1986

THE PARLIAMENT OF THE COMMONWEALTHOF AUSTRALIA

SENATE

SUBSIDY (CULTIVATION MACHINES AND EQUIPMENT) BILL 1986

EXPLANATORY MEMORANDUM

(Circulated by the Authority of the Minister for Industry,Technology and Commerce, Senator the Honourable John N. Button)

15478/86 Cat. No. 86 5302 X

Printed by Authority by the Commonwealth Government Printer

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Subsidy (Cultivation Machines and Equipment Bill 1986

Outline

This Bill proposes the introduction of new assistancearrangements for certain farm machinery, by replacing thecurrent tariff protection with a subsidy to local producers ofsoil preparation and cultivation machinery and parts and asubsidy equivalent to the net Customs duty payable on suchimported machines and parts, imported prior to 15 April 1986and sold on or after that date. The Bill seeks to implementthe Government’s undertaking in the Rural Economic PolicyStatement of 15 April 1986 that the tariffs on certaincultivation machinery would be replaced with direct assistanceto local producers from that date until 31 December 1990, andgives effect, in the main, to the Industries AssistanceCommission’s recommendations on this industry, contained inits report of 16 June 1986.

The new assistance arrangements proposed by the Bill providefor

(a) a subsidy to be payable on certain cultivation machineryand parts produced in Australia during the subsidy period(15 April 1986 — 31 December 1990), at a rate of

l0~ of the sales value of the machinery (te theex-—factory selling price), less an amount for anysubsidy already paid on locally produced partsincorporated in the machinery, or tariff assistancenotionally accorded to such imported parts(sub clause 12(2)),. (b) a subsidy to be payable for stocks of the same machinery

as in (a), which were on hand on 15 April 1986, at a rateof

• l07~ of the sales value of the machinery (sub—clause~ and

(c) a subsidy payable on imported cultivation machinery andparts, entered for home consumption prior to 15 April 1986and sold on or after that date, at a rate equivalent to

the net amount of any Customs duty paid (Clause 13)

The current duty on imported cultivation machinery and partsis to be removed, effective on and from 15 April 1986, inconsequential amendments proposed in the Customs TariffAmendment Bill No. 3 of 1986.

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The Bill also includes a range of standard administrativeprovisions to govern the implementation of the new assistanceregime, which are common to all recent Bounty and SubsidyActs. In particular,

• (Clauses 17 to 22) relate to the variousadministrative requirements for the lodgement ofsubsidy claims and the obligations imposed on subsidyclaimants to verify and adjust claims in specifiedinstances;

• (Clause 23), te the registration of premises,empowers the Comptroller—General of Customs toregister premises under the Act where such premiseswere not engaged in the production of subsidisedequipment on 15 April 1986 (the day of theGovernment’s announcement of the new subsidyarrangements) unless the Minister has informed theComptroller—General that such registration will notpermit the orderly development of the Australianindustry;

• (Clauses 26 to 32) relate to the various powers toinvestigate matters relevant to the Bill, and thepenalties applicable for offences against theprovisions of the Bill; and

(Clauses 33 to 39) relate to various miscellaneousmatters, including the power of delegation, review bythe Administrative Appeals Tribunal, theappropriation of monies to finance the subsidy andthe standard regulation—making power.

Financial Impact Statement

It is expected that subsidy payments in 1986/87 under thisBill will be approximately $16.8m. In that same periodrevenue foregone in permitting duty free entry under theproposed consequential amendments to the Customs Tariff Act

1982 will amount to approximately $2m. S

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NOTES OF CLAuSES

PART I PRELIMINARY

Short title

Clause 1 is a formal machinery clause.

Commencement

Clause 2 provides for the Act to be deemed to have comeinto operation on 15 April 1986, the date of theGovernment’s Rural Economic Policy Statement.

General administration of Act

Clause 3 provides for the Comptroller—General of Customsto have the general administration of the Act.

Intrpretion

Clause 4 Sub—clause (1) defines a number of words andexpressions for the purposes of the legislation,and in particular defines:

— “importer”, to mean, in relation tosubsidised equipment, the person who wasthe beneficial owner of the equipment atthe time of its arrival in Australia, orsuch other person as is determined by theComptroller—General of Customs to havesubsequently taken over the rights of thefirst—named person prior to the lodgementof a claim for the payment of the subsidyunder this Act in respect of the equipment;

— “manufacturer” to mean, in relation tosubsidised equipment:

(a) a person who, at premises registeredin his or her name under the Act,carries out a substantial process orsubstantial processes in themanufacture of the equipment. Personsin Australia who only producesoftware, carry out design, researchor development, develop or testprototypes or carry on systemsengineering are not to be regarded asmanufacturers; or,

(b) a person who arranges with anothermanufacturer of equipment for thecarrying out at registered premises ofa substantial process or substantialprocesses in the manufacture of theequipment; or,

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(c) a person who carries on the businessof trading in subsidised equipment andwho acquired ownership of equipmentpursuant to a firm order placed priorto the commencement of this Act underarrangements known as “OriginalEquipment Manaufacture” or OEMagreements.

— “subsidised equipment” to mean a subsidisedcultivation machine or subsidisedcultivation equipment, which constitutesthe range of machinery and parts that areeligible for subsidy assistance under theAct. The eligible products are identifiedby reference to tariff items in Schedule 3to the Customs Tariff Act 1982, and to theuse of the equipment for farm relatedactivities;

— “subsidy period” to mean the periodcommencing on 15 April 1986 and ending onthe terminating day;

— “terminating day” to mean 31 December 1990or such later day, not being a day laterthan 30 June 1991, as is fixed by theMinister by notice published in the Gazettebefore 31 December 1990.

This is a mechanism to enable theMinister to extend the assistanceunder the Act, for up to 6 months, toaccommodate potential unforseen delayswhich might arise in the process ofIndustries Assistance Commissionreporting and Government considerationof the appropriate assistancearrangements, if any, to applyfollowing termination of the Act;

Sub—clause (2) provides that a subsidised Scultivation machine (the equipment which iseligible for subsidy assistance under the Act)will not satisfy one of the pre—conditions ofassistance (ie. — that the equipment be used incommercial agriculture) where the machine hasbeen used only in a demonstration for thepurpose of promoting the sale of such machines;

Sub—clause (3) deems, for the purposes of thisAct, the Customs Tariff Act to be amended on thesame day on which a Customs Tariff alterationproposal in the Parliament to amend Schedule 3is deemed to take effect;

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Sub—clause (4) sets out the circumstances underwhich two persons are to be deemed associates ofeach other for the purposes of the Act.

Effect of amendments of Tariff Act

Clause 5 protects manufacturers who have commencedmanufacturing “subsidised” equipment from losingtheir eligibility for subsidy through anamendment to the Customs Tariff Act, whichresults in the particular goods ceasing to beclassified within the tariff item nominated inthe definition of “subsidised equipment”;

— where the manufacture of such equipment iscommenced before the day of the CustomsTariff Act amendment, and completed afterthat day, the equipment will be deemed tohave been completed before the relevantday, and thus eligible for subsidy.

Sales Value

Clause 6 Sub—clause (1) deems the sales value ofequipment, being subsidised equipment orequipment used in the manufacture of subsidisedequipment (for the purpose of calculating theamount of subsidy payable on subsidisedequipment) to be the amount ascertained inaccordance with the formula A — (B + C) where;

— A is the ex—factory price that was chargedor will be charged by a manufacturer ofsuch equipment to “dealers” of suchequipment,

— B and C are the various costs which are tobe deducted from the above ex—factory priceof subsidised equipment. Specificallyexcluded are;

• freight costs in respect of deliveryfrom the premises where the lastsubstantial manufacturing process wascarrLed out and

• other costs as prescribed byregulation;

Sub—clauses (2) and (3) provide that where themanufacturer of subsidised equipment has notcharged or does not propose to charge anex—factory price for the equipment, or where theComptroller—General is unable to verify thatprice, the Comptroller—General may determine, inwriting, the sales value of that equipment forthe purposes of the Act;

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Sub—clause (4) permits the Comptroller—Generalto determine the sales value of relevantequipment where the Comptroller is satisfied therelevant price charged by the manufacturer hasbeen influenced by an other than commercialrelationship between the manufacturer and thepurchaser;

Sub—clause(5) obliges the Comtproller, whenmaking determinations concerning an ex—factoryprice for sales value, to have regard to thelowest price charged for comparable equipment byother manufacturers or importers in Australia.

Accounting period

Clause 7 provides that the accounting period of amanufacturer, for the purposes of the Act, is tobe the 12 month accounting period of themanufacturer. If the manufacturer has no suchaccounting period, the accounting period for thepurposes of the Act is to be the financial year.

Uniformity

Clause 8 prohibits the exercise of any power under theAct in a manner which would result in subsidynot being uniform throughout the Commonwealth.

PART II —SUBSiDY

Specification of subsidy — manufactured subsidised ~ui2~j~,

Clause 9 provides for subsidy to be payable on theproduction in Australia of subsidised equipment,to the manufacturer or manufacturers of suchequipment, provided;

sub—clause (3) —

(a) all processes in the manufacture of theequipment carried out in Australia by themanufacturer are carried out at registeredpremises;

(b) the last substantial process in themanufacture of the equipment was carriedout at registered premises;

(c) the manufacture of the equipment wascompleted during the subsidy period; and

(d) no components or materials used in themanufacture of the equipment have beenpreviously used, re—conditioned or rebuilt;

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sub—clause (4) provides that subsidy is notpayable on a subsidised cultivation machineunless, during the subsidy period, the machine

(a) was sold, or otherwise disposed of, for usein Australia; or

(b) was sold, or otherwise disposed of, to theCommonwealth; or

(c) was prepared for sale by the manufacturer,held in the manufacturer’s stock and listedin the manufacturer’s inventory of stock.

sub—clause (5) provides that subsidy is not tobe payable on the manufacture of a subsidisedcultivation machine if, before the commencementof the Act (i.e. — 15 April 1986), the machine;

(a) was sold, or otherwise disposed of, to a

person for use in commercial agriculture, or

(b) was used in commercial agriculture.

sub—clause (6) provides that subsidy is notpayable on subsidised cultivation equipment (ieparts or accessories for subsidised cultivationmachines) unless, during the subsidy period, theequipment was sold, disposed of, or prepared forsale in the same ways outlined in sub—clause(4), or the equipment was used by themanufacturer in Australia in connection with therepair or servicing of subsidised equipment.

sub—clause (7) provides that subsidy is notpayable to a manufacturer on the manufacture ofsubsidised cultivation equipment if theequipment was used by the manufacturer in themanufacture of a subsidised cultivation machineby that manufacturer. This in effect prevents“double dipping” under the Act, ie, receivingsubsidy for both parts and the actual machineryfor which subsidy is payable.

sub—clauses (8) and (9) are essentiallytransitional provisions, deeming the manufactureof subsidised equipment to have been commencedor completed on the commencement date of thisAct, ie, 15 April 1986, in order to ensure thatsuch equipment becomes eligible for assistanceunder the Act. The rate of assistance forequipment actually manufactured prior to15 April 1986 is set out in sub—clause 12(1).

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Specification of subsidy — tmported subsidised equipment

Clause 10 sets out the conditions under which subsidy(equal to the net Customs duty — clause 13) willbe payable on imported subsidised equipment, tothe importer of the equipment. To be eligiblefor the subsidy, such equipment is required tohave been

imported into Australia and entered forhome consumption in accordance with theCustoms Act 1901 before 15 April 1986;(sub—clause (1));

and 5— sold or otherwise disposed of on or after

that date (sub—clause (3)) to;

(i) another person for use by that person

in commercial agriculture,(ii) the Commonwealth,

(iii) for use by a manufacturer in Australiaas original equipment in themanufacture of subsidised cultivationmachinery and the machinery was,during the subsidy period, sold, ornotherwise disposed of to —

• a person who carries on thebusiness of trading in subsidisedequipment,

a person for use in commercialagriculture, or

to the Commonwealth, or

(iv) for use in Australia in the service orrepair of subsidised cultivationmachinery.

Subsidy is not payable under this sectionin respect of the importation off subsidisedequipment if, before 15 April 1986, theequipment was --

(a) sold or otherwise disposed of to aperson for use by that person incommercial agriculture; or

(b) used in commercial agriculture.(sub—clause(4));

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Subsidy not payable

Clause~ 11 Sub—clause (1) provides that subsidy is notpayable under the Act to the Commonwealth, aState, or a Territory or an authority of theCommonwealth.

Sub—clause (2) further provides that subsidy isnot payable on equipment on which bounty has orwill become payable under the Subsidy (GrainHarvesters and Equipment) Act 1985.

Amount of subsidy — manufactured subsidised equipment

Clause 12 Sub—clause (1) sets out the rate of subsidypayable in respect of the production ofsubsidised equipment prior to 15 April 1986, asan amount equal to l0’7~ of the sales value of theequipment (i.e. - the ex—factory selling price).

Sub—clause (2) sets out the rate of subsidypayable in respect of the production ofsubsidised equipment, on or after 15 April1986, as

-- an amount equal to l0~ of the sales valueof the equipment (i.e. — the ex—factoryselling price), less

• the amount, if any, of any bounty orsubsidy paid or payable under anotherAct on locally produced parts orequipment incorporated in thesubsidised equipment and

an amount equal to a notional tariffof l2~~of the value for duty on anyimported parts or equipmentincorporated in the subsidisedequipment. This calculation isdesigned to ensure that imported partsor equipment (which enter duty--free)are not given additional assistance,as against locally—produced parts,etc., when incorporated in subsidisedequipment

Amount of subsidy — imported subsidised equipment

Clause 13 provides that the rate of subsidy payable onsubsidised equipment imported prior to 15 April1986 and not sold until after that date is to bean amount equal to the net appropriate Customsduty paid or payable on the equipment.

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Availability of subsidy

Clause 14 Sub—clause (1) provides for the method ofpayment of subsidy where the Comptroller—Generalis of the opinion that the amount available forpayment of subsidy in a given year will beinsufficient to meet all valid claims in thatyear.

Sub—clause (2) provides that if funds have notbeen appropriated by the Parliament for thepurposes of the subsidy in a financial year,then subsidy is not payable to a person in thatyear. 5

Good quality of subsidised equipment

Clause 15 provides that equipment is to be of good andmerchantable quality to be eligible for thepayment of subsidy:

— where the Comptrol.ler—General declares inwriting that, in his or her opinion, theequipment is not of such quality, subsidyis not payable in respect of thatequipment. That declaration is reviewableby the Administrative Appeals Tribunal(paragraph 35(l)(b)).

PART Ill - PAYMENTOF SUBSIDY

Advances on account of subsidy

Clause 16 authorises the payment of advances on account ofsubsidy, on such terms and conditions as areapproved by the Comptroller in writing(sub—clause (1)):

— where the amount of subsidy received by wayof advances exceeds the amount of subsidythat subsequently becomes payable on thegoods, or where subsidy does not becomepayable in respect of the goods, the amountof the excess, or the entire amount, as thecase may be, is repayable to theCommonwealth (sub—clauses (2) to (4)).

Claims for payment of subsidy

Clause 17 sets out the procedures to be followed inclaiming subsidy:

— a claimant is required to (sub—clause (3));

lodge a claim on an approved formproviding such information as is, andsuch estimates as are, required by theform;

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sign and witness the form as required

by proposed section 21 and

lodge the form with a Collector for aState, or with the Comptroller, within12 months after the day on which thelast condition for the payment ofsubsidy in respect of those goodsbecame satisifed;

a claim may not be made for anamount of subsidy that is lessthan $200, or such other amountas may be prescribed(sub—clause (2))

— the Comptroller is then obliged to examinethe claim and either (sub—clause (4));

approve in writing the payment of theamount, or

where the amount is different from theamount for which the claim was made,with the difference being less than$50, and the Comptroller is satisifiedthe difference is not attributable tothe person deliberately overclaimingor underclaiming the amount ofsubsidy, the Comptroller shallapprove, in writing, the payment ofthe amount claimed, or

• refuse, in writing to approve suchpayment;

• the decisions of the Comptroller toapprove or refuse the payment ofsubsidy are reviewable by theAdministrative Appeals Tribunal(paragraphs 35(1) (c) and Cd));

— the Comptroller is obliged to provide tothe claimant a notice setting out thedecision where there is a delay in theprocessing of the claim, or the claim isunsuccessful (sub—clause (5)).

Variation of inadequate claims

Clause 18 provides a mechanism for the variation of claimsfor the payment of subsidy where the claimantconsiders that, by reason of inadvertent error,the original claim is less than the claimant’sentitlement (sub—section (1));

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the procedure for the lodgement of asubsequent claim for the balance of subsidywhich is considered to be owing isidentical to the procedures that apply tooriginal claims for subsidy (see sub—clause17(2) (sub—clause k2~);

again, similar to the procedures that applyto original claims for subsidy, (seesub—clause 17(3), the Comptroller isobliged to examine the further claim forsubsidy and either approve or refuse thefurther payment of subsidy (sub—clause (4));

• the decisions of the Comptroller are 5reviewable by the AdministrativeAppeals Tribunal (paragraph 35(1) Ce)and~Uj);

— the Comptroller is obliged to furnish theclaimant with a notice in writing settingout the decision where there is a delay inthe processing of the claim or the claim isunsuccessful (sub~-section (5));

Variation of

Clause 19 imposes an obligation on a recipient of subsidyto lodge an acknowledgement of error, within 28days, where the recipient becomes aware that theoriginal claim for subsidy exceeds by more than$100 the claimant’s entitlement (sub—cl ~_Qj):

— the penalty for contravening sub—clause (1)is $1,000, for a natural person, or $5000for a body corporate

— the procedure for the lodgement of anacknowledgement form is similar to thatgoverning original claims (see sub—clause17(2)) (sub—clause2),

upon examination of the acknowledgement,where the Comptroller is satisifed therehas been an overpayment by more than $100,he or she shall cause to be served on theclaimant a demand for the repayment off theamount of the overpayment (sub—clause L41):

the decision of the Comptroller forthe above purposes is reviewable bythe Administrative Appeals Tribunal(paragraph 35(l)(g)).

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Other adjustments of claims

Clause 20 provides that the Comptroller shall serve ademand for the repayment of an overpayment of aclaim for subsidy in excess of $100, where theComptroller discovers such an overpayment in asituation other than through an acknowledgementunder clause 19 (sub—clause 1);

- the above decision of the Comptroller isreviewable by the Administrative AppealsTribunal (paragraph 35(l)(h)),

— where the amount of an overpayment referredto in sub—clause 1 is less than $25,000 andthe Comptroller is satisifed that

the overpayment was due to an errorthat did not involve any failure onthe part of the person who lodged theclaim to comply with the Act or theregulations and, repayment of theoverpayment would be unreasonable, orcause that person undue hardship, or,

the cost of endeavouring to recoverthe overpapyment is so high and theamount likely to be recovered as aresult of endeavouring to recover theoverpayment is so low that takingaction to recover the overpaymentwould not be justified,

the Comptroller may refrain from causing ademand to be served (sub—clause (2));

-- where the Comptroller elects not to proceedfor a repayment, particulars of therelevant amount shall be included in theannual return for Parliament (clause 33)for the year in which the Comptroller soacted (sub—clause (3)).

Forms

Clause 21 prescribes the conditions for the signing andwitnessing of the various forms which arerequired to be lodged pursuant to the Act.Authorised persons will be permitted to submitclaims or lodge returns on behalf of the legalclaimant (be that claimant a natural person or abody corporate), which should assist claimants,and expedite the processing of claims by theAustralian Customs Service.

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Recovery of repayments

Clause 22 allows the Commonwealth to recover amounts owingto it (by an action in a court for a debt due)particularly in situations where:

-- a person claims subsidy by way of anadvance which is not or does not becomepayable to him (clause 16) a person hasoverclaimed for subsidy (clause 19), or theComptroller—General discovers anoverpayment of subsidy (clause 20)(sub—clause (I));

— amounts owing to the Commonwealth by a 5person in any of the situations describedin sub—clause (1) may be deducted from anyamount that is payable to that person underthe Act, and where such a deduction ismade, the balance which is paid will bedeemed to have been the full amount(sub—clause (2)).

PART IV — ADMINiSTRATION

Registration of premises

Clause 23 sets out the requirements for the registrationof premises under the Act. A pre—requisite forthe payment of subsidy under the Act on theproduction in Australia of subsidised equipmentis that the equipment is manufactured atregistered premises (sub—clause (9)):

— registrable premises are restricted to 5premises that are used solely orprincipally for industrial or commercialpurposes (sub—clause (1));

- applications for the registration ofpremises are to be made to theComptroller—General in writing(sub—clause (2));

the Comptroller—General may require anapplicant for registration to furnishsuch further information as he or sheconsiders necessary and may refuseregistration until such furtherinformation is provided(sub—clause (7));

— on receipt of an application forregistration, the Comptroller—General shalleither (sub—clause (3)):

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register the premises and cause anotice to that effect to be served onthe applicant; or

refuse to register the premises andcause a notice to that effect to beserved on the applicant;

• . a decision of theComptroller—General refusing toregister premises is reviewableby the Administrative AppealsTribunal (clause 35(l)(k));

where premises are registered, theregistration shall date from the day theNotice of Registration is signed by theComptroller—General, or such earlier day asis specified in the Notice, not being a dayearlier than 15 April 1986 (sub—clause (4));

the decision of theComptroller-General concerningthe effective date ofregistration is reviewable by theAdministrative Appeals Tribunal(clause 35(l)(i));

— regulations may prescribe conditions to becomplied with in connection with themanufacture of subsidised equipment atregistered premises (sub—clause j~Jj;

if the conditions prescribed are notor will not be complied with, theComptroller—General shall not registerthe premises (sub-clause (6));

the registration of premises which were notengaged in the manufacture of subsidisedequipment prior to 15 April 1986 (the dateof the commencement of this Act) will bepermitted unless the Minister informs theComptroller—General that the registrationof the premises will not permit the orderlydevelopment in Australia of the industrymanufacturing subsidised equipment(sub—clause (8));

— registrations may be transferred on thesubmission of a joint application to theComptroller—General and shall take effectnot earlier than 6 months before the day onwhich the application for the transfer wasmade (sub—clauses (9) and (10));

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a decision of the Comptroller-Generaltransferring, or refusing to transfer,the registration of premises isreviewable by the AdministrativeAppeals Tribunal (clause 35(l)(m));

the Comptroller—General may cancel theregistration of premises where he or shebecomes satisfied that any one of thefollowing applies (sub—clause (11)):

(a) subsidised equipment is not beingmanufactured at the premises;

(b) the manufacture of subsidised Sequipment is being carried on bysomeone other than the person in whosename the premises are registered;

Cc) the manufacture is not being carriedout in accordance with prescribedconditions; or

(d) the premises are not being used solelyor principally for industrial orcommercial purposes;

a decision of theComptroller--General cancellingthe registration of premises isreviewable by the AdministrativeAppeals Tribunal(clause 35(l)(n)).

Accounts 5Clause 24 makes eligibility for subsidy conditional upon

the maintenance of appropriate commercialrecords. Such records are required to be:

— kept in writing in the English language (or 5be readily accessible and convertible intowriting in the English language(sub—clause (2)); and

— retained for at least 3 years after thedate of lodgement of a claim for subsidypursuant to clause 17 (sub—clause (1)).

Securities

Clause 25 confers upon the Comptroller the power torequire a person to whom subsidy could becomepayable to give security for compliance with theAct or any regulations made under it. Paymentof subsidy may be withheld until the requiredsecurity is given:

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- a decision off the Comptroller requiring aperson to give a security is reviewable bythe Administrative Appeals Tribunal(paragraph 35(l)(p)).

Appointment of authorised officers

Clause 26 empowers the Comptroller to appoint officers ofthe Australian Customs Service to be authorisedofficers, upon whom administrative functions maybe conferred, for the purposes of the Act.

Stocktaking and inspection of production and accounts, etc

Clause 27 empowers an authorised officer to enterregistered premises, or premises when there isstored subsidtsed equipment, to inspect anysubsidised equipment, any process in themanufacture of subsidised equipment and, theaccounts, books, documents or other recordsrelating to the manufacture or importation ofsuch equipment, and take copies of any suchrecords (sub—clause (j~j)

-- if the occupier or person in charge of theregistered premises fails to provide theauthorised officer with all reasonablefacilities and assistance, he or she isliable to a penalty of $1000 or, in thecase of a body corporate, $5000(sub—clause 2)).

Power to require persons to answer questions and producedocuments

Clause 28 empowers a Collector or an authorised officer torequire certain persons to attend before him orher to answer questions and produce documents inrelation to the manufacture or importation ofsubsidised equipment, and provides for thewithholding of subsidy payments until therequirements of this clause are met. TheCollector or an authorised officer must believeon reasonable grounds that the person is capableof giving information relevant to the operationof the Act (sub—clause (I));

sub—clause (3) creates an offence for notdisclosing that records prepared by oneperson and produced by another person inpursuance of a notice under sub-clause (I)are false or misleading, where the latterperson knows them to be false or misleading;

Penalty for breach — $1000, or 6months imprisonment or both (naturalperson) or $5000 (body corporate)

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sub--clause (5) prevents the use in criminalproceedings against a person, except undersub--clause (3) or paragraph 30 (3)(a) ofthe Act, of self—incriminating answersgiven and documents produced by that person.

Power to examine on oath, etc

Clause 29 provides for a Collector or an authorisedofficer to examine, on oath or affirmation,persons attending before him of her.

Of fences

Clause 30 creates offences for: 5refusing or failing to attend before aCollector or an authorised officer, or totake an oath or make an affirmation, or toanswer questions or produce documents whenso required pursuant to this Act(sub—clause (1));

Penalty $1000, or 6 monthsimprisonment or both (natural person)and $5000 (body corporate)

obtaining or attempting to obtain subsidythat is not payable (sub—clause(2))

• Penalty — fine not exceeding $10,000or imprisonment for five years, orboth (natural person) and a fine notexceeding $50,000 (body corporate)

• this offence is an indictable offence,which may be heard and determined in acourt of summary jurisdiction if thecourt is satisifed it is proper to doso, and the defendant and prosecutorconsent (sub—clauses (9) and (10)); 5• . where a Court of Summary

jurisdiction convicts a person ofan offence under sub—section (2)the penalties that the court mayimpose are $2000 or imprisonmentfor 12 months, or both (naturalperson) or $10,000 (bodycorporate) (sub—clause (11));

knowingly making statements, orally or inwriting, that are false or misleading in amaterial particular, or presenting anaccount, book or document that is to theknowledge of the person false or misleadingin a material particular (sub—clause (3));

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Penalty, $1000 or imprisonment for 6months, or both (natural person) and$5000 (body corporate).

where, in proceedings for an offenceagainst sub--sections (2) or (3),

it is necessary to establish a stateof mind on the part of a corporation,it is sufficient to show that adirector, servant or agent actingwithin the scope of his or her actualor apparent authority had that stateof mind (sub--clause (4));

any conduct so engaged in by thedirector, servant or agent (or anyother person at the direction of adirector, servant or agent) is deemedto have also been engaged in by thecorporation (sub--clause (5));

Time for prosecutions

Clause 31 provides that proceedings for offences againstthis Act are to commence within 3 years afterthe commission of the offence.

Recovery of subsidy on conviction

Clause 32 empowers a court to order a person convicted ofan offence under sub—clauses 19(1) or 30(2) or(3) to refund to the Commonwealth the amount ofsubsidy wrongfully obtained, in addition toimposing the penalty prescribed in thosesub—clauses against that person (sub—clause (1))

Sub—clauses (2)to (6) provide a procedure toensure that amounts of subsidy to be refundedunder sub—clause (1) do not fail to be recovereddue to jurisdictional difficulties.

PART V — MISCELLANEOUS

Return for Parliament

Clause 33 provides for the furnishing by the Comptrollerto the Minister (sub—clause (1)), and thetabling in Parliament by the Minister(sub—clause LZj)~of annual returns in relationto the amounts of subsidy paid during -the yearpursuant to the Act.

~~on

Clause 34 provides powers of delegation for the Minister.The Comptroller has a power of delegation forthe purposes of this Act by virtue of theCustoms Administration Act 1985 (Section 14).

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~pp]rj~cation for review

Clause3~ provides a right to apply to the AdministrativeAppeals Tribunal for review of specifiedadministrative decisions affecting the rights orentitlements of persons under the Act.

Statement to accompany notice of decisions

Clause 36 requires persons whose interests are affected byan administrative decision of a kind referred toin clause 35 to be notified of the rights ofreview of those decisions by the AdministrativeAppeals Tribunal.

Money to be appropriated

Clause 37 provides for payments of subsidy and advances onaccount of subsidy to be made out of moneyappropriated by the Parliament.

Transitional

Clause 38 provides that the penal provisions of this Actdo not operate prior to the day on which the Actreceives the Royal Assent.

Regulations

Clause 39 provides the standard power to make regulations

for the purposes of the Act.

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