Commonwealth Consolidated Acts

DAIRY PRODUCE ACT 1986 - SECT 6

             (1)  The Consolidated Revenue Fund is appropriated for the purposes of payments by the Commonwealth under section 5.

Overall limit for dairy service payments

             (2)  For dairy service payments, the total limit on the appropriation is the sum of:

                     (a)  the total amount of new dairy levy amounts; and

                     (b)  the total amount of old dairy levy amounts.

Overall limit for matching payments

             (3)  For matching payments, the total limit on the appropriation is the sum of:

                     (a)  the total amount of new dairy levy amounts; and

                     (b)  the total amount of old dairy levy amounts.

Matching payments--annual limit

             (4)  For matching payments in respect of a particular financial year, the limit on the appropriation is the lesser of:

                     (a)  0.5% of the amount determined by the Minister to be the gross value of whole milk produced in Australia in that financial year; and

                     (b)  50% of the amount spent by the eligible body in that financial year on activities that qualify, under the funding contract, as research and development activities.

             (5)  For the purposes of subsection (4), the regulations may prescribe the manner in which the Minister is to determine the gross value of whole milk produced in Australia in a financial year.

Matching payments--unmatched R&D excess

             (6)  If there is an unmatched R&D excess for a financial year, the amount spent by the eligible body in the following financial year on activities that qualify, under the funding contract, as research and development activities is taken, for the purposes of this section (including for the purposes of this subsection and subsection (7)), to be increased by the amount of the unmatched R&D excess.

Note:          This means that research and development expenditure that is not "50% matched" in one financial year because of the cap in paragraph (4)(a) can be carried forward into later years.

             (7)  For the purposes of subsection (6), there is an unmatched R&D excess for a financial year if:

                     (a)  the eligible body spends a particular amount (the R&D spend amount ) in the financial year on activities that qualify, under the funding contract, as research and development activities; and

                     (b)  because of the operation of paragraph (4)(a), the matching payments for the financial year are less than 50% of the R&D spend amount;

and the amount of the unmatched R&D excess is: