In November 2003, the Australian Government announced a long-term assistance package of $747 million for Australia’s textile, clothing and footwear (TCF) industry. The main component of this package is an extension of the TCF Strategic Investment Program through to 2015.
The Textile, Clothing and Footwear Post-2005 Strategic Investment Program Scheme 2005 (TCF Post-2005 (SIP) Scheme) provides funding of up to $575 million over ten years. The object of the TCF Post-2005 (SIP) Scheme is to foster the development of a sustainable and internationally competitive TCF manufacturing industry and TCF design industry in Australia.
The TCF Post-2005 (SIP) Scheme is open to TCF manufacturers and designers for manufacturing activities in Australia for the initial five years to 2010. Entities undertaking eligible clothing and finished textile activities will be able to benefit under the Scheme for an additional five years to 2015.
What does the program do?
The TCF Post-2005 (SIP) Scheme (‘the Scheme’) provides incentives in the form of grants, paid annually and in arrears, for investment and innovation activities.
What grants are available?
Two types of grants are available on an entitlement basis:
• Type 1 grants for new plant and equipment/building expenditure, trade showings and in-store promotions (brand support) and for clothing and finished textile entities non-production related IT
• Type 2 grants for research and development, including innovative product development activities. Expenditure in relation to eligible technical textile or leather activities that results in the manufacture of leather or technical textile products listed in Parts B or C of Schedule 2 of the Scheme will not receive Type 2 grant support.
How are the grants calculated?
• Type 1 grants fund up to 40 per cent of eligible expenditure
• Type 2 grants fund up to 80 per cent of eligible expenditure
• Total benefits paid under the program in any one year will be limited to five per cent of an entity’s total eligible revenue in the 12 months preceding the claim year (amounts in excess of this are able to be carried over to a later year in which a claim is made). Modified limits apply for entities in a start-up period
• Claims are subject to an annual process of modulation to ensure that all claims are accommodated within the available funds, with all grants paid between 1 and 10 June
• Customers may receive payment before this time by requesting an advance—up to 20 per cent of grant eligibility for a Type 1 grant and 40 per cent of grant eligibility for a Type 2 grant.
What are the requirements to receive a grant payment?
A minimum expenditure threshold of $200,000 applies, which can be accumulated over the life of the program.
Registration Process
To be eligible to register for the TCF Post-2005 (SIP) Scheme, you must be able to show that the entity carries on or proposes to carry on an eligible TCF activity as defined in the Scheme.
Registration must be accompanied by:
• financial reports or statements (audited if required under the Corporations Act) for the previous financial year
• a statement of strategic business intent outlining the business, operational and financial strategies that will guide your entity to sustainable operations for eligible TCF activities beyond the end of the program period.
Customers must re-register for each program year for which future claims are intended to be made.
Applications for registration and renewals of registration must be lodged before 1 July each year, prior to the commencement of the relevant program year.
Claim Process
Claims for program years must be lodged after the end of the program year in which eligible expenditure has been made. Claims must be lodged before 1 March of the relevant financial year.
In order for expenditure to be considered eligible, a claim must be lodged. This is the case, even if customers have not met the minimum eligible expenditure threshold.
Claims must be accompanied by:
• a statement of eligible expenditure incurred together with an auditor’s report verifying the eligible expenditure
• a detailed description of eligible TCF activities carried on in the program year and in respect of which the claim has been made.
What is the process to receive a grant payment?
In order to receive a grant payment, customers must:
• at the time of making a claim, request a determination and payment of the claim
• still be undertaking at least one eligible TCF activity
• submit a statement of your total eligible revenue for the previous financial year, together with an auditor’s report verifying that total eligible revenue.
Registration, advances, claims, and requests for payment of claims, using the approved forms, should be lodged with your nearest AusIndustry office.
Publication of Grants
Recipients of Scheme grants should note that under the Scheme, grants paid to participating businesses will be published annually.
Need further information?
For further information about TCF Post-2005 (SIP) Scheme or contact details for the nearest AusIndustry office:
• visit AusIndustry website at www.ausindustry.gov.au
• email or call the AusIndustry Hotline on hotline@ausindustry.gov.au and 13 28 46
• contact the TCF enquiries line on (03) 9268 7922
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