Clothing and Household Textile (Building Innovative Capability) scheme 2010 (Cth)
Clothing and Household Textile (Building Innovative Capability) scheme 2010
as amended
made under section 37ZM of the
Textile, Clothing and Footwear Investment and Innovation Programs Act 1999
This compilation was prepared on 30 July 2013 taking into account amendments up to Clothing and Household Textile (Building Innovative Capability) Amendment scheme 2012 (No. 1) (F2012L01894).
Contents
Part 1Introductory
1.1Name of scheme 6
1.2Commencement 6
1.3Object 6
1.4Definitions 6
1.5Meaning of Australian‑based 8
1.6Meaning of eligible clothing and household textile activity 9
1.7Meaning of program year 10
1.8Meaning of sample production 11
1.9Meaning of total eligible revenue 11
1.10References to an entity 12
1.11References to an innovation grant for a program year 12
1.12References to the cost or price of plant, etc 13
Part 2Innovation grants
Division 2.1 Innovation grants
Subdivision 2.1.1 Activities for innovation grants
2.1What is an innovation grant 14
2.2Research and development activities 14
2.3Innovative product design 15
2.4Innovative process improvement 15
2.5Market research 15
2.6Obtaining industrial property rights 16
Subdivision 2.1.2 Eligible clothing and household textile expenditure for innovation grants
2.7What is eligible clothing and household textile expenditure for an innovation grant 16
2.8What is not eligible expenditure for an innovation grant 17
2.9Expenditure on research and development activities 17
2.10Expenditure on product development activities 19
Part 3Registration of entities for innovation grants
3.1Application for registration for innovation grants 20
3.2Financial statements etc 21
3.3Description of activities and estimates of expenditure 21
3.4Strategic business intent 21
3.5Strategic business plan 22
3.6Additional information 22
3.7Time limits for registration 23
3.8Registration of entity 23
3.9Effects of registration 23
3.10Application for renewal of registration 23
3.11Renewal of registration 24
3.12Extension of time for registration or renewal 25
3.13Notice of registration or refusal to register etc 25
3.14Effect of non‑registration 26
3.15Register of entities 26
3.16Notice of likely change in eligible clothing and household textile expenditure 27
Part 4Transfer of registration
4.1Interpretation for Part 4 28
4.2Transfer of registration generally 28
4.3Transfer of registration on transfer of business 28
4.4Additional information 29
4.5Effect of transfer of registration 30
4.6Status of activities and expenditure unchanged 31
4.7Treatment of total eligible revenue and total eligible start‑up investment amounts 31
Part 5Advances of innovation grants
Division 5.1 Introductory
5.1Effect of Part 33
5.2What is an advance of an innovation grant 33
5.3Effect of non‑registration 33
5.4References to an advance of an innovation grant for a program year 33
Division 5.2 Advances of innovation grants
Subdivision 5.2.1 Requests for advances of innovation grants
5.5Requests for advances of innovation grants 34
5.6Information in support of requests for advances of innovation grants 35
5.7Additional information 35
5.8Threshold expenditure for advances of innovation grants 35
5.9When requests for advances of innovation grants must be made 36
Subdivision 5.2.2 Assessment of eligibility for advances of innovation grants
5.10Request for assessment of eligibility for advance 37
5.11Assessment of eligibility for advance 37
5.12Provision of strategic business plans etc 38
5.13Pre‑payment assessment, post‑payment monitoring 38
5.14Arms length expenditure — advances of innovation grants 38
5.15Cap for advances of innovation grants 38
Subdivision 5.2.3 Notice of decisions, payment of advances etc
5.16Assessment periods, notice of decisions — advances 38
5.17Resolution of requests for advances of innovation grants 39
5.18Payment of advances of innovation grants 39
Part 6Claims for innovation grants
Division 6.1 Making a claim
Subdivision 6.1.1 Claims for eligibility for an innovation grant for a program year
6.1Claim for innovation grant — general 40
6.2Who may claim for innovation grant — application of subsection 1.6 (1) 40
6.3Contracting entity 41
6.4Information in support of a claim for innovation grant 41
6.5When claim for innovation grant must be made 42
Subdivision 6.1.2 Extension of time for making claim
6.6Extension of time for making claim 43
6.7Effect of extension of time 43
6.8Notice of decision about extending claim period 44
Division 6.2 Assessment of claims
Subdivision 6.2.1 Assessment — general
6.9Content of application for innovation grant 45
6.10Assessment of claim 45
6.11Provision of strategic business plans etc 46
6.12Arms length expenditure 46
6.13Cap for innovation grants 46
6.14Period for assessment and notice of decisions — innovation grants 46
6.15Resolution of claims — eligibility for innovation grants 47
6.16Effect of decision as to eligibility for innovation grants 47
6.17Pre‑payment assessment, post‑payment monitoring 47
Subdivision 6.2.2 Innovation grant eligibility amounts
6.18Innovation grant eligibility amount 47
6.19Modulation of innovation grants 49
6.20Deferred innovation grant eligibility amount 50
Division 6.3 Determination and payment of claims
Subdivision 6.3.1 Determination and payment of claims — innovation grants
6.21Meaning of determination 50
6.22Threshold expenditure for innovation grants 50
6.23Sales‑based cap for innovation grants 51
6.24Request for determination and payment of innovation grant 54
6.25Deadline for lodging auditors reports 55
6.26Reduction on account of advance 55
6.27Determination of entitlement 55
6.28Determination and payment of innovation grants 56
6.29Revocation and remaking determinations etc. 57
Subdivision 6.3.2 Limits on payments
6.30Annual limit on payments 58
6.31Expenditure limit on scheme 58
Part 7Miscellaneous
7.1Request for reconsideration of decision by Secretary 59
7.2Reconsideration by Secretary 59
7.3Statement to accompany notification of decisions 60
7.4Statement to accompany notice of decision on reconsideration 60
7.5Statutory conditions 61
7.6Condition — eligible clothing and household textile activity 61
7.7Condition — document retention 61
7.8Innovation grants not transferable 61
7.9Giving of notices etc by Secretary 62
7.10Post‑payment compliance monitoring 62
7.11Electronic lodgement 62
7.12Other Commonwealth assistance 62
Part 8Transition from TCF Post‑2005 (SIP) Scheme
8.1Application of Part 63
8.2Transitional 63
Schedule 1Eligible clothing activities etc 66
Part ATextile Fibre, Yarn and Fabric Manufacturing 66
Part BKnitting Mills Manufacturing 68
Part CClothing Manufacturing 69
Part DEarly‑stage Processing 71
Schedule 2Eligible household textile products 73
Part 1 Introductory
1.1 Name of scheme
This scheme is the Clothing and Household Textile (Building Innovative Capability) scheme 2010, which may be cited as the Clothing and Household Textile (BIC) scheme.
1.2 Commencement
The scheme commences on the day after it is registered.
1.3 Object
The object of the scheme is, under the Act, to provide a detailed legislative framework for fostering the development of a sustainable and internationally competitive manufacturing industry and design industry for clothing and household textiles in Australia by providing incentives that will promote innovation.
Note It is intended that the transition between the TCF Post‑2005 (SIP) Scheme and the Clothing and Household Textile (BIC) scheme be seamless so that an entity registered under the TCF Post‑2005 (SIP) Scheme that subsequently becomes registered under the Clothing and Household Textile (BIC) scheme will have to cope with minimal change. Part 8 deals with the transition from the TCF Post‑2005 (SIP) Scheme to the Clothing and Household Textile (BIC) scheme, and should be consulted by entities registered under the former scheme.
1.4 Definitions
In the scheme, unless the contrary intention appears:
ABN (short for “Australian Business Number”) has the meaning given by section 41 of the A New Tax System (Australian Business Number) Act 1999.
ACN (short for “Australian Company Number”) has the meaning given by section 9 of the Corporations Act 2001.
acquisition includes acquisition by purchase or lease.
Act means the Textile, Clothing and Footwear Investment and Innovation Programs Act 1999.
advance, of an innovation grant, has the meaning given by section 5.2.
ANZSIC means the 1993 edition of the Australian and New Zealand Standard Industrial Classification published by the Australian Bureau of Statistics in 1993.
auditor means an independent auditor registered under Division 2 of Part 9.2 of Chapter 9 of the Corporations Act 2001.
Australian‑based, for an activity, for expenditure and for innovation, has the meaning given by section 1.5.
BIC plant means plant used in an eligible clothing and household textile activity.
deferred innovation grant eligibility amount has the meaning given in subsection 6.20(1).
eligible clothing and household textile activity has the meaning given by section 1.6.
eligible clothing and household textile expenditure includes clothing/finished textile expenditure within the meaning of section 4 of the Act.
Note See also section 2.7.
eligible clothing and household textile product means a product resulting directly and predominantly from an eligible clothing and household textile activity mentioned in paragraph 1.6 (1) (a) (other than an activity carried on in relation to a prescribed product within the meaning of section 1.6).
eligible start‑up investment amount has the meaning given by subsection 6.23 (7).
eligible start‑up period has the meaning given by subsection 6.23 (7).
employee means any individual for whom the registered entity is required to withhold an amount under section 12‑35 or 12‑40 of Schedule 1 to the Taxation Administration Act 1953.
financial owner, for plant, equipment or another asset, means the person who is financially responsible for, and has control of, the plant, equipment or other asset.
GST has the meaning given by section 195‑1 of the A New Tax System (Goods and Services Tax) Act 1999.
innovation grant eligibility amount, for an entity for a program year, means an innovation grant eligibility amount worked out in accordance with section 6.18 for that program year.
industrial property rights has the meaning given by subsection 2.6 (2).
innovation grant has the meaning given by section 2.1.
ITAA 1936 means the Income Tax Assessment Act 1936.
ITAA 1997 means the Income Tax Assessment Act 1997.
pilot plant has the meaning given by subsection 73B (1) of the ITAA 1936 as in force immediately before 8 September 2011.
Note The Tax Laws Amendment (Research and Development) Act 2011 commenced on 8 September 2011. The relevant version of the ITAA 1936 is available on ComLaw: see compilation number C2011C00612.
plant includes tools or apparatus of a capital nature used exclusively for the operation of plant, but does not include a building or structure.
product development activity has the meaning given by section 2.1.
program period, for an entity, means the period commencing at the beginning of the 2010/2011 program year and ending at the end of the 2014/2015 program year.
Note See subsections 8.2 (1) to (3) for transitional applications.
program year has the meaning given by section 1.7.
Note See subsections 8.2 (1) to (3) for transitional applications.
relevant financial year, in relation to a program year, means:
(a) for the 2010/2011 program year — the 2011/2012 financial year; and
(b) for the 2011/2012 program year — the 2012/2013 financial year; and
(c) for the 2012/2013 program year — the 2013/2014 financial year; and
(d) for the 2013/2014 program year — the 2014/2015 financial year; and
(e) for the 2014/2015 program year — the 2015/2016 financial year.
relevant program year, in relation to a financial year, means:
(a) for the 2011/2012 financial year — the 2010/2011 program year; and
(b) for the 2012/2013 financial year — the 2011/2012 program year; and
(c) for the 2013/2014 financial year — the 2012/2013 program year; and
(d) for the 2014/2015 financial year — the 2013/2014 program year; and
(e) for the 2015/2016 financial year — the 2014/2015 program year.
research and development activity has the meaning given by subsection 73B (1) of the ITAA 1936 as in force immediately before 8 September 2011.
Note 1 Only certain kinds of expenditure in relation to research and development are eligible clothing and household textile expenditure for the scheme: see section 2.2.
Note 2 The Tax Laws Amendment (Research and Development) Act 2011 commenced on 8 September 2011. The relevant version of the ITAA 1936 is available on ComLaw: see compilation number C2011C00612.
salary, in relation to an employee, means those amounts specified on the employee’s payment summary issued by the registered entity under section 16‑155 of Schedule 1 to the Taxation Administration Act 1953, to the extent that the amounts represent withholding payments covered by section 12‑35 or 12‑40 of Schedule 1 to that Act.
sample production has the meaning given by section 1.8.
scheme means the Clothing and Household Textile (BIC) scheme.
total eligible revenue has the meaning given by section 1.9.
Note The following terms used in the scheme are defined in the Act:
· Australia
· business day
· entity
· innovation grant
· income year
· manufacture
· occupier
· scheme debt
· Secretary
· strategic business plan.
1.5 Meaning of Australian‑based
For the scheme:
(a) an activity is Australian‑based only if it is carried on in Australia; and
(b) expenditure is Australian‑based only if it is incurred in Australia; and
(c) innovation is Australian‑based only if it occurs in Australia.
1.6 Meaning of eligible clothing and household textile activity
(1) For the scheme, each of the following activities is an eligible clothing and household textile activity:
(a) an Australian-based manufacturing activity carried on by an entity:
(i) being a manufacturing activity of a kind mentioned in Part B or C of Schedule 1; or
(ii) that results directly and predominantly in the manufacture of a product mentioned in Schedule 2 using fabric manufactured by the entity as a result of an activity of a kind mentioned in Part A of Schedule 1 carried on in Australia by the entity;
(b) an Australian-based activity carried on by an entity in respect of the design in Australia for manufacture in Australia of eligible clothing and household textile products, some or all of which are intended to be sold in Australia;
(c) an Australian-based ancillary activity carried on by an entity in respect of a manufacturing activity mentioned in paragraph (a) (the manufacturing activity) if, and only to the extent that, operations in respect of the ancillary activity and the manufacturing activity are wholly and mutually interdependent;
(d) an Australian-based ancillary activity carried on by an entity in respect of a design activity mentioned in paragraph (b) (the design activity) if, and only to the extent that, operations in respect of the ancillary activity and the design activity are wholly and mutually interdependent.
(2) However, an activity mentioned in subsection (1) that is carried on by an entity both in Australia and elsewhere, is an eligible clothing and household textile activity only to the extent that it is carried on in Australia.
(3) Also, and for the avoidance of doubt, each of the following activities is not an eligible clothing and household textile activity:
(a) the manufacture of hides or leather used, or intended to be used, in motor vehicles;
(b) an activity carried on in connection with, or incidental to, the design for manufacture of hides or leather used, or intended to be used, in motor vehicles;
(c) an ancillary activity carried on in connection with, or incidental to, a manufacturing activity mentioned in paragraph (a);
(d) an ancillary activity carried on in connection with, or incidental to, a design activity mentioned in paragraph (b).
(e) the manufacture of a prescribed product;
(f) an activity that is carried on in respect of the design for manufacture of a prescribed product;
(g) an ancillary activity carried on in respect of a manufacturing activity to which paragraph (e) applies;
(h) an ancillary activity carried on in respect of a design activity to which paragraph (f) applies.
(4) Despite anything else in this section, a manufacturing activity of a kind referred to in Subdivision 21 or any of Subdivisions 23 to 29 of Division C of ANZSIC, and not mentioned in subsection (1), is not an eligible clothing and household textile activity.
(5) For paragraph (1) (a), a manufacturing activity of a kind mentioned in Part B or C of Schedule 1 may be carried on by the entity on a fee or commission basis, using client‑supplied materials or materials purchased or transferred in from other entities.
(6) A product resulting directly and predominantly from an eligible clothing and household textile activity mentioned in paragraph (1) (a) (other than an activity carried on in relation to a prescribed product) is an eligible clothing and household textile product.
(7) In this section:
ancillary activity means:
(a) an activity mentioned in Part A or Part D of Schedule 1; or
(b) a warehousing and distribution activity.
prescribed product means any of the following:
(a) disposable baby napkins;
(b) sanitary napkins;
(c) panty liners;
(d) disposable bed protectors;
(e) disposable incontinence products.
1.7 Meaning of program year
(1) Each of the following periods is, for an entity, a program year:
(a) the period commencing on 1 July 2010 and ending at the end of 30 June 2011 (the 2010/2011 program year);
(b) the period commencing on 1 July 2011 and ending at the end of 30 June 2012 (the 2011/2012 program year);
(c) the period commencing on 1 July 2012 and ending at the end of 30 June 2013 (the 2012/2013 program year);
(d) the period commencing on 1 July 2013 and ending at the end of 30 June 2014 (the 2013/2014 program year);
(e) the period commencing on 1 July 2014 and ending at the end of 30 June 2015 (the 2014/2015 program year).
(2) However, if an entity adopts, under section 18 of the ITAA 1936, a 12 month accounting period ending on a date other than 30 June, a reference in this scheme to a program year, for that entity, is a reference to the equivalent 12 month accounting period for that entity.
Examples
1. For an entity whose adopted accounting period ends on 31 October 2012, the 2011/2012 program year is the period commencing on 1 November 2011 and ending at the end of 31 October 2012.
2. For an entity whose adopted accounting period ends on 31 March 2012, the 2011/2012 program year is the period commencing on 1 April 2011 and ending at the end of 31 March 2012.
(3) If, as a result of the operation of section 18 of the ITAA 1936, the program period for an entity claiming clothing and household textile expenditure would, apart from this subsection, exceed 5 years after the last program year of the program period is taken to end for the entity, the program period is taken to end at the end of the period of 5 years commencing on the first day of the program period for the entity.
Note Subsection 8.2 (3) in Part 8 modifies this subsection for an entity carrying over to this scheme from the TCF Post‑2005 (SIP) Scheme.
1.8 Meaning of sample production
(1) For the scheme, sample production, for an eligible clothing and household textile product, means production of the product otherwise than in commercial quantities.
(2) The production of an eligible clothing and household textile product for stockpiling is taken to be production in commercial quantities.
1.9 Meaning of total eligible revenue
(1) For the scheme, total eligible revenue, for an entity (other than an entity mentioned in subsection (3)) and for a period, means the total revenue derived by the entity from sales, except sales to New Zealand, of the entity’s eligible clothing and household textile products during the period, excluding:
(a) any GST, excise or sales tax; and
(b) any subsidy given during the period by the Commonwealth, or a State or Territory.
(2) In subsection (1), a reference to the entity’s eligible clothing and household textile products is a reference:
(a) if the entity is carrying on an eligible clothing and household textile activity mentioned in paragraph 1.6 (1) (a) — to eligible clothing and household textile products manufactured by the entity; or
(b) if the entity is not carrying on an eligible clothing and household textile activity mentioned in paragraph 1.6 (1) (a), but is carrying on an eligible clothing and household textile activity mentioned in paragraph 1.6 (1) (b) in accordance with paragraphs 6.2 (3) (a) and (b) — to eligible clothing and household textile products manufactured on behalf of the entity by another entity; or
(c) if the entity is not carrying on an eligible clothing and household textile activity mentioned in paragraph 1.6 (1) (a), but is carrying on an eligible clothing and household textile activity mentioned in paragraph 1.6 (1) (c) — to eligible clothing and household textile products manufactured by the entity that carries on the manufacturing activity mentioned in paragraph 1.6 (1) (c); or
(d) if the entity is not carrying on an eligible clothing and household textile activity mentioned in paragraph 1.6 (1) (a), but is carrying on an eligible clothing and household textile activity mentioned in paragraph 1.6 (1) (d) — to eligible clothing and household textile products manufactured, on behalf of the entity that carries on the design activity mentioned in paragraph 1.6 (1) (d), by another entity.
(3) If an entity is carrying on an eligible clothing and household textile activity of a kind mentioned in Part B or C of Schedule 1 on a fee or commission basis, the total eligible revenue for the entity and for a period is the total of the fees and commissions earned by the entity during the period for that activity, excluding:
(a) any GST; and
(b) any subsidy given during the period by the Commonwealth, or a State or Territory.
1.10 References to an entity
In the scheme, unless the contrary intention appears, a reference to an entity, in relation to the doing of anything by the entity for the purposes of the scheme, does not include a reference to an agent of the entity, except where:
(a) the entity is a body corporate; and
(b) the agent is a director or other officer of the body corporate, or an employee of the body corporate having management responsibility.
1.11 References to an innovation grant for a program year
In the scheme, a reference to an innovation grant to or for an entity for a program year is a reference to an innovation grant to the entity relating to eligible clothing and household textile expenditure incurred by the entity in the program year.
1.12 References to the cost or price of plant, etc
In the scheme, a reference to the cost or price of land, buildings, plant, materials or anything else is a reference to the cost or price excluding any GST, excise or sales tax.
Part 2 Innovation grants
Division 2.1 Innovation grants
Subdivision 2.1.1 Activities for innovation grants
2.1 What is an innovation grant
(1) An innovation grant, for an entity for a program year, is a grant payable in relation to eligible clothing and household textile expenditure by the entity in that year that is directly attributable to any of the following activities carried on by, or on behalf of, the entity in respect of an eligible clothing and household textile activity:
(a) a research and development activity of a kind mentioned in section 2.2;
(b) a research and development activity being a product development activity of a kind mentioned in subsection (2).
(2) For paragraph (1) (b), a product development activity must be:
(a) innovative product design within the meaning of section 2.3; or
(b) innovative process improvement within the meaning of section 2.4; or
(c) market research within the meaning of section 2.5; or
(d) obtaining industrial property rights within the meaning of section 2.6.
(3) For paragraph (1) (b), if a product development activity is carried on on behalf of the entity by another entity, the activity must be carried on under a written contract or in accordance with detailed written and binding arrangements.
(4) An innovation grant may be made in relation to more than 1 eligible clothing and household textile activity.
Note Subdivision 20‑A (Insurance, indemnity or other recoupment for deductible expenses) of Chapter 2 of the ITAA 1997 and Subdivision 355-G (Clawback of R&D recoupments) of Chapter 3 of the ITAA 1997 are relevant to an innovation grant.
2.2 Research and development activities
(1) For paragraph 2.1 (1) (a), a research and development activity must be directed at a product or process.
(2) If the activity is not Australian‑based, the activity must be necessary:
(a) to carry on an Australian‑based research and development activity (for example, product testing at a facility that is not available in Australia); or
(b) to tailor an Australian‑based research and development activity to the requirements of a particular market.
(3) If the activity is carried out by an entity on behalf of another entity:
(a) if the activity is Australian-based, the entity carrying out the activity must be a research service provider registered under section 29A of the Industry Research and Development Act 1986; and
(b) the activity must be carried on under a written contract or in accordance with detailed written and binding arrangements.
2.3 Innovative product design
(1) For paragraph 2.1(2) (a), an innovative product design activity must be:
(a) Australian‑based; and
(b) an activity directly concerned with:
(i) the design, testing, trial and sample production of a particular innovative eligible clothing and household textile product; or
(ii) innovation in the design, testing, trial and sample production of a particular eligible clothing and household textile product.
(2) However, an activity ceases to be an innovative product design activity if it is routinely undertaken or is directed solely at achieving visual product differentiation.
2.4 Innovative process improvement
(1) For paragraph 2.1(2) (b), an innovative process improvement activity must be:
(a) Australian‑based; and
(b) directed at innovative improvement of a production process for an eligible clothing and household textile product.
Example
An innovative process improvement activity must be an improvement leading to a point of difference from, or a change of a technical nature to, the original production process.
(2) However, an activity ceases to be an innovative process improvement activity if it is routinely undertaken.
2.5 Market research
(1) For paragraph 2.1 (2) (c), market research comprises market testing, market development or sales promotion (including consumer surveys) that is not routine, is not related to trade showings and in-store promotions and that has as its main purpose the introduction of an innovative eligible clothing and household textile product.
(2) Market testing, market development or sales promotion for a purpose mentioned in subsection (1) must be carried on before production (other than sample production) of the product.
(3) For subsection (1), trade showings and in‑store promotions are comprised of participation by an entity (otherwise than as a retailer) in trade showings and in‑store promotions of an eligible clothing and household textile product:
(a) for which the entity:
(i) has applied to register a trade mark in Australia; or
(ii) is the registered owner of a trade mark in Australia; and
(b) that is marketed, or is to be marketed, under that trade mark.
Note The Trade Marks Act 1995 sets out the requirements for registering a trade mark, and for identifying who is the registered owner of a trade mark.
2.6 Obtaining industrial property rights
(1) For paragraph 2.1 (2) (d), obtaining industrial property rights in respect of an innovative eligible clothing and household textile product comprises:
(a) the preparation and lodging of applications and other documents that are required to be lodged, in Australia or elsewhere, for the initial grant, registration or certification of the rights; and
(b) the initial grant or registration of the rights, in Australia or elsewhere.
(2) In subsection (1):
industrial property rights means:
(a) the rights (including equitable rights) possessed by a person under a law of Australia as:
(i) the patentee of a patent in force for an invention; or
(ii) the patentee of an innovation patent in force for an invention; or
(iii) the owner of a registered trade mark; or
(iv) the owner of a registered design; or
(b) rights possessed by a person under a law of a foreign country that are equivalent to the rights mentioned in paragraph (a).
Subdivision 2.1.2 Eligible clothing and household textile expenditure for innovation grants
2.7 What is eligible clothing and household textile expenditure for an innovation grant
Expenditure is eligible clothing and household textile expenditure for an innovation grant to an entity for a program year only if it:
(a) is of a kind mentioned in, and is incurred in accordance with, sections 2.9 and 2.10; and
(b) reflects costs based on normal commercial values and arms length transactions.
2.8 What is not eligible expenditure for an innovation grant
Expenditure is not eligible expenditure for this Subdivision if it relates to travel costs.
2.9 Expenditure on research and development activities
(1) Expenditure on a research and development activity must relate to 1 or more of the following:
(a) salaries;
(b) a contract or other arrangement mentioned in subsection 2.1 (3) or 2.2 (3);
(c) the acquisition or construction of BIC plant that is pilot plant or a plant prototype;
(d) non‑capitalised prototype expenditure;
(e) costs of materials for the activity.
(2) Expenditure relating to salaries is limited to the sum of salary costs of employees of the entity engaged primarily and directly on core elements of the activity comprising:
(a) salary costs; and
(b) associated costs (including on‑costs, administrative support costs and overhead costs) set at 75% of salary costs.
(3) Expenditure on the acquisition or construction of BIC plant, must:
(a) be expenditure for pilot plant or plant prototypes, of which the entity is the financial owner, for use exclusively in Australia; and
(b) comply with, and be incurred in accordance with, items 1 to 3 in the following table.
Item
Activity
Conditions
1 Acquisition of new pilot plant or plant prototype The expenditure:
(a) must represent the value of the pilot plant or plant prototype capitalised in the entity’s accounts, less the amount, if any:
(i) recovered from any trade‑in; or
(ii) received under an insurance claim made in relation to any damaged plant replaced by the acquisition; or
(iii) received from the sale of any scrapped or damaged plant replaced by the acquisition; or
(iv) received from the sale of any plant decommissioned as a result of the acquisition; and
(b) is taken to have been incurred only when the pilot plant or plant prototype has been paid for and commissioned.
2 Acquisition of new pilot plant or plant prototype purchased under a hire purchase agreement or financed through a finance lease The expenditure:
(a) must represent the value of the pilot plant or plant prototype shown in the hire purchase agreement or finance lease and capitalised in the entity’s accounts, less the amount, if any:
(i) recovered from any trade‑in; or
(ii) received under an insurance claim made in relation to any damaged plant replaced by the acquisition; or
(iii) received from the sale of any scrapped or damaged plant replaced by the acquisition; or
(iv) received from the sale of any plant decommissioned as a result of the acquisition; and
(b) is taken to have been incurred only when the first instalment under the agreement or lease has been paid and the pilot plant or plant prototype has been commissioned.
3 Construction of pilot plant or plant prototype The expenditure:
(a) is limited to the sum of:
(i) the costs of materials; and
(ii) salary costs; and
(iii) associated costs (including on‑costs, administrative support costs and overheads) set at 75% of salary costs; and
(iv) establishment and commissioning costs; and
(b) must be capitalised in the entity’s accounts; and
(c) is taken to have been incurred only when the pilot plant or plant prototype is commissioned or, if commissioning is not required, when the plant is operational.
(4) Non‑capitalised prototype expenditure:
(a) must relate to the making of an initial model, mock‑up or similar thing for an innovative eligible clothing and household textile product, or an innovative process for an eligible clothing and household textile product, including expenditure on dies, jigs and testing materials, but not including expenditure on general sales samples; and
(b) is taken to be the net expenditure after deduction of the proceeds (if any) of the sale of materials acquired for the purpose of paragraph (a).
Note Amounts and percentages mentioned in subsection (2) and item 3 of the table in subsection (3) may be reviewed during the period of the scheme, and may be changed by amendment of the scheme.
2.10 Expenditure on product development activities
(1) If a product development activity mentioned in section 2.3, 2.4, 2.5, or 2.6 is carried on by the entity, the expenditure must relate to salaries and materials costs incurred in Australia in carrying on the product development activity.
(2) Expenditure on salaries is to be treated in the same manner as salaries relating to research and development activities, and subsection 2.9 (2) applies accordingly.
(3) Expenditure on a product development activity mentioned in section 2.6 is limited to costs and fees directly related to the matters mentioned in that section.
(4) If a product development activity mentioned in paragraph 2.1 (1) (b) is carried on for the entity by another entity, the expenditure may also relate to the contract or other arrangement mentioned in subsection 2.1 (3).
Part 3 Registration of entities for innovation grants
3.1 Application for registration for innovation grants
(1) An entity that intends to make a claim for eligibility for an innovation grant must apply to the Secretary to be registered for the scheme.
(2) An entity is not eligible to apply for registration unless the entity carries on, or proposes to carry on, an eligible clothing and household textile activity.
(3) An application for registration must be in respect of a program year:
(4) The application:
(a) must be in writing in a form approved by the Secretary; and
(b) must include the information mentioned in subsection (5); and
(c) must be signed in the manner indicated in the form.
Note Applications and other documents under the scheme may be sent electronically — see section 7.11.
(5) For subsection (4), the application must contain the following:
(a) the name of the applicant entity;
(b) the entity’s ABN or ACN, and date of formation or incorporation, if applicable;
(c) if the applicant entity is a trust — the type of trust and details of the beneficiaries;
(d) contact addresses (both street and postal);
(e) the names of directors and major shareholders (if applicable), and of key management personnel;
(f) details of the size of the entity (including current employment levels and the employment levels for the 2 income years of the entity before the income year in which the application is made), as well as annual turnover and a general description of the entity’s activities;
(g) details of any other entity if information about it is required to be consolidated with a report or statement of the applicant under the Corporations Act 2001, including the other entity’s ACN, the names of directors and major shareholders, and an organisation chart for the consolidated operations.
(6) The applicant entity must give to the Secretary:
(a) the documents and information mentioned in section 3.2; and
(b) together with the application for registration, the documents and information mentioned in sections 3.3 and 3.4.
3.2 Financial statements etc
(1) For subsection 3.1 (6) and 3.10 (4), the applicant entity must give the Secretary the financial information required by this section.
(2) The entity must give the Secretary the financial information mentioned in subsection (3) for the last income year of the entity, before the income year in which the application is made, in which it carried on business operations.
(3) For subsection (2), the financial information is:
(a) if the entity is required, under section 296 of the Corporations Act 2001, to prepare financial reports in accordance with accounting standards:
(i) financial reports prepared in accordance with those standards; and
(ii) if the entity is required, under section 301 of the Corporations Act 2001, to have an annual audit of the financial report — a copy of the auditor’s report; or
(b) in any other case — financial statements comprising a balance sheet and a profit and loss statement, together with notes to the statements and underlying assumptions made in their preparation.
3.3 Description of activities and estimates of expenditure
For subsection 3.1 (6), the applicant entity must give:
(a) a detailed description of eligible clothing and household textile activities and eligible clothing and household textile products in relation to which claims are likely to be made for the next 2 program years under the scheme; and
(b) the estimated total eligible clothing and household textile expenditure in respect of which claims are likely to be made for the next 2 program years under the scheme.
3.4 Strategic business intent
For subsection 3.1 (6), the applicant entity must give a statement of strategic business intent that:
(a) is drawn from the strategic business plan prepared in accordance with section 3.5; and
(b) includes the business, operational and financial strategies that will guide the entity to sustainable operations for eligible clothing and household textile activities beyond the end of the program period.
3.5 Strategic business plan
(1) The applicant entity must have a strategic business plan for the entity that complies with this section.
Note A strategic business plan means a strategic business plan that incorporates a strategic investment plan — see section 4 of the Act.
(2) The strategic business plan must relate to:
(a) the program year in respect of which the application for registration is made; and
(b) the remaining program years (if any) of the program period.
(3) However, if, for an entity, there are less than 2 remaining program years in the program period, the strategic business plan must relate, in addition to the program years mentioned in paragraphs (2) (a) and (b), to 1 or more income years of the entity after the end of the program period, so that the strategic business plan relates to at least 3 income years of the entity.
(4) The strategic business plan must indicate the entity’s strategic direction for the whole of the program period.
(5) The strategic business plan must:
(a) give details of the strategies (including financial plans) that will enable the entity to carry on sustainable operations for eligible clothing and household textile activities beyond the end of the program period; and
(b) include appropriate operational plans, details of financial commitment and controls, financial projections and assumptions on which forecasts are based.
(6) If the Secretary, in writing, requests the entity to make available a copy of the entity’s strategic business plan, the entity must comply with the request within a reasonable period specified by the Secretary in the request.
Note See subsections 8.2 (1) and (2) for transitional applications.
3.6 Additional information
(1) If it appears to the Secretary that an application by an entity, or information submitted with the application, is incomplete or insufficient for the purpose of registration, the Secretary, in writing, may request the entity to do either or both of the following:
(a) make a further application in such form as is specified in the request;
(b) give further information mentioned in the request.
(2) The entity must comply with a request under subsection (1) within a reasonable period specified by the Secretary in the request.
(3) The Secretary is not required to make a decision on the application until the entity complies with the request.
3.7 Time limits for registration
An entity wishing to make a claim for eligibility for an innovation grant for a program year must apply to be registered before 1 July of the relevant program year.
Note 1 If, for example, an entity wishes to make a claim for eligibility for an innovation grant for the 2011/2012 program year, the entity must apply before 1 July 2011 to be registered.
Note 2 Section 3.12 provides for extension of time limits for registration.
3.8 Registration of entity
(1) The Secretary must notify an entity of the receipt of the entity’s application for registration.
(2) The Secretary must register the entity if the Secretary is satisfied, on consideration of the application, that the entity:
(a) is eligible to apply for registration; and
(b) has complied with the requirements of this Part for registration.
(3) If the Secretary is not satisfied as to a matter mentioned in paragraph (2) (a) or (b), the Secretary must refuse to register the entity.
(4) For subsections (2) and (3), the Secretary is not to take the eligibility of the entity for an innovation grant under the scheme into account.
3.9 Effects of registration
(1) If the Secretary registers an entity, the registration is taken to have effect from the day on which the Secretary receives the initial application, whether or not a further application is made under section 3.6.
(2) Registration of an entity has effect for the program year for which registration was sought.
(3) Registration of an entity does not, of itself, give rise to an entitlement to an innovation grant.
Note Part 4 deals with the transfer of registration.
3.10 Application for renewal of registration
(1) Subject to this section, an entity that is registered, or has been registered, for a program year, may apply for a renewal of registration for a later program year (whether or not the entity intends to make a claim for that program year).
(2) An entity is not eligible to apply for a renewal of registration if it no longer carries on, or no longer proposes to carry on, an eligible clothing and household textile activity.
(3) An application for renewal must:
(a) be in a form approved by the Secretary; and
(b) include:
(i) details of any variation or updating of the information given to the Secretary under section 3.3, 3.4 or 3.6 in relation to an activity in respect of which the entity proposes to make a claim (including any change in the estimated total eligible clothing and household textile expenditure in respect of which claims are likely to be made); and
Example
If an entity wishes, in the 2010/2011 program year, to renew its registration for participation in the scheme in the 2011/2012 program year, the entity must include with its application for the renewal an estimate of its total eligible clothing and household textile expenditure for the 2010/2011 program year if that estimate differs from the estimate provided under section 3.3.
(ii) a detailed description of eligible clothing and household textile activities and eligible clothing and household textile products in relation to which claims are likely to be made for the next 2 program years under the scheme; and
(iii) the estimated total eligible clothing and household textile expenditure in respect of which claims are likely to be made for the next 2 program years under the scheme.
(4) Also, the applicant entity must give to the Secretary the documents and information mentioned in section 3.2.
(5) Sections 3.6 and 3.7 apply to an application for renewal of registration in the same way as they apply to an application for registration under section 3.1.
Note Section 3.6 provides that the Secretary may request additional information. Section 3.7 imposes time limits for an application for registration.
3.11 Renewal of registration
(1) The Secretary must notify an entity of the receipt of the entity’s application for renewal of registration.
(2) The Secretary must renew the registration if the Secretary is satisfied that the entity:
(a) is eligible to apply for a renewal of registration; and
(b) has complied with the requirements of section 3.10.
(3) If the Secretary is not satisfied as to any of the matters mentioned in paragraph (2) (a) or (b), the Secretary must refuse to renew the registration.
(4) For subsections (2) and (3), the Secretary is not to take the eligibility of the entity for an innovation grant under the scheme into account.
(5) Section 3.9 applies to an application for renewal and to the renewal of registration in the same way as it applies to an application for registration under section 3.1 and to registration.
Note Section 4.2 deals with the effect and transferability of registration.
3.12 Extension of time for registration or renewal
(1) The Secretary, on the written application of an entity, may extend the period within which the entity may apply for registration, or renewal of registration, for a program year.
(2) The Secretary must not extend the period unless the Secretary is satisfied that, because of exceptional circumstances affecting the entity, there is good reason to do so.
(3) If:
(a) the Secretary extends the period within which an entity may apply for registration, or renewal of registration, for a program year; and
(b) the extended period ends after the commencement of the program year for which the entity is seeking registration or renewal of registration;
the financial statements that the entity must, under section 3.2, give to the Secretary with the application are the financial statements that would have been applicable if the entity had applied for registration within the time limits set out in section 3.7.
(4) Also, the Secretary must not extend the period beyond the end of the program year for which registration or renewal of registration is sought.
(5) To avoid doubt, failure to apply for registration or renewal of registration before 1 July of the relevant program year due to oversight or ignorance is not to be regarded as an exceptional circumstance for the purpose of subsection (2).
3.13 Notice of registration or refusal to register etc
(1) The Secretary must give written notice to an entity of:
(a) the entity’s registration or renewal of registration; and
(b) if the period within which an application for registration or renewal is made is extended under section 3.12 — details of the extension.
(2) If the Secretary refuses an application for registration or renewal of registration, or for an extension of the period for registration or renewal, the Secretary must give written notice of:
(a) the refusal; and
(b) the reasons for the refusal.
Note Section 7.3 requires the notice to be accompanied by a statement about the entity’s right to have the decision reconsidered or reviewed.
(3) If the Secretary has not decided the application within the decision period, the entity may, at any time, give the Secretary written notice that the entity wishes to treat the application as having been refused.
(4) For section 7.1, if the entity gives notice under subsection (3), the Secretary is taken to have refused the application, and to have notified the entity of the decision, on the day on which the entity gives notice.
(5) In subsection (3):
decision period, in relation to an application, means:
(a) if, within the period of 30 days commencing on the day when the application is received, the Secretary requests further information, or a further application, under section 3.6 — the period of 30 days commencing on the day when the further information or application is received; or
(b) in any other case — the period of 30 days commencing on the day when the application is received.
3.14 Effect of non‑registration
An entity that is not registered for a program year is not eligible for an innovation grant for that year.
3.15 Register of entities
(1) The Secretary must maintain a register of entities that are registered for the scheme.
(2) In any proceedings relating to the scheme, a document that appears to a court or tribunal to be a certificate by the Secretary, in accordance with subsection (3), certifying a statement to the effect mentioned in subsection (4):
(a) is evidence of the truth of the statement; and
(b) may be received in evidence without being proved.
(3) The certificate must be signed by the Secretary and be expressed to be in accordance with the register.
(4) The statement must be to the effect that, on a specified date, or during a specified period, a specified entity was, or was not, registered for a particular program year.
3.16 Notice of likely change in eligible clothing and household textile expenditure
(1) An entity that is registered for a program year must give written notice to the Secretary of:
(a) any likely significant change in eligible clothing and household textile expenditure to be incurred by the entity in the program year in respect of which the entity proposes to make a claim; and
(b) any likely implications of the change on the estimated total eligible clothing and household textile expenditure in respect of which claims are likely to be made for the next 2 program years under the scheme.
(2) The entity must give the notice as soon as the entity becomes aware of the likely change.
Part 4 Transfer of registration
4.1 Interpretation for Part 4
In this Part, unless the contrary intention appears:
business, of an entity, includes a part of the business of the entity.
4.2 Transfer of registration generally
Registration of an entity is not transferable (whether by way of or in consequence of sale, assignment, charge, execution, bankruptcy, insolvency or otherwise) except with the approval, in writing, of the Secretary.
4.3 Transfer of registration on transfer of business
(1) This section applies if an entity (the transferor entity) that is registered for a program year transfers the business of the entity to another entity (the transferee entity).
(2) The transferee entity may apply to the Secretary for a transfer of registration for the program year.
(3) An application must:
(a) be in a form approved by the Secretary; and
(b) be signed in a manner indicated in the form; and
(c) include the following:
(i) details of the relationship (if any) between the transferor entity and the transferee entity;
(ii) a business case for the transfer of the business;
(iii) a statement of strategic business intent of the transferee entity, of the kind mentioned in section 3.4, incorporating the transferred business;
(iv) the date, or proposed date, of effect of the transfer of the business.
(4) The Secretary may:
(a) approve the transfer of registration, with or without conditions; or
(b) refuse to approve the transfer of registration.
(5) However, the Secretary must not approve a transfer of registration if:
(a) the business transferred does not include the whole of the eligible clothing and household textile activity or activities carried on by the transferor entity; or
(b) there are reasonable grounds for believing that the primary purpose of the transfer of the business is to obtain an entitlement to an innovation grant under the scheme; or
(c) the amount of an innovation grant to which the transferee entity would be entitled in respect of eligible clothing and household textile expenditure incurred by the transferor entity before the transfer would be more than the amount of the innovation grant to which the transferor entity would have been entitled if the business had not been transferred; or
(d) the transferee entity does not carry on, or does not propose to carry on, the eligible clothing and household textile activity or activities of the transferor entity; or
(e) the transferee entity does not propose to incur eligible clothing and household textile expenditure in a subsequent program year; or
(f) the business transferred includes a product development activity in respect of which the transferor entity has incurred eligible clothing and household textile expenditure in obtaining industrial property rights, and those industrial property rights are not transferred to the transferee entity.
(6) Subsection (5) does not limit the discretion of the Secretary under subsection (4) to refuse to approve a transfer of registration on other grounds.
(7) If the Secretary refuses to approve a transfer of registration, or approves the transfer of registration subject to conditions, the Secretary must give written notice to the transferee entity of:
(a) the decision; and
(b) the reasons for the decision.
(8) If the Secretary approves the transfer of registration, the Secretary must notify the transferee entity of the approval and amend the register maintained under section 3.15 accordingly.
4.4 Additional information
(1) If it appears to the Secretary that an application for a transfer of registration by an entity, or information submitted with the application, is incomplete or insufficient for the purpose of the application, the Secretary, in writing, may request the entity to do either or both of the following:
(a) make a further application in such form as is specified in the request;
(b) give further information mentioned in the request.
(2) The entity must comply with a request under subsection (1) within a reasonable period specified by the Secretary in the request.
4.5 Effect of transfer of registration
(1) This section applies, subject to sections 4.6 and 4.7, if a transfer of registration for a program year is approved under section 4.3.
(2) On approval of the transfer of registration, the transferor entity ceases to have any right or entitlement under the scheme in respect of eligible clothing and household textile expenditure incurred in the program year.
(3) For the purposes of the scheme:
(a) any eligible clothing and household textile activity carried on by the transferor entity before the transfer of the business in the program year or in the immediately preceding program year is taken to have been carried on by the transferee entity; and
(b) any eligible clothing and household textile expenditure incurred by the transferor entity before the transfer of the business in the program year or in the immediately preceding program year in relation to an eligible clothing and household textile activity mentioned in paragraph (a) is taken to have been incurred by the transferee entity; and
Note See subsections 8.2 (1) and (2) for transitional applications.
(c) anything done by the transferor entity before the transfer of registration for the purposes of the scheme (including any step taken for the renewal of registration, for making a claim for eligibility for an innovation grant, for the determination of an entitlement to an innovation grant or for making a request for an advance of an innovation grant) is taken to have been done by the transferee entity; and
(d) anything:
(i) that has not been done before the transfer of registration by the transferor entity for the purpose of making a claim for eligibility for an innovation grant for the program year to which the registration applies, or for the determination of an entitlement to an innovation grant; and
(ii) that could, but for the transfer of registration, have been done by the transferor entity on or after the day on which registration was transferred;
may be done by the transferee entity.
Note See subsections 8.2 (1), (2) and (4) for transitional applications.
4.6 Status of activities and expenditure unchanged
(1) An activity that, if carried on by a transferor entity in the program year to which the transferred registration applies, is not an eligible clothing and household textile activity:
(a) does not, by reason of the transfer of the business, become an eligible clothing and household textile activity for the program year; and
(b) if carried on in the program year by the transferee entity, is taken not to be an eligible clothing and household textile activity for the program year.
(2) Expenditure that, if incurred by a transferor entity in the program year to which the transferred registration applies, is not eligible clothing and household textile expenditure:
(a) does not, by reason of the transfer of the business, become eligible clothing and household textile expenditure for the program year; and
(b) if incurred in the program year by a transferee entity, is taken not to be eligible clothing and household textile expenditure for the program year.
(3) An activity that, if carried on by a transferee entity before the transfer of the business in the program year to which the transferred registration applies, is not an eligible clothing and household textile activity, does not, by reason of the transfer of the business, become an eligible clothing and household textile activity for the program year.
(4) Expenditure that, if incurred by a transferee entity in the program year to which the transferred registration applies, is not eligible clothing and household textile expenditure does not, by reason of the transfer of the business, become eligible clothing and household textile expenditure for the program year.
(5) To avoid doubt, consideration paid by the transferee entity for the transfer of the business, or for any right or entitlement under the scheme, is not eligible clothing and household textile expenditure.
4.7 Treatment of total eligible revenue and total eligible start‑up investment amounts
(1) For subsection 6.23 (1), the total eligible revenue for a transferee entity for an income year in respect of which the registration is transferred is taken to be the sum of:
(a) the total eligible revenue of the transferor entity for the income year or, if the transfer of the business occurred during the income year, for that part of the income year during which the business was owned by the transferor entity; and
(b) the total eligible revenue (if any) of the transferee entity for the income year.
(2) For subsection 6.23 (2), the total of the eligible start‑up investment amounts for a transferee entity for an income year in respect of which the registration is transferred is taken to be the sum of:
(a) the eligible start‑up investment amounts of the transferor entity for the income year or, if the transfer of the business occurred during the income year, for that part of the income year during which the business was owned by the transferor entity; and
(b) the eligible start‑up investment amounts (if any) of the transferee entity for the income year.
Part 5 Advances of innovation grants
Division 5.1 Introductory
5.1 Effect of Part
This Part has effect despite anything else in the scheme.
5.2 What is an advance of an innovation grant
(1) An advance of an innovation grant, for an entity, is an amount that may become payable to the entity under this Part by way of an advance on account of the innovation grant.
(2) An advance of an innovation grant may be made in relation to more than 1 eligible clothing and household textile activity.
(3) If:
(a) an entity requests an advance of an innovation grant; and
(b) the entity is eligible for an advance of an innovation grant;
the entity’s eligibility does not, of itself, give rise to an entitlement to an innovation grant.
5.3 Effect of non‑registration
An entity that is not registered for a program year is not eligible for an advance of an innovation grant for that year.
5.4 References to an advance of an innovation grant for a program year
In this Part, a reference to an advance of an innovation grant to an entity for a program year is a reference to an advance of an innovation grant to the entity relating to eligible clothing and household textile expenditure incurred by the entity in the program year.
Division 5.2 Advances of innovation grants
Subdivision 5.2.1 Requests for advances of innovation grants
5.5 Requests for advances of innovation grants
(1) If an entity intends to make a claim for eligibility for an innovation grant for a program year, the entity may request the Secretary, in accordance with this Subdivision, for an advance of the innovation grant.
Note An entity is not eligible for an advance of an innovation grant if, when the request for an advance is made, the entity is no longer carrying on an eligible clothing and household textile activity — see section 7.6.
(2) An entity may not make a request for an advance of an innovation grant if the entity:
(a) has previously been paid an advance of an innovation grant for a program year but has not made a claim, under Part 6, for the innovation grant; or
(b) has previously been paid an advance of an innovation grant for a program year and has made a claim, under Part 6, for the innovation grant, but has not been paid the innovation grant under that Part; or
(c) has previously been paid an advance of a grant for a program year and has been paid a grant under Part 6 for that year, but:
(i) the amount of the advance exceeded the amount of the grant; and
(ii) the amount of the excess has not been repaid by the entity to the Commonwealth and the entity has not arranged with the Commonwealth for the amount to be deducted in full from the advance; or
(d) has incurred a scheme debt and that debt has not been discharged (regardless of the circumstances) or arrangements for its discharge in full by set-off from the advance have not been made with the Commonwealth.
(3) Section 6.2 applies in relation to a request for an advance of an innovation grant in the same way as it applies to a claim for the innovation grant.
(4) A request for an advance of an innovation grant relating to eligible clothing and household textile expenditure by an entity (the contracting entity) in respect of a research and development activity or product development activity carried out, on behalf of the contracting entity, by another entity must be made by the contracting entity.
(5) A request must:
(a) be in a form approved by the Secretary; and
(b) be signed in the manner indicated in the form; and
(c) be accompanied by the documents and information mentioned in section 5.6.
Note Requests and other documents under the scheme may be sent electronically — see section 7.11.
5.6 Information in support of requests for advances of innovation grants
For paragraph 5.5 (5) (c), the documents and information are the following:
(a) a detailed description of eligible clothing and household textile activities:
(i) carried on in the program year; and
(ii) in respect of which the request is made;
(b) a statement of eligible clothing and household textile expenditure incurred by the entity in the program year in respect of which the request is made;
(c) a statement of the total eligible revenue derived by the entity in the program year in respect of which the request is made;
(d) a written statement by the entity to the effect that, in the entity’s opinion, the total of advances of an innovation grant for which the entity is applying would not exceed the entity’s innovation grant eligibility amount for the program year in respect of which the request is made.
Note For the entity’s innovation grant eligibility amount, see section 6.18.
5.7 Additional information
(1) If it appears to the Secretary that an application for an advance of an innovation grant by an entity, or information submitted with the application, is incomplete or insufficient for the purpose of the application, the Secretary, in writing, may request the entity to do either or both of the following:
(a) make a further application in such form as is specified in the request;
(b) give further information mentioned in the request.
(2) The entity must comply with a request under subsection (1) within a reasonable period specified by the Secretary in the request.
(3) The Secretary is not required to make a decision on the application until the entity complies with the request.
5.8 Threshold expenditure for advances of innovation grants
(1) An entity is not eligible for an advance of an innovation grant for a program year unless the sum of the amounts mentioned in subsection (2) and (3) exceeds $200 000 (the threshold amount).
(2) For subsection (1), the amounts are:
(a) the total amount of eligible clothing and household textile expenditure for advances of innovation grants incurred by the entity in the program year in respect of which the request is made; and
(b) the total amount of eligible clothing and household textile expenditure:
(i) incurred by the entity in previous program years; and
(ii) in respect of which the entity has made a claim.
(3) If an entity incurred eligible expenditure within the meaning of the TCF (SIP) Scheme in the 2004/05 program year of that scheme, the entity may include, as an amount for subsection (1), the total of Type 1 and Type 2 eligible expenditure under that scheme incurred in that program year.
(4) However:
(a) if the entity was not registered under the TCF (SIP) Scheme for the 2004/05 program year for that scheme, the expenditure referred to in subsection (3) is to be assessed as it would have been if a claim in relation to that expenditure had been made under that scheme; and
(b) if the entity was registered under the TCF (SIP) Scheme for the 2004/05 program year for that scheme, the expenditure referred to in subsection (3) may be included only if the entity also made a claim under the TCF (SIP) Scheme in relation to that expenditure.
Note Expenditure incurred in the 2004/05 program year of the TCF (SIP) Scheme may be included in the threshold amount for this section, but may not be the subject of a claim under the scheme.
(5) If, for an entity, the sum of the amounts mentioned in subsections (2) and (3) exceeds the threshold amount, the entity becomes eligible for an advance of an innovation grant in respect of eligible clothing and household textile expenditure in each program year if, apart from this section, the entity would be eligible for the advance in that year.
Note See subsections 8.2 (1), (2) and (5) for transitional applications. It is intended that eligible expenditure incurred under the former scheme may be recognised for the purposes of applying the threshold expenditure for advances of grants and grants under this scheme.
5.9 When requests for advances of innovation grants must be made
(1) An entity must make a request for an advance of an innovation grant for a program year
(a) in the relevant financial year; and
(b) on or before the first working day in January of the relevant financial year.
Example
A request for an advance of an innovation grant for the 2011/12 program year must be made on or after 1 July 2012 and before the first working day of January 2013.
(2) Subsection (1) applies to an advance of an innovation grant to an entity for a program year, whether or not the entity applies for renewal of registration for the next following program year.
(3) An entity that fails to comply with subsection (1) for a program year is not eligible for an advance of an innovation grant for the program year.
Subdivision 5.2.2 Assessment of eligibility for advances of innovation grants
5.10 Request for assessment of eligibility for advance
(1) A request by an entity for an advance of an innovation grant must contain:
(a) information sufficient to establish the entity’s eligibility for an advance of an innovation grant of an amount; and
(b) information sufficient to fulfil the applicable requirements set out in subsections (2) to (4); and
(c) information sufficient to establish that it is registered for the scheme for the program year concerned.
(2) The entity must establish that it has carried on, in the program year, the eligible clothing and household textile activity in respect of which the request is made, in accordance with the documents and information given to the Secretary under sections 3.3, 3.4 and 3.6.
(3) The entity must provide information sufficient to enable the calculation of the amount of expenditure that is eligible clothing and household textile expenditure within the meaning of sections 2.7 to 2.10, incurred by the entity within the program year.
(4) The request must be made in accordance with sections 5.5 to 5.9 and 5.14.
5.11 Assessment of eligibility for advance
(1) The Secretary may assess the request and decide whether the entity is eligible for an advance of an innovation grant of an amount.
(2) Without limiting the application of other provisions in the scheme, in deciding the amount of an advance, as far as applicable, sections 5.6, 5.7, 5.8, 5.14 and 5.15 must be taken into account.
(3) However, an object of this section is to permit self‑assessment of requests and nothing in this section is to operate to require the Secretary to assess a particular request, or any request.
(4) The Secretary is not to be taken to have assessed an entity’s request for an advance for a program year unless the Secretary has issued a notice under subsection 5.16 (2) in relation to the request.
5.12 Provision of strategic business plans etc
An entity is not eligible for an advance of an innovation grant unless the entity has complied with the requirements of Part 3 in relation to the content and submission of strategic business plans.
5.13 Pre‑payment assessment, post‑payment monitoring
An entity that has requested an advance may be selected for pre‑payment assessment or post‑payment compliance monitoring.
5.14 Arms length expenditure — advances of innovation grants
In working out the amount of eligible clothing and household textile expenditure for an advance of an innovation grant, if expenditure has been incurred in a transaction that was not at arms length, the amount of the expenditure is to be taken to be the amount that would reasonably have been expected to have been incurred if the transaction had been at arms length.
5.15 Cap for advances of innovation grants
The amount of an advance of an innovation grant made to an entity in respect of eligible clothing and household textile expenditure incurred by the entity during a particular program year must not exceed 25% of that eligible clothing and household textile expenditure.
Subdivision 5.2.3 Notice of decisions, payment of advances etc
5.16 Assessment periods, notice of decisions — advances
(1) This section applies in relation to a request for an advance for an innovation grant for a program year in respect of which the Secretary has made an assessment, or is to make an assessment, under subsection 5.11 (1).
(2) If the Secretary decides under subsection 5.11 (1) to make an assessment in relation to a request by an entity, the Secretary must give notice, in writing, to the entity accordingly.
(3) The Secretary must give notice, in writing, to an entity making a request for an advance of an innovation grant, within 60 days after receipt of the request:
(a) of the Secretary’s decision as to the entity’s eligibility for the advance and the amount of the advance; or
(b) if the decision cannot be made within 60 days after receipt of the request — of the period within which the decision is to be made, giving reasons for the delay in making the decision.
(4) The Secretary must give notice, in writing, to the entity of a decision to which paragraph (3) (b) applies within 7 days after the decision is made.
(5) If the Secretary decides that the entity is not eligible for an advance of an innovation grant, the notice must include reasons for the decision.
Note Section 7.3 requires the notice to be accompanied by a statement about the entity’s right to have the decision reconsidered or reviewed.
(6) If the Secretary has not given notice to the entity of the Secretary’s decision as to eligibility for an advance of an innovation grant:
(a) within the period of 60 days mentioned in subsection (1); or
(b) if the decision is one to which paragraph (3) (b) applies — within 7 days after the end of the period notified by the Secretary under that paragraph,
the entity may, at any time, give the Secretary written notice that the entity wishes to treat the request as having been refused.
(7) For section 7.1, if the entity gives notice under subsection (6), the Secretary is taken to have refused the request, and to have notified the entity of the decision, on the day on which the entity gives notice.
5.17 Resolution of requests for advances of innovation grants
(1) This section applies to a request for an advance of an innovation grant in relation to a program year in respect of which the Secretary does not intend to make an assessment under subsection 5.11 (1).
(2) If the entity has, in its request, satisfied the requirements of sections 5.10 and 7.6, the entity is to be regarded as being eligible for an advance in accordance with the terms of the request.
(3) However, the Secretary may, having taken into account the limits on advances mentioned in this Part, work out the amount of the advance.
(4) Working out of an amount under subsection (3) is not to be regarded as an assessment by the Secretary for the purposes of the scheme.
5.18 Payment of advances of innovation grants
(1) If an entity is eligible for an advance of an innovation grant of an amount, the Secretary must pay that amount to the entity
(2) The advance must be paid as soon as practicable after 1 July of the relevant financial year.
Example
A request for an advance in relation to the 2011/12 program year must be paid as soon as practicable after 1 July 2012.
Part 6 Claims for innovation grants
Division 6.1 Making a claim
Subdivision 6.1.1 Claims for eligibility for an innovation grant for a program year
6.1 Claim for innovation grant — general
(1) An entity may make a claim to the Secretary, in accordance with this Subdivision, for eligibility for an innovation grant for a program year.
Note An entity is not eligible for an innovation grant if, when the claim for an innovation grant is made, the entity is no longer carrying on an eligible clothing and household textile activity — see section 7.6.
(2) A claim under this Subdivision must:
(a) be in a form approved by the Secretary; and
(b) be signed in a manner indicated in the form; and
(c) subject to subsection 6.4 (2), be accompanied by the documents and information mentioned in section 6.4.
Note Claims and other documents under the scheme may be sent electronically — see section 7.11.
6.2 Who may claim for innovation grant — application of subsection 1.6 (1)
(1) An entity that is carrying on an eligible clothing and household textile activity mentioned in paragraph 1.6 (1) (a) may make a claim for eligibility for an innovation grant relating to eligible clothing and household textile expenditure by the entity in respect of an eligible clothing and household textile activity mentioned in paragraph 1.6 (1) (c) for a program year only if the entity also makes a claim relating to eligible clothing and household textile expenditure by the entity in respect of the eligible clothing and household textile activity mentioned in paragraph 1.6 (1) (a) for the program year.
(2) An entity that is carrying on an eligible clothing and household textile activity mentioned in paragraph 1.6 (1) (b) may make a claim for eligibility for an innovation grant relating to eligible clothing and household textile expenditure by the entity in respect of an eligible clothing and household textile activity mentioned in paragraph 1.6 (1) (d) for a program year only if the entity also makes a claim relating to eligible clothing and household textile expenditure by the entity in respect of the eligible clothing and household textile activity mentioned in paragraph 1.6 (1) (b) for the program year.
(2) For subsection (1), the circumstances are as follows:
(a) the determination or payment contains or relies on a clerical error;
(b) the determination or payment was based wholly or in part on incorrect information;
(c) the determination or payment was based wholly or in part on a misinterpretation of a provision of the Act or scheme by a self‑assessing entity;
(d) the determination or payment is contrary to a provision of the Act or scheme.
(3) If the Secretary revokes a determination in relation to which an innovation grant has been paid:
(a) in a case in which a revised determination is not made under subsection (1)—the amount of the innovation grant (the original innovation grant); and
(b) in a case in which a revised determination is made under subsection (1) and the amount of the innovation grant under the revised determination (the revised innovation grant) is less than the original innovation grant—the difference between the original innovation grant and the revised innovation grant;
must be repaid by the entity and may be recovered as a scheme debt.
Note 1 Sections 45, 46 and 47 of the Act deal with recovery of a scheme debt by legal proceedings (section 45), by set‑off against an innovation grant or advance payable to the entity concerned (section 46) and for recovery from a person other than the entity in certain cases (section 47).
Note 2 See sections 7.1 to 7.4 in relation to reconsideration and review of decisions.
Subdivision 6.3.2 Limits on payments
6.30 Annual limit on payments
(1) Nothing in this Part authorises the expenditure for innovation grants (including advances on account of innovation grants) paid under the scheme of an amount that exceeds, for eligible clothing and household textile expenditure incurred in each of the 2011/2012 to 2014/2015 program years — $22 500 000 together with any unspent amount from the 2010/2011 to 2013/2014 program years or deferred innovation grant eligibility amount from any previous program year.
(2) For subsection (1), a reference to an unspent amount includes a reference to an amount that has never been spent or that has been spent and recovered by or repaid to the Commonwealth.
Note See subsections 8.2 (1) and (2) for transitional applications. Whilst there will be no unspent amount from the 2010/2011 program year, there could be deferred grant eligibility amounts from the former scheme that might become payable along with an advance or an innovation grant in relation to the 2010/2011 program year. See also subsection 8.2 (8) in relation to payment of certain grant eligibility amounts.
6.31 Expenditure limit on scheme
For section 37ZN of the Act, the total of innovation grants (including advances on account of innovation grants) paid under the scheme must not exceed $112 500 000.
Part 7 Miscellaneous
7.1 Request for reconsideration of decision by Secretary
(1) If an entity affected by a decision of the Secretary under the scheme is dissatisfied with the decision, the entity may request the Secretary to reconsider the decision.
(2) However, subsection (1) does not apply to a decision of the Secretary arising from the application, in relation to:
(a) the entitlement to be paid an innovation grant, or to the amount of an innovation grant, of section 6.13, 6.19, 6.22 or 6.23; or
(b) the eligibility for an advance of an innovation grant, or to the amount of an advance, of section 5.8 or 5.15.
(3) A request must:
(a) be in writing; and
(b) set out the reasons for the request; and
(c) be given to the Secretary within 21 days after the entity is notified of the decision or within such further period as the Secretary allows.
Note If a request is made under this section, section 41 of the Administrative Appeals Tribunal Act 1975 (which deals with the operation and implementation of a decision that is subject to review) 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 — see subsection 22 (4) of the Act.
7.2 Reconsideration by Secretary
(1) On receiving a request under section 7.1, the Secretary must reconsider the decision.
(2) The Secretary may:
(a) confirm or revoke the decision; or
(b) vary the decision in such manner as the Secretary thinks fit.
(3) If the Secretary does not confirm, revoke or vary the decision before the end of the period of 30 days after the day on which the Secretary receives the request, the Secretary is taken, at the end of that period, to have confirmed the decision.
(4) If the Secretary confirms, revokes or varies the decision before the end of the period mentioned in subsection (3), the Secretary, by notice in writing given to the applicant, must inform the applicant of the result of the reconsideration of the decision and the reasons for confirming, revoking or varying the decision.
(5) The confirmation, revocation or variation under subsection (2) of a decision is not invalid merely because it is done after the end of the period referred to in subsection (3) unless, before it is done, the applicant makes an application to the Administrative Appeals Tribunal under subsection (6) for review of the decision.
(6) An application may be made to the Administrative Appeals Tribunal for a review of a decision that is, or is taken to be, confirmed or varied under this section.
(7)If, under subsection (3), a decision is taken to be confirmed, section 29 of the Administrative Appeals Tribunal Act 1975 applies as if the prescribed time for making an application for review of the decision were the period commencing on the day on which the decision is taken to have been confirmed and ending at the expiration of the 28th day after that day.
7.3 Statement to accompany notification of decisions
(1) This section applies if:
(a) written notice is given to an entity affected by a decision of the Secretary under the scheme; and
(b) the notice is to the effect that the decision has been made.
(2) The notice must include a statement to the effect that:
(a) if the entity is dissatisfied with the decision, the entity may request a reconsideration of the decision by the Secretary; and
(b) if the entity is dissatisfied with a decision made by the Secretary on that reconsideration confirming or varying the first‑mentioned decision, the entity, subject to the Administrative Appeals Tribunal Act 1975, may apply to the Administrative Appeals Tribunal for a review of the decision.
7.4 Statement to accompany notice of decision on reconsideration
(1) This section applies if:
(a) the Secretary confirms or varies a decision as mentioned in subsection 7.2 (2), or is taken to have confirmed a decision as mentioned in subsection 7.2 (3); and
(b) gives to the entity written notice of the confirmation or variation of the decision.
(2) The notice must include a statement to the effect that if the entity is dissatisfied with the decision so confirmed or varied, the entity, subject to the Administrative Appeals Tribunal Act 1975, may apply to the Administrative Appeals Tribunal for a review of the decision.
7.5 Statutory conditions
(1) Each innovation grant and advance of an innovation grant under the scheme is subject to the conditions set out in section 37ZX of the Act.
(2) The payment of an innovation grant, or advance of an innovation grant, to an entity is subject also to the condition that the entity complies, or has complied, with all relevant provisions of the Act and the scheme.
Note If a condition to which an innovation grant (or advance of an innovation grant) is subject is not fulfilled, the whole or part of the innovation grant (or advance) may be recovered from the entity as a scheme debt under Part 5 of the Act.
7.6 Condition — eligible clothing and household textile activity
For an entity to be eligible to request an advance, be paid an advance, make a claim for an innovation grant or be paid an innovation grant, it is a condition that, at the time of doing so, it is undertaking an eligible clothing and household textile activity.
7.7 Condition — document retention
(1) The payment of an innovation grant, or advance of an innovation grant, to an entity is subject to the condition that the entity retain each of the documents mentioned in subsection (2) for not less than 5 years from the date on which the innovation grant, or advance of an innovation grant, is paid to the entity.
(2) For subsection (1), the documents are:
(a) each document that the entity is, under the scheme, required to prepare or obtain in relation to the innovation grant, or advance of an innovation grant, including (but not limited to) each such document prepared or obtained in relation to:
(i) the registration of the entity under the scheme; and
(ii) a claim for eligibility for an innovation grant or a request for an advance of an innovation grant; and
(iii) a request for a determination and payment of a claim; and
(b) any record relied upon to prepare such a document.
Note If this condition is not fulfilled, the whole or part of the innovation grant (or advance of an innovation grant) may be recovered from the entity as a scheme debt under Part 5 of the Act.
7.8 Innovation grants not transferable
An innovation grant, or an entitlement to an innovation grant, is absolutely inalienable (whether by way of, or in consequence of sale, assignment, charge, execution, bankruptcy, insolvency or otherwise) except with the approval, in writing, of the Secretary.
7.9 Giving of notices etc by Secretary
For the scheme, unless the contrary intention appears, a notice or other document required or permitted to be given by the Secretary to an entity is taken to be given:
(a) in the case of service otherwise than by post on an individual — on the day on which the notice or other document is:
(i) delivered to the individual in person; or
(ii) delivered to the individual’s address for service or last address known to the Secretary; or
(b) in the case of service otherwise than by post on a body corporate — on the day on which the notice or other document is delivered to the registered office, or the address for service, of the body corporate; or
(c) in the case of service by post on an entity — on the day on which the notice or other document would ordinarily be delivered in the due course of post or, if the entity establishes that it was delivered on a later day, on that later day.
7.10 Post‑payment compliance monitoring
If an entity receives an innovation grant, the entity may be subject to post‑innovation grant payment compliance monitoring.
Note Subsection 37ZX (4) of the Act provides that it is a condition of an innovation grant that entry to certain premises be permitted to authorised officers and employees to monitor compliance with other conditions. Section 37ZY of the Act provides for the appointment of authorised officers and employees and section 37ZZD of the Act provides for identity cards to be carried and produced by authorised officers.
7.11 Electronic lodgement
(1) A document required to be given or sent to the Secretary may be sent electronically.
(2) For subsection (1), a document is to be regarded as being sent electronically if it is transmitted to the Secretary at an address, and in an electronic format, approved by the Secretary.
7.12 Other Commonwealth assistance
(1) An entity has received other Commonwealth assistance if the entity has received and is entitled to financial assistance in relation to eligible clothing and household textile expenditure in relation to an activity to which subsection 2.1(1) applies.
(2) If an entity receives other Commonwealth assistance within the meaning of subsection (1), the entity is not entitled to an innovation grant in respect of the expenditure for which the entity received the other Commonwealth assistance.
Part 8 Transition from TCF Post‑2005 (SIP) Scheme
Note for Part It is intended that the transition between the TCF Post‑2005 (SIP) Scheme and the Clothing and Household Textile (BIC) scheme be seamless so that an entity registered under the TCF Post‑2005 (SIP) Scheme that subsequently becomes registered under the Clothing and Household Textile (BIC) scheme will have to cope with minimal change.
8.1 Application of Part
This Part applies, for paragraph 37ZZJ (1) (j) of the Act, to an entity that, immediately before the commencement of this scheme, was registered for the TCF Post‑2005 (SIP) Scheme (the former scheme) and that is or becomes a registered entity under the Clothing and Household Textile (BIC) scheme (this scheme).
8.2 Transitional
Application of definitions of program year and program period
(1) For an entity under the former scheme to which this Part applies, the definitions of program year and program period under the former scheme continue to apply under this scheme in relation to the following provisions:
·Section 3.5;
·Paragraph 4.5 (3) (b);
·Paragraph 4.5 (3) (d);
·Section 5.8;
Note It is intended that eligible expenditure incurred under the former scheme may be recognised for the purposes of applying the threshold expenditure for advances of grants and grants under this scheme.
·Section 6.19 (definition of TUPA);
·Section 6.20;
·Section 6.22;
Note It is intended that eligible expenditure incurred under the former scheme may be recognised for the purposes of applying the threshold expenditure for advances of grants and grants under this scheme. Hence, it is intended that expenditure incurred under the former scheme will be able to be taken into account when meeting the threshold expenditure under this scheme.
·Section 6.30 (where a reference to the 2011/2012 program year is to be read as a reference to the 2010/2011 program year for an entity to which this Part applies).
Note Whilst there will be no unspent amount from the 2010/2011 program year, there could be deferred grant eligibility amounts from the former scheme that might become payable along with an advance or an innovation grant in relation to the 2010/2011 program year.
(2) To avoid doubt:
(a) a reference to a previous program year in any of the provisions referred to in subsection (1) for an entity to which this Part applies may include a reference to a program year under the former scheme; and
(b) a reference to a program year or program period may include a reference to such a year or period under either the former scheme, this scheme or both schemes, if that is permitted by this scheme.
Program year for ITAA 1936
(3) For subsection 1.7(3), if, as a result of the operation of section 18 of the ITAA 1936, the program period for an entity to which this Part applies (including a program period under the former scheme) claiming eligible expenditure under the former scheme and also claiming eligible clothing and household textile expenditure under this scheme would, apart from this subsection, exceed 10 years after the last program year of the program period is taken to end for the entity, the program period is taken to end at the end of the period of 10 years commencing on the first day of the program period for the entity.
Effect of transfer of registration
(4) For subsection 4.5(3), on approval of a transfer of registration under this scheme, the effects set-out in subsections 4.5(2) and (3) of the former scheme that apply in relation to eligible TCF activity and eligible expenditure under the former scheme apply under this scheme.
Threshold expenditure for advances of innovation grants
(5) For sections 5.8 and 6.22, expenditure incurred under the former scheme may be taken into account when meeting the threshold expenditure under this scheme.
Eligible start-up investment amount and eligible start-up period
(6) For the purposes of the definitions of eligible start-up investment amount and eligible start-up period in subsections 6.23(7) and 6.23(9), and also for subsection 6.23 (2), the eligible TCF activity and eligible TCF product within the meaning of the former scheme apply under this scheme for those entities that began a start-up arrangement under the former scheme and continue under this scheme.
Excess amount
(7) For section 6.23, in relation to an entity to which this Part applies, an excess amount under the former scheme is to be regarded as an excess amount for this scheme.
Payment of deferred grant eligibility amount etc under former scheme
(8) If a deferred grant eligibility amount under the former scheme:
(a) has accrued under the former scheme but has not been paid under that scheme; and
(b) becomes payable because of the operation of this scheme;
the amount is payable under section 37ZH of the Act.
Schedule 1 Eligible clothing activities etc
(section 1.6)
Note The activities listed in this Schedule are based on Division C, Subdivision 22 of ANZSIC.
Part A Textile Fibre, Yarn and Fabric Manufacturing
1 Man‑Made Fibre Textile Manufacturing (including blends)
This category consists of manufacturing continuous fibre filament, fibre staple or yarns, tyre cord yarn or fabrics woven, non‑woven, felted, tufted, crocheted or knitted from those yarns, or mixed yarns, wholly or predominantly of man‑made fibres. Manufacturing of elastic or elastomeric yarns or threads or fabrics are also included.
·Fibres, manufacturing
·Filament, manufacturing
·Yarns, manufacturing
·Yarns, elastic or elastomeric, manufacturing
·Tyre cord yarns or fabrics, manufacturing
·Fabrics or other textiles, manufacturing
·Fabrics, elastic or elastomeric, manufacturing
·Lacing, woven, manufacturing
2 Cotton Textile Manufacturing (including blends)
This category consists of manufacturing of yarns, fabrics woven, non‑woven, felted, tufted, crocheted or knitted, wholly or predominantly of cotton or similar fibres including flax, jute, hemp or kapok.
·Yarns, manufacturing
·Tyre cord yarns or fabrics, manufacturing
·Fabrics or other textiles, manufacturing
3 Wool Textile Manufacturing (including blends)
This category consists of the manufacturing of yarns, fabrics woven, non‑woven, felted, tufted, crocheted or knitted, wholly or predominantly of wool or other animal fibre including mohair, angora, cashmere, alpaca or silk.
·Fellmongered, slipe or skin wool, manufacturing
·Yarns, woollen or other animal fibre, manufacturing
·Fabrics or other textiles, from woollen or worsted manufacturing processes, derived from animal fibres
4 Textile Finishing
This category consists of any activities involved in the processes of dyeing, printing, and finishing, including any process of impregnation, coating or lamination for imparting particular end use properties to yarns, fabrics or other textiles except wool tops.
·Textile dyeing, including textile pigmentation
·Textile printing, including flock printing
·Label, printed cloth, manufacturing
·Impregnation, coating or lamination
5 Textile Product Manufacturing n.e.c.
This category consists of textile product manufacturing n.e.c.
·Cleaning cloth, manufacturing
·Embroidered fabrics, manufacturing
·Fabrics, manufacturing n.e.c.
·Flock, manufacturing
·Hemp product, manufacturing n.e.c.
·Hessian goods, manufacturing n.e.c.
·Kapok, manufacturing
·Labels or badges, woven cloth, manufacturing
Part B Knitting Mills Manufacturing
1 Hosiery Manufacturing
This category consists of manufacturing of hosiery.
·Panty hose, manufacturing
·Socks, manufacturing
·Stockings, manufacturing
·Tights, manufacturing
2 Cardigan and Pullover Manufacturing
This category consists of the manufacturing of knitted cardigans, pullovers or similar garments.
·Custom knitting, of pullovers or cardigans
·Jackets, knitted, manufacturing
·Sweaters, knitted, manufacturing
·Twin sets, knitted, manufacturing
·Waistcoats, knitted, manufacturing
3 Knitting Mill Clothing Manufacturing n.e.c.
This category consists of the manufacturing of knitted or crocheted clothing n.e.c.
·Outerwear, knitted, manufacturing (except hosiery, cardigans or pullovers)
·Sleepwear, knitted, manufacturing
·Swimwear, knitted, manufacturing
·Underwear, knitted, manufacturing (except hosiery)
Part C Clothing Manufacturing
1 Men’s and Boys’ Wear Manufacturing
This category consists of the manufacturing of men’s or boys’ outerwear from purchased or transferred in materials.
·Coats or jackets, men’s or boys’, manufacturing (except from fur or leather)
·Dust coats, manufacturing
·Jeans, men’s or boys’, manufacturing
·Overalls, manufacturing
·Shirts, men’s or boys’, manufacturing
·Shorts, men’s or boys’, manufacturing
·Suits, men’s or boys’, manufacturing (except from leather)
·Trousers, men’s or boys’, manufacturing
·Uniforms, men’s or boys’, manufacturing
The manufacturing of men’s or boys’ headwear, footwear, or garments made from leather or fur, is excluded from this category.
2 Women’s and Girls’ Wear Manufacturing
This category consists of the manufacturing of women’s or girls’ outerwear from purchased or transferred in materials.
·Blouses or shirts, manufacturing
·Coats or jackets, manufacturing (except from fur, leather, plastic or rubber)
·Jeans, women’s or girls’, manufacturing
·Outerwear, women’s or girls’, manufacturing (except from fur, leather, plastic or rubber)
·Suits, women’s or girls’, manufacturing (except from leather or plastic)
·Tunics, women’s or girls’, manufacturing
·Uniforms, women’s or girls’, manufacturing
The manufacturing of women’s or girls’ waterproof clothing or clothing made from fur, leather, plastic or rubber, is excluded from this category.
3 Sleepwear, Underwear and Infant Clothing Manufacturing
This category consists of the manufacturing of foundation garments, underwear, sleepwear or infants’ clothing from purchased or transferred in materials.
·Brassieres, manufacturing
·Corsets, manufacturing
·Foundation garments, manufacturing
·Girdles, manufacturing
·Infants’ clothing, manufacturing
·Sleepwear, manufacturing
·Underwear, manufacturing
4 Clothing Manufacturing n.e.c.
This category consists of manufacturing of headwear, fur or leather clothing, clothing or clothing accessories n.e.c.
·Belts, manufacturing (for clothing)
·Clothing accessories, manufacturing n.e.c.
·Clothing, fur, manufacturing n.e.c.
·Clothing, leather or leather substitute, manufacturing n.e.c.
· Clothing manufacturing n.e.c., including clothing for protective or safety purposes
· Gloves, manufacturing (except plastic or rubber gloves)
·Handkerchiefs, manufacturing
· Hats* or headwear,* manufacturing
·Laces, manufacturing (for footwear)
· Leather or leather substitute suit, coat or uniforms, manufacturing n.e.c.
·Recreational clothing, manufacturing n.e.c.#
·Swimwear, manufacturing (except rubber bathing caps)
· Ties, manufacturing
·Waterproof clothing, manufacturing (except headwear, footwear or leather clothing) n.e.c.
Part D Early‑stage Processing
1 Natural Fibre Processing
This category consists of natural fibre processing.
(a) Wool or other animal fibres — all processing activities up to and including top making, including:
·Scouring
·Tops, unspun, manufacturing
·Carding or combing
(b) Cotton — all processing activities up to and including sliver production, including the following:
·Ginning, cleaning, baling and classing of cotton
·Doubling and drawing of cotton
·Carding, slivering and combing of cotton
(c) Others, including flax, hemp, jute or silk — all processing activities up to and including:
·Tow, manufacturing
2 Man‑made Fibres
This category consists of man‑made fibre processing.
Early‑stage processing activities relating to man‑made fibres — all processing activities up to and including man‑made tows and tops, including:
·Synthetic fibre tops, unspun, manufacturing
·Tow, manufacturing
3 Leather
This category consists of early‑stage leather processing.
Early‑stage leather processing — all processing activities up to and including wet blueing or equivalent stage, including:
·Fleshing, de‑hairing, fellmongering, skin pickling, wet blueing and wet whiting of hides and skins
4 Definitions
In this Schedule:
n.e.c. means not elsewhere classified.
man‑made fibres include cellulosics and synthetics.
5 Symbols
# If made predominantly from the products of activities listed in items 1, 2, 3 and 5 of Part A, or in item 3 of Part B.
* If made predominantly from leather or the products of activities listed in items 1, 2, 3 and 5 of Part A or in item 3 of Part B.
Schedule 2 Eligible household textile products
(section 1.6)
This category consists of a product to which any of the following subheadings of Chapter 63 of Schedule 3 to the Customs Tariff Act 1995 apply:
·6302.10.00 – Bed linen, knitted or crocheted;
·6302.21.00 – Other bed linen, printed: of cotton;
·6302.22.00 – Other bed linen, printed: of man‑made fibres;
·6302.29.00 – Other bed linen, printed: of other textile materials;
·6302.31.00 – Other bed linen: of cotton;
·6302.32.00 – Other bed linen: of man‑made fibres;
·6302.39.00 – Other bed linen: of other textile materials;
·6302.60.00 – Toilet linen and kitchen linen, of terry towelling or similar terry fabrics, of cotton;
·6302.91.20 – Other goods, NSA, as follows: (a) face washers; (b) towels;
·6303.12.10 – Synthetic fibre curtains, knitted or crocheted;
·6303.19.10 – Other textile material curtains, knitted or crocheted;
·6303.91.10 – Cotton goods as follows: (a) bed valances (ruffles); (b) curtains;
·6303.92.10 – Synthetic fibre goods as follows: (a) bed valances (ruffles); (b) curtains;
·6303.99.10 – Other textile material goods as follows: (a) bed valances (ruffles); (b) curtains.
Note
1. All legislative instruments and compilations are registered on the Federal Register of Legislative Instruments kept under the Legislative Instruments Act 2003. See to the Clothing and Household Textile (Building Innovative Capability) scheme 2010
a)The Clothing and Household Textile (Building Innovative Capability) scheme 2010, in force under section 37ZM of the Textile, Clothing and Footwear Investment and Innovation Programs Act 1999, as shown in this compilation, is amended as indicated in the Tables below.
Table of Instruments
Title FRLI Registration
NumberDate of notification in Gazette or FRLI registration Date of
commencementApplication, saving or
transitional provisionsClothing and Household Textile (Building Innovative Capability) scheme 2010
F2010L01383 24 May 2010 25 May 2010 Clothing and Household Textile (Building Innovative Capability) Amendment scheme 2012 (No. 1) F2012L01894 19 September 2012 Sections 1 to 3 and Schedule 1 – 8 September 2011;
Section 4 and Schedule 2 –
1 July 2012Table of Amendments
ad. = added or inserted am. = amended rep. = repealed rs. = repealed and substituted
Provision affected How affected Section 1.4
Section 2.1, note
Paragraph 2.2(3)(a)rs 2011, F2012L01894
rs 2011, F2012L01894
rs 2012, F2012L01894
0
0
0