1998-1999-2000

 

THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA

 

SENATE

 

 

ACIS ADMINISTRATION AMENDMENT BILL 2000

 

SUPPLEMENTARY EXPLANATORY MEMORANDUM

 

Amendments to be Moved on Behalf of the Government

 

 

(Circulated by authority of the Minister for Industry, Science and Resources,

Senator the Honourable Nick Minchin)

 

 

 

OUTLINE

 

The ACIS Administration Amendment Bill 2000 will implement some minor changes to the ACIS Administration Act 1999 , including introducing provisions to protect the scheme from potential contrivances.

 

One such provision is the proposed new section 6B, which is intended to prevent companies from receiving ACIS benefits for investment in plant or equipment that the company did not intend using for automotive production purposes.

 

The proposed amendment to that provision will ensure that the operation of the provision will achieve the policy intent.

 

 

FINANCIAL IMPACT STATEMENT

 

This amendment will have no additional financial impact.

 

 

NOTES ON CLAUSES

 

Schedule 1, Item 21, page 9

 

This provision will replace the proposed new section 6B in the ACIS Administration Amendment Bill 2000 to enable the section to work as intended, and plant and equipment that is sold will not be considered approved plant and equipment for the purposes of calculating ACIS benefits.

 

This means that where plant or equipment is bought and sold within a three year period, the investment in that plant and equipment will no longer be included in the quarterly moving average calculation of credits from the quarter that the plant or equipment is sold.