Textile, Clothing and Footwear Post-2005 Strategic Investment Program Scheme Amendment 2007 (No. 1)

Administered by Department of Resources, Energy and Tourism

Legislation au F2007L00874 Not in force Legislative Instrument

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Explanatory Statement

 

TEXTILE, CLOTHING AND FOOTWEAR POST-2005 STRATEGIC INVESTMENT PROGRAM SCHEME AMENDMENT 2007 (NO. 1)

 

General Outline

 

The Textile, Clothing and Footwear Post-2005 Strategic Investment Program Scheme 2005 (TCF Post-2005 (SIP) Scheme) provides for the making of grants in connection with, or incidental to:

  • the manufacture in Australia of eligible TCF products; and
  • the design in Australia, for manufacture in Australia, of eligible TCF products some or all of which are intended to be sold in Australia.

 

This amendment will:

 

  • simplify the wording of subsection 1.7(1) and paragraph 2.2(2)(e) in respect of clothing and finished textile entities;
  • clarify the meaning of paragraph 2.2(2)(f) in respect of trade showings and in-store promotions;
  • provide that trade showing and in-store promotion activities are in respect of an eligible TCF product marketed under a trade mark for which the entity has applied to register that trade mark or is the registered owner of the trade mark, in Australia, paragraph 2.3(1)(a);
  • make it clear which financial statements are required in circumstances where an extension of time for registering under the Scheme has been granted, subsection 3.12(2A);
  • make it clear that an entity may only include eligible expenditure incurred in the 2004/05 program year of the TCF (SIP) Scheme for the purpose of meeting the threshold amount for the 2005/06 program year of the TCF Post-2005 (SIP) Scheme, subsection 6.23(3);
  • provide for the payment of grants prior to 1 June in a program year if all claims have been made and assessed for that program year, subsection 6.29(7);
  • clarify the scope of eligible TCF activity under Schedule 1 (Part C, Subpart 4);
  • include the manufacturing of pillows (except rubber) as an eligible TCF activity in Schedule 1 (Part G); and
  • implement several minor and technical amendments for the Scheme that will improve the text and structure of some provisions: subsection 2.3(1), paragraphs 2.3(2)(c) and (d), subsection 2.4(3), paragraph 2.13(2)(b), subsection 5.6(1); subsection 6.29(10); and the Heading to Schedule 2.

 

Legislative Authority

 

The legislative basis for variations of the TCF Post-2005 (SIP) Scheme is section 37ZF of the Textile, Clothing and Footwear Strategic Investment Program Act 1999.

 

Financial Implications

 

The total amount of funding allocated under the TCF Post-2005 (SIP) Scheme remains unchanged at $575 million.

 

Consultations

 

These amendments resulted from ongoing consultations with:

  • the Department of Industry, Tourism and Resources' program delivery arm, AusIndustry, which is responsible for the day-to-day administration of the Scheme;
  • the Department's Legal Services Branch;
  • Legislative Counsel;
  • TCF entities registered under the Scheme; and
  • the Australian TCF industry, including the peak industry bodies:
    • the Council of Textile and Fashion Industries of Australia Limited;
    • the Carpet Institute of Australia Limited;
    • the Technical Textiles and Nonwovens Association; and
    • the Footwear Manufacturers' Association of Australia. 

 

 


Notes on Sections to be Amended

 

Section 1 Name of instrument

This prescribes the name of the instrument as the Textile, Clothing and Footwear Post-2005 Strategic Investment Program Scheme Amendment 2006 (No. 1).

 

Section 2 Commencement

Section 2 provides for the instrument to commence on the day after it is registered in accordance with the Legislative Instruments Act 2003.

 

Section 3 Amendment of Textile, Clothing and Footwear Post-2005 Strategic Investment Program Scheme 2005

This is the formal provision that provides for the amendment of the TCF Post-2005 (SIP) Scheme as outlined in Schedule 1.

 

Schedule 1 Amendments

 

1. Section 1.7 — Meaning of program year

Subsection 1.7(1) is amended to make it clear which are the program years that relate to a clothing and finished textile entity.

 

2. Section 2.2 — What is a Type 1 grant

Paragraph 2.2(2)(e) is amended to simplify the wording and make it clearer that eligible expenditure for a clothing and finished textile entity includes expenditure on non-production related information technology.

 

3. Section 2.2 — What is a Type 1 grant

Paragraph 2.2(2)(f) is amended to make it clear that participation in trade showings and in-store promotions mentioned in section 1.13 is an eligible TCF activity.

 

4. Section 2.3 — Trade showings and in-store promotions

Paragraph 2.3(1)(a) is changed to provide that trade showing an in-store promotion activities are in respect of an eligible TCF product for which the entity:

         has applied to register a trade mark in Australia; or

         is the registered owner of a trade mark in Australia.

 

5. Section 2.3 — Trade showings and in-store promotions

A note is inserted after subsection 2.3(1) that makes it clear that the Trade Marks Act 1995 sets out the requirements for registering a trade mark and who is the registered owner of a trade mark.

 

6. Section 2.3 — Trade showings and in-store promotions

Paragraphs 2.3(2) (c) and (d) are amended to clarify what activities are not included in trade showings and in-store promotions.

 

7. Section 2.4 — What is eligible expenditure for a Type 1 grant

Subparagraph (a)(ii) in column 3 of item 2 of the table in subsection 2.4(3) is substituted to correct an error which duplicated subparagraph (a)(iv) of the item and makes it clear that expenditure in respect of the acquisition of new TCF plant or equipment purchased under a hire purchase agreement or financed through a finance lease is net of any amount received under an insurance claim made in relation to any damaged plant or equipment replaced by the acquisition.

 

8. Section 2.4 — What is eligible expenditure for a Type 1 grant

Paragraph 3 in column 3 of item 8 of the table in subsection 2.4(3) is substituted to make it clear that the cap in respect of the maximum amount of eligible expenditure for which a claim can be made in relation to trade showings and in-store promotions is $3 million per program year.  As a consequence of the amendment to paragraph 2.3(2)(d), item 8 further provides that expenditure on travel is not eligible expenditure in relation to trade showings and in-store promotions.

 

9. Section 2.13 — Expenditure on research and development activities

Paragraph 2.13(2)(b) is substituted to make it clear that associated costs, including on-costs, administrative support costs and overhead costs, are set at 110 per cent of salary costs.

 

10. Section 3.12 — Extension of time for registration or renewal

New subsection 3.12(2A) makes it clear that if:

  • the Secretary extends the period within which an entity can apply for registration or renewal of registration; and
  • that period ends after the start of the program year for which registration or renewal of registration is sought;

the financial statements required under section 3.2 are those that would have been applicable if the entity met the time limits that apply under section 3.7.

 

11. Section 5.6 — Information in support of requests for advances of grants

Subsection 5.6(1) is amended to correct a drafting error in respect of the requirements of paragraph 5.5(5)(c).

 

12. Section 6.23 — Threshold expenditure for grants

Substitute subsection 6.23(3) makes it clear that where an entity has incurred eligible expenditure in the 2004/2005 program year of the TCF (SIP) Scheme, that entity may include, for the purpose of meeting the threshold amount for the 2005/2006 program year of the TCF Post-2005 (SIP) Scheme, the total of any Type 1 and Type 2 expenditure incurred in the final program year of the TCF (SIP) Scheme.

 

13. Section 6.29 — Determination and payment of grants

Substitute subsection 6.29(7) provides that grants under the TCF Post-2005 (SIP) Scheme must be paid as soon as practicable within the period 1 June to 10 June of the relevant financial year, or at an earlier time if, and only if, the grant eligibility amount for all entities claiming grants has been worked out under subsection 6.19(6) in the relevant financial year.


14. Section 6.29 — Determination and payment of grants

Subsection 6.29(10) is amended to correct the date by which an amount that has been deferred and set aside under subsection 6.21(2) but not paid, is no longer payable.

 

15. Schedule 1 — Eligible TCF activities

Substitute Part C, Subpart 4 of Schedule 1 clarifies the scope of eligible clothing manufacturing activity that is not elsewhere classified under the Schedule.

 

16. Schedule 1 — Eligible TCF activities

Part G of Schedule 1 is amended to include pillow manufacturing (except rubber) as an eligible TCF activity.

 

17. Schedule 2 —Eligible finished, technical textile and leather activities

The heading for Schedule 2 is corrected to 'Eligible finished textile, technical textile and leather activities'.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.