This page provides answers to the most frequently asked questions about the South East South Australia Innovation and Investment Fund program.
The purpose of SESAIIF is to support investment aimed at creating sustainable, new jobs in south east South Australia. Eligible investment will create new or additional business capacity designed to enhance sustainable employment, business and economic opportunities with a focus on manufacturing and manufacturing services and other services projects.
Investment proposals resulting in the creation of new jobs in south east South Australia at the expense of jobs elsewhere in Australia will not be supported.
Eligible applicants are those firms/commercial enterprises:
- who are legal entities, i.e. with whom the Australian government and the South Australian government can enter into legally binding funding agreements
- which have an Australian Business Number and are registered for the Goods and Services Tax (GST)
- who can demonstrate the commitment of funding, exclusive of in-kind contributions, to the investment proposal which is free of other government funding and which at least matches the funding which is being sought from the Program
- who will be undertaking eligible expenditure on a single project (applicants can submit multiple applications for different projects but each application should feature one project only); and
- will be the entity that will employ new FTEs; and
- can demonstrate that the project will be undertaken in south east South Australia.
As an example, a proprietary company with an ABN and ACN registered for GST is an eligible entity, while a Self-Managed Super Fund (SMSF) is not.
A total of $12 million (less administration costs) in funding is available under SESAIIF. All funds will need to be expended by 30 June 2013, when the fund will close.
Applications involving eligible capital costs of less than $100,000 will not be considered for assessment. The minimum grant will be $50,000.
Financial assistance will only be provided for:
- up to 50% of projected eligible capital costs (primarily being for plant and equipment directly applied to the production of the outputs of the investment proposal)
- on the provision of satisfactory evidence that the agreed payment milestones have been achieved.
As an example, purchasing capital equipment for manufacturing purposes that will be listed on the applicants asset register is eligible, while landscaping costs to beautify the front of a new manufacturing facility is not.
Firstly, successful recipients of the grant will need to enter into a funding agreement with the Commonwealth and the SA governments. The funding agreement will stipulate certain milestones that need to be achieved before payment is made. These milestones are generally tied to the acquisition of approved capital equipment with a final payment made for the creation of jobs.
It is important to note that payments for capital equipment are made on a reimbursement basis for up to 50 per cent of the eligible capital cost of the item.
One of the eligibility rules for SESAIIF is that only prospective expenditure is considered eligible under the program. Therefore any expenses already incurred will not be eligible.
No, any staff hired before an acceptable project start date will not be counted for the purposes of SESAIIF. Only FTEs hired after the project start date will be counted towards the new FTE target that applicants agree to meet as per a signed Deed with the Australian and South Australian Governments.
Additionally, each new FTE is a person who under an applicable industrial award or agreement is taken to work on a full-time basis for the applicant entity, or if no such award or agreement exists, is required by the applicant entity to work at least 37.5 hours a week.
Yes, although as SESAIIF only pays a maximum of 50% of the capital costs of items, you must be able to demonstrate that you have the capacity to fund at least half the costs yourself. The onus will be on the applicant to provide evidence (e.g. bank loan, equity partner contributions) of that ability
While you are able to apply for a SESAIIF grant, there are risks involved when an applicant has not secured the land and all relevant access and permits that will affect the perceived competitiveness of the application. Therefore, it’s recommended that applicants secure all relevant land, permits and access items prior to submitting an application wherever possible.
No. The committee will consider all eligible applications but will not meet with individual applicants. Officers from AusIndustry however can be contacted to discuss applications.
If you wish to obtain advice on your application please contact the AusIndustry hotline on 13 28 46. We will either provide advice via the phone or e-mail or arrange a suitable time to meet with you. Additional information concerning SESAIIF can be obtained from the AusIndustry website.
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