Automotive Transformation Scheme Update
In handing down its first Federal Budget the Liberal Government announced the early closure of the Automotive Transformation Scheme (ATS) from the legislated date of 31/12/2020 – to be terminated on 31/12/2017.
Budget papers confirm cuts to funding will save $618.5 million over the next 7 years resulting in $1 billion being available to all participants until the 31 December 2017.
AusIndustry monitoring conditions of ATS registrations
As eligible sales of automotive components decline, AusIndustry are closely monitoring the conditions of registration to ensure that claimants are still eligible to receive quarterly benefits as the scheme phases out. The conditions of registration for an Automotive Component Producer (ACP) are:-
(1) It is a condition of registration for an ATS participant who is an ACP that:
(a) The ACP produce in Australia at least one kind of automotive component for use as original equipment in at least 30 000 motor vehicles or in at least 30 000 engines and that the production value of the component be at least $500 000; or
(b) The production value of the automotive components produced in Australia by the ACP as original equipment is at least $500 000 and comprises at least 50% of the production value of all automotive components produced by the ACP.
(2) In subregulation (1):
(a) The ACP must meet the requirement in each ATS year following the ATS year in which the ACP’s registration takes effect; and;
(b) The production value of automotive components produced by the ACP is the total revenue from sales of the automotive components (excluding indirect tax) in the preceding 12 months.
Eligible ATS Plant & Equipment and Research & Development Investment
The impact from closing Australian manufacturing operations by Ford, Holden and Toyota has also resulted in reduced investments by registered participants in both eligible ATS Plant & Equipment and ATS Research and Development.
Participants should ensure that their records include secondary substantiation to support:
- apportionment of any Plant and Equipment investment claims and;
- time logged by staff in undertaking R&D investments
– Federal Government announces early closure to Automotive Transformation Scheme –
- Scope your potential to claim various grant programs
- Assist with the preparation and lodgement of grant applications
- Review or provide a health check on your internally prepared grant applications
- Establish record-keeping practices as required under various grant programs
- Provide prepayment loans against future cash refunds under the R&D Tax Incentive
- Keeping industry informed on all new Government policy and grant initiatives
Don’t hesitate to give us a call.