Bounty and Capitalisation Grants (Textile Yarns) Act 1981 (Cth)

Bounty and Capitalisation Grants (Textile Yarns) Act 1981

Act No. 103 of 1981 as amended

[Note: This Act was repealed by Act No. 9 of 2006 on 23 March 2006]

This compilation was prepared on 26 May 2003

taking into account amendments up to Act No. 140 of 2001

The text of any of those amendments not in force

on that date is appended in the Notes section

The operation of amendments that have been incorporated may be

affected by application provisions that are set out in the Notes section

Prepared by the Office of Legislative Drafting and Publishing,

Attorney‑General’s Department, Canberra

Contents

An Act to provide for the payment of bounty on the production of certain textile yarns and of capitalisation grants in place of such bounty

Part 1Preliminary 1Short title [see Note 1]

This Act may be cited as the Bounty and Capitalisation Grants (Textile Yarns) Act 1981.

1AGeneral administration of Act

The Chief Executive Officer of Customs has the general administration of this Act other than Part 3.

2Interpretation

(1)
In this Act, unless the contrary intention appears:
accounting period, in relation to a producer of bountiable yarn, has the meaning given by section 3A.
approved form means a form approved by the CEO in writing.
Authority means the Textiles, Clothing and Footwear Development Authority established by section 5 of the Textiles, Clothing and Footwear Development Authority Act 1988.
authorized officer means an officer who is an authorized officer for the purposes of this Act by virtue of an appointment under section 14.
bountiable yarn means:
(a)
continuous polyamide and polyester yarn;
(b)
discontinuous coarse acrylic yarn;
(c)
discontinuous fine acrylic yarn;
(d)
worsted wool yarn;
(e)
man‑made fibre and wool blend yarn;
(f)
polyester‑cotton yarn;
(g)
cotton yarn;
(h)
discontinuous man‑made fibre yarn not specified in a preceding paragraph;
(j)
continuous man‑made fibre yarn not specified in a preceding paragraph; or
(k)
any spun yarn consisting of, or containing, textile fibres, being a yarn not specified in a preceding paragraph;
but does not include:
(m)
non‑textile yarn;
(n)
rubberized yarn; or
(o)
yarn containing any metal or metal powder.
bounty means bounty under this Act.
bounty period means the period commencing on 1 January 1982 and ending on 30 June 1995.
capitalisation grant means a grant made by the Minister under section 21E.
CEO means the Chief Executive Officer of Customs.
Collector has the same meaning as it has in the Customs Act 1901.
combed wool fibres includes a mixture of a quantity of combed wool fibres and a lesser quantity of wool fibres spun from carded rovings.
continuous man‑made fibre yarn means yarn that consists of:
(a)
man‑made fibres that have been continuously extruded and not cut or broken into staple lengths; or
(b)
a mixture of fibres referred to in paragraph (a) and of other textile fibres (whether the other textile fibres are of the same kind or of different kinds) in which the quantity of the fibres so referred to is greater than:
(i)
where the other textile fibres are of the same kind—the quantity of those other textile fibres; or
(ii)
where the other textile fibres are of different kinds—the quantity of other textile fibres of any of those different kinds;
being yarn that is not coarser than 1,000 tex, but does not include monofil:
(c)
at least one cross‑sectional dimension of which exceeds 1 millimetre; or
(d)
that is 6.6 tex or coarser.
continuous polyamide and polyester yarn means continuous man‑made fibre yarn more than 50% by weight of the man‑made fibres in which are:
(a)
polyamide fibres;
(b)
polyester fibres; or
(c)
a mixture of polyamide fibres and polyester fibres.
cotton yarn means spun yarn that consists of:
(a)
cotton fibres; or
(b)
a mixture of cotton fibres and of other textile fibres (whether the other textile fibres are of the same kind or of different kinds) in which the quantity of the cotton fibres is greater than:
(i)
where the other textile fibres are of the same kind—the quantity of those other textile fibres; or
(ii)
where the other textile fibres are of different kinds—the quantity of other textile fibres of any of those different kinds;
being yarn that is not coarser than 2,000 tex.
discontinuous coarse acrylic yarn means discontinuous man‑made fibre yarn:
(a)
more than 50% by weight of the man‑made fibres in which are acrylic fibres; and
(b)
in which each ply is 120 tex or coarser;
not being yarn more than 20% by weight of the textile fibres in which are wool fibres or animal hair.
discontinuous fine acrylic yarn means discontinuous man‑made fibre yarn:
(a)
more than 50% by weight of the man‑made fibres in which are acrylic fibres; and
(b)
in which each ply is finer than 120 tex.
discontinuous man‑made fibre yarn means spun yarn that consists of:
(a)
man‑made fibres that have been cut or broken into staple lengths; or
(b)
a mixture of fibres referred to in paragraph (a) and of other textile fibres (whether the other textile fibres are of the same kind or of different kinds) in which the quantity of the fibres so referred to is greater than:
(i)
where the other textile fibres are of the same kind—the quantity of those other textile fibres; or
(ii)
where the other textile fibres are of different kinds—the quantity of other textile fibres of any of those different kinds;
being yarn that is not coarser than 1,000 tex.
disqualifying accounting period, in relation to a producer of bountiable yarn, means an accounting period of the producer in which a greater quantity of the bountiable yarn a process or processes in whose production were carried out by the producer was sold, or otherwise disposed of, for export from Australia than was used, or sold or otherwise disposed of for use, in the production of prescribed textiles at a registered textile factory.
handcrafting includes handknitting, handsewing, macrame, handweaving and handknotting.
man‑made fibre and wool blend yarn means discontinuous man‑made fibre yarn more than 20% by weight of the textile fibres in which are wool fibres or animal hair.
man‑made fibres means fibres or filaments of organic polymers produced by either of the following manufacturing processes:
(a)
polymerisation or condensation of organic monomers;
(b)
chemical transformation of natural organic polymers.
non‑textile yarn means a yarn consisting of a mixture of textile fibres (whether of the same kind or of different kinds) and of other material the quantity of which is greater than:
(a)
where the textile fibres are of the same kind—the quantity of those textile fibres; or
(b)
where the textile fibres are of different kinds—the quantity of textile fibres of any of those different kinds.
polyester‑cotton yarn means discontinuous man‑made fibre yarn:
(a)
that consists of a mixture of polyester fibres and cotton fibres in which the polyester fibres are not less than 50% by weight;
(b)
that is single‑fold combed yarn not coarser than 20 tex; and
(c)
at least one ply in which is 10 tex or coarser.
polyester fibres means fibres or filaments formed from a synthetic polymer that contains not less than 85% by weight of the polymeric ester produced from the reaction of a dihydric alcohol and terephthalic acid.
prescribed textiles means:
(a)
yarns or other textiles; or
(b)
any products made in whole or in part from yarn or other textiles;
but does not include:
(c)
bountiable yarn for use in sewing or handcrafting;
(d)
bountiable yarn for use in the production of other textiles on a machine referred to in paragraph (e); or
(e)
textiles produced on knitting or weaving machines worked by foot or by hand, or by both foot and hand.
prescribed wool yarn means spun yarn more than 50% by weight of the textile fibres in which are fibres that are wool fibres or animal hair.
producer, in relation to bountiable yarn, means:
(a)
in the case of bountiable yarn all the processes in the production of which were carried out by one person only—that person; or
(b)
in any other case—each person who carried out a process, or processes, in the production of the bountiable yarn.
qualifying accounting period, in relation to a producer of bountiable yarn, means an accounting period of the producer other than such a period that immediately follows a disqualifying accounting period of the producer.
quantity, in relation to textile fibres or other material, means quantity by weight.
registered premises means premises registered under section 11.
registered textile factory means:
(a)
a building or other place:
(i)
used for the commercial production of prescribed textiles; and
(ii)
registered as a factory under a law of a State or an internal Territory;
(b)
a building or other place in an internal Territory:
(i)
used for the commercial production of prescribed textiles; and
(ii)
approved by the CEO for the purposes of this paragraph; or
(c)
a building or other place used by the Commonwealth, a State or the Northern Territory or an authority of the Commonwealth, a State or the Northern Territory for the production of prescribed textiles.
TCF industries has the same meaning as in the Textiles, Clothing and Footwear Development Authority Act 1988.
TCF products has the same meaning as in the Textiles, Clothing and Footwear Development Authority Act 1988.
textile fibres means:
(a)
wool fibres;
(b)
animal hair, other than wool;
(c)
cotton fibres;
(d)
silk fibres;
(e)
continuous man‑made fibres;
(f)
discontinuous man‑made fibres; and
(g)
fibres of a kind determined by the CEO to be textile fibres for the purpose of this Act.
wool fibres includes fibres of lamb’s wool.
worsted wool yarn means spun yarn that consists of:
(a)
combed wool fibres; or
(b)
a mixture of combed wool fibres and of other textile fibres (whether the other textile fibres are of the same kind or of different kinds) in which the quantity of the combed wool fibres is greater than:
(i)
where the other textile fibres are of the same kind—the quantity of those other textile fibres; or
(ii)
where the other textile fibres are of different kinds—the quantity of other textile fibres of any of those different kinds.
yarn does not include twine, cordage or rope.
yarn additive, in relation to bountiable yarn, means material added to polymers, fibres or yarn used in the production of the bountiable yarn so that all or most of the material is incorporated in the bountiable yarn.
year means a period of 12 months commencing on 1 January.
(2)
For the purposes of this Act, a yarn that consists mainly of textile fibres or a mixture of textile fibres shall be taken to consist of those fibres or that mixture of fibres, as the case may be.
(3)
For the purposes of this Act, the processes in the production of yarn include:
(a)
any extrusion of man‑made fibres;
(b)
any opening or blending of prepared textile fibres;
(c)
any dyeing or bleaching of the yarn or of fibres;
(d)
any fuzz removal, mercerising, mothproofing, shrink proofing or other process ancillary to the production of the yarn;
(e)
the winding of the yarn on to a cone, bobbin or similar object, or any other packing of the yarn, for storage or for delivery to a registered textile factory; and
(f)
any other process in connection with the production of the yarn that the CEO determines to be a process in the production of yarn for the purposes of this paragraph;
but do not include:
(g)
any process in the production of man‑made fibre polymer;
(h)
any process in the production of wool, cotton or other natural fibres;
(j)
cotton ginning;
(k)
scouring, carbonising or cleansing wool;
(ka)
beaming, warping and sizing processes and any repeat winding necessitated by these processes;
(m)
any process in the production of tops of wool or man‑made fibres by carding and combing; or
(n)
any other process that the CEO determines is not a process in the production of yarn for the purposes of this paragraph.
(4)
For the purposes of this Act, where bountiable yarn is used in the production of other bountiable yarn of a different kind, the processes carried out in the production of the first‑mentioned bountiable yarn shall be taken not to be processes carried out in the production of the other bountiable yarn.
(5)
For the purposes of this Act, yarn shall not be taken to have been used, or to have been sold or otherwise disposed of for use, in the production of prescribed textiles if its use or proposed use, as the case may be, is in sewing or handcrafting.
(6)
A reference in this Act to costs incurred by a producer of bountiable yarn in an accounting period of the producer is a reference to an amount that has become payable by the producer in the period, whether or not it is paid in the period.
(7)
For the purposes of this Act, 2 persons shall be deemed to be associates of each other if, and only if:
(a)
both being natural persons:
(i)
they are connected by a blood relationship or by marriage or by adoption; or
(ii)
one of them is an officer or director of a body corporate controlled, directly or indirectly, by the other;
(b)
both being bodies corporate:
(i)
both of them are controlled, directly or indirectly, by a third person (whether or not a body corporate);
(ii)
both of them together control, directly or indirectly, a third body corporate; or
(iii)
the same person (whether or not a body corporate) is in a position to cast, or control the casting of, 5% or more of the maximum number of votes that might be cast at a general meeting of each of them;
(c)
one of them, being a body corporate, is, directly or indirectly, controlled by the other (whether or not a body corporate);
(d)
one of them, being a natural person, is an employee, officer or director of the other (whether or not a body corporate);
(e)
they are members of the same partnership; or
(f)
they are trustees or beneficiaries, or one of them is a trustee and the other is a beneficiary, of the same trust.

3Additional value

(1)
For the purposes of this Act, the additional value added to bountiable yarn by a producer of the yarn shall be deemed to be the amount that is the factory cost incurred by the producer in connection with the process or processes carried out by that producer in the production of the yarn.
(2)
Subject to subsection (3), the factory cost incurred by a producer of bountiable yarn in connection with processes in the production of that yarn includes:
(a)
factory overhead charges apportioned on the basis of a full accounting period of the producer after deducting from those charges:
(i)
the amount realised on the disposal of waste; and
(ii)
profits realised on the disposal of buildings, machinery, plant or equipment;
as so apportioned; and
(b)
other costs incurred by the producer in connection with those processes and the packaging of the yarn, including salaries, wages and other remuneration.
(2A)
In this section:
factory overhead charges includes the following:
(a)
factory administration costs;
(b)
losses incurred on the disposal of buildings, machinery, plant or equipment;
(c)
the cost of reuseable packaging;
(d)
the cost of machine maintenance and machine replacement parts;
(e)
the cost of energy and water;
(f)
the cost of solvents, detergents, machinery or spinning lubricants and similar materials used to facilitate the production of the yarn.
(3)
The factory cost incurred by a producer of bountiable yarn in connection with processes in the production of that yarn does not include:
(a)
the cost of general administration (including, where the producer is a body corporate, corporate expenses), selling costs, interest, service charges or taxation (other than pay‑roll tax) or bonuses issued or paid to employees of the producer from the profits of the producer;
(b)
rent, hire or leasing costs in relation to land, buildings, plant or equipment, other than any part of those costs that:
(i)
constitutes rates or other municipal charges;
(ii)
constitutes the cost of the repair and maintenance of buildings, plant or equipment; or
(iii)
would normally be treated as depreciation;
(c)
the cost of:
(i)
the polymers, fibres or yarns from which the bountiable yarn was produced;
(ii)
any dyes, bleaches, yarn lubricants or yarn additives that were used in carrying out a process in the production of the bountiable yarn; or
(iii)
any disposable packaging for the yarn;
(d)
selling and service charges;
(e)
sales tax in respect of completed yarn;
(f)
tax on income, other than tax on income deducted in respect of the wages, salaries or other remuneration of employees;
(g)
costs incurred after the completion of the production of the yarn, other than costs relating to the testing or packaging of the yarn at registered premises;
(h)
the value of perquisites provided to employees of the producer that does not form part of their assessable income for the purposes of the Income Tax Assessment Act 1936 or the Income Tax Assessment Act 1997, as appropriate;
(j)
profit;
(k)
bonuses paid out of, or in anticipation of, profits;
(m)
costs charged or levied on the producer by an associate of the producer that are not costs actually incurred by the associate;
(n)
such of the depreciation of buildings as exceeds a rate of 4% per annum, or, if another rate is prescribed, that other rate, on the historic cost of factory buildings owned by the producer;
(p)
depreciation of machinery, plant or equipment, other than:
(i)
depreciation of the machinery, plant or equipment that is an allowable deduction to the producer under the Income Tax Assessment Act 1936 or the Income Tax Assessment Act 1997; or
(ii)
depreciation of the machinery, plant or equipment for which the producer can deduct amounts under Division 40 of the Income Tax Assessment Act 1997;
(r)
long service leave, other than provision for such leave;
(s)
severance pay, other than severance pay in relation to service during a period that is within the bounty period and during which the producer was a producer of the goods;
(t)
freight, and costs relating to vehicles, incurred in respect of the delivery of completed or partly completed yarn;
(u)
the cost of superannuation and similar schemes, other than cost that is an allowable deduction of the producer for the purposes of the Income Tax Assessment Act 1936;
(v)
workers compensation, other than insurance premiums for such compensation;
(w)
the cost of any material on which bounty has been paid or is to become payable to the producer under any law of the Commonwealth; or
(y)
such costs (if any) as are prescribed.
(4)
For the purposes of paragraph (3)(c), the cost of any materials, being polymers, fibres, yarns, dyes, bleaches, yarn lubricants, yarn additives or packaging, shall be taken to include the cost of any delivery of the materials.
(5)
Where, in relation to a claim for bounty or in relation to a return in accordance with section 10BA or otherwise for the purposes of this Act, the CEO:
(a)
is unable to verify the additional value added to bountiable yarn by a producer of the yarn; or
(b)
forms the opinion that, having regard to sound accounting principles, a cost included in the factory cost by reference to which the additional value added to the yarn by a producer is ascertained:
(i)
is incorrect or over‑estimated;
(ii)
is higher than would have been the case if the producer had not marginally costed or similarly disproportionately costed the production of yarn in respect of which bounty is not payable;
(iii)
has been fixed in order to obtain an increase in bounty;
(iv)
is unduly higher than a similar cost incurred by other producers of similar yarn;
(v)
has been increased as the result of the influence of a relationship between the producer and an associate of the producer; or
(vi)
is higher than would have been the case if the producer had provided services that were provided, and charged for, by an associate of the producer;
the CEO may, by writing signed by him or her, determine the additional value added to that yarn by that producer, being the value that, having regard to all the relevant circumstances, the CEO considers to be appropriate, and the additional value added to that yarn by that producer shall be the value so determined.

3AAccounting period

A reference in this Act to an accounting period of a producer of bountiable yarn shall be construed as a reference to:
(a)
where the producer has an accounting period in relation to that yarn of 12 months commencing on a day other than 1 July—that accounting period; or

(b)
in any other case—a financial year.

3BApplication of the Criminal Code

Chapter 2 of the Criminal Code applies to all offences created by this Act.
Note: Chapter 2 of the Criminal Code sets out the general principles of criminal responsibility.

Part 2Bounties 4Uniformity

A power conferred on the Governor‑General or the CEO by this Act shall not be exercised in such a manner that bounty under this Act would not be uniform throughout the Commonwealth within the meaning of paragraph 51(iii) of the Constitution.

5Specification of bounty

(1)
Bounty is payable in accordance with this Act on the production in Australia of bountiable yarns.
(2)
For the purposes of this Act, the production of bountiable yarn shall not be taken to have been carried out in Australia unless:
(a)
the last major process carried out in the production of the yarn was carried out in Australia at registered premises; and
(b)
at least one other major process carried out in the production of the yarn was carried out in Australia.
(3)
In subsection (2), major process, in relation to the production of bountiable yarn, means a process:
(a)
that comprises:
(i)
an operation that imparts, a series of operations that impart, an operation that produces a change in, or a series of operations that produce a change in, the characteristics of the yarn or of fibres (in this paragraph referred to as the principal part of the process);
(ii)
the operation or operations (if any) carried out to prepare the yarn or fibres for the principal part of the process; and
(iii)
the operation or operations (if any) carried out to recover the yarn or fibres after the completion of the principal part of the process; and
(b)
that, in the opinion of the CEO:
(iv)
involves the use of a significant quantity of equipment; and
(v)
adds significant value to the yarn or fibres.
(4)
Bounty in respect of bountiable yarn is payable to the producer, or the producers, of the bountiable yarn.
(5)
A producer is not entitled to receive a payment of bounty in respect of bountiable yarn unless:
(a)
all the processes in the production of the yarn carried out by him or her were carried out at registered premises during the bounty period; and
(b)
the production of the yarn was completed during the bounty period; and
(ba)
the production was carried out, in its entirety, using assets that are not included in the identified assets register referred to in section 21G; and
(c)
the yarn has been used during the bounty period, or sold or otherwise disposed of during the bounty period for use, in the production of prescribed textiles in a registered textile factory.
(6)
A producer is not entitled to receive a payment of bounty in respect of bountiable yarn that is prescribed wool yarn unless the prescribed textiles in the production of which the yarn has been used, or is proposed to be used, are textiles other than carpet.
(7)
Where bountiable yarn is produced from other bountiable yarn of a different kind, bounty may become payable in respect of the bountiable yarn so produced notwithstanding that bounty has been paid, or has become payable, in respect of the other bountiable yarn.
(8)
If, on 1 January 1982, a person who applied successfully for the registration of premises has in stock any bountiable yarn the production of which has completed on or after 1 October 1981, being yarn the last process in the production of which was carried out on those premises by that person, all the processes in the production of that yarn shall, for the purposes of this Act, be deemed to have been carried out on 1 January 1982.
(9)
If, on 1 January 1982, there are on registered premises any fibres (not being fibres in bountiable yarn) on which any of the processes involved in the production of bountiable yarn has been carried out, that process and any preceding process or processes in the production of that yarn shall, for the purposes of this Act, be deemed to have been carried out on that date.

6Amount of bounties

(1)
The bounty payable to a producer of bountiable yarn, being continuous polyamide and polyester yarn, in respect of the yarn is an amount equal to:
(a)
where the condition specified in paragraph 5(5)(c) is satisfied in relation to the yarn before 20 August 1986—59% of the additional value added to the yarn by that producer; and
(b)
where that condition is satisfied in relation to that yarn:
(i)
on or after 20 August 1986 and before 1 March 1989—47.2%; and
(ii)
on and after 1 March 1989 and before 1 July 1992—42.5%;
of the additional value added to the yarn by that producer.
(2)
The bounty payable to a producer of bountiable yarn, being:
(a)
discontinuous fine acrylic yarn;
(b)
worsted wool yarn; or
(c)
man‑made fibre and wool blend yarn, other than yarn that has been used, or is proposed to be used, in the production of carpet;
in respect of the yarn is an amount equal to:
(d)
where the condition specified in paragraph 5(5)(c) is satisfied in relation to the yarn before 20 August 1986—49% of the additional value added to the yarn by that producer; and
(e)
where that condition is satisfied in relation to that yarn:
(i)
on or after 20 August 1986 and before 1 March 1989—39.2%;
(ii)
on or after 1 March 1989 and before 1 March 1990—38%;
(iii)
on or after 1 March 1990 and before 1 March 1991—36%; and
(iv)
on or after 1 March 1991 and before 1 July 1992—34%;
of the additional value added to the yarn by that producer.
(3)
The bounty payable to a producer of bountiable yarn, being polyester‑cotton yarn, in respect of the yarn is an amount equal to:
(a)
where the condition specified in paragraph 5(5)(c) is satisfied in relation to the yarn before 20 August 1986—52% of the additional value added to the yarn by that producer; and
(b)
where that condition is satisfied in relation to the yarn:
(i)
on or after 20 August 1986 and before 1 March 1989—41.6%;
(ii)
on or after 1 March 1989 and before 1 March 1990—39%;
(iii)
on or after 1 March 1990 and before 1 March 1991—37%;
(iv)
on or after 1 March 1991 and before 1 March 1992—35%; and
(v)
on or after 1 March 1992 and before 1 July 1992—33%;
of the additional value added to the yarn by that producer.
(4)
The bounty payable to a producer of bountiable yarn, being:
(a)
cotton yarn; or
(b)
yarn that is bountiable yarn by virtue of paragraph (h) of the definition of bountiable yarn in subsection 2(1), other than yarn that has been used, or is proposed to be used, in the production of carpet;
in respect of the yarn is an amount equal to:
(c)
where the condition specified in paragraph 5(5)(c) is satisfied in relation to the yarn before 20 August 1986—43% of the additional value added to the yarn by that producer; and
(d)
where that condition is satisfied in relation to the yarn:
(i)
on or after 20 August 1986 and before 1 March 1989—34.4%;
(ii)
on or after 1 March 1989 and before 1 March 1990—34%;
(iii)
on or after 1 March 1990 and before 1 March 1991—33%;
(iv)
on or after 1 March 1991 and before 1 March 1992—32%; and
(v)
on or after 1 March 1992 and before 1 July 1992—31%;
of the additional value added to the yarn by that producer.
(5)
The bounty payable to a producer of bountiable yarn, being:
(a)
discontinuous coarse acrylic yarn;
(b)
man‑made fibre and wool blend yarn that has been used, or is proposed to be used, in the production of carpet;
(c)
yarn that is bountiable yarn by virtue of paragraph (h) of the definition of bountiable yarn in subsection 2(1) and that has been used, or is proposed to be used, in the production of carpet; or
(d)
yarn that is bountiable yarn by virtue of paragraph (j) or (k) of that definition;
in respect of the yarn is an amount equal to:
(e)
where the condition specified in paragraph 5(5)(c) is satisfied in relation to the yarn before 20 August 1986—33% of the additional value added to the yarn by that producer; and
(f)
where that condition is satisfied in relation to the yarn:
(i)
on or after 20 August 1986 and before 1 March 1989—26.4%;
(ii)
on or after 1 March 1989 and before 1 March 1990—27%;
(iii)
on or after 1 March 1990 and before 1 March 1991—28%;
(iv)
on or after 1 March 1991 and before 1 March 1992—29%; and
(v)
on or after 1 March 1992 and before 1 July 1992—30%;
of the additional value added to the yarn by that producer.
(6)
Where the condition specified in paragraph 5(5)(c) in relation to the production of bountiable yarn is satisfied on or after 1 July 1992 and before 1 July 1995, the bounty payable to the producer of that yarn is an amount equal to:
(a)
if the condition is satisfied in relation to that yarn on or after 1 July 1992 and before 1 July 1993—30%; and
(b)
if the condition is satisfied in relation to that yarn on or after 1 July 1993 and before 1 July 1994—22%; and
(c)
if the condition is satisfied in relation to that yarn on or after 1 July 1994 and before 1 July 1995—15%;
of the additional value added to the yarn by that producer.

7Bounty not payable in respect of certain yarns

(1)
Bounty is not payable in respect of any bountiable yarn produced by the Commonwealth, a State or an authority of the Commonwealth or a State (including an educational institution established by the Commonwealth or a State).
(1A)
Bounty is not payable in respect of bountiable yarn that the CEO is satisfied was, or will be, after 1 July 1990, exported, either directly or indirectly through another country or other countries, to New Zealand.
(2)
In this section, State includes the Northern Territory.

8Advances on account of bounty

(1)
An advance on account of bounty may be made to a person on such terms and conditions as are approved by the CEO in writing.
(2)
If a person receives, by way of advances on account of bounty in respect of particular bountiable yarn, an amount that exceeds the amount of bounty payable to the person in respect of that yarn, the person is liable to repay to the Commonwealth the amount of the excess.
(3)
If a person receives an amount by way of advances on account of bounty that may become payable to the person and the bounty does not become payable to the person, the person is liable to repay to the Commonwealth the amount so received.
(4)
If, at the expiration of an accounting period of a producer of bountiable yarn, the producer has received, by way of advances on account of bounty that may become payable to the producer during that period in respect of bountiable yarn, an amount that exceeds the sum of:
(a)
the amount of bounty that became payable to the producer during that period in respect of bountiable yarn; and
(b)
the amount or amounts (if any) paid to the producer during that period in respect of bountiable yarn that the producer is liable to repay to the Commonwealth by virtue of subsection (2) or (3);
the producer is liable to repay to the Commonwealth the amount of the excess.

9Good quality of bountiable yarn

(1)
Bounty is not payable on the production of bountiable yarn if the CEO declares in writing that, in his or her opinion, the yarn is not of good and merchantable quality.
(2)
Where the CEO makes a declaration under subsection (1) in respect of goods in relation to which bounty has been paid to a person, the person is liable to repay to the Commonwealth an amount equal to the amount of that bounty.

10Claims for payment of bounty

(1)
A person who claims to be entitled to be paid an amount of bounty in respect of bountiable yarn may lodge a claim for payment to the person of the amount.
(3)
A claim under subsection (1) in respect of bountiable goods shall:
(a)
be in accordance with the appropriate approved form;
(b)
include such information as is, and such estimates as are, required by the form;
(c)
be signed and witnessed as required by section 10D; and
(d)
be lodged with a Collector for a State, or with the CEO, within 12 months after the day on which the last condition for the payment of bounty in respect of those goods became satisfied.
(4)
As soon as practicable after the lodgement of the claim, the CEO shall, after examining the claim and causing such inquiries as the CEO considers necessary to be made (including inquiries involving the exercise of powers under sections 15 and 16):
(a)
if the CEO is satisfied that the claim complies with subsection (3) and that the claimant is, or, if certain estimates are correct, is, otherwise entitled to be paid an amount of bounty in respect of the bountiable goods to which the claim relates:
(i)
except where subparagraph (ii) applies—approve, in writing, payment of the amount; or
(ii)
where:
(A)
the amount is different from the amount for which the claim was made;
(B)
the difference between those amounts is less than $50; and
(C)
the CEO is satisfied that the difference is not attributable to the person who made the claim deliberately overclaiming or underclaiming the amount of bounty;
approve, in writing, payment of the amount claimed; or
(b)
if the CEO is not so satisfied—refuse, in writing, to approve payment of bounty in respect of the goods to which the claim relates.
(5)
Where the CEO makes a decision under subsection (4) in relation to a claim approving, or refusing to approve, payment of bounty, not being a decision approving payment of the amount of bounty claimed that is made within 30 days after the lodging of the claim, the CEO shall cause to be served on the person who lodged the claim a notice in writing setting out the decision.

10AVariation of inadequate claim

(1)
Where a person who has lodged a claim under section 10 (whether or not the claim has been dealt with under subsection 10(4)) considers that the claim was, because of an inadvertent error, a claim for an amount of bounty in respect of bountiable yarn that was less than the amount of bounty that the person was entitled to claim in respect of those goods, the person may lodge a claim for payment to the person of the difference between the 2 amounts.
(2)
A claim under subsection (1) in respect of bountiable yarn shall:
(a)
be in accordance with the appropriate approved form;
(b)
include such information as is, and such estimates as are, required by the form;
(c)
be signed and witnessed as required by section 10D; and
(d)
be lodged with a Collector for a State, or with the CEO, within 12 months after the day on which the last condition for the payment of bounty in respect of those goods became satisfied.
(3)
Where a claim under subsection (1) relates to a claim under section 10 that has not been dealt with under subsection 10(4), the 2 claims shall be dealt with under subsection 10(4) as if they were one claim under section 10.
(4)
As soon as practicable after the lodgment of a claim under subsection (1) to which subsection (3) does not apply, the CEO shall, after examining the claim and causing such inquiries as the CEO considers necessary to be made (including inquiries involving the exercise of powers under sections 15 and 16):
(a)
if the CEO is satisfied that the claim complies with subsection (2) and that the claimant is, or, if certain estimates are correct, is, otherwise entitled to be paid an additional amount of bounty in respect of bountiable goods to which the claim relates—approve, in writing, payment of the additional amount; or
(b)
if the CEO is not so satisfied—refuse, in writing, to approve payment of an additional amount of bounty in respect of the goods to which the claim relates.
(5)
Where the CEO makes a decision under subsection (4) in relation to a claim approving, or refusing to approve, payment of an additional amount of bounty, not being a decision approving payment of the additional amount claimed that is made within 30 days after the lodging of the claim, the CEO shall cause to be served on the person who lodged the claim a notice in writing setting out the decision.

10BVariation of excessive claim

(1)
Where a person who has lodged a claim under section 10 (whether or not the application has been dealt with under that section) subsequently knows that the claim is for an amount of bounty in respect of bountiable yarn that exceeds the amount of bounty that the person was entitled to claim in respect of that yarn by more than $200, the person shall, within 28 days after discovering the excess, lodge an acknowledgment of the excess, being an acknowledgment that complies with subsection (2).
Penalty: $3,000.
(2)
An acknowledgment under subsection (1) in respect of bountiable yarn shall:
(a)
be in accordance with the appropriate approved form;
(b)
include such information as is, and such estimates as are, required by the form;
(c)
be signed and witnessed as required by section 10D; and
(d)
be lodged with a Collector for a State or Territory or with the CEO.
(3)
Where an acknowledgment relates to a claim under section 10 that has not been dealt with under that section, the claim shall be dealt with under that section as if it had been amended in accordance with the acknowledgment.
(4)
Where the CEO, after examining an acknowledgment under subsection (1) to which subsection (3) does not apply and causing such inquiries as the CEO considers necessary to be made (including inquiries under sections 15 and 16), is satisfied that there has been an overpayment of a claim by more than $200, the CEO shall cause to be served on the person who lodged the claim a demand for the repayment of the amount of the overpayment, and that person is liable to repay that amount to the Commonwealth.

10BACertain producers to give returns of costs

(1)
A producer of bountiable yarn shall, within 6 months after the end of each accounting period of the producer ending on or after the commencement of this section, that falls, or part of which falls, within the bounty period, lodge a return setting out particulars of the factory cost incurred by the producer in relation to bountiable yarn produced in that accounting period by the producer.
(2)
A return under subsection (1) in respect of bountiable yarn shall:
(a)
be in accordance with the appropriate approved form;
(b)
include such information as is, and such estimates as are, required by the form;
(c)
be signed and witnessed as required by section 10D; and
(d)
be lodged with a Collector for a State or with the CEO.
(3)
The CEO may, by notice signed by the CEO, require a producer of bountiable yarn who has lodged a return under subsection (1) to provide, within a period specified in the notice (not being a period of less than one month), a certificate, signed by a qualified accountant approved by the CEO for the purpose, to the effect that the particulars set out in the return are correct.
(4)
Without limiting the generality of subsection (3), the CEO, in considering whether a producer of bountiable yarn should be required to provide a certificate under that subsection, shall have regard to:
(a)
the extent of the claims for bounty made by the producer in the accounting period of the producer; and
(b)
the expense involved in obtaining the certificate.
(5)
The CEO shall not refuse to approve a qualified accountant for the purposes of subsection (3) in relation to a producer of bountiable yarn unless the CEO is satisfied that it is not appropriate to approve the accountant because of an association between the accountant and the producer.
(6)
A producer of bountiable yarn shall not refuse or fail to comply with subsection (1) or (2) to the extent that the producer is capable of complying with it.
Penalty: $3,000.
(7)
A producer of bountiable yarn shall not, in purported compliance with subsection (1) or (2), give information that is, or estimates that are, to the knowledge of the producer, false or misleading in a material particular.
Penalty: Imprisonment for 6 months.
(8)
Where a producer of bountiable yarn who is required to lodge a return under subsection (1) does not do so, the producer is not entitled to bounty, or to an advance on account of bounty, unless and until the return is lodged.

10BBAdjustment of claims following returns

(1)
Where the particulars of factory cost set out in a return under section 10BA in relation to an accounting period of a producer of bountiable yarn show a difference between that cost and the factory cost, or an estimate of factory cost, on which claims for bounty in respect of bountiable yarn lodged in respect of that period by the producer were based, the producer shall lodge with the return a statement in respect of the difference.

Penalty: $3,000.
(2)
Where a producer of bountiable yarn who is required to lodge a statement under subsection (1) does not do so, the producer is not entitled to bounty, or to an advance on account of bounty, unless and until the statement is lodged.
(3)
A statement under subsection (1) shall:
(a)
be in accordance with the appropriate approved form;
(b)
include such information as is required by the form; and
(c)
be signed and witnessed as required by section 10D.
(4)
Where a statement under subsection (1) is lodged by a producer of bountiable yarn in relation to an accounting period of the producer, the CEO shall, after examining the statement and causing such inquiries as the CEO considers necessary to be made (including inquiries involving the exercise of powers under sections 15 and 16):
(a)
if the CEO is satisfied that the statement complies with subsection (3) and that the producer is entitled to be paid an additional amount of bounty in respect of the bountiable yarn in relation to which claims for bounty were lodged in respect of that period—approve, in writing, payment of the additional amount;
(b)
if the CEO is satisfied that there has been an overpayment of bounty by more than $200 in respect of the bountiable yarn in relation to which claims for bounty were lodged in respect of that period—cause to be served on the producer a demand for the repayment of the amount of the overpayment; or
(c)
if paragraph (a) or (b) does not apply—decline, in writing, to adjust payments of bounty made in respect of claims lodged by the producer in respect of that period.
(5)
Where, under paragraph (4)(b), a demand for the repayment of an amount is served on a producer of bountiable yarn, the producer is liable to repay that amount to the Commonwealth.
(6)
Where the CEO makes a decision under subsection (4) in relation to a statement under subsection (1), the CEO shall cause to be served on the producer of bountiable yarn who lodged the statement a notice in writing setting out the decision.

10COther adjustments of claims

(1)
Subject to subsection (2), if the CEO becomes satisfied, otherwise than after examining an acknowledgment under section 10B or a statement under section 10BB, that there has been an overpayment of a claim for bounty by more than $200, the CEO shall cause to be served on the person who lodged the claim a demand for repayment of the amount of the overpayment, and that person is liable to repay that amount to the Commonwealth.
(2)
Where:
(a)
the amount of an overpayment of a claim for bounty, being an overpayment referred to in subsection (1), is not higher than $25,000; and
(b)
the CEO is satisfied:
(i)
that:
(A)
the overpayment was due to an error that did not involve any failure on the part of the person who lodged the claim to comply with this Act; and
(B)
the repayment of the amount of the overpayment would be unreasonable or would cause undue hardship to that person; or
(ii)
that:
(A)
the cost of endeavouring to recover the overpayment is so high; and
(B)
the amount likely to be recovered as a result of endeavouring to recover the overpayment is so low;
that taking action to recover the overpayment would not be justified;
the CEO may refrain from causing a demand for repayment of the amount of the overpayment to be served in accordance with that subsection.
(3)
Where, in accordance with subsection (2), the CEO refrains from causing a demand for repayment of the amount of an overpayment to be served in accordance with subsection (1), particulars of the amount shall be included in the return under section 19 for the year in which the CEO so refrained.

10DForms

(1)
Where, under this Act, a claim, acknowledgment, return or statement lodged by a person in accordance with an approved form is required to be signed and witnessed as required by this section, the form shall:
(a)
where the person is a natural person, be signed personally in the presence of a witness by:
(i)
the person; or
(ii)
another natural person authorised by the first‑mentioned person to sign forms under this Act on behalf of the first‑mentioned person;
(b)
where the person is a body corporate, be:
(i)
under the seal of the first‑mentioned person; or
(ii)
signed personally in the presence of a witness by a natural person authorised by the first‑mentioned person to sign forms under this Act on behalf of the first‑mentioned person; and
(c)
where the form is required to be signed by a natural person in the presence of a witness, state the name and address of the witness and contain a declaration signed by the witness stating that the form was signed in the presence of the witness.
(2)
For the purposes of this section, a person shall be taken to have authorised another person to sign forms under this Act on behalf of the first‑mentioned person if, and only if, the first‑mentioned person has so authorised the other person in writing delivered to the CEO, being writing:
(a)
where the first‑mentioned person is a natural person, that:
(i)
is signed personally in the presence of a witness by the first‑mentioned person; and
(ii)
states the name and address of the witness and contains a declaration signed by the witness stating that the writing was signed in the presence of the witness; or
(b)
where the first‑mentioned person is a body corporate—under the seal of the first‑mentioned person.

10ERecovery of repayments

(1)
Where a person is liable to repay an amount to the Commonwealth under section 8, 10B or 10C, the Commonwealth may recover that amount as a debt due to the Commonwealth by action in a court of competent jurisdiction.
(2)
Where a person is liable to repay an amount to the Commonwealth under section 8, 10B or 10C, that amount may be deducted from any other amount that is payable to the person under this Act and, where the first‑mentioned amount is so deducted, the other amount shall, notwithstanding the deduction, be deemed to have been paid in full to the person.

11Registration of premises

(1)
The regulations may prescribe conditions to be complied with, for the purposes of this Act, in connection with the carrying out at registered premises of any process in the production of bountiable yarn.
(2)
Where a person carries out, or proposes to carry out, at any premises in Australia any process in the production of bountiable yarn, he or she may apply to the CEO for the registration of those premises for the purposes of this Act.
(3)
If conditions have been prescribed under subsection (1), the CEO shall not register the premises unless he or she is satisfied that those conditions have been, or will be, complied with.
(4)
The CEO may require the applicant to furnish such information as the CEO considers necessary for the purposes of this Act, and may refuse to register the premises until the information is furnished to his or her satisfaction.
(5)
Subject to subsections (3) and (4), if, in the opinion of the CEO, any process in the production of bountiable yarn is, or is proposed to be, carried out at the premises in respect of which the application is made, he or she shall register those premises for the purposes of this Act.
(6)
Where the CEO is satisfied, in respect of any registered premises:
(a)
that no process in the production of bountiable yarn is being carried out at the premises;
(b)
that no process in the production of bountiable yarn is being carried out at the premises by the person who applied for the registration of the premises; or
(c)
if any conditions have been prescribed under subsection (1), that a process in the production of bountiable yarn is being carried out at the premises otherwise than in accordance with those conditions;
the CEO may, by notice in writing served either personally or by post on the occupier of the premises, and, if the occupier is not the person who applied for the registration of the premises, on that person, cancel the registration of the premises.
(7)
For the purpose of the application of section 29 of the Acts Interpretation Act 1901 to the service by post of a notice under subsection (6) of this section, such a notice posted as a letter addressed to the occupier, or to the person who applied for the registration of the premises, at the registered premises shall be deemed to be properly addressed.

12Accounts

(1)
A person is not entitled to bounty unless:
(a)
the person keeps, in writing in the English language, such accounts, books, documents and other records as correctly record and explain:
(i)
such particulars relating to the production (including the cost of production) of bountiable yarn in respect of which bounty is, or may become, payable as are specified by the CEO in a notice published in the Gazette; and
(ii)
such other particulars (if any) in relation to that yarn as are specified by the CEO by notice in writing served on the person; and
(b)
the person retains those accounts, books, documents and other records for at least 3 years after the day on which a claim under subsection 10(1) for bounty was made in respect of the yarn concerned.
(2)
For the purposes of this section, accounts, books, documents or other records shall be taken to be kept in writing in the English language if they are kept in a form in which they are readily accessible and readily convertible into writing in the English language.

13Securities

The CEO may require a person to whom bounty could become payable to give security, in an amount determined by the CEO, by bond, guarantee or cash deposit, or by all or any of those methods, for compliance by him or her with the provisions of this Act and the regulations, or for the purpose of an undertaking given by him or her for the purposes of this Act or the regulations, and where a person is so required to give security, he or she is not entitled to bounty, or an advance on account of bounty, unless he or she gives security in accordance with the requirement.

14Appointment of authorised officers

(1)
The CEO may, by writing signed by him or her, appoint:
(a)
a specified officer;
(b)
the officer for the time being holding, or performing the duties of, a specified office; or
(c)
officers included in a specified class of officers;
to be an authorized officer, or authorized officers, for the purposes of this Act.
(2)
In subsection (1), officer means an Officer of Customs within the meaning of the Customs Act 1901.

15Stock‑taking and inspection of production and accounts etc.

(1)
For the purposes of this Act, an authorized officer may, at all reasonable times, enter:
(a)
registered premises;
(b)
premises where there is stored bountiable yarn in respect of which bounty has been claimed, or, in the opinion of the authorized officer, is likely to be claimed; or
(c)
premises where there are kept any accounts, books, documents or other records relating to the production, storage, sale or use of bountiable yarn;
and may:
(d)
inspect or take stock of any bountiable yarn;
(e)
inspect any process in the production of any bountiable yarn; and
(f)
inspect the accounts, books, documents and other records relating to the production (including the cost of production), sale or other disposal, or use, of bountiable yarn;
and may make and retain copies of, or take and retain extracts from, any such accounts, books, documents and other records.
(2)
The occupier or person in charge of registered premises, or of premises referred to in paragraph (1)(b) or (c), shall provide the authorized officer with all reasonable facilities and assistance for the effective exercise of his or her powers under this section.
Penalty: $3,000.

16Power to require persons to answer questions and produce documents

(1)
A Collector or an authorized officer may, by notice signed by him or her, require a person whom he or she believes on reasonable grounds to be capable of giving information relevant to the operation of this Act in relation to the production (including the cost of production), sale or other disposal, or use of bountiable yarns to attend before him or her at a reasonable time and place specified in the notice and there to answer questions and to produce to him or her such accounts, books, documents and other records in relation to the production (including the cost of production), sale or other disposal, or use of bountiable yarns as are referred to in the notice.
(1A)
A notice under subsection (1) requiring a person to produce an account, book, document or record shall set out the effect of section 137.2 of the Criminal Code.
(2)
A Collector or an authorized officer may make copies of, or take extracts from, any accounts, books, documents or other records produced in pursuance of this section.
(3)
A person is not excused from answering a question or producing any accounts, books, documents or other records when required so to do under this section on the ground that the answer to the question, or the production of the accounts, books, documents or other records, might tend to incriminate him or her or make him or her liable to a penalty, but his or her answer to any such question or the production by him or her of any such account, book, document or other record is not admissible in evidence against him or her in proceedings other than proceedings for an offence against paragraph 18(1)(c) of this Act or a prosecution for an offence against section 136.1, 137.1 or 137.2 of the Criminal Code that relates to this Act.
(4)
Where a producer of bountiable yarns, or a person employed by a producer, has failed to attend or to answer a question, or to produce any account, book, document or other record, when required so to do under this section, bounty is not payable to the producer, unless the CEO otherwise directs, until the producer or that person has attended, answered the question or produced the account, book, document or other record, as the case may be.

17Power to examine on oath etc.

(1)
A Collector or an authorized officer may examine, on oath or affirmation, a person attending before him or her in pursuance of section 16 and, for that purpose, may administer an oath or affirmation to that person.
(2)
The oath or affirmation to be made by a person for the purposes of subsection (1) is an oath or affirmation that the answers he or she will give to questions asked him or her will be true.

18Offences

(1)
A person shall not refuse or fail:
(a)
to attend before a Collector or an authorised officer;
(b)
to take an oath or make an affirmation; or
(c)
to answer a question or produce an account, book, document or other record;
when so required under this Act.
Penalty: Imprisonment for 6 months.
(2)
Subsection (1) does not apply if the person has a reasonable excuse.
Note: A defendant bears an evidential burden in relation to the matter in subsection (2), see subsection 13.3(3) of the Criminal Code.
(7)
A person must not be convicted of:
(a)
both an offence against section 135.2 of the Criminal Code and an offence against or arising out of subsection 10B(1) of this Act; or
(b)
both an offence against section 135.2 of the Criminal Code and an offence against section 136.1, 137.1 or 137.2 of the Criminal Code;
in respect of the same claim for bounty.
(8)
A reference in subsection (7) to a person being convicted of an offence includes a reference to an order being made under section 19B of the Crimes Act 1914 in relation to a person in respect of an offence.

18ATime for prosecutions

A prosecution for an offence against this Act may be commenced at any time within 3 years after the commission of the offence.

18BRecovery of bounty on conviction

(1)
Where a person is convicted of an offence against subsection 10B(1) of this Act or an offence against section 135.2, 136.1, 137.1 or 137.2 of the Criminal Code that relates to this Act, the court may, in addition to imposing a penalty, order the person to pay to the Commonwealth an amount not exceeding the amount of any bounty or advance on account of bounty wrongfully obtained by the person.
(2)
Where:
(a)
a court makes an order under subsection (1) ordering a person to refund to the Commonwealth the amount of any bounty or advance on account of bounty; and
(b)
the court has civil jurisdiction to the extent of the amount;
the order is enforceable in all respects, as a final judgment of the court in favour of the Commonwealth.
(3)
Where:
(a)
a court makes an order under subsection (1) ordering a person to refund to the Commonwealth the amount of any bounty or advance on account of bounty; and
(b)
the court:
(i)
does not have civil jurisdiction; or
(ii)
has civil jurisdiction, but does not have civil jurisdiction to the extent of the amount;
the proper officer of the court shall issue to the CEO a certificate in the prescribed form containing the prescribed particulars.
(4)
The certificate may, in the prescribed manner and subject to the prescribed conditions (if any), be registered in a court having civil jurisdiction to the extent of the amount ordered to be refunded to the Commonwealth.
(5)
Upon registration under subsection (4), the certificate is enforceable in all respects as a final judgment of the court in favour of the Commonwealth.
(6)
The costs of registration of the certificate and other proceedings under this section shall, subject to the prescribed conditions (if any), be deemed to be payable under the certificate.

19Return for Parliament

(1)
The CEO shall, as soon as practicable after the end of each financial year in which bounty is paid, furnish to the Minister a return setting forth:
(a)
the name and address of each person to whom bounty was paid in that financial year;
(b)
the amount of bounty paid to each person in that financial year; and
(c)
such other particulars (if any) as are prescribed.
(2)
The Minister shall cause a copy of the return to be laid before each House of the Parliament within 15 sitting days of that House after the return is received by him or her.
(3)
In this section, bounty includes an advance on account of bounty under section 8.

21Applications for review

Applications may be made to the Administrative Appeals Tribunal for review of:
(a)
a refusal of the CEO to give an approval for the purposes of paragraph (b) of the definition of registered textile factory in subsection 2(1);
(b)
a determination by the CEO made for the purpose of subsection 3(1);
(c)
a decision of the CEO made for the purposes of section 9;
(d)
a decision of the CEO under paragraph 10(4)(a) approving payment of bounty;
(da)
a decision of the CEO under paragraph 10(4)(b) refusing to approve payment of bounty;
(db)
a decision of the CEO under paragraph 10A(4)(a) approving a payment;
(dc)
a decision of the CEO under paragraph 10A(4)(b) refusing to approve a payment;
(dd)
a decision of the CEO for the purposes of subsection 10B(4);
(dda)
a decision of the CEO under paragraph 10BB(4)(a) approving a payment;
(ddb)
a decision of the CEO for the purposes of paragraph 10BB(4)(b);
(ddc)
a decision of the CEO under paragraph 10BB(4)(c) declining to adjust a payment;
(de)
a decision of the CEO for the purposes of subsection 10C(1);
(e)
a refusal of the CEO to register premises under section 11;
(f)
a decision of the CEO made for the purposes of subsection 11(6); or
(g)
a requirement by the CEO under section 13.

Part 3Capitalisation grants 21APersons may make application for capitalisation grants

A person who is, or is likely to become, during the bounty period, a producer of bountiable yarn in Australia may make application to the Minister for a capitalisation grant.

21BNature of application

(1)
Applications under section 21A must:
(a)
be made in writing; and
(b)
be lodged with the Authority after the commencement of this section and before the end of the bountiable period or, if a lesser period is specified in the regulations, within that lesser period; and
(c)
include details of any bounty that the applicant has received or is likely to receive in respect of bountiable yarn produced before the day of the application; and
(d)
include an estimate of the amount of bounty that the applicant would be likely to receive, but for the operation of this Part, in respect of bountiable yarn produced on or after the day of the application; and
(e)
include details of advances on account of bounty received or applied for before the day of application; and

(f)
include a business plan setting out the matters referred to in subsection (2); and
(g)
include an estimate of the grant sought to enable implementation of the business plan, indicating the date from which the grant is sought and the manner of its application; and
(h)
include such other information as may be prescribed.
(2)
A business plan referred to in subsection (1) must set out:
(a)
the applicant’s business objectives in relation to the production in Australia of bountiable yarn; and
(b)
the applicant’s business objectives in relation to the production in Australia of any other TCF products; and
(c)
the applicant’s business objectives in relation to export initiatives in respect of TCF products produced in Australia; and
(d)
the applicant’s objectives in relation to occupational and environmental health and safety issues arising in respect of the production of TCF products in Australia; and
(e)
the applicant’s plans for achieving the objectives referred to in paragraphs (a), (b), (c) and (d) in terms of:
(i)
organisational restructuring; and
(ii)
investment (including investment in plant, equipment and manufacturing systems); and
(iii)
research and development (both within and outside Australia); and
(iv)
erection of purpose‑built buildings; and
(v)
debt and equity financing; and
(vi)
sales and marketing; and
(vii)
any other matters considered likely to assist in meeting those objectives;
during each financial year or part of a financial year ending after the date of the application and before the day following the end of the bounty period.

21CConsideration of applications by Authority

(1)
The Authority must consider each application as soon as practicable after it is received and, after having regard to the matters referred to in subsection (2), must make a report in writing to the Minister recommending that:
(a)
a grant equal to the grant sought in the application be made to the applicant; or
(b)
a grant less than the grant sought in the application be made to the applicant; or
(c)
no grant be made;
and provide reasons for the recommendation.
(2)
In preparing its report, the Authority must have regard to the following matters:
(a)
whether the grant sought, or any lesser grant that is consistent with the proposals set out in the application, would, in the opinion of the Authority, be likely to result in a lesser budgetary outlay by the Commonwealth, on a net present value basis, than the outlay required if the applicant had continued to claim bounty in respect of bountiable yarn produced without the benefits of a capitalisation grant;
(b)
whether, in the opinion of the Authority, the business plan provided in support of the application is financially viable;
(c)
whether, in the opinion of the Authority, the business plan provided in support of the application:
(i)
will promote the restructuring and revitalisation of the TCF industries so as to improve their efficiency and international competitiveness; and
(ii)
will reduce the dependence of those industries on assistance by the Commonwealth;
(d)
whether, in the opinion of the Authority, the business plan provided in support of the application will promote occupational and environmental health and safety;
(e)
whether, in the opinion of the Authority, the making of the grant sought, or any lesser grant that is consistent with the proposals set out in the application, accords with Australia’s international trade obligations.
(3)
Where the Authority is of the opinion that it needs more information to enable a proper consideration of the application, it may request the applicant in writing to supply it with such further information as is specified in the request within such time as is specified in the request.
(4)
If, without reasonable excuse, the applicant refuses or fails to comply with the request, the application is to be taken to have been withdrawn.
(5)
Where the Authority is of the opinion that it needs additional information in respect of payments, or likely payments, of bounty or of advances on account of bounty in respect of any TCF products produced in Australia by the applicant, it may, by notice in writing, request the CEO to supply that information.

21DAssessment of financial viability of business plans

The Authority may, if it considers it necessary, refer a business plan submitted by an applicant for a capitalisation grant to a suitably qualified person for an assessment of the plan’s financial viability.

21EMinister to consider report

(1)
The Minister, after considering a report provided to the Minister by the Authority, must, by notice in writing given to the applicant, inform the applicant:
(a)
that the Minister is prepared to make a capitalisation grant to the applicant of a specified amount, being an amount equal to or less than the amount sought in the application, on a specified day, on condition that the applicant enters, within a specified period ending before that specified day, into a capitalisation agreement with the Authority on behalf of the Commonwealth; or
(b)
that the Minister is not prepared to make a capitalisation grant to the applicant.
(2)
The day specified in a notice under subsection (1) is to be a day during the bounty period, being a day not earlier than the day the notice is given.
(3)
The Minister shall include in the notice to the applicant under subsection (1) a statement:
(a)
indicating the amount, if any, recommended to be granted in a recommendation under paragraph 21C(1)(a), (b) or (c); and
(b)
subject to subsection 21H(3), providing a broad statement of the reasons for the recommendation.
(4)
Where a person has been notified that the Minister is prepared to make a capitalisation grant on a particular day on condition that the person enters into a capitalisation agreement and the person enters into such an agreement in accordance with section 21F, the grant so notified is to be made to that person on that day.
(5)
An applicant who is informed in a notice under subsection 21E(1) that the Minister is prepared to make a capitalisation grant but who refuses or fails, within the specified period, to enter into a capitalisation agreement, shall be taken to have declined the grant.

21FCapitalisation agreements

(1)
A capitalisation agreement entered into between the applicant and the Authority may include such terms and conditions in respect of the grant as the Minister thinks appropriate for achieving the objectives of the business plan.
(2)
Without limiting the generality of the matters that may be dealt with in capitalisation agreements, each agreement is to identify the assets of the applicant (including assets proposed to be acquired) that are essential to achieving the objectives of the applicant’s business plan.
(3)
Where an applicant wishes to sell, lease or otherwise deal with an asset identified in a capitalisation agreement as essential to achieving the objectives of the applicant’s business plan, the applicant must make application to the Minister or to a person authorised by the Minister for agreement to that sale, lease or other dealing.
(4)
The Minister, or a person authorised by the Minister, on receipt of an application by an applicant in respect of a proposed sale, lease or other dealing with an asset identified as essential to achieving the objectives of the applicant’s business plan may, if, and only if, the Minister or that other person is satisfied:
(a)
that the asset has, for any reason, ceased to be essential to achieving those objectives; or
(b)
that the sale, lease or other dealing is not likely to prejudice the achieving of those objectives;
agree to the sale, lease or other dealing, either absolutely or on such conditions as the Minister or authorised person thinks appropriate.
(5)
Where:
(a)
an applicant:
(i)
fails to meet the terms and conditions included in a capitalisation agreement; or
(ii)
sells, leases or otherwise deals with an asset identified in a capitalisation agreement as essential to achieving the objectives of the applicant’s business plan otherwise than in accordance with the agreement of the Minister or other authorised person; and
(b)
the Minister makes a demand, in writing, for repayment of the capitalisation grant concerned within a period of 90 days of making that demand; and
(c)
the applicant fails, within that period, to repay that amount;
the amount becomes, on the expiration of the period, a debt due to the Commonwealth and may be recovered in a court of competent jurisdiction.
(6)
In subsections (3), (4) and (5), a reference to the applicant (other than a reference to the applicant in the expression the applicant’s business plan) includes a reference to a person having control of the applicant’s business affairs.

21GIdentified assets register

(1)
The Authority must establish and maintain a register to be known as the identified assets register.
(2)
Brief particulars of each asset that, in a capitalisation agreement entered into under section 21F, has been identified in accordance with subsection (2) of that section, must be included by the Authority in the register forthwith after that agreement is entered into.
(3)
The Authority must make the register available for inspection by members of the public during normal business hours.

21HDecisions to be made public

(1)
As soon as practicable after an applicant for a capitalisation grant:
(a)
enters into a capitalisation agreement in respect of such a grant; or
(b)
is to be taken to have declined such a grant; or
(c)
is refused such a grant;
the Authority must publish in the Gazette a statement informing the public of the grant sought and of the grant made or proposed to be made, or declined or refused, as the case requires.
(2)
The Authority must, on request by a member of the public made after the publication of the matters referred to in subsection (1) in respect of an application for a capitalisation grant, give to the person making the request a statement:
(a)
indicating the amount, if any, recommended to be granted in a recommendation under paragraph 21C(1)(a), (b) or (c); and
(b)
subject to subsection (3), providing a broad statement of the reasons for the recommendation.
(3)
In giving a statement of the reasons for a recommendation by the Authority to the Minister either to the applicant concerned or to a member of the public, the Authority must ensure that any matters that might:
(a)
inhibit the provision of information on a confidential basis to the Authority; or
(b)
adversely affect the business or commercial interests of any person;
have been removed from the statement.

21JRecipients of capitalisation grants not entitled to bounty

(1)
Where an applicant is offered a capitalisation grant, that person is, subject to the operation of subsection (2), not entitled to a payment of bounty in respect of any bountiable yarn the production of which was completed by that person on or after the day on which the grant is made.
(2)
Where an applicant who is offered a capitalisation grant refuses or fails, within the period specified by the Minister, to enter into a capitalisation agreement, subsection (1) is to be taken never to have come into effect.

21LRecovery of grant on conviction

(1)
Where a person is convicted of an offence against section 136.1, 137.1 or 137.2 of the Criminal Code that relates to this Part, the court may, in addition to imposing a penalty, order the person to refund to the Commonwealth the amount of any grant made to the person that, but for the commission of the offence, would not have been made.
(2)
Where:
(a)
a court makes an order under subsection (1) ordering a person to refund an amount to the Commonwealth; and
(b)
the court has civil jurisdiction to the extent of the amount;
the order is enforceable in all respects as a final judgment of the court in favour of the Commonwealth.
(3)
Where:
(a)
a court makes an order under subsection (1) ordering a person to refund an amount to the Commonwealth; and
(b)
the court:
(i)
does not have civil jurisdiction; or
(ii)
has civil jurisdiction, but does not have civil jurisdiction to the extent of the amount;
the proper officer of the court shall issue to the Secretary of the Department a certificate in the prescribed form containing the prescribed particulars.
(4)
The certificate may, in the prescribed manner and subject to the prescribed conditions (if any), be registered in a court having civil jurisdiction to the extent of the amount ordered to be refunded to the Commonwealth.
(5)
Upon registration under subsection (4), the certificate is enforceable in all respects as a final judgment of the court in favour of the Commonwealth.
(6)
The costs of registration of the certificate and other proceedings under this section shall, subject to the prescribed conditions (if any), be deemed to be payable under the certificate.

Part 4Miscellaneous 22Appropriations

Bounty, advances on account of bounty and capitalisation grants are payable out of the Consolidated Revenue Fund, which is appropriated accordingly.

23Regulations

The Governor‑General may make regulations, not inconsistent with this Act, prescribing all matters required or permitted by this Act to be prescribed, or necessary or convenient to be prescribed for carrying out or giving effect to this Act, and, in particular, prescribing:
(a)
the manner in which, and the time within which, applications for bounty are to be made;
(b)
the information to be furnished by applicants in connection with applications for bounty; and
(c)
penalties not exceeding $200 for offences against the regulations.

Notes to the Bounty and Capitalisation Grants (Textile Yarns) Act 1981

Note 1

The Bounty and Capitalisation Grants (Textile Yarns) Act 1981 as shown in this compilation comprises Act No. 103, 1981 amended as indicated in the Tables below.

All relevant information pertaining to application, saving or transitional provisions prior to 8 July 1997 is not included in this compilation. For subsequent information see Table A.

Table of Acts

Act	Number and year	Date of Assent	Date of commencement	Application, saving or transitional provisions
Bounty (Textile Yarns) Act 1981	103, 1981	24 June 1981	22 July 1981
Statute Law (Miscellaneous Amendments) Act (No. 1) 1982	26, 1982	7 May 1982	Part X (s. 72): 4 June 1982 (a)	S. 72(2) and (3)
Statute Law (Miscellaneous Amendments) Act (No. 2) 1982	80, 1982	22 Sept 1982	Part XIV (ss. 36–38): (b)	—
Customs Administration (Transitional Provisions and Consequential Amendments) Act 1985	39, 1985	29 May 1985	10 June 1985 (see s. 2 and Gazette 1985, No. S194)	S. 4
Customs Administration (Transitional Provisions and Consequential Amendments) Act 1986	10, 1986	13 May 1986	13 May 1986	S. 4
Bounty and Subsidy Legislation Amendment Act (No. 2) 1986	119, 1986	2 Dec 1986	S. 15: 20 Aug 1986 S. 16: 30 Dec 1986 Remainder: Royal Assent	Ss. 17 and 18
Bounty and Subsidy Legislation Amendment Act 1987	54, 1987	5 June 1987	Part II (ss. 4–8): 5 Sept 1986 Ss. 10(a) and 12: 1 Jan 1987 Part V (ss. 16–19): 20 Aug 1986 Part VI (ss. 20 and 21): 15 Apr 1986 Remainder: Royal Assent	Ss. 2(7), 3(2) and (3)
Bounty and Subsidy Legislation Amendment Act 1988	28, 1988	11 May 1988	11 May 1988	S. 2(6)
Bounty and Subsidy Legislation Amendment Act (No. 2) 1988	145, 1988	26 Dec 1988	S. 2(4): 1 Jan 1988 Remainder: Royal Assent	S. 2(2) and (3)
as amended by
Bounty Legislation Amendment Act 1990	42, 1990	16 June 1990	16 June 1990	S. 2(2) and (3)
Bounty Legislation Amendment Act 1990	42, 1990	16 June 1990	16 June 1990	S. 2(2) and (3)
Bounty (Textile Yarns) Amendment Act 1990	69, 1990	16 June 1990	16 June 1990	—
Bounty Legislation Amendment Act (No. 2) 1990	137, 1990	28 Dec 1990	28 Dec 1990	S. 2(2) and (4)
Bounty Legislation Amendment Act 1991	117, 1991	27 June 1991	1 July 1991	—
Bounty Legislation Amendment Act 1993	105, 1993	22 Dec 1993	S. 3 (in part) and s. 5: 19 Jan 1994 Remainder: Royal Assent	—
Customs, Excise and Bounty Legislation Amendment Act 1995	85, 1995	1 July 1995	S. 18 and Schedule 9 (items 4–9): Royal Assent (c)	S. 18
Statute Law Revision Act 1996	43, 1996	25 Oct 1996	Schedule 5 (items 36–38): Royal Assent (d)	—
Income Tax (Consequential Amendments) Act 1997	39, 1997	17 Apr 1997	1 July 1997	—
Tax Law Improvement Act 1997	121, 1997	8 July 1997	Schedule 6 (item 133): (e)	S. 4 [see Table A]
Criminal Code Amendment (Theft, Fraud, Bribery and Related Offences) Act 2000	137, 2000	24 Nov 2000	Ss. 1–3 and Schedule 1 (items 1, 4, 6, 7, 9–11, 32): Royal Assent Remainder: 24 May 2001	Sch. 2 (items 418, 419) [see Table A]
New Business Tax System (Capital Allowances—Transitional and Consequential) Act 2001	77, 2001	30 June 2001	Schedule 2 (item 16): Royal Assent (f)	Sch. 2 (item 488 (1)) (am. by 119, 2002, Sch. 3 [item 97]) [see Table A]
as amended by
Taxation Laws Amendment Act (No. 5) 2002	119, 2002	2 Dec 2002	Schedule 3 (item 97): (g)	—
Industry, Science and Resources Legislation Amendment (Application of Criminal Code) Act 2001	140, 2001	1 Oct 2001	2 Oct 2001	S. 4 [see Table A]

(a) The Bounty and Capitalisation Grants (Textile Yarns) Act 1981 was amended by Part X (section 72) only of the Statute Law (Miscellaneous Amendments) Act (No. 1) 1982, subsection 2(12) of which provides as follows:
(12)
The remaining provisions of this Act shall come into operation on the twenty‑eighth day after the day on which this Act receives the Royal Assent.
(b) The Bounty and Capitalisation Grants (Textile Yarns) Act 1981 was amended by Part XIV (sections 36–38) only of the Statute Law (Miscellaneous Amendments) Act (No. 2) 1982, subsection 2(5) of which provides as follows:
(5)
Part XIV shall be deemed to have come into operation on 22 July 1981.
(c) The Bounty and Capitalisation Grant (Textile Yarns) Act 1981 was amended by Schedule 9 (items 4–9) the Customs, Excise and Bounty Legislation Amendment Act 1995, subsection 2(1) of which provides as follows:
(1)
Subject to subsections (2), (3), (4), (5) and (6), this Act commences on the day on which it receives the Royal Assent.
(d) The Bounty and Capitalisation Grant (Textile Yarns) Act 1981 was amended by Schedule 5 (items 36–38) only of the Statute Law Revision Act 1996, subsection 2(1) of which provides as follows:
(1)
Subject to subsections (2) and (3), this Act commences on the day on which it receives the Royal Assent.
(e) The Bounty and Capitalisation Grants (Textile Yarns) Act 1981 was amended by Schedule 6 (item 133) only of the Tax Law Improvement Act 1997, subsections 2(2) and (3) of which provide as follows:
(2)
Schedule 1 commences on 1 July 1997 immediately after the commencement of the Income Tax Assessment Act 1997.
(3)
Each of the other Schedules (except Schedule 12) commences immediately after the commencement of the immediately preceding Schedule.
(f) The Bounty and Capitalisation Grants (Textile Yarns) Act 1981 was amended by Schedule 2 (item 16) only of the New Business Tax System (Capital Allowances—Transitional and Consequential) Act 2001, subsection 2(1) of which provides as follows:
(1)
Subject to subsection (2), this Act commences on the day on which it receives the Royal Assent.
(g) The New Business Tax System (Capital Allowances—Transitional and Consequential) Act 2001 was amended by Schedule 3 (item 97) only of the Taxation Laws Amendment Act (No. 5) 2002, subsection 2(1) (item 9) of which provides as follows:
(1)
Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, on the day or at the time specified in column 2 of the table.

Commencement information
Column 1	Column 2	Column 3
Provision(s)	Commencement	Date/Details
9. Items 79 to 99 of Schedule 3	Immediately after the commencement of section 2 of the New Business Tax System (Capital Allowances—Transitional and Consequential) Act 2001	30 June 2001

Table of Amendments

ad. = added or inserted am. = amended rep. = repealed rs. = repealed and substituted
Provision affected	How affected
Title........................................	am. No. 69, 1990
Heading to Part 1...................	ad. No. 69, 1990
S. 1.........................................

am. No. 69, 1990
S. 1A......................................	ad. No. 39, 1985
am. No. 69, 1990; No. 85, 1995
S. 2.........................................	am. No. 39, 1985; No. 119, 1986; No. 54, 1987; No. 145, 1988 (as am. by No. 42, 1990); No. 69, 1990; No. 117, 1991; No. 85, 1995
S. 3.........................................	rs. No. 54, 1987
am. No. 117, 1991; No. 85, 1995; Nos. 39 and 121, 1997; No. 77, 2001
S. 3AA....................................	ad. No. 54, 1987
rs. No. 28, 1988
am. No. 137, 1990
rep. No. 117, 1991
S. 3A......................................	ad. No. 119, 1986
S. 3B......................................	ad. No. 140, 2001
Heading to Part 2...................	ad. No. 69, 1990
S. 4.........................................	am. No. 54, 1987; No. 85, 1995
S. 5.........................................	am. No. 69, 1990; No. 85, 1995; No. 43, 1996
S. 6.........................................	am. No. 119, 1986; No. 145, 1988; No. 117, 1991
S. 7.........................................	am. No. 42, 1990; No. 85, 1995
S. 8.........................................	am. No. 39, 1985
rs. No. 119, 1986
am. No. 85, 1995
S. 9.........................................	rs. No. 54, 1987
am. No. 85, 1995
S. 10.......................................	am. No. 39, 1985
rs. No. 119, 1986
am. No. 117, 1991; No. 85, 1995
S. 10A....................................	ad. No. 119, 1986
am. No. 85, 1995
S. 10B....................................	ad. No. 119, 1986
am. No. 42, 1990; No. 85, 1995; No. 140, 2001
S. 10BA..................................	ad. No. 54, 1987
am. No. 42, 1990; No. 85, 1995
S. 10BB..................................	ad. No. 54, 1987
am. No. 42, 1990; No. 105, 1993; No. 85, 1995
S. 10C....................................	ad. No. 119, 1986
am. No. 54, 1987; No. 42, 1990; No. 85, 1995
S. 10D....................................	ad. No. 119, 1986
am. No. 85, 1995
S. 10E....................................	ad. No. 119, 1986
S. 11.......................................	am. No. 39, 1985; No. 85, 1995; No. 43, 1996
S. 12.......................................	am. No. 39, 1985
rs. No. 54, 1987
am. No. 85, 1995
S. 13.......................................	am. No. 39, 1985; No. 85, 1995; No. 43, 1996
S. 14.......................................	am. No. 80, 1982; No. 39, 1985; No. 119, 1986; No. 85, 1995; No. 43, 1996
S. 15.......................................	am. No. 54, 1987; No. 42, 1990; No. 43, 1996
S. 16.......................................	am. No. 10, 1986; No. 54, 1987; No. 42, 1990; No. 85, 1995; No. 43, 1996; No. 137, 2000
S. 17.......................................	am. No. 43, 1996
S. 18.......................................	am. No. 80, 1982
rs. No. 54, 1987
am. No. 42, 1990; No. 137, 2000; No. 140, 2001
S. 18A....................................	ad. No. 54, 1987
S. 18B....................................	ad. No. 54, 1987
am. No. 85, 1995; No. 137, 2000
S. 19.......................................	am. No. 26, 1982; No. 85, 1995; No. 43, 1996
S. 20.......................................	am. No. 39, 1985
rep. No. 54, 1987
S. 21.......................................	am. No. 39, 1985; No. 119, 1986; No. 54, 1987; No. 85, 1995
Part 3 ..................................... (ss. 21A–21H, 21J–21L)	ad. No. 69, 1990
Ss. 21A, 21B..........................	ad. No. 69, 1990
S. 21C....................................	ad. No. 69, 1990
am. No. 85, 1995
Ss. 21D–21H, 21J..................	ad. No. 69, 1990
S. 21K....................................	ad. No. 69, 1990
rep. No. 137, 2000
S. 21L.....................................	ad. No. 69, 1990
am. No. 137, 2000
Heading to Part 4...................	ad. No. 69, 1990
S. 22.......................................	am. No. 69, 1990

Table A

Application, saving or transitional provisions

Tax Law Improvement Act 1997 (No. 121, 1997)

Application of amendments

An amendment made by an item in a Schedule (except Schedule 1) applies to assessments for the 1997‑98 income year and later income years, unless otherwise indicated in that Schedule.
Criminal Code Amendment (Theft, Fraud, Bribery and Related Offences) Act 2000 (No. 137, 2000)

Schedule 2

418

Transitional—pre‑commencement offences

(1) Despite the amendment or repeal of a provision by this Schedule, that provision continues to apply, after the commencement of this item, in relation to:
(a)
an offence committed before the commencement of this item; or
(b)
proceedings for an offence alleged to have been committed before the commencement of this item; or
(c)
any matter connected with, or arising out of, such proceedings;
as if the amendment or repeal had not been made.
(2) Subitem (1) does not limit the operation of section 8 of the Acts Interpretation Act 1901.

419

Transitional—pre‑commencement notices

If:
(a)
a provision in force immediately before the commencement of this item required that a notice set out the effect of one or more other provisions; and
(b)
any or all of those other provisions are repealed by this Schedule; and
(c)
the first‑mentioned provision is amended by this Schedule;
the amendment of the first‑mentioned provision by this Schedule does not affect the validity of such a notice that was given before the commencement of this item.
New Business Tax System (Capital Allowances—Transitional and Consequential) Act 2001 (No. 77, 2001)

Schedule 2

488

Application

(1) Subject to this item, the amendments made by this Schedule apply to:
(a)
depreciating assets:
(i)
you start to hold under a contract entered into after 30 June 2001; or
(ii)
you constructed where the construction started after that day; or
(iii)
you start to hold in some other way after that day; and
(b)
expenditure that does not form part of the cost of a depreciating asset incurred after that day.
Industry, Science and Resources Legislation Amendment (Application of Criminal Code) Act 2001 (No. 140, 2001)

4Application of amendments

(1)
Each amendment made by this Act applies to acts and omissions that take place after the amendment commences.
(2)
For the purposes of this section, if an act or omission is alleged to have taken place between 2 dates, one before and one on or after the day on which a particular amendment commences, the act or omission is alleged to have taken place before the amendment commences.