Textile, Clothing and Footwear Post-2005 Strategic Investment Program Scheme Amendment 2007 (No. 2)

Administered by Department of Resources, Energy and Tourism

Legislation au F2007L02059 Not in force Legislative Instrument

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Explanatory Statement

 

TEXTILE, CLOTHING AND FOOTWEAR POST-2005 STRATEGIC INVESTMENT PROGRAM SCHEME AMENDMENT 2007 (NO. 2)

 

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:

 

  • make it clear that eligibility to be paid an advance on account of a grant, does not of itself give rise to an entitlement to a grant, subsection 5.2(4);
  • set out the circumstances under which an entity may not make a request for an advance of a grant, subsection 5.5(2);
  • expand the information required in support of requests for advances of grants, section 5.6;
  • implement minor and technical amendments for the Scheme: subsection 5.11(2), section 6.19 and section 6.29;
  • amend Schedule 2, which sets out eligible finished textile, technical textile and leather activities, consequential to the Customs Tariff Amendment (2007 Harmonized System Changes) Act 2006.

 

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

 

Grant entitlements for the 2005/06 Program Year of the TCF Post-2005 (SIP) Scheme were determined in early June 2007.  The determination of grant entitlements revealed that some entities under the Scheme were entitled to grant amounts that were less than the advances on account of those grants previously paid during the 2006/07 financial year.  The difference between the grant entitlement and the advance amount is a debt under the Scheme.  Scheme debts are payable to the Commonwealth and can be deducted from future grants if not discharged before then (under section 46 of the Textile, Clothing and Footwear Strategic Investment Program Act 1999). 

 

However, there is no corresponding provision in the Act that relates to setting debts off against advances, which could lead to the situation of the Secretary having to pay advances to entities that are indebted to the Commonwealth.  This situation is unintended and will be corrected by this amendment to the TCF Post-2005 (SIP) Scheme which proscribes requesting an advance if a scheme debt had not been discharged. 

 

The amendments do not impact on an entity's ability to claim a grant or its entitlement to be paid a grant consequently there were no consultations with external industry stakeholders.

 

Consultations in respect of these amendments were undertaken 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 Chief Financial Officer; and
  • the Australian Customs Service in respect of the 2007 Harmonized System of tariff.


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 2007 (No. 2).

 

Section 2 Commencement

Section 2 provides for the instrument to commence on the day after it is registered on the Federal Register of Legislative Instruments.  Registration is governed by the Legislative Instruments Act 2003.

 

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

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

 

Schedule 1 Amendments

 

1. Section 5.2 — What is an advance of a grant

New subsection 5.2(4) is included to make it clear that being eligible to be paid an advance of a grant does not give rise to any entitlement to a grant.  An entity's entitlement to a determination of a grant is set out in section 6.28.

 

2. Section 5.5 — Requests for advances of grants

Substituted subsection 5.5(2) sets out the circumstances under which an entity may not request an advance of a grant.  These are where an entity:

  • has previously received an advance of a grant for a program year but has not made a claim for the grant; or
  • has made a claim for the grant but payment has not been made in relation to that grant; or
  • has received an advance of a grant for a program year and been paid a grant for that program year, but the amount of the advance exceeded the grant, and the amount of that excess has not been repaid to the Commonwealth; or
  • has incurred a scheme debt and that debt has not been discharged, regardless of the circumstances.

 

3. Section 5.6 — Assessment of eligibility for advance

Substituted section 5.6 sets out the documents and information required when an entity requests an advance of a grant.  They are: 

  • a detailed description of eligible TCF activity;
  • a statement of eligible expenditure incurred;
  • a statement of total eligible revenue; and
  • a written statement by the entity to the effect that in its opinion the total amount of advances of a grant for which it is applying would not be greater than its grant eligibility amount for the program year to which the request relates (for an entity's grant eligibility amount see section 6.19).

 

4. Section 5.11 — Assessment of eligibility for advance

Amended subsection 5.11(2) makes it clear that in deciding the amount of an advance sections 5.6 to 5.8 and 5.14 to 5.16 must be taken into account.

 

5. Section 6.19 — Grant eligibility amount

The note at the end of section 6.19 is omitted as a consequence of amendment 6. 

 

6. Section 6.29 — Determination and payment of grants

A note is inserted at the end of section 6.29 making it clear that in circumstances where an entity has incurred a scheme debt in a program year, and the debt has not been discharged, the entity's grant payment for the program year may be reduced by the amount of the TCF Post-2005 (SIP) scheme debt (section 46 of the Textile, Clothing and Footwear Strategic Investment Program Act 1999).

 

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

Part A and Part C of Schedule 2 are substituted consequential to the Customs Tariff Amendment (2007 Harmonized System Changes) Act 2006.

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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.