Automotive Transformation Scheme (ATS)

This scheme 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 scheme rewards eligible production, eligible investment in allowable plant and equipment (P&E) and allowable research and development (R&D) through quarterly cash payments to registered ATS participants.

Registered businesses will receive quarterly cash payments from 1 January 2011. All participants can claim assistance for:
- 50% of eligible investment in research and development
- 15% of eligible investment in plant and equipment

ATS participants won’t be able to receive assistance exceeding 5% of the sales value of their previous year’s reported automotive goods and services. If the ATS participant is in an eligible startup period, funding will be no more than 15% of its eligible start-up investment.

The ATS has two stages that run from 1 January 2011 to 31 December 2020. They are:
- Stage 1 (For the period beginning on 1 January 2011 and ending on 31 December 2015, and the first three months of 2016): Capped assistance of $1.5 billion
- Stage 2 (For the period beginning on 1 January 2016 and ending on 31 December 2020, and the first three months of 2021): Capped assistance of $1 billion

The yearly funding allocation is 55% for Motor Vehicle Producers and 45% for non-MVPs.

A further $337 million of uncapped assistance is also available.

Eligible applicants include:
- Motor Vehicle Producers (MVPs): Businesses that produce at least 30,000 motor vehicles or 30,000 engines annually in Australia.
- Automotive Component Producers (ACPs)
a) Australian producers of 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.
b) Australian producers of original equipment components with a production value of at least $500,000 annually, comprising at least 50% of the production value of all automotive components produced.
- Automotive Machine Tool or Automotive Tooling Producers (AMTPs): Australian producers of automotive machine tools or automotive tooling with a production value of at least $500,000 annually, where at least 50% of that value was for automotive machine tools and automotive tooling used to produce original equipment.
- Automotive Service Providers (ASPs): Australian providers of automotive services with a production value of at least $500,000 annually, where at least 50% of the production value was for services related to the production of motor vehicles or original equipment.

Businesses that have made a financial commitment to carry on business in Australia as a motor vehicle producer or supplier to the automotive industry, for the first time are also eligible to apply.

Businesses that do not satisfy certain registration requirements may seek the Minister’s permission to apply for registration on national interest grounds.