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Textile, Clothing and Footwear Strategic Investment Program Bill 1999

Part 2 TCF (SIP) scheme

Division 1 General provisions

8   TCF (SIP) scheme

                   As soon as practicable after the commencement of this section, the Minister must, by writing, formulate a scheme (the TCF (SIP) scheme ) for the making of grants in connection with, or incidental to, either or both of the following:

                     (a)  the manufacture in Australia of products that, under the scheme, are taken to be eligible TCF products;

                     (b)  the design in Australia, for manufacture in Australia or elsewhere, of products:

                              (i)  that, under the scheme, are taken to be eligible TCF products; and

                             (ii)  some or all of which are intended to be sold in Australia.

9   $700 million cap

                   The TCF (SIP) scheme must make provision for ensuring that the total of the grants paid under the scheme does not exceed the amount worked out using the formula:

where:

Regional Assistance Program supplementation payments means the total of the amounts determined under section 33.



 

Division 2 General policy objectives for the scheme

10   General policy objectives for the scheme

                   The TCF (SIP) scheme must be directed towards ensuring the achievement of the policy objectives set out in the following sections:

                     (a)  section 11 (which deals with types of grants);

                     (b)  section 12 (which deals with the duration of the scheme);

                     (c)  section 13 (which deals with making grants in arrears);

                     (d)  section 14 (which deals with the cap for grants in respect of TCF value-adding);

                     (e)  section 15 (which deals with the sales-based cap for grants).

11   Types of grants

             (1)  This section sets out a policy objective for the TCF (SIP) scheme.

             (2)  The objective is that there are to be 5 types of grants, as follows:

                     (a)  the first type of grants are to be known as grants in respect of new TCF plant/building expenditure ;

                     (b)  the second type of grants are to be known as grants in respect of TCF research and development expenditure ;

                     (c)  the third type of grants are to be known as grants in respect of TCF value-adding ;

                     (d)  the fourth type of grants are to be known as special grants in respect of second-hand TCF plant expenditure ;

                     (e)  the fifth type of grants are to be known as special miscellaneous grants in respect of TCF-dependent communities .

             (3)  To avoid doubt, paragraphs (2)(a), (b), (c), (d) and (e) do not limit the range of matters in respect of which grants may be made.

12   Duration of scheme

             (1)  This section sets out policy objectives for the TCF (SIP) scheme.

             (2)  The objectives are as follows:

                     (a)  the objective that grants in respect of new TCF plant/building expenditure may only be made to an entity in respect of amounts that, under the scheme, are taken to be eligible expenditure incurred by the entity during:

                              (i)  the entity’s 1998-1999 income year; or

                             (ii)  the entity’s 1999-2000 income year; or

                            (iii)  the entity’s 2000-2001 income year; or

                            (iv)  the entity’s 2001-2002 income year; or

                             (v)  the entity’s 2002-2003 income year; or

                            (vi)  the entity’s 2003-2004 income year; or

                           (vii)  the entity’s 2004-2005 income year;

                     (b)  the objective that:

                              (i)  grants in respect of TCF research and development expenditure; and

                             (ii)  special grants in respect of second-hand TCF plant expenditure; and

                            (iii)  special miscellaneous grants in respect of TCF-dependent communities;

                            may only be made to an entity in respect of amounts that, under the scheme, are taken to be eligible expenditure incurred by the entity during:

                            (iv)  the entity’s 2000-2001 income year; or

                             (v)  the entity’s 2001-2002 income year; or

                            (vi)  the entity’s 2002-2003 income year; or

                           (vii)  the entity’s 2003-2004 income year; or

                           (viii)  the entity’s 2004-2005 income year;

                     (c)  the objective that grants in respect of TCF value-adding may only be made to an entity in respect of activities carried on by the entity during:

                              (i)  the entity’s 2000-2001 income year; or

                             (ii)  the entity’s 2001-2002 income year; or

                            (iii)  the entity’s 2002-2003 income year; or

                            (iv)  the entity’s 2003-2004 income year; or

                             (v)  the entity’s 2004-2005 income year.

13   Grants to be made in arrears

             (1)  This section sets out policy objectives for the TCF (SIP) scheme.

             (2)  The objectives are as follows:

                     (a)  the objective that grants in respect of new TCF plant/building expenditure must not be made to an entity in respect of amounts that, under the scheme, are taken to be eligible expenditure incurred by the entity during:

                              (i)  the entity’s 1998-1999 income year; or

                             (ii)  the entity’s 1999-2000 income year;

                            unless the entity makes a claim for the grant after the end of the entity’s 2000-2001 income year;

                     (b)  the objective that:

                              (i)  grants in respect of new TCF plant/building expenditure; and

                             (ii)  grants in respect of TCF research and development expenditure; and

                            (iii)  special grants in respect of second-hand TCF plant expenditure; and

                            (iv)  special miscellaneous grants in respect of TCF-dependent communities;

                            must not be made to an entity in respect of amounts that, under the scheme, are taken to be eligible expenditure incurred by the entity during:

                             (v)  the entity’s 2000-2001 income year; or

                            (vi)  the entity’s 2001-2002 income year; or

                           (vii)  the entity’s 2002-2003 income year; or

                           (viii)  the entity’s 2003-2004 income year; or

                            (ix)  the entity’s 2004-2005 income year;

                            unless the entity makes a claim for the grant after the end of the income year concerned;

                     (c)  the objective that grants in respect of TCF value-adding must not be made to an entity in respect of activities carried on by the entity during:

                              (i)  the entity’s 2000-2001 income year; or

                             (ii)  the entity’s 2001-2002 income year; or

                            (iii)  the entity’s 2002-2003 income year; or

                            (iv)  the entity’s 2003-2004 income year; or

                             (v)  the entity’s 2004-2005 income year;

                            unless the entity makes a claim for the grant after the end of the income year concerned.

14   Cap for grants in respect of TCF value-adding

             (1)  This section sets out a policy objective for the TCF (SIP) scheme.

             (2)  The objective is that the total grants in respect of TCF value-adding that are made to an entity in respect of activities carried on by the entity during a particular income year of the entity must not exceed whichever is the lesser of:

                     (a)  5% of the amount that, under the scheme, is taken to be the total eligible TCF value added by the entity during that income year; and

                     (b)  the sum of:

                              (i)  the total grants in respect of new TCF plant/building expenditure made to the entity in respect of amounts that, under the scheme, are taken to be eligible expenditure incurred by the entity during that income year; and

                             (ii)  the total grants in respect of TCF research and development expenditure made to the entity in respect of amounts that, under the scheme, are taken to be eligible expenditure incurred by the entity during that income year; and

                            (iii)  the total special grants in respect of second-hand TCF plant expenditure made to the entity in respect of amounts that, under the scheme, are taken to be eligible expenditure incurred by the entity during that income year; and

                            (iv)  the total special miscellaneous grants in respect of TCF-dependent communities made to the entity in respect of amounts that, under the scheme, are taken to be eligible expenditure incurred by the entity during that income year.

15   Sales-based cap for grants

             (1)  This section sets out a policy objective for the TCF (SIP) scheme.

             (2)  The objective is that, for a particular income year of an entity, the sum of:

                     (a)  the total grants in respect of new TCF plant/building expenditure made to the entity in respect of amounts that, under the scheme, are taken to be eligible expenditure incurred by the entity during that income year; and

                     (b)  the total grants in respect of TCF research and development expenditure made to the entity in respect of amounts that, under the scheme, are taken to be eligible expenditure incurred by the entity during that income year; and

                     (c)  the total grants in respect of TCF value-adding made to the entity in respect of activities carried on by the entity during that income year; and

                     (d)  the total special grants in respect of second-hand TCF plant expenditure made to the entity in respect of amounts that, under the scheme, are taken to be eligible expenditure incurred by the entity during that income year; and

                     (e)  the total special miscellaneous grants in respect of TCF-dependent communities made to the entity in respect of amounts that, under the scheme, are taken to be eligible expenditure incurred by the entity during that income year;

must not exceed whichever of the following amounts is applicable:

                      (f)  if the entity is taken, under the scheme, to have, at any time during the preceding income year of the entity, engaged in eligible activities in relation to products that, under the scheme, are taken to be eligible TCF products—5% of the amount that, under the scheme, is taken to be the total eligible revenue derived by the entity during the preceding income year of the entity from sales of products that, under the scheme, are taken to be eligible TCF products;

                     (g)  in any other case—5% of the amount that, under the scheme, is taken to be the total eligible revenue derived by the entity during the first-mentioned income year from sales of products that, under the scheme, are taken to be eligible TCF products.



 

Division 3 Registration for the purposes of the scheme

16   Registration for the purposes of the scheme

             (1)  The TCF (SIP) scheme must impose requirements relating to the registration of entities.

             (2)  The requirements relating to registration imposed by the TCF (SIP) scheme may include (but are not limited to) any or all of the following requirements:

                     (a)  a requirement that an entity must apply for registration;

                     (b)  a requirement that an entity’s application for registration be accompanied by a statement issued by a specified person as to the entity’s future financial viability;

                     (c)  a requirement that an entity’s application for registration be accompanied by such information about the entity as is specified in the scheme;

                     (d)  a requirement that an entity’s application for registration be accompanied by such a fee as is ascertained in accordance with the scheme.

             (3)  The TCF (SIP) scheme many provide for any or all of the following consequences for entities that do not comply with a particular requirement relating to registration:

                     (a)  the consequence that the entity is not eligible for a grant;

                     (b)  the consequence that the entity’s eligibility for a grant is subject to restriction or reduction;

                     (c)  the consequence that the time of payment of a grant to the entity is deferred.

             (4)  The information referred to in paragraph (2)(c) may include (but is not limited to) statistical information.



 

Division 4 Strategic business plans and audited accounts

17   Strategic business plans

                   The TCF (SIP) scheme must provide that an entity is not eligible for a grant unless the entity has complied with such requirements (if any) as are imposed by the scheme in relation to the content and submission of:

                     (a)  strategic business plans; and

                     (b)  variations of strategic business plans.

18   Audited accounts

                   The TCF (SIP) scheme must provide that an entity is not eligible for a grant unless the entity has complied with such requirements (if any) as are imposed by the scheme in relation to the submission of audited accounts and audited financial statements.



 

Division 5 Other matters relating to the scheme

19   Scheme may confer administrative powers on the Secretary

             (1)  The TCF (SIP) scheme may make provision with respect to a matter by conferring on the Secretary a power to make a decision of an administrative character.

             (2)  The TCF (SIP) scheme must provide that, if the Secretary is satisfied that a claimant is eligible for a grant of a particular amount, the Secretary must determine that the claimant is entitled to be paid a grant of that amount.

20   Reconsideration and review of decisions

             (1)  The TCF (SIP) scheme must contain provisions under which:

                     (a)  an entity who is affected by a decision of the Secretary under the scheme may, if dissatisfied with the decision, by notice given to the Secretary within such period as is ascertained in accordance with the scheme, request the Secretary to reconsider the decision; and

                     (b)  the Secretary is required to reconsider the decision and is empowered to confirm or revoke the decision or to vary the decision in such manner as the Secretary thinks fit; and

                     (c)  applications may be made to the Administrative Appeals Tribunal for review of decisions of the Secretary that have been confirmed or varied as mentioned in paragraph (b).

             (2)  The period mentioned in paragraph (1)(a) must not be shorter than 30 days after the day on which the decision first comes to the attention of the entity concerned.

             (3)  The TCF (SIP) scheme must provide that the reasons for making a request mentioned in paragraph (1)(a) must be set out in the request.

             (4)  If a request is made as mentioned in paragraph (1)(a) in respect of a decision, section 41 of the Administrative Appeals Tribunal Act 1975 applies as if the making of the request were the making of an application to the Administrative Appeals Tribunal for a review of that decision.

             (5)  The TCF (SIP) scheme must provide that, if the Secretary does not confirm, revoke or vary a decision before the end of the period of 30 days after the day on which the Secretary received the request to reconsider the decision, the Secretary is taken, at the end of that period, to have confirmed the decision.

             (6)  The TCF (SIP) scheme must provide that, if the Secretary confirms, revokes or varies the decision before the end of the period referred to in subsection (5), the Secretary must, by notice given to the applicant, inform the applicant of the result of the reconsideration of the decision and the reasons for confirming, revoking or varying the decision, as the case may be.

             (7)  If, because of the operation of a provision covered by subsection (5), a decision is taken to be confirmed, section 29 of the Administrative Appeals Tribunal Act 1975 applies as if the prescribed time for making application for review of the decision were the period:

                     (a)  commencing on the day on which the decision is taken to have been confirmed; and

                     (b)  ending on the 28th day after that day.

21   Statement to accompany notification of decisions

             (1)  The TCF (SIP) scheme must provide that, if:

                     (a)  written notice is given to an entity affected by a decision of the Secretary under the scheme; and

                     (b)  that notice is to the effect that the decision has been made;

that notice must include a statement to the effect that:

                     (c)  the entity may, if dissatisfied with the decision, seek a reconsideration of the decision by the Secretary; and

                     (d)  the entity may, subject to the Administrative Appeals Tribunal Act 1975 , if dissatisfied with a decision made by the Secretary upon that reconsideration confirming or varying the first-mentioned decision, make application to the Administrative Appeals Tribunal for review of the decision so confirmed or varied.

             (2)  The TCF (SIP) scheme must provide that, if:

                     (a)  the Secretary confirms or varies a decision as mentioned in paragraph 20(1)(b); and

                     (b)  gives to the entity written notice of the confirmation or variation of the decision;

that notice must include a statement to the effect that the entity may, subject to the Administrative Appeals Tribunal Act 1975 , if dissatisfied with the decision so confirmed or varied, make application to the Administrative Appeals Tribunal for review of the decision.

             (3)  A failure to include a statement in a notice as mentioned in subsection (1) or (2) does not affect the validity of a decision.

22   Guarantees relating to payment of scheme debts

                   The TCF (SIP) scheme may provide that an entity ascertained in accordance with the scheme is not eligible for a grant unless another entity ascertained in accordance with the scheme gives a guarantee to the Commonwealth that any scheme debts owed by the first-mentioned entity will be paid.

23   Non-arm’s length transactions

                   The TCF (SIP) scheme may provide that, if an entity incurs expenditure under a transaction that is not at arm’s length, the amount of that expenditure is taken to be the amount that would reasonably have been expected to be incurred if the parties had been dealing with each other at arm’s length.

24   Grant by way of bounty

                   This Act does not prevent a grant from being a grant by way of bounty.

25   Grants to be inalienable

                   The TCF (SIP) scheme may provide for grants to be absolutely inalienable (whether by way of, or in consequence of, sale, assignment, charge, execution, bankruptcy or otherwise) except with the approval of the Secretary.

26   Miscellaneous matters

                   The TCF (SIP) scheme may make provision for and in relation to the following matters:

                     (a)  the times within which claims for grants are to be lodged;

                     (b)  requiring that a claim be accompanied by an audited statement relating to specified activities;

                     (c)  requiring that a claim be accompanied by such a fee as is ascertained in accordance with the scheme;

                     (d)  the apportionment of expenditure;

                     (e)  the adjustment of eligibility for grants in relation to the transfer of the whole or a part of a business, including (but not limited to):

                              (i)  treating the transferee as if the transferee had incurred particular expenditure, had derived particular revenue and had done particular acts or things; and

                             (ii)  treating the transferor as if the transferor had not incurred particular expenditure, had not derived particular revenue and had not done particular acts or things;

                      (f)  the times when grants become payable;

                     (g)  specifying different categories of eligible expenditure for the purposes of working out eligibility for different types of grants.

27   Ancillary or incidental provisions

                   The TCF (SIP) scheme may contain such ancillary or incidental provisions as the Minister considers appropriate.

28   Scheme-making power not limited

                   Sections 9 to 27 (inclusive) do not, by implication, limit section 8.

29   Fee must not amount to taxation

                   The amount of a fee under the TCF (SIP) scheme must not be such as to amount to taxation.

30  Variation of scheme

             (1)  The TCF (SIP) scheme may be varied, but not revoked, in accordance with subsection 33(3) of the Acts Interpretation Act 1901 .

             (2)  Subsection (1) does not limit the application of subsection 33(3) of the Acts Interpretation Act 1901 to other instruments under this Act.

31   Scheme to be a disallowable instrument

                   An instrument under section 8 is a disallowable instrument for the purposes of section 46A of the Acts Interpretation Act 1901 .

32   Appropriation

                   Grants are to be paid out of the Consolidated Revenue Fund, which is appropriated accordingly.