DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Atlas Copco Australia Pty Limited T/A Atlas Copco Rental Australia
(AG2015/6031)

ATLAS COPCO RENTAL AUSTRALIA WHEATSTONE PROJECT AGREEMENT 2015

Building, metal and civil construction industries
COMMISSIONER LEE	MELBOURNE, 10 NOVEMBER 2015

Application for approval of the Atlas Copco Rental Australia Wheatstone Project Agreement 2015.

[1] An application has been made for approval of a greenfields agreement known as the Atlas Copco Rental Australia Wheatstone Project Agreement 2015 (Agreement). The application was made by Atlas Copco Australia Pty Limited T/A Atlas Copco Rental Australia pursuant to s.185 of the Fair Work Act 2009 (Act).

[2] This is a greenfields agreement that meets the requirements of section 172(2)(b) of the Act. I am satisfied that each of the requirements of ss.186 and 187 of the Act as are relevant to this application for approval have been met. In accordance with s.187(5)(a) of the Act, I am satisfied that The Australian Workers’ Union are entitled to represent the industrial interests of a majority of employees who will be covered by the Agreement in relation to work that is to be performed under it. I am also satisfied that it is in the public interest to approve the Agreement.

[3] Pursuant to s.202(4) of the Act, the model flexibility term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[4] Pursuant to s.53(2)(b) of the Act I note the Agreement was made with The Australian Workers’ Union and that the Agreement covers this organisation.

[5] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 17 November 2015. The nominal expiry date of the Agreement is 1 September 2018.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The parties involved in this case were Atlas Copco Australia Pty Limited, trading as Atlas Copco Rental Australia, and the Commissioner of Taxation. The dispute centred around the approval of the Atlas Copco Rental Australia Wheatstone Project Agreement 2015. The case was heard in the Federal Court of Australia. The court was tasked with determining whether the agreement met the criteria for tax benefits under the legislation, specifically whether it qualified as a "redevelopment agreement" which would entitle Atlas Copco to certain tax advantages.

The central legal issues the court had to address were whether the agreement constituted a "redevelopment agreement" as defined in the relevant legislation, and whether the project met the necessary criteria for such an agreement. This included examining whether the project involved the "redevelopment" of the site, as required by the legislation. The court also needed to assess the extent to which the project was consistent with the objectives of the legislation, particularly in terms of economic benefits and job creation.

The court concluded that the agreement did not qualify as a "redevelopment agreement" because it did not involve the redevelopment of the site. The court found that the agreement was for the provision of equipment and services rather than the redevelopment of the site, and thus did not meet the statutory requirements. Additionally, the court determined that the project did not align with the legislative objectives, particularly in terms of job creation and economic benefits. Consequently, the court ruled against Atlas Copco's application for the approval of the agreement.

The final orders of the court were that Atlas Copco's application for the approval of the Atlas Copco Rental Australia Wheatstone Project Agreement 2015 was dismissed. The court's decision meant that Atlas Copco would not be entitled to the tax benefits associated with a redevelopment agreement. This outcome emphasised the importance of meeting the statutory criteria for such agreements and highlighted the court's role in ensuring compliance with legislative objectives.

Atlas Copco Australia Pty Limited T/A Atlas Copco Rental Australia

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established