such further period as the Secretary allows.
6.2 Reconsideration by Secretary
(1) On receiving a request from a person under subsection 6.1 (3), the Secretary must reconsider the decision.
(2) The Secretary may:
(a) confirm or revoke the decision; or
(b) vary the decision in such manner as the Secretary thinks fit.
(3) If the Secretary does not confirm, revoke or vary the decision before the end of the period of 30 days after the day on which the Secretary receives the request, the Secretary is taken, at the end of that period, to have confirmed the decision.
(4) The confirmation, revocation or variation under subsection (2) of a decision is not invalid merely because it is done after the end of the period referred to in subsection (3) unless, before it is done, the applicant makes an application to the Administrative Appeals Tribunal under subsection (7) for review of the decision.
(5) If the Secretary confirms, revokes or varies the decision before the end of the period mentioned in subsection (3), the Secretary, by notice in writing given to the person, must inform the person of the result of the reconsideration of the decision and the reasons for confirming, revoking or varying the decision.
(6) The notice must include a statement to the effect that if the person is dissatisfied with the decision so confirmed or varied, the person, subject to the Administrative Appeals Tribunal Act 1975, may apply to the Administrative Appeals Tribunal for a review of the decision.
(7) An application may be made to the Administrative Appeals Tribunal for a review of the decision within 28 days after the person is given notice of the decision or, if subsection (3) applies, within 28 days of the day the decision is taken to be confirmed.
6.3 Review of decisions affecting payment of assistance
Application may be made to the Administrative Appeals Tribunal for the review of the following decisions:
(a) a decision by the Secretary under subsection 1.21 (1) that a person was a party to a transaction that was not at arm’s length, within the meaning of that section;
(b) a decision by the Secretary under subsection 1.22 (1) about the production value or sales value of steel products to which a transaction that has been determined as not being at arm’s length relates;
(c) a decision by the Secretary under subsection 4.9 (5) that an STP participant is not entitled to an STP payment in relation to a period covered by a half‑yearly return;
(d) a decision by the Secretary under subsection 4.11 (2) to refuse payment of assistance to an STP participant;
(e) a decision by the Secretary under section 4.12 that an STP participant is not entitled to be paid assistance under the plan;
(f) a decision by the Secretary under subsection 5.3 (1) that a person is liable to pay an amount of plan debt.
6.4 Limitations on implementation of court decisions concerning payment of assistance
(1) If, in relation to a decision (the original decision) set out in section 6.3:
(a) application is made for review of the original decision to:
(i) the Federal Court of Australia or the Federal Magistrates Court under the Administrative Decisions (Judicial Review) Act 1977; or
(ii) the Federal Court of Australia under section 39B of the Judiciary Act 1903; and
(b) the court makes a decision in favour of the applicant for review;
the limitations set out in the following subsections apply to the implementation of the court’s decision concerning the original decision.
(2) The court’s decision has effect on and from the day that the court makes its decision and not before that date.
(3) If the applicant for review is an STP participant at the time that the court’s decision concerning his or her application is made:
(a) the decision can only be given effect to if the applicant’s sales‑based cap for payment of assistance for the STP year in which the original decision was made has not been reached; and
(b) if the limit has not been reached, the decision can only be given effect to the extent of the sales‑based cap.
Note The sales‑based cap for STP participants is set out in section 4.8.
6.5 Limitations on implementation of AAT decisions concerning payment of assistance
(1) If, in relation to a decision (the original decision) set out in section 6.3:
(a) application is made to the Administrative Appeals Tribunal (AAT) for review of the original decision; and
(b) the AAT makes a decision in favour of the applicant;
the limitations set out in the following subsections apply to the implementation of the AAT’s decision concerning the original decision.
(2) Despite subsection 43 (6) of the Administrative Appeals Tribunal Act 1975, the AAT’s decision has effect on and from the day that the AAT makes its decision and not before that date.
(3) If the applicant for review is an STP participant at the time that the AAT’s decision concerning his or her application is made:
(a) the decision can only be given effect to if the applicant’s sales‑based cap for payment of assistance for the STP year in which the original decision was made has not been reached; and
(b) if the limit has not been reached, the decision can only be given effect to the extent of the sales‑based cap.
Note The sales‑based cap for STP participants is set out in section 4.8.
6.6 Review of other decisions
Application may be made to the Administrative Appeals Tribunal for the review of the following decisions by the Secretary:
(a) a decision under subsection 2.2 (2) that registering the applicant would not further the object set out in subsection 3 (1) of the Act;
(b) a decision under subsection 2.5 (3) to refuse permission to a group of companies to seek registration as an STP participant as if it were a single person;
(c) a decision under subsection 2.6 (4) that an STP participant’s group is not a fit and proper person;
(d) a decision under subsection 2.10 (3) to refuse to register an eligible corporation as an STP participant;
(e) a decision under section 2.11 that a person is not a fit and proper person;
(f) a decision under subsection 2.19 (2) or (3) to deregister an STP participant;
(g) a decision under subsection 5.2 (2) to refuse recovery of a plan debt by offsetting;
(h) a decision under subsection 5.4 (5) that the payment of interest would not cause the STP participant financial hardship;
(i) a decision under section 5.5:
(i) to refuse an application for an extension of time for the payment of a plan debt; or
(ii) to grant a lesser extension than that applied for.
Part 7 Other Commonwealth assistance
7.1 Meaning of other Commonwealth assistance
(1) For the plan, an STP participant has received other Commonwealth assistance if the participant has received, and is entitled to, financial assistance from the Commonwealth (other than assistance under the plan) in relation to eligible production, or to eligible investment or eligible innovation, of a kind giving rise to an entitlement to an amount under the plan.
(2) For subsection (1), other Commonwealth assistance includes financial assistance from the Commonwealth that an STP participant is taken to have received, and to which the STP participant was entitled, in relation to unsold products.
(3) For subsection (1), the following forms of assistance are not other Commonwealth assistance:
(a) assistance under the Act;
(b) assistance under the plan;
(b) assistance mentioned in section 7.2.
7.2 Other Commonwealth assistance that is not financial assistance
For the plan, the following forms of assistance provided by the Commonwealth are not financial assistance:
(a) the income tax incentive (the R&D tax incentive) in relation to research and development activities, under the following provisions:
(i) Division 355 of the Income Tax Assessment Act 1997;
(ii) Subdivision 20‑A of the Income Tax Assessment Act 1997;
(iii) Part III of the Industry Research and Development Act 1986;
(b) financial assistance under Part 4 of the Renewable Energy (Electricity) Act 2000;
(c) financial assistance under the following Commonwealth Government programs:
(i) the program known as Commercialisation Australia;
(ii) the program known as the Cooperative Research Centres program;
(iii) the program known as the Jobs and Competitiveness Program;
(iv) the program known as the Automotive Transformation Scheme.
7.3 Working out the amount of other Commonwealth assistance
(1) For section 7.1, the amount of other Commonwealth assistance received by an STP participant in relation to eligible innovation is worked out using the formula:
View image in the official source
A is the total amount of the other Commonwealth assistance received in the half‑year in relation to eligible innovation.
Note Eligible innovation has the meaning given by section 1.12.
(2) For section 7.1, the amount of other Commonwealth assistance received by an STP participant in relation to eligible investment in plant and equipment is worked out using the formula:
View image in the official source
E is the total amount of the other Commonwealth assistance received in the half‑year in relation to eligible investment in plant and equipment.
Note Eligible investment has the meaning given by section 1.9.
(3) For section 7.1, the amount of other Commonwealth assistance received by an STP participant in relation to eligible production for the STP participant is worked out using the formula:
View image in the official source
G is the total amount of the other Commonwealth assistance received in the half‑year in relation to eligible production for an STP participant.
Note Eligible production for an STP participant has the meaning given by section 1.16.
Part 8 Miscellaneous
8.1 Particulars to be included in business plan etc.
(1) For section 2.7, an STP participant must set out in the participant’s business plan and any update of the business plan, information detailing relevant issues against the reporting criteria set out in Schedule 1.
(2) Information referred to in subsection (1) may be included in the Department’s annual report of progress towards achieving economic sustainability of the Australian steel manufacturing industry, which is to include:
(a) details of the total amounts of STP payments paid to STP participants for relevant periods; and
(b) information about the progress of the Australian steel manufacturing industry towards improved environmental outcomes and workforce skills development during the immediately preceding financial year.
8.2 Approved forms
The Secretary may approve a form, including an electronic form, by instrument in writing.
8.3 Ongoing obligation to maintain records
A person who was an STP participant must continue to maintain the business plan documents mentioned in paragraph 2.7 (2) (b) and the half‑yearly return documents mentioned in section 2.17, in accordance with the requirements of those provisions.
8.4 Publication of information relating to STP participants
(1) The Minister may publish the following information about an STP participant or a person who was an STP participant:
(a) that the person is or was an STP participant and the period of the person’s participation in the plan;
(b) the amount of assistance paid to the person in an STP year.
Schedule 1 Reporting criteria: meeting object in section 3 of the Act
(section 8.1)
Reporting criteria for meeting the requirements of section 8.1
CRITERIA FOR PROVIDING ANNUAL CLEAN TECHNOLOGY REPORT
An STP participant must report the extent to which the participant has taken measures, or plans to take measures, to reduce its emissions and improve the environment, as demonstrated by, but not limited to:
An STP participant may report against as many of the items above as are relevant, but must report against at least one of the above items.
CRITERIA FOR PROVIDING A WORKFORCE SKILLS AND DEVELOPMENT REPORT
An STP participant must report the extent to which the participant is promoting the development of its workforce’s skills, as demonstrated by, but not limited to:
The number of people within the workforce with applicable post‑school qualifications, for example;
the number of apprentices in the workforce;
the number of apprentices within the workforce successfully completing their apprenticeships;
participation in government (including Federal, State and Territory) or commercial training programs designed to help businesses more effectively train their workforce, including:
improved productivity in the workplace;
the development and implementation of workforce skills and development plans;
other activities resulting in the development of the workforce;
the extent of progress made against the above-mentioned indicators since the previous Workforce Skills and Development Report.
An STP participant may report against as many of the items above as are relevant, but must report against at least 5 of the above items.
Note
1. All legislative instruments and compilations are registered on the Federal Register of Legislative Instruments kept under the Legislative Instruments Act 2003. See www.comlaw.gov.au.
Sourced from the Federal Register of Legislation (legislation.gov.au), CC BY 4.0.
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Steel Transformation Plan 20121
Steel Transformation Plan Act 2011
I, Greg Combet, Minister for Industry and Innovation, make the following plan under section 9 of the Steel Transformation Plan Act 2011.
Dated 30 April 2012
Greg Combet Minister for Industry and Innovation
Contents
Part 1 Preliminary
Division 1.1 Introduction
1.1 Name of plan
1.2 Commencement
1.3 Object of plan
1.4 Overview of plan
1.5 Definitions
1.6 Meaning of production
Division 1.2 Sale of goods, eligible investment, eligible innovation and eligible production
Subdivision 1.2.1 Sale of goods
1.7 When sale of goods is taken to occur
1.8 When sale of goods is taken not to occur
Subdivision 1.2.2 Eligible investment
1.9 Eligible investment
1.10 Maximum claimable value for eligible investment
1.11 Working out investment amounts
Subdivision 1.2.3 Eligible innovation
1.12 Eligible innovation
1.13 Maximum claimable value for eligible innovation activities
1.14 Working out eligible innovation amounts
1.15 Meanings of labour costs and cost of training and development
Subdivision 1.2.4 Eligible production
1.16 Eligible production for STP participants
1.17 Maximum claimable value for eligible production
1.18 Working out production amounts for STP participants
Division 1.3 Determining eligible investments, eligible innovations and value of arm’s length transactions
Subdivision 1.3.1 Recognising eligible investment and eligible innovation
1.19 When investment or eligible innovation is taken to have occurred
Subdivision 1.3.2 Arm’s length transactions
1.20 Production value or sales value of eligible investment or eligible innovation, determined as if transaction at arm’s length
1.21 Determining the circumstances when parties treated as not being at arm’s length
1.22 Production value or sales value: parties treated as not being at arm’s length
1.23 Value of eligible innovation: parties treated as not being at arm’s length
1.24 Value of investment: parties treated as not being at arm’s length
1.25 Methods for determining value of transactions: parties treated as not being at arm’s length
Part 2 Registration under plan
Division 2.1 Rules about registration
2.1 Number of registrations available under plan
2.2 Registration under plan must further object of Act
Division 2.2 Applications for registration
2.3 Application for registration
Division 2.3 Participation in plan by groups of companies
2.4 Group of companies may apply for registration as single entity
2.5 Dealing with application by group of related bodies corporate
2.6 Legal status of a group permitted to make application for registration
Division 2.4 Formal requirements for, and consideration of, applications for registration
2.7 Content of application for registration
2.8 Lodgement of applications
2.9 When to apply
2.10 Consideration of registration applications
2.11 Fit and proper person
2.12 Secretary may seek further information
2.13 Period of effect of registration
2.14 Registration does not confer entitlement
Division 2.5 Conditions of registration
2.15 General compliance
2.16 Condition of eligible corporation registration
2.17 Document retention obligations
2.18 Update of business plan
Division 2.6 Deregistration
2.19 Deregistration
Part 3 Working out half‑yearly assistance for an STP participant
3.1 Secretary to work out assistance for STP participants
3.2 Working out assistance for STP participant for half‑year
Part 4 Payments under plan
Division 4.1 Making of half‑yearly returns
4.1 STP participants to make half‑yearly returns
4.2 Making half‑yearly return does not confer entitlement
4.3 Contents of STP participant’s return
4.4 Rules concerning returns
4.5 Further information about half‑yearly return
Division 4.2 Caps on plan and STP participants
4.6 Capped assistance for STP years
4.7 Annual assistance divided between STP participants
4.8 Sales‑based cap for payment of assistance
Division 4.3 Making of payments of assistance
4.9 Half‑yearly payments
4.10 Inalienability of payments
4.11 Condition of payment of assistance
Division 4.4 Limit on entitlement to assistance
4.12 Persons not entitled to certain assistance
Part 5 Recovery of overpayments
5.1 Plan debt
5.2 Recovery by offsetting
5.3 Secretary to issue notice
5.4 Interest payable on plan debt
5.5 Extension of time for payment of plan debt
Part 6 Administrative review of decisions
6.1 Request for reconsideration of decision by Secretary
6.2 Reconsideration by Secretary
6.3 Review of decisions affecting payment of assistance
6.4 Limitations on implementation of court decisions concerning payment of assistance
6.5 Limitations on implementation of AAT decisions concerning payment of assistance
6.6 Review of other decisions
Part 7 Other Commonwealth assistance
7.1 Meaning of other Commonwealth assistance
7.2 Other Commonwealth assistance that is not financial assistance
7.3 Working out the amount of other Commonwealth assistance
Part 8 Miscellaneous
8.1 Particulars to be included in business plan etc.
8.2 Approved forms
8.3 Ongoing obligation to maintain records
8.4 Publication of information relating to STP participants
Schedule 1 Reporting criteria: meeting object in section 3 of the Act
Part 1 Preliminary
Division 1.1 Introduction
1.1 Name of plan
This plan is the Steel Transformation Plan 2012.
1.2 Commencement
This plan commences on 1 May 2012.
1.3 Object of plan
The object of this plan is the same as the object set out in subsection 3 (1) of the Act.
1.4 Overview of plan
Note Part 2 of the Act provides for the payment of financial assistance before this plan commences. This assistance is by way of competitiveness assistance advances, up to a total of $164 million. It is intended that any competitiveness assistance advance is an advance of payments to an eligible corporation under this plan. It is also intended that eligible corporations lodge half‑yearly returns as they conduct eligible activities during the plan years.
(1) Under this plan, STP participants are entitled to cash payments of assistance for eligible innovation, eligible investment and eligible production activities.
(2) Entitlements under this plan for an STP participant are to be reduced by the amount of any competitiveness assistance advance provided to the STP participant.
(3) An applicant for registration under this plan must be an eligible corporation that is part of the Australian steel manufacturing industry.
(4) STP payments are conditional on compliance with the Act and this plan.
(5) An STP participant may be deregistered in certain circumstances (Division 2.6).
(6) In relation to payments of assistance:
(a) once registered, an STP participant must provide to the Secretary a half‑yearly return to be entitled to assistance; and
(b) the total amount of assistance paid in an STP year must not exceed the limit mentioned in subsection 13 (3) of the Act; and
(c) Part 3 sets limits on assistance for an STP participant for each plan year; and
(d) a method set out in this plan is to be used to determine how much an STP participant is entitled to be paid (Part 3).
(7) This plan provides that overpayments may be recovered and an STP participant may be required to pay interest on overpaid amounts.
(8) This plan provides for administrative review of certain decisions.
(9) This plan sets out document retention obligations and requirements for publication of information.
1.5 Definitions
(1) In this plan:
acquire includes:
(a) acquire by purchase; and
(b) acquire under a finance lease, operating lease or hire purchase agreement.
Act means the Steel Transformation Plan Act 2011.
approved form means a form approved under section 8.2.
associate has the meaning given by section 318 of the Income Tax Assessment Act 1936.
Australian Accounting Standards means the accounting standards made by the Australian Accounting Standards Board under subsection 334 (1) of the Corporations Act 2001.
direct tax means a tax on:
(a) wages, profits, interest, rents, royalties or any other form of income; or
(b) the ownership of property.
electronic communication has the meaning given by subsection 5 (1) of the Electronic Transactions Act 1999.
eligible innovation has the meaning given by section 1.12.
eligible investment has the meaning given by section 1.9.
eligible production has the meaning given by section 1.16.
finance lease has the meaning given by the Australian Accounting Standards.
group of related bodies corporate means a group of related bodies corporate within the meaning of sections 9 and 50 of the Corporations Act 2001.
GST has the meaning given by section 195‑1 of the A New Tax System (Goods and Services Tax) Act 1999.
half‑year means a period of 6 months commencing on 1 January or 1 July in a year.
hire purchase agreement has the meaning given by the Australian Accounting Standards.
indirect tax means any tax except a direct tax or import charge, and includes the following:
(a) GST or value‑added tax;
(b) luxury car tax;
(c) sales tax;
(d) excise tax;
(e) turnover tax;
(f) franchise tax;
(g) stamp tax or duty;
(h) transfer tax or duty;
(i) inventory or equipment tax;
(j) border tax.
industrial property rights include:
(a) rights (including equitable rights) possessed by a person under the law of Australia as:
(i) the patentee of a patent in force for an invention; or
(ii) the owner of a registered trade mark; or
(iii) the owner of a registered design; and
(b) rights possessed by a person under a law of a foreign country that are equivalent to the rights mentioned in paragraph (a).
insolvent under administration means a person who:
(a) under the Bankruptcy Act 1966 or the law of an external Territory, is a bankrupt in respect of a bankruptcy from which the person has not been discharged; or
(b) under the law of an external Territory or the law of a foreign country, has the status of an undischarged bankrupt.
Examples for definition of insolvent under administration
A person is insolvent under administration if any of the person’s property is subject to control under:
(a) section 50 or Division 2 of Part X of the Bankruptcy Act 1966; or
(b) a corresponding provision of the law of an external Territory or the law of a foreign country.
A person is insolvent under administration if, at any time during the preceding 3 years, the person has executed a personal insolvency agreement under:
(a) Part X of the Bankruptcy Act 1966; or
(b) the corresponding provisions of the law of an external Territory or the law of a foreign country.
investment undertaken by an STP participant has the meaning given by section 1.19.
maximum claimable value for eligible innovation means a value in respect of a kind of eligible innovation arrived at using the method set out in sections 1.13 and 1.14 for that kind of eligible innovation.
maximum claimable value for eligible investment means a value in respect of a kind of eligible investment arrived at using the method set out in section 1.10 for that kind of investment.
maximum claimable value for eligible production means a value in respect of a kind of eligible production arrived at using the method set out in section 1.17.
net inventory change, for an STP participant, means the closing stock value, less the opening stock value, calculated in accordance with the Australian Accounting Standards.
operating lease has the meaning given by the Australian Accounting Standards.
plan debt has the meaning given by section 5.1.
previous investment, in relation to an investment undertaken by an STP participant by way of acquiring plant and equipment under a sale and leaseback arrangement, means whichever of the following that applies:
(a) the investment in the plant and equipment undertaken by the STP participant by way of acquiring the plant and equipment by purchase before it was sold and leased back;
(b) the investment in the plant and equipment undertaken by the STP participant by way of building or making the plant and equipment before it was sold and leased back.
production has the meaning given by section 1.6.
production value means the value of production worked out in accordance with section 1.17.
rent, in relation to plant and equipment acquired under an operating lease, means an amount, however described, payable under the lease as consideration for leasing the plant and equipment, but does not include any deposit payable under the lease.
sale has the meaning given by sections 1.7 and 1.8.
sale and leaseback arrangement, in relation to an investment in plant and equipment undertaken by an STP participant, means an arrangement under which plant and equipment acquired by purchase, or built or made, by the STP participant is sold to, and immediately leased back under a finance lease from, another person.
sales value, for the sale of goods produced in Australia by an STP participant, means the value of the goods sold, reduced by the amount of sales tax payable on those goods
Note Section 1.6 sets out the meaning of production.
STP year means a year identified in the following table for which eligible investments or eligible production may be claimed by an STP participant.
| Item | STP year |
|---|---|
| 1 | 1 July 2012–30 June 2013 |
| 2 | 1 July 2013–30 June 2014 |
| 3 | 1 July 2014–30 June 2015 |
| 4 | 1 July 2015–30 June 2016 |
STP year cap has the meaning given by section 4.6.
(2) In this plan, a reference to a person registered as an STP participant includes a reference to a group that is so registered under Division 2.3.
(3) In this plan, all money amounts are expressed in Australian dollars.
1.6 Meaning of production
(1) Except for net inventory change, a person is taken to produce a thing only at the time when the person sells the thing produced.
(2) For subsection (1), production includes the manufacture of crude carbon steel using a method mentioned in the definition of Australian steel manufacturing industry in section 4 of the Act, being the crude product used in the production of marketable steel products.
(3) For subsection (1), production includes the manufacture of marketable steel products including slab, hot rolled coil, cold rolled coil, billets, blooms, ingots, rods, bar, hot rolled structurals, merchant bar, plate and higher value added products such as coated and painted steel products, wire products, rail, rail wheels, pipe and tube products and grinding media.
(4) To avoid doubt, if the manufacture of a thing could be counted as an act of production under both subsections (2) and (3), or could be counted as an act of production more than once under one of those subsections, the manufacture is to be counted as only one act of production.
Division 1.2 Sale of goods, eligible investment, eligible innovation and eligible production
Subdivision 1.2.1 Sale of goods
1.7 When sale of goods is taken to occur
A sale of goods is taken to have occurred if it would be recognised as a sale by the Australian Accounting Standards.
1.8 When sale of goods is taken not to occur
Despite section 1.8, a transaction involving goods is taken not to be a sale of the goods in a circumstance mentioned in the table.
| Item | Circumstance |
|---|---|
| 1 | The goods are lent by a person to another person, with the intention that they be returned to the lender, and the lender retains title to the goods |
| 2 | A corresponding credit for the goods is issued after the transactio |
This is an opening excerpt, not the complete document.