EXPLANATORY STATEMENT
ACIS STAGE 2 MOTOR VEHICLE PRODUCER RESEARCH AND DEVELOPMENT SCHEME VARIATION 2009 (No. 1)
General Outline
The ACIS Stage 2 Motor Vehicle Producer (MVP) Research and Development (R&D) Scheme is made under the authority of the ACIS Administration Act 1999, for Stage 2 of ACIS, concluding on 31 December 2010. The aim of the Scheme is to encourage the Australian automotive industry to invest in high-end R&D technologies. It is a merit-based Scheme providing up to $142.8 million in capped duty credits drawn from the Automotive Competitiveness and Investment Scheme (ACIS) to MVPs for successful projects. The Scheme requires that any unallocated duty credits remaining when the Scheme ceases be returned to the pool of capped ACIS duty credits available for MVPs for the final quarter of Stage 2 of ACIS.
Since the commencement of the Scheme there have been two merit selection rounds, with projects to the value of $91.8 million being supported. Given the conclusion date for the Scheme and the implementation of the Green Car Innovation Fund, which also supports research and development projects for the automotive industry, no further merit selection rounds will be conducted. This means that the $142.8 million in duty credits available under the Scheme has not been fully utilised by the projects selected for support.
The variation to section 8 of the Scheme returns $50 million in capped duty credits to ACIS for distribution to MVPs over the remaining five quarters of Stage 2 of ACIS.
Legislative Authority
Sections 60A and 60B of the ACIS Administration Act 1999 (the Act) provide the authority for this variation.
Financial Implications
The total value of assistance to be provided to MVPs by way of capped duty credits for Stage 2 of ACIS, whether distributed under ACIS or the ACIS Stage 2 MVP R&D Scheme, remains unchanged.
Consultation
This amendment resulted from ongoing consultations with:
- the Department of Innovation, Industry, Science and Research’s program delivery arm, AusIndustry, which has day-to-day administrative responsibility for the Scheme;
- the Australian Government Solicitor;
- the Federal Chamber of Automotive Industries (FCAI), the peak industry body representing the MVPs; and
- members of FCAI.
Notes on Sections to be Varied
Section 1 Name of Variation
This prescribes the name of the instrument as the ACIS Stage 2 Motor Vehicle Producer Research and Development Scheme Variation 2009 (No. 1).
Section 2 Commencement
Section 2 provides for the instrument to commence on the day after it is registered in accordance with the Legislative Instruments Act 2003.
Section 3 Variation of ACIS Stage 2 Motor Vehicle Producer Research and Development Scheme 2004
This is the formal provision that provides for the variation of the ACIS Stage 2 Motor Vehicle Producer Research and Development Scheme 2004 as outlined in Schedule 1.
Schedule 1 Variation
- Section 8 — Amount of credits available under this Scheme
The amendment to section 8 changes the amount of credits available under the Scheme from $142.8 million to $92.8 million.