Tractor Bounty Act 1939

• Australian content requirement: At least 60% of the tractor's factory cost must come from materials and parts wholly made in Australia, or no bounty is paid at all. The closer to 90% Australian content, the higher the bounty rate.
• Quality: Tractors must be of good and merchantable (sellable) quality.
• Approved factory: Production must take place at premises formally appointed by the Minister.
• Profit cap: If a manufacturer's profit from making and selling tractors exceeds 10% per year on the capital they've invested, the Minister can reduce or recover the bounty. This prevents the scheme from simply padding manufacturer profits.
• Separate accounts: Manufacturers must keep detailed financial records specifically for their tractor operations and have them certified by an auditor.
• Customs duty link: If import duties on tractor parts or complete tractors are raised above their September 1939 levels, the bounty rate is automatically reduced by a corresponding amount — preventing manufacturers from double-dipping on both tariff protection and bounty support.

Oversight and compliance:

• Authorised government inspectors can enter factories and inspect tractors, manufacturing processes, and financial records at any time.
• Manufacturers and their staff can be compelled to answer questions under oath or affirmation (a formal, legally binding promise to tell the truth).
• Penalties for fraud or false statements: up to £500 or 12 months' imprisonment. Courts can also order repayment of wrongfully obtained bounty.
• Annual returns must be tabled in Parliament showing who received bounty, how much, and the Australian content percentages — keeping the scheme publicly accountable.

Why does it matter?

This Act is a classic example of wartime/Depression-era industry protection policy — using public money to build up domestic manufacturing capacity for equipment critical to agriculture and industry. By tying the bounty to Australian content thresholds and capping manufacturer profits, the government tried to ensure the subsidy genuinely built local industry rather than enriching importers or highly profitable companies.