ACIS Administration (Commonwealth Financial Assistance) Determination 2009

Overview

The ACIS Administration (Commonwealth Financial Assistance) Determination 2009 was enacted to address the issue of double-dipping by participants in the Automotive Competitiveness and Investment Scheme (ACIS). This determination, signed by Minister Kim Carr on 21 January 2009, serves to clarify which forms of Commonwealth assistance are considered financial assistance for the purposes of reducing ACIS benefits. The ACIS Administration Act 1999 established ACIS to foster competitive investment and innovation in the Australian automotive industry, promoting sustainable growth. The objective of this determination is to ensure that ACIS participants do not receive financial benefits from both ACIS and other Commonwealth programs for the same activity, thereby maintaining the integrity and intended scope of the ACIS scheme. This determination updates the 2005 version to include recently announced automotive and broader industry assistance programs, further refining the eligibility criteria for financial assistance.

Scope and Application

The ACIS Administration (Commonwealth Financial Assistance) Determination 2009, signed by Minister Kim Carr on 21 January 2009, applies to the provisions of the ACIS Administration Act 1999, which governs the Automotive Competitiveness and Investment Scheme. This scheme is designed to foster competitive investment and innovation within the Australian automotive industry, facilitating sustainable growth both domestically and internationally amidst trade liberalisation. The scheme rewards eligible activities undertaken by registered participants through duty credits that can be used to offset Customs duty on eligible automotive imports or sold to other parties. The determination specifically targets the prevention of double-dipping, ensuring that participants do not receive overlapping benefits from both ACIS and other Commonwealth programs for the same activities. It includes a list of programs in Part 2 that provide financial assistance to the automotive industry based on production, investment in plant and equipment, or research and development, which are considered financial assistance for the purposes of ACIS. Conversely, programs that have their own clawback mechanisms or aim to improve the overall labour market are excluded and listed in Part 3 of the determination. This determination effectively updates and extends the scope of the ACIS Administration (Commonwealth Financial Assistance) Determination 2005, incorporating recent automotive and broader industry assistance programs into its purview.

Key Provisions

The ACIS Administration (Commonwealth Financial Assistance) Determination 2009 (subsection 11(3) of the ACIS Administration Act 1999) establishes criteria for determining whether certain forms of Commonwealth assistance are considered financial assistance for the purpose of calculating ACIS benefits. The primary objective of this determination is to prevent participants in the Automotive Competitiveness and Investment Scheme (ACIS) from receiving benefits from both ACIS and other Commonwealth programs for the same activity. This ensures that assistance is not duplicated and that ACIS remains an effective tool for encouraging competitive investment and innovation in the Australian automotive industry. The determination sets out specific criteria for assessing whether a Commonwealth program constitutes financial assistance under ACIS. Programs that provide assistance based on the production of motor vehicles, investment in automotive plant and equipment, or investment in research and development are considered financial assistance if they would be available to ACIS participants. These programs are detailed in Part 2 of the determination. Conversely, programs that have their own clawback mechanisms or aim to improve the overall labour market are not considered financial assistance for ACIS purposes and are listed in Part 3 of the determination. This distinction helps clarify which programs may impact ACIS benefits and which do not. Entities or individuals subject to the ACIS Administration Act 1999 must comply with the provisions of the determination when applying for or receiving benefits under ACIS. They must ensure that they do not receive additional benefits from other Commonwealth programs that are deemed financial assistance for ACIS purposes. By adhering to these guidelines, ACIS participants can avoid any potential disqualification or reduction in their ACIS assistance benefits. This requires careful monitoring and documentation of any other Commonwealth assistance received to ensure compliance with the determination. Failure to comply with the provisions of the ACIS Administration (Commonwealth Financial Assistance) Determination 2009 may result in penalties. Although specific penalties are not detailed in the explanatory statement, the overarching ACIS Administration Act 1999 likely includes provisions for both civil and criminal penalties for non-compliance. These may include fines, recovery of benefits, or other legal actions. It is essential for ACIS participants to be aware of these potential consequences and to ensure they are fully compliant with the determination to avoid any adverse outcomes.