Textile, Clothing and Footwear Strategic Investment Program Scheme Amendment 2001 (No. 3)

Administered by Department of Industry, Science and Resources

Legislation au F2001B00280 Not in force Legislative Instrument

Legislation content

Textile, Clothing and Footwear Strategic Investment Program Scheme Amendment 2001 (No. 3)

I, NICHOLAS HUGH MINCHIN, Minister for Industry, Science and Resources, make this instrument under sections 8 and 34 of the Textile, Clothing and Footwear Strategic Investment Program Act 1999.

Dated 17 July 2001

NICK MINCHIN

Minister for Industry, Science and Resources

 

1 Name of instrument

  This instrument is the Textile, Clothing and Footwear Strategic Investment Program Scheme Amendment 2001 (No. 3).

2 Commencement

  This instrument commences on gazettal.

3 Amendment of Textile, Clothing and Footwear Strategic Investment Program Scheme 1999

  Schedule 1 amends the Textile, Clothing and Footwear Strategic Investment Program Scheme 1999.

 

Schedule 1 Amendments

(section 3)

 

[1] Section 3, after definition of registered Australian research agency

insert

regular advance of a grant has the meaning given by section 51B.

[2] Subsection 36 (1)

omit

Type 1 grant

insert

Type 1 grant, or a request for a regular advance of such a grant,

[3] After subsection 36 (1A)

insert

 (1B) An election under subsection (1A) is also an election that section 51Q applies in relation to requests for regular advances of such grants.

[4] After Part 4

insert

Part 4A Regular advances of grants

Division 4A.1 Introductory

51A Effect of Part

  This Part has effect despite anything else in the Scheme.

51B What is a regular advance of a grant

 (1) A regular advance of a grant that may become payable to an entity is an amount that may become payable to the entity under this Part by way of an advance on account of the grant.

 (2) A regular advance of a type of grant may be made to an entity in addition to a regular advance of another type of grant under the Scheme.

 (3) A regular advance of a Type 1 grant or Type 2 grant may be made in relation to more than 1 eligible TCF activity.

 (4) A regular advance of a Type 3 grant may be made to an entity for a program year only if a regular advance of a Type 1 or Type 2 grant is also made to the entity for the program year.

51C Effect of non-registration

 (1) An entity that is not registered for a pre-program year is not eligible for a regular advance of a Type 1 grant for that year.

 (2) An entity that is not registered for a program year is not eligible for a regular advance of a Type 1, Type 2 or Type 3 grant for that year.

51D References to a regular advance of a grant for a program year

  In this Part, a reference to a regular advance of a grant to an entity for a pre-program year or a program year is a reference to a regular advance of a grant to the entity relating to eligible expenditure incurred, or eligible TCF value added, by the entity in the preprogram year or program year.

Division 4A.2 Regular advances of Type 1, Type 2 and Type 3 grants

Subdivision 4A.2.1 Requests for regular advances of Type 1, Type 2 and Type 3 grants

51E Requests for regular advances of Type 1, Type 2 and Type 3 grants

 (1) If an entity intends to make a claim for:

 (a) a Type 1 grant for a pre-program year as well as for the 2000/2001 program year; or

 (b) a Type 1, Type 2 or Type 3 grant for a program year;

the entity may request the Secretary, in accordance with this Subdivision, for a regular advance of the grant or grants.

 (2) An entity may not make a request for a regular advance of a Type 1, Type 2 or Type 3 grant if the entity has previously been paid a regular advance of a grant for a program year or a pre-program year but has not made a claim, under Part 5, for the grant or, if the entity has made a claim, the claim is not finally determined under that Part.

 (3) An entity may make a request for a regular advance of a Type 1 grant for a preprogram year only if the entity also makes a request for a regular advance of a grant for the 2000/2001 program year.

 (4) Subsections 52 (3), (3A), (4), (5), (6) and (7) apply in relation to a request for a regular advance of a Type 1, Type 2 or Type 3 grant in the same way as they apply to a claim for the grant.

 (5) However, the Secretary, on written request by an entity, may exempt the entity from a provision referred to in subsection (4), other than subsection 52 (4), if the Secretary is satisfied that in the circumstances of the case there is good reason to do so.

 (6) A request for a regular advance of a Type 2 grant relating to eligible expenditure by an entity (the contracting entity) in respect of a research and development activity or product development activity carried on, on behalf of the contracting entity, by another entity must be made by the contracting entity.

 (7) 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 51F.

Note 1   A request may be made for 2 or more regular advances of grants of any type in the same form.

Note 2   Requests and other documents under the Scheme may be sent electronically — see section 94.

51F Information in support of requests for regular advances of Type 1, Type 2 and Type 3 grants

  For paragraph 51E (7) (c), the documents and information are the following:

 (a) a detailed description of eligible TCF activities:

 (i) carried on in the pre-program year or program year; and

 (ii) in respect of which the request is made;

 (b) if the request is for a regular advance of a Type 1 or Type 2 grant — a statement of eligible expenditure incurred by the entity in the preprogram year or program year in respect of which the request is made;

 (c) if the request is for a regular advance of a Type 3 grant — the information required to work out, in accordance with Schedule 2, the total eligible TCF value added for the entity for 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 regular advances of a Type 1, Type 2 or Type 3 grant for which the entity is applying would not represent an overpayment of the grant entitlements of the entity when section 85 is applied in determining those entitlements.

51G When requests for regular advances of Type 1, Type 2 and Type 3 grants must be made — pre-program and early program years

 (1) An entity must make a request for a regular advance of a Type 1, Type 2 or Type 3 grant:

 (a) for the 2000/2001 program year (including, if applicable, a request for a pre-program year) — before 1 July 2002; or

 (b) for the 2001/2002 program year — before 1 July 2003; or

 (c) for the 2002/2003 program year — before 1 July 2004.

 (2) Subsection (1) applies 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 (including, if applicable, a pre-program year), is not eligible for a regular advance of a Type 1, Type 2 or Type 3 grant for the program year or for a Type 1 grant for a pre-program year.

51H When requests for regular advances of Type 1, Type 2 and Type 3 grants must be made — later program years

 (1) An entity must make a request for a regular advance of a Type 1, Type 2 or Type 3 grant for the 2003/2004 program year, after the end of the program year but before 1 July 2005.

 (2) An entity must make a request for a regular advance of a Type 1, Type 2 or Type 3 grant for the 2004/2005 program year, after the end of the program year but before 1 July 2006.

 (3) An entity that fails to comply with subsection (1) or (2) is not eligible for a regular advance of a Type 1, Type 2 or Type 3 grant for the program year.

Subdivision 4A.2.2 Assessment of eligibility for regular advances of Type 1, Type 2 and Type 3 grants

51I Assessment of eligibility for regular advances of Type 1, Type 2 and Type 3 grants

 (1) On receipt of a request for a regular advance of a Type 1, Type 2 or Type 3 grant, the Secretary must assess the request and decide whether the entity is eligible for a regular advance of a grant of a particular amount.

 (2) Before the Secretary can be satisfied that an entity is eligible for a regular advance of a particular amount, the Secretary must be satisfied as to the matters set out in subsections (3), (4), (5), (6), (7) and (8), as far as applicable.

 (3) The Secretary must be satisfied that the entity is registered for the Scheme for the program year concerned.

 (4) The Secretary must be satisfied that the entity has carried on, in the program year, the eligible TCF activity in respect of which the request is made, in accordance with the documents and information given to the Secretary under sections 33, 34 and 37, as varied under the Scheme.

 (5) The Secretary must be satisfied:

 (a) if the request is for a regular advance of a Type 1 grant — as to the amount of expenditure that is eligible expenditure within the meaning of section 15, incurred by the entity within the program year; or

 (b) if the request is for a regular advance of a Type 2 grant — as to the amount of expenditure that is eligible expenditure within the meaning of sections 23 to 26, incurred by the entity within the program year; or

 (c) if the request is for a regular advance of a Type 3 grant — as to the amount that is the total eligible TCF value added by the entity for the program year in accordance with section 28.

 (6) If the request is for a regular advance of a Type 3 grant, the Secretary must be satisfied that the entity is also eligible for a Type 1 or Type 2 grant for the program year.

 (7) The Secretary must be satisfied that the request has been made in accordance with the requirements of sections 51E to 51H.

 (8) In addition, in deciding whether the entity is eligible for a regular advance of a grant of a particular amount, the Secretary must take into account section 51J and, as far as applicable, sections 51K, 51L, 51M, 51N, 51O, 51P, 51R, 51S, and 51T.

 (9) In this section:

program year includes, in the case of a request for a regular advance of a Type 1 grant, a pre-program year.

51J Entity no longer carrying on eligible TCF activity

  An entity is not eligible for a regular advance of a Type 1, Type 2 or Type 3 grant if, at the time when the Secretary’s decision as to the entity’s eligibility for the regular advance is to be made, the entity is no longer carrying on an eligible TCF activity.

51K Arms length expenditure — regular advances of Type 1, Type 2 and Type 3 grants

 (1) In working out the amount of eligible expenditure for a regular advance of a Type 1 or Type 2 grant, if it appears to the Secretary that expenditure has been incurred in a transaction that was not at arms length, the Secretary may take the amount of the expenditure to be the amount that would reasonably have been expected to have been incurred if the transaction had been at arms length.

 (2) In working out the amount of eligible TCF value added for a regular advance of a Type 3 grant, if it appears to the Secretary that information has been given to the Secretary under paragraph 51F (c) on the basis of transactions that were not at arms length, the Secretary may take the amount of value added to be the amount that would reasonably have been expected to have occurred if the transactions had been at arms length.

51L Pro rata adjustment of eligible expenditure for regular advances of Type 1 grants

 (1) This section applies to an entity if the entity:

 (a) has made a request for a regular advance of a Type 1 grant in 1 or both of the pre-program years as well as at least 1 program year; and

 (b) has made an election under section 36 as to which of Option 1, Option 2 or Option 3 in Schedule 3 is to apply to the entity for the apportionment of eligible expenditure incurred by the entity.

 (2) The purpose of this section is to ensure that the total amount of the regular advances of Type 1 grants payable to the entity in respect of eligible expenditure in both the pre-program years and the program years does not exceed the total amount of regular advances of Type 1 grants that would, apart from this section, be payable to the entity in respect of eligible expenditure by the entity in the program period.

 (3) For the purpose of deciding the particular amount of a regular advance of a grant for a pre-program year or a program year, the entity’s eligible expenditure for the pre-program year or program year is taken to be the specified proportion of the expenditure that would, apart from this section, have been the eligible expenditure for the preprogram year or the program year.

 (4) In subsection (3):

specified proportion means the proportion of expenditure that is specified in the column headed ‘Proportion of Expenditure’ of the Table relating to the option in Schedule 3 elected by the entity.

51M Cap for regular advances of Type 1 grants

 (1) The amount of a regular advance of a Type 1 grant made to an entity in respect of eligible expenditure incurred by the entity during a particular pre-program year or program year must not exceed 10% of that eligible expenditure.

 (2) If section 51L applies to the entity, the eligible expenditure is the amount that is taken to be the eligible expenditure under that section.

51N Cap for regular advances of Type 2 grants

  The amount of a regular advance of a Type 2 grant made to an entity in respect of eligible expenditure incurred by the entity during a particular program year must not exceed 22.5% of that eligible expenditure.

51O Cap for regular advances of Type 3 grants

  The total of regular advances of Type 3 grants made to an entity in respect of TCF value added by the entity during a program year must not exceed the lesser of:

 (a) 2.5% of the total eligible TCF value added by the entity in respect of eligible TCF activities carried on by the entity during the program year; and

 (b) the sum of:

 (i) the total of regular advances of Type 1 grants made to the entity for the program year; and

 (ii) the total of regular advances of Type 2 grants made to the entity for the program year; and

 (iii) the total of regular advances of Type 4 grants made to the entity for the program year.

51P Modulation

  In working out how much of a regular advance of a Type 1 or Type 2 grant the entity is eligible for, the Secretary must also take into account, as far as applicable, any modulation factor that, in the Secretary’s opinion, would be applied to a claim for the grant under Part 5 based on the documents and information given to the Secretary under sections 33, 34 and 37, as varied under the Scheme.

51Q Alternative calculation of amount — regular advances of Type 1 grants

 (1) This section applies to an entity if:

 (a) the Secretary has assessed the entity as being eligible under section 51I for a regular advance of a Type 1 grant of a particular amount (in this section called the eligible regular advance amount) in respect of a preprogram year and the 2000/2001 program year, or a subsequent program year; and

 (b) the entity has notified the Secretary, under section 36, that this section is to apply to the entity.

 (2) If this section applies to an entity, the amount of the regular advance of a Type 1 grant for which the entity is eligible is, for a pre-program year or program year in the first column of the following table, the corresponding amount in the second column of the table:

 

Pre-program year/program year to which request relates

Amount of regular advance

1998/1999 pre-program year; and/or 1999/2000 pre-program year; and 2000/2001 program year

The sum of:

 the eligible regular advance amount (if any) for the 1998/1999 pre-program year; and

 one half of the eligible regular advance amount (if any) for the 1999/2000 preprogram year; and

 one third of the eligible regular advance amount for the 2000/2001 program year

 

2001/2002 program year

The sum of:

 one half of the eligible regular advance amount (if any) for the 1999/2000 preprogram year; and

 one third of the eligible regular advance amount for the 2000/2001 program year; and

 one third of the eligible regular advance amount for the 2001/2002 program year

 

2002/2003 program year

The sum of:

 one third of the eligible regular advance amount for the 2000/2001 program year; and

 one third of the eligible regular advance amount for the 2001/2002 program year; and

 one third of the eligible regular advance amount for the 2002/2003 program year

 

2003/2004 program year

The sum of:

 one third of the eligible regular advance amount for the 2001/2002 program year; and

 one third of the eligible regular advance amount for the 2002/2003 program year; and

 one half of the eligible regular advance amount for the 2003/2004 program year

 

2004/2005 program year

The sum of:

 one third of the eligible regular advance amount for the 2002/2003 program year; and

 one half of the eligible regular advance amount for the 2003/2004 program year; and

 the eligible regular advance amount for the 2004/2005 program year

 

51R Threshold expenditure for pre-program years — regular advances of Type 1 grants

 (1) An entity is not eligible for a regular advance of a Type 1 grant for a preprogram year unless:

 (a) the total amount of the eligible expenditure incurred by the entity in the pre-program years in respect of eligible TCF activities exceeds $200,000 (the threshold amount); or

 (b) if the total amount of the eligible expenditure in the preprogram years in respect of eligible TCF activities does not exceed the threshold amount — the total amount of eligible expenditure for regular advances of Type 1 and Type 2 grants incurred by the entity in 1 or more of the program years, and in respect of which the entity has made a request, exceeds the threshold amount.

 (2) If, for an entity, the total amount of the eligible expenditure mentioned in paragraph (1) (a) or (b) exceeds the threshold amount, the entity becomes eligible for a regular advance of a Type 1 grant in respect of eligible expenditure in each of the pre-program years if, apart from this section, the entity would be eligible for the regular advance.

51S Threshold expenditure for regular advances of Type 1, Type 2 and Type 3 grants — program years

 (1) An entity is not eligible for a regular advance of a Type 1, Type 2 or Type 3 grant for a program year unless the sum of the amounts mentioned in subsection (2) exceeds $200,000 (the threshold amount).

 (2) For subsection (1), the amounts are:

 (a) the total amount of eligible expenditure for regular advances of Type 1 and Type 2 grants incurred by the entity in the program year in respect of which the request is made; and

 (b) the total amount of eligible expenditure for regular advances of Type 1 and Type 2 grants:

 (i) incurred by the entity in previous program years; and

 (ii) in respect of which a request was made but, by reason of the operation of this section, a regular advance was not paid.

 (3) If, for an entity, the sum of the amounts mentioned in subsection (2) exceeds the threshold amount, the entity becomes eligible for a regular advance of a Type 1, Type 2 or Type 3 grant in respect of eligible expenditure in each of the program years if, apart from this section, the entity would be eligible for the regular advance.

51T Minimum additional expenditure

 (1) An entity is not eligible for a regular advance of a Type 1, Type 2 or Type 3 grant unless the total amount of relevant eligible expenditure mentioned in subsection (2) incurred by the entity in respect of eligible TCF activities exceeds $100,000.

 (2) In subsection (1):

relevant eligible expenditure means eligible expenditure:

 (a) in respect of which the entity has made a request; and

 (b) that has not been taken into account in the payment of any previous regular advance.

 (3) However, subsection (2) does not apply to a regular advance of a grant in respect of amounts of eligible expenditure accumulated by, or incurred in, the 2004/2005 program year.

 (4) Nothing in this section affects the operation of section 51S.

Subdivision 4A.2.3 Notice of decisions and payment of regular advances of Type 1, Type 2 and Type 3 grants

51U Notice of decisions — regular advances of Type 1, Type 2 and Type 3 grants

 (1) The Secretary must give notice, in writing, to an entity making a request for a regular advance of a Type 1, Type 2 or Type 3 grant, within 60 days after receipt of the request:

 (a) of the Secretary’s decision as to the entity’s eligibility for the regular 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 will be made, giving reasons for the delay in making the decision.

 (2) The Secretary must give notice, in writing, to the entity of a decision to which paragraph (1) (b) applies within 7 days after the decision is made.

 (3) If the Secretary decides that the entity is not eligible for a regular advance of a Type 1, Type 2 or Type 3 grant, the notice must include reasons for the decision.

Note   Section 89 requires the notice to be accompanied by a statement about the entity’s right to have the decision reconsidered or reviewed.

 (4) Subsection (5) applies to an entity if the Secretary has not given notice to the entity of the Secretary’s decision as to eligibility for a regular advance of a grant:

 (a) within the period of 60 days mentioned in subsection (1); or

 (b) if the decision is one to which paragraph (1) (b) applies — within 7 days after the end of the period notified by the Secretary under that paragraph.

 (5) An entity to which this subsection applies may, at any time, give the Secretary written notice that the entity wishes to treat the request as having been refused.

 (6) For section 87, if the entity gives notice under subsection (5), 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.

51V Payment of regular advances of Type 1, Type 2 and Type 3 grants

 (1) If the Secretary decides that an entity is eligible for a regular advance of a Type 1, Type 2 or Type 3 grant of a particular amount, the Secretary must:

 (a) if section 51Q does not apply to the entity — pay that amount to the entity; or

 (b) if section 51Q does apply to the entity — pay the amount calculated in accordance with that section to the entity.

 (2) The regular advance must be paid as soon as practicable after the Secretary has made the decision.

Division 4A.3 Regular advances of Type 4 and Type 5 grants

Subdivision 4A.3.1 Requests for regular advances of Type 4 and Type 5 grants

51W Requests for regular advances of Type 4 and Type 5 grants

 (1) This section applies if:

 (a) notice of intention to make a claim for a Type 4 or Type 5 grant for the 1999/2000 pre-program year or a program year has been given by an entity in accordance with sections 48 to 50; and

 (b) the Minister has confirmed the notice under section 51.

 (2) The entity may make a request to the Secretary, acting on behalf of the Minister, in accordance with this Subdivision for a regular advance of a Type 4 or Type 5 grant for the pre-program year or program year.

 (3) An entity may not make a request for a regular advance of a Type 4 or Type 5 grant if the entity has previously been paid a regular advance of a grant for a pre-program year or a program year but has not made a claim, under Part 5, for the grant or, if the entity has made a claim, the claim is not finally determined under that Part.

 (4) 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 51X.

Note 1   A request may be made for 2 or more regular advances of grants in the same form.

Note 2   Requests and other documents under the Scheme may be sent electronically — see section 94.

51X Information in support of requests for regular advances of Type 4 and Type 5 grants

  For paragraph 51W (4) (c), the documents and information are the following:

 (a) details of the restructuring initiative, including:

 (i) the outcomes, addressing, in particular, the matters mentioned in paragraphs 29 (5) (b) to (d); and

 (ii) the entity’s corporate structure; and

 (iii) the costs and other implications of the restructuring initiative;

 (b) a detailed description of eligible TCF activities carried on in the pre-program year or program year and in respect of which the request is made;

 (c) a statement of eligible expenditure incurred by the entity in the pre-program year or program year in respect of which the request is made;

 (d) a statement of strategic business intent that includes the business, operational and financial strategies that will guide the entity to sustainable operations for eligible TCF activities beyond the end of the program period;

 (e) if the request is for a regular advance of a Type 4 grant — a statement giving details as to whether the second-hand TCF plant or equipment acquired is state-of-the-art, having regard to the matters mentioned in section 51ZB;

 (f) a written statement by the entity to the effect that, in the entity’s opinion, the total of regular advances of a Type 4 or Type 5 grant for which the entity is applying would not represent an overpayment of the grant entitlements of the entity when section 85 is applied in determining those entitlements.

51Y When requests for regular advances of Type 4 and Type 5 grants must be made

 (1) An entity must make a request for a regular advance of a Type 4 or Type 5 grant for the 1999/2000 pre-program year within the period:

 (a) beginning immediately after the end of the 2000/2001 program year; and

 (b) ending immediately before the expiry of 12 months after the end of the program year.

 (2) An entity must make a request for a regular advance of a Type 4 or Type 5 grant for a program year within the period:

 (a) beginning immediately after the end of the program year; and

 (b) ending immediately before the expiry of 12 months after the end of the program year.

 (3) An entity that fails to comply with subsection (1) for the preprogram year, or with subsection (2) for a program year, is not eligible for a Type 4 or Type 5 grant for the pre-program year or program year.

Subdivision 4A.3.2 Assessment of eligibility for Type 4 and Type 5 grants

51Z Assessment of eligibility for regular advances of Type 4 and Type 5 grants

 (1) On receipt of a request for a regular advance of a Type 4 or Type 5 grant, the Minister must assess the request and decide whether the entity is eligible for a regular advance of a grant of a particular amount.

 (2) Before the Minister can be satisfied that an entity is eligible for a regular advance of a grant of a particular amount, the Minister must be satisfied as to the matters set out in subsections (3), (4), (5) and (6), as far as applicable.

 (3) The Minister must be satisfied that the restructuring initiative complies with the requirements of subsection 29 (5).

 (4) The Minister must be satisfied that second-hand TCF plant or equipment:

 (a) was acquired as part of, or as a direct consequence of, the restructuring initiative; and

 (b) is state-of-the-art; and

 (c) complies with subsections 29 (3) and (4).

 (5) The Minister must be satisfied:

 (a) if the request is for a regular advance of a Type 4 grant — as to the amount of expenditure that is eligible expenditure within the meaning of subsection 30 (1) incurred by the entity within the program year; or

 (b) if the request is for a regular advance of a Type 5 grant — as to the amount of expenditure that is eligible expenditure within the meaning of subsection 30 (2) incurred by the entity within the program year.

 (6) The Minister must be satisfied that the request has been made in accordance with the requirements of sections 51W to 51Y.

 (7) In addition, in deciding whether the entity is eligible for a regular advance of a grant of a particular amount, the Minister must take into account, section 51ZA and as far as applicable, sections 51ZB to 51ZE.

 (8) In this section:

program year includes the 1999/2000 pre-program year.

51ZA Entity no longer carrying on eligible TCF activity

  An entity is not eligible for a regular advance of a Type 4 or Type 5 grant if, at the time when the Minister’s decision as to the entity’s eligibility for the regular advance is to be made, the entity is no longer carrying on an eligible TCF activity.

51ZB State-of-the art TCF plant or equipment — regular advances of Type 4 grants

  In considering, for the purpose of being able to be satisfied for paragraph 51Z (4) (b) as to whether second-hand TCF plant or equipment is state-of-the-art, the Minister must have regard:

 (a) to the viable economic life of the second-hand TCF plant or equipment; and

 (b) if the viable economic life of the TCF plant or equipment is less than 70% of the economic life of the plant or equipment when new — to whether the plant or equipment has a demonstrable and relevant technical excellence, based on a capacity to improve manufacturing efficiency (due, for example, to its design or specification).

51ZC Arms length expenditure — regular advances of Type 4 and Type 5 grants

  In working out the amount of eligible expenditure for a regular advance of a Type 4 or Type 5 grant, if it appears to the Minister that expenditure has been incurred in a transaction that was not at arms length, the Minister may take the amount of the expenditure to be the amount that would reasonably have been expected to have been incurred if the transaction had been at arms length.

51ZD Cap for regular advances of Type 4 and Type 5 grants

 (1) The amount of a regular advance of a Type 4 grant made to an entity in respect of eligible expenditure incurred by the entity during a particular pre-program year or program year must not exceed 10% of the eligible expenditure incurred during the preprogram year or program year, respectively.

 (2) The amount of a regular advance of a Type 5 grant made to an entity in respect of eligible expenditure incurred by the entity during a particular pre-program year or program year must not exceed 10% of the eligible expenditure incurred during the preprogram year or program year, respectively.

51ZE Modulation

  In working out how much of a regular advance of a Type 4 or Type 5 grant the entity is eligible for, the Minister must also take into account, as far as applicable, any modulation factor that, in the Minister’s opinion, would be applied to a claim for the grant under Part 5 based on the documents and information given to the Minister under sections 33, 34 and 37, as varied under the Scheme.

Subdivision 4A.3.3 Notice of decisions and payment of regular advances of Type 4 and Type 5 grants

51ZF Notice of decisions — regular advances of Type 4 and Type 5 grants

 (1) The Minister must give notice in writing to an entity making a request for a regular advance of a Type 4 or Type 5 grant, of the Minister’s decision as to the entity’s eligibility for the regular advance and the amount of the advance.

 (2) The notice must be given as soon as practicable after the decision is made.

51ZG Payment of regular advances of Type 4 and Type 5 grants

 (1) If the Minister decides that an entity is eligible for a regular advance of a Type 4 or Type 5 grant of a particular amount, the Secretary must pay the amount to the entity.

 (2) The regular advance must be paid as soon as practicable after the Minister has made the decision.

[5] Section 53

omit

For paragraph 52 (10) (c)

insert

 (1) For paragraph 52 (10) (c)

[6] Section 53

insert

 (2) However, the claim need not be accompanied by a particular document or information referred to in subsection (1) if:

 (a) the claimant entity has made a request for a regular advance of the grant under Part 4A; and

 (b) the information is the same as the information, or the document is the same as the document, that the entity has given to the Secretary in support of the entity’s request for the regular advance; and

 (c) the claim is accompanied by a written statement to that effect by the entity.

[7] Section 57

omit

For paragraph 56 (3) (c)

insert

 (1) For paragraph 56 (3) (c)

[8] Section 57

insert

 (2) However, the claim need not be accompanied by a particular document or information referred to in subsection (1) if:

 (a) the claimant entity has made a request for a regular advance of the grant under Part 4A; and

 (b) the information is the same as the information, or the document is the same as the document, that the entity has given to the Secretary in support of the entity’s request for the regular advance; and

 (c) the claim is accompanied by a written statement to that effect by the entity.

[9] Subsection 72 (2)

omit everything after

particular

insert

pre-program year or program year must not exceed 20% of the eligible expenditure incurred during the pre-program year or program year, respectively.

[10] Subsection 77 (3)

omit

85 and 85A.

insert

85, 85A and 85B.

[11] Subsection 83 (3)

omit

section 85A.

insert

sections 85A and 85B.

[12] Section 85A, heading

substitute

85A Reductions on account of special advances

[13] After section 85A

insert

85B Reductions on account of regular advances

 (1) Subsection (2) applies to an entity that:

 (a) has requested the Secretary or Minister (as the case requires) to determine whether the entity is entitled to be paid a particular grant in respect of a claim for the grant; and

 (b) has, in accordance with Part 4A, already received an amount by way of a regular advance on account of the grant.

 (2) In working out the particular amount of the grant that the entity is entitled to be paid, the Secretary or Minister (as the case requires) must reduce the amount that, but for this section, would be payable to the entity by the amount of the regular advance of the grant that has been paid to the entity on account of the grant.

Note   If an entity receives an amount by way of an advance on account of a grant that may become payable to the entity and that amount is greater than the amount of the grant, the entity is liable to pay to the Commonwealth the amount of the excess. The Commonwealth may recover the excess as a scheme debt. The scheme debt may be recovered by court action or by deduction from other grants payable to the entity — see section 20 and sections 44 to 47 of the Act.

[14] Paragraph 86D (3) (c)

after

advance of a grant

insert

or a regular advance of a grant

[15] Subparagraph 86L (5) (c) (ix)

substitute

 (ix) a written statement by the receiver or administrator to the effect that, in the receiver’s or administrator’s opinion, the total of special advances of a Type 1, Type 2 or Type 3 grant for which the entity is applying would not represent an overpayment of the grant entitlements of the entity when section 85 is applied in determining those entitlements.

[16] Subsection 86O (2)

omit

paragraph 53 (d)

insert

subparagraph 86L (5) (c) (v) or (vi),

[17] Subparagraph 86V (3) (c) (vii)

substitute

 (vii) a written statement by the receiver or administrator to the effect that, in the receiver’s or administrator’s opinion, the total of special advances of a Type 4 or Type 5 grant for which the entity is applying would not represent an overpayment of the grant entitlements of the entity when section 85 is applied in determining those entitlements.

[18] Subsection 87 (2)

substitute

 (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 a grant, or to the amount of a grant, of section 64, 65, 66, 72, 75, 78, 79, 80 or 85; or

 (b) the eligibility for a regular advance of a grant, or to the amount of a regular advance, of section 51M, 51N, 51O, 51R, 51S, 51T or 51ZD.

[19] Schedule 1, Part G

after

 Curtains manufacturing

insert

 Filters, manufacturing, if produced by a manufacturing process made predominantly from yarns, fabrics or other textiles of a kind listed in item 1, 2, 3, or 6 of Part A, or fabrics of a kind listed in item 3 of Part B

[20] Schedule 3, heading

substitute

Schedule 3 Pro rata adjustment of eligible expenditure for Type 1 grants or regular advances of Type 1 grants

(sections 51L and 63)

 

Interactions

Authorises

All Versions

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.