|
| Automotive Competitiveness and Investment Scheme |
| ACIS commenced on 1 January 2001 and is directed toward encouraging investment and innovation in the automotive industry. It is scheduled to end on 31 December 2005. ACIS rewards production, investment and R&D through the quarterly issue of import duty credit to registered participants. |
| Who can apply for registration? |
- Australian producers of at least 30,000 motor vehicles or 30,000 engines annually (MVPs);
- Australian producers of at least $500,000 of at least one kind of automotive component annually for use as original equipment (OE) in at least 30,000 motor vehicles or 30,000 engines (ACPs);
- Australian producers of at least $500,000 of OE annually, where that production represents at least 50% of the total value of a producer's automotive component production (ACPs);
- Australian producers of at least $500,000 of automotive machine tools or tooling annually, where at least 50% of that production is used to produce OE (AMTPs);and
- Australian providers of at least $500,000 of automotive services annually, where at least 50% of those services relate to the production of motor vehicles or OE (ASPs).
|
|
|
What are the benefits?
- 25% of the value of production of motor vehicles, engines and engine components, multiplied by the relevant tariff rate; and
- 10% of the value of new investment in plant and equipment.
|
ACPs, AMTPs and ASPs will be able to claim import duty credit equal to:
- 25% of the value of new investment in plant and equipment; and
- 45% of the value of investment in R&D.
|
| In those instances where MVPs produce automotive components, tooling or services for a third party, they will be eligible for the 25% investment incentive and the 45% R&D incentive. |
| How can duty credit be used? |
| Duty credit can be used to discharge duty on imports of certain automotive products |
| Item 41E of Schedule 4 of the Customs Tariff Act 1995 is the mechanism for entering eligible imports using duty credit. |
| Duty credit can be sold or traded. |
| Benefits will be 'capped' |
| The total benefits payable under ACIS will be capped at $2 billion over five years and also, no firm will be permitted to receive benefits exceeding 5% of its annual sales in the preceding year. |
| How can ACIS be accessed? |
| Firms wishing to access ACIS must first make an application for registration as either an MVP, ACP, AMTP or ASP. Once registered for the scheme, participants have an obligation to make quarterly returns for assistance. |
The registration application will contain:
- details of the applicant,
- the type of registration being applied for,
- details of production quantities and values for assessing eligibility, and
- a business plan which will allow an estimate to be made for the overall value of assistance likely to be claimed by the applicant over the duration of the scheme.
|
The details in the quarterly return will depend on the registration type but may contain:
- the value of production of motor vehicles (MVP),
- the value of investment in plant and equipment,
- the value of research and development undertaken
- any other Commonwealth assistance paid to each applicant on the basis of those activities, and
- ongoing eligibility requirements.
|
|
|
