This note is not part of the regulations, but is intended to indicate their general effect.
These regulations provide for a new forestry encouragement grants scheme and partially give effect to the 1982 Budget announcement that the tax deductibility of forestry establishment and maintenance expenditure currently available to companies and the forestry encouragement loan scheme available to local authorities are to be removed and companies and local authorities are to be eligible for forestry encouragement grants available to individuals, with the rate of grant reduced from 50 percent to 45 percent.
These regulations are to come into force on 1 April 1983 and apply to qualifying expenditure incurred on or after that date.
Regulation 2 provides for the interpretation.
Regulation 3 gives the holder of forestry encouragement loans the option of immediately changing to the grants under these regulations, or to continue to receive loan payments until the amount available has been paid.
Regulation 4 provides for 2 classes of grants, namely, production grants or protection and production grants.
Regulation 5 provides that the amount of the production grant for a year is to be 45 percent of the qualifying expenditure incurred in that year, and the amount of the protection and production grant is to be two-thirds of such expenditure. A protection and production grant is to be payable for a maximum of 3 years and therefore is to be treated as a production grant.
Regulation 6 sets out the eligibility for the grant.
Regulation 7 provides for payment of the grant.
Regulations 8 to 11 set out the procedure and consequences of the claim for the grant.
Regulation 12 provides for adjustments to be made to the amount of the grant otherwise payable where any motor vehicle, plant, or machinery, the depreciation on which has been claimed as qualifying expenditure, is sold for a consideration other than its depreciated value.
Regulation 13 provides for adjustment of incorrect claims.
Regulation 14 enables an appeal to be made to the Director-General where expenditure claimed as qualifying expenditure has been rejected.
Regulation 15 deals with offences.
Regulation 16 amends the Forestry Encouragement Loans Regulations 1967 so that no new loans can be made.
Regulation 17 deals with revocations.
The Schedule sets out the types of qualifying expenditure.