Textile, Clothing and Footwear Post-2005 Strategic Investment Program Scheme Amendment 2010 (No. 1)

Administered by Department of Industry, Science and Resources

Legislation au F2010L01382 Not in force Legislative Instrument

Legislation content

Approved by Kim Carr on 13 May 2010

 

Explanatory Statement

 

TEXTILE, CLOTHING AND FOOTWEAR POST-2005 STRATEGIC INVESTMENT PROGRAM SCHEME AMENDMENT 2010

 

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:

  •   amend the TCF Post-2005 (SIP) Scheme consequential on the changes to the Textile, Clothing and Footwear Investment and Innovation Programs Act 1999 effected by the Textile, Clothing and Footwear Strategic Investment Program Amendment (Building Innovative Capability) Act 2010;
  •   improve the operation of the transfer of registration provisions of TCF Post-2005 (SIP) Scheme (paragraphs 4.5(3)(a) and (b));
  •   prescribe when an advance on account of a grant may be requested (subsection 5.9(1));
  •   put beyond doubt the Secretary’s ability to decide an amount of an advance on account of a grant (subsections 5.18(3) and (4));
  •   remove two redundant provisions (subsection 4.5(4) and section 5.12); and
  •   make a technical amendment (subsection 5.5(3)).

 

Legislative Authority

 

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

 

Financial Implications

 

The total amount of funding allocated under the TCF Post-2005 (SIP) Scheme is reduced from $575 million to $487.5 million as a consequence of the Clothing and Household Textile (BIC) scheme replacing the TCF Post-2005 (SIP) Scheme for the 2010–2011 to 2014–2015 program years.

 

Consultations

 

These amendments resulted from consultations with:

  •   the Department of Innovation, Industry, Science and Research's program delivery arm, AusIndustry, which is responsible for the day-to-day administration of the TCF Post-2005 (SIP) Scheme;
  •   the Department's Legal Section;
  •   Legislative Counsel; and
  •   the Australian TCF industry, including the peak industry bodies:
    •                    the Council of Textile & Fashion Industries of Australia Limited; and
    •                    the Technical Textiles and Nonwovens Association;

as part of the extensive consultation process that led to the Textile, Clothing and Footwear Strategic Investment Program Amendment (Building Innovative Capability) Act 2010. 

 

NOTES ON SECTIONS

 

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 2010.

 

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

 

Items 1–3.  Section 1.4 — definitions of program period, relevant financial year and relevant program year

Subsection 1.4 is amended consequential on the changes to the Textile, Clothing and Footwear Investment and Innovation Programs Act 1999 effected by the Textile, Clothing and Footwear Strategic Investment Program Amendment (Building Innovative Capability) Act 2010.

 

Items 4 & 5 Section 1.7 — Meaning of program year

Subsections 1.7(1) and (3) are amended consequential on the changes to the Textile, Clothing and Footwear Investment and Innovation Programs Act 1999 effected by the Textile, Clothing and Footwear Strategic Investment Program Amendment (Building Innovative Capability) Act 2010.

 

Item 6  Section 4.5 — Effect of transfer of registration

Paragraphs 4.5(3)(a) and (b) are amended to the effect that any eligible TCF activity or expenditure incurred by the transferor entity before the transfer of the business in the program year is taken to have been carried on, or incurred, respectively, by the transferee entity in the program year and in the immediately preceding program year.  This puts beyond doubt that grant eligibility is effectively transferred from the transferor entity to the transferee entity.

 

Item 7  Section 4.5 — Effect of transfer of registration

Redundant subsection 4.5(4) is omitted.

 

Item 8  Section 5.5 — Requests for advances of grants

Paragraphs 5.5(2)(c) and (d) are amended to take account of new section 46 of the Textile, Clothing and Footwear Investment and Innovation Programs Act 1999 substituted by the Textile, Clothing and Footwear Strategic Investment Program Amendment (Building Innovative Capability) Act 2010.  This enables, in effect, scheme debts to be set off against an advance on account of a grant.

 

Item 9  Section 5.5 — Requests for advances of grants

This is a technical amendment of subsection 5.5(3).

 

Item 10  Section 5.9 — When requests for advances of grants must be made

Subsection 5.9(1) is amended such that a request for an advance for a program year must be made in the relevant financial year and on or before the first working day in January of the relevant financial year.

 

Item 11  Section 5.12 — Provision of strategic business plans etc

The reference in section 5.12 to “variations of strategic business plans” is omitted because it is redundant.

 

Item 12  Section 5.18 — Resolution of requests for advances of grant

New subsections 5.18(3) and (4) put beyond doubt the Secretary’s ability to decide an amount of an advance on account of a grant.

 

Item 13  Section 6.7 — Effect of extension of time

Subsection 6.7(4) is amended consequential on the changes to the Textile, Clothing and Footwear Investment and Innovation Programs Act 1999 effected by the Textile, Clothing and Footwear Strategic Investment Program Amendment (Building Innovative Capability) Act 2010.

 

Item 14  Section 6.20 — Modulation of grants

A new definition of “PA” is substituted consequential on the changes to the Textile, Clothing and Footwear Investment and Innovation Programs Act 1999 effected by the Textile, Clothing and Footwear Strategic Investment Program Amendment (Building Innovative Capability) Act 2010.

 

Item 15  Section 6.21 — Deferred grant eligibility amount

The note to subsection 6.21(1) is amended consequential on the changes to the Textile, Clothing and Footwear Investment and Innovation Programs Act 1999 effected by the Textile, Clothing and Footwear Strategic Investment Program Amendment (Building Innovative Capability) Act 2010.

 

Item 16  Section 6.29 — Determination and payment of grants

Subsection 6.29(10) is amended consequential on the changes to the Textile, Clothing and Footwear Investment and Innovation Programs Act 1999 effected by the Textile, Clothing and Footwear Strategic Investment Program Amendment (Building Innovative Capability) Act 2010.

 

Item 17  Section 6.31 — Annual limit on payments

Section 6.31 is amended consequential on the changes to the Textile, Clothing and Footwear Investment and Innovation Programs Act 1999 effected by the Textile, Clothing and Footwear Strategic Investment Program Amendment (Building Innovative Capability) Act 2010.

 

Item 18  Section 6.32 — Expenditure limit on Scheme

New section 6.32 is substituted consequential on the changes to the Textile, Clothing and Footwear Investment and Innovation Programs Act 1999 effected by the Textile, Clothing and Footwear Strategic Investment Program Amendment (Building Innovative Capability) Act 2010.

 

Item 19  Section 7.7 — Condition — disposal of plant and equipment — Type 1 grant

New subsection 7.7(1) is substituted consequential on the changes to the Textile, Clothing and Footwear Investment and Innovation Programs Act 1999 effected by the Textile, Clothing and Footwear Strategic Investment Program Amendment (Building Innovative Capability) Act 2010.  This will, in effect, preserve the 2014/2015 financial year disposal threshold for clothing/finished textile entities.

 

Overview

The Textile, Clothing and Footwear Post-2005 Strategic Investment Program Scheme Amendment 2010 (TCF Post-2005 (SIP) Scheme Amendment) was enacted to address issues arising from changes made to the Textile, Clothing and Footwear Investment and Innovation Programs Act 1999, particularly in response to the new Building Innovative Capability Act of 2010. This amendment was designed to ensure the smooth continuation and effectiveness of the TCF Post-2005 (SIP) Scheme, which provides grants for the manufacture and design of eligible textile, clothing, and footwear products in Australia. The changes include clarifying the transfer of registration provisions, establishing specific timelines for grant advance requests, and adjusting the overall funding allocation from $575 million to $487.5 million, reflecting the replacement of the TCF Post-2005 (SIP) Scheme by the Clothing and Household Textile (BIC) scheme for certain years. This legislative action was overseen by the Parliament of Australia, aiming to refine the operational aspects of the TCF Post-2005 (SIP) Scheme and ensure its alignment with the broader objectives of fostering innovation and capability within the Australian textile, clothing, and footwear industries.

Scope and Application

The Textile, Clothing and Footwear Post-2005 Strategic Investment Program Scheme Amendment 2010 amends the Textile, Clothing and Footwear Post-2005 Strategic Investment Program Scheme 2005 (TCF Post-2005 (SIP) Scheme), which provides for the making of grants in connection with 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 applies to the TCF Post-2005 (SIP) Scheme and operates within the Commonwealth jurisdiction. It does not include specific exclusions, exemptions, or thresholds but rather makes consequential amendments to the definitions, procedures, and provisions of the original scheme in response to changes introduced by the Textile, Clothing and Footwear Strategic Investment Program Amendment (Building Innovative Capability) Act 2010. The Secretary’s ability to determine the amount of an advance on account of a grant is clarified, and redundant provisions are removed to streamline the scheme’s operation. The instrument is subject to the legislative authority provided by section 37ZF of the Textile, Clothing and Footwear Investment and Innovation Programs Act 1999.

Key Provisions

The Textile, Clothing and Footwear Post-2005 Strategic Investment Program Scheme Amendment 2010 (TCF Post-2005 (SIP) Scheme Amendment) amends the TCF Post-2005 (SIP) Scheme to reflect changes in the Textile, Clothing and Footwear Investment and Innovation Programs Act 1999. The principal sections of this legislation include amendments to the definitions and provisions concerning the transfer of registration (sections 1.4 and 4.5), the process for requesting advances of grants (section 5.5 and 5.9), and the resolution of requests for advances of grants (section 5.18). Additionally, it removes redundant provisions and makes technical adjustments to ensure the scheme operates smoothly and effectively. Under the TCF Post-2005 (SIP) Scheme, entities must adhere to several obligations. These include ensuring that any eligible TCF activity or expenditure incurred by a transferor entity before the transfer of the business is taken into account by the transferee entity in the program year and the immediately preceding program year. Entities must also ensure that requests for advances of grants are made in the relevant financial year and on or before the first working day in January of the relevant financial year. Furthermore, the Secretary has the authority to decide the amount of an advance on account of a grant, ensuring a streamlined and efficient grant process. The TCF Post-2005 (SIP) Scheme Amendment also outlines consequences for non-compliance. While specific offences, penalties, or consequences are not detailed in the explanatory statement, entities that fail to adhere to the requirements of the amended scheme may face administrative or financial repercussions. This includes potential financial penalties, the withholding of grants, or other enforcement actions as deemed necessary by the Secretary. The precise nature and extent of these consequences would be determined on a case-by-case basis, ensuring the enforcement of compliance within the textile, clothing, and footwear industry.

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