On 10 November 2008 the Government announced a New Car Plan for a Greener Future. The centrepiece of the plan, the Automotive Transformation Scheme (ATS), aims to encourage competitive investment and innovation in the Australian automotive industry and place it on an economically sustainable footing. It is to be achieved in a way that improves environmental outcomes and promotes the development of workforce skills.
The ATS is established by the Automotive Transformation Scheme Act 2009. It replaces Stage 3 of the Automotive Competitiveness and Investment Scheme (ACIS).
Overview of the ATS
Applications are open for registration in the ATS are open to:
- motor vehicle producers (MVPs)
- automotive component producers (ACPs)
- automotive machine tool and automotive tooling producers (AMTPs)
- automotive service providers (ASPs).
The production of motor vehicles and components for use in the production of vehicles that have a gross vehicle weight exceeding 3.5 tonnes are not activities supported by the ATS. Please refer to Regulation 1.5 of the ATS Regulations 2010 and the Customer Guideline 3 - Registration.
The ATS have two stages that run from 1 January 2011 to 31 December 2020 and include:
- capped assistance of $1.5 billion from 2011 to 2015 (Stage 1)
- capped assistance of $1 billion from 2016 to 2020 (Stage 2)
- uncapped assistance of approximately $847 million.
Assistance will be progressively phased down over the period.
Modulation of payments will occur to ensure that assistance does not exceed $300 million per ATS year in ATS stage 1.
Participants in the ATS will be required to demonstrate progress towards achieving:
- economic sustainability
- improved environmental outcomes
- workforce skills development.
What are the benefits?
Participants will be entitled to receive assistance in the form of quarterly cash payments from 1 January 2011. All participants will be able to claim assistance for:
- 50 per cent of the value of eligible investment in R&D
- 15 per cent of the value of eligible investment in P&E.
MVPs will also be able to claim assistance for allowable production of motor vehicles, engines and engine components for local and export markets.
Capped funding will be split 55 per cent to motor vehicle producers and 45 per cent to non-MVPs.
You are eligible to apply for registration as a MVP if you produce in Australia at least 30,000 motor vehicles or 30,000 engines annually.
You are eligible to apply for registration as an ACP if you produce in Australia at least one kind of automotive component annually for use as original equipment in at least 30,000 motor vehicles or 30,000 engines and the production value of the component was at least $500,000 in the previous 12 months OR you produce in Australia original equipment components with a production value of at least $500,000 annually, comprising at least 50 per cent of the production value of all automotive components produced.
You are eligible to apply for registration as an AMTP if you produce in Australia automotive machine tools or automotive tooling with a production value of at least $500,000 annually, where at least 50 per cent of that value was for automotive machine tools and automotive tooling used to produce original equipment.
You are eligible to apply for registration as an ASP if you provide in Australia automotive services with a production value of at least $500,000 annually, where at least 50 per cent of the production value was for services related to the production of motor vehicles or original equipment.
All applicants for registration under the ATS must also forward a Business Plan to AusIndustry that contains:
- details of the strategies that will enable the applicant to carry on sustainable operations in the Australian automotive industry for a five year period starting on 1 January of the year of registration
- operational plans, details of financial commitment and controls, financial projections and assumptions on which forecasts in the application forms business plan are based
- details about how the applicant will meet the object of the Act to place the industry on an economically sustainable footing in a way that will improve environmental outcomes and promote the development of workforce skills.
Eligible start-up applicants and national interest applicants
The ATS allows entities that have entered into a financial commitment to carry on business for the first time as a motor vehicle producer or supplier to the Australian automotive industry to apply for registration. Other entities that are unable to satisfy the formal requirements for registration under the legislation may seek the Minister's permission to apply for registration on national interest grounds.
Potential applicants are advised to review Customer Guideline 3 - Registration and Customer Guideline 4 - Registration in the National Interest for further information about the registration form and process.
Applicants must apply for registration before 1 January of the ATS year for which registration is sought. Once registration is granted, it has effect for the entire scheme unless a participant is deregistered.
How do I apply?
ATS Application for Registration and ATS Registration in the National Interest forms and customer guidelines may be downloaded from the AusIndustry website or requested by email to ATS@innovation.gov.au
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