Development Allowance Authority Amendment Act 1993

Overview

The Development Allowance Authority Amendment Act 1993 (Act) was enacted by the Parliament of Australia to amend the Development Allowance Authority Act 1992, addressing specific issues related to the eligibility criteria for projects seeking development allowances. The Act modifies the existing legislation to introduce new definitions and alter certain provisions to broaden the scope of projects that may be eligible for development allowances. The objective is to ensure that the eligibility criteria for project expenditure are clearly defined and that applications are processed in a timely and structured manner, particularly for those involving motor vehicle industries and print media installations. The Act introduces a series of amendments to the Principal Act, including the insertion of new definitions for terms such as "ancillary printing unit", "eligible print media installation", and "motor vehicle industry". It also modifies the basic eligibility test for project expenditure and the timing of applications to ensure that the new criteria are applied consistently. Additionally, the Act specifies the criteria for granting applications, ensuring that the likelihood of the expenditure passing the competitiveness test is assessed under the new conditions.

Scope and Application

The Development Allowance Authority Amendment Act 1993 amends the Development Allowance Authority Act 1992. This Act applies to projects that are seeking development allowance from the Development Allowance Authority (DAA), particularly those in the motor vehicle industry and print media installations. The amendments exclude motor vehicle industry and motor vehicle industry activities from the basic eligibility test for project expenditure. The Act also introduces new definitions, including terms such as "ancillary printing unit," "eligible print media installation," "motor vehicle," "motor vehicle component," "motor vehicle industry," and "print media installation." The amendments specify the timing for applications for registration of expenditure, requiring such applications to be submitted to the DAA before a certain date. The Act allows for the exclusion of certain types of expenditure from the basic eligibility test and outlines criteria for granting applications. The Act is applicable nationally across Australia as it is enacted by the Parliament of Australia.

Key Provisions

The Development Allowance Authority Amendment Act 1993 amends the Development Allowance Authority Act 1992 in several key respects. Firstly, the Act introduces new definitions related to print media installations, motor vehicles, and the motor vehicle industry (Section 6). It defines terms such as "eligible print media installation," "ineligible print media installation," "motor vehicle," "motor vehicle component," "motor vehicle industry," and "motor vehicle industry activity." These definitions are critical for determining the eligibility of certain expenditures for development allowances. The Act also modifies the basic eligibility test for project expenditure (Section 5). Specifically, it adjusts the criteria to exclude the motor vehicle industry and motor vehicle industry activities from eligibility under certain conditions. This change ensures that only specific types of installations and activities qualify for the allowance, thereby refining the scope of the financial support provided under the Act. Additionally, the timing for applications for registration of expenditure has been revised (Section 6). The Act mandates that applications must be submitted to the Development Allowance Authority (DAA) before the later of two dates: the 29th day after the Act receives Royal Assent, or 1 October 1993. This stipulation ensures that there is a clear deadline for submission, facilitating timely processing of applications. Furthermore, the criteria for granting applications have been updated (Section 7). The Act now requires that it is reasonably likely that the expenditure will pass the competitiveness test if no substantial commitment to the project has occurred before 1 January 1993, or if the expenditure is attributable to an eligible print media installation. This change aims to ensure that projects which are likely to meet the competitiveness test are prioritized for approval. In terms of compliance and enforcement, breaches of the provisions outlined in the Act may result in various penalties. The Act does not explicitly state the penalties, but it is reasonable to infer that breaches could lead to the denial of development allowances, financial penalties, or other administrative consequences. The severity of these penalties would depend on the specific nature and extent of the breach, as well as any relevant guidelines or regulations that may be in place.