Textile, Clothing and Footwear Strategic Investment Program Scheme Amendment 2004 (No. 1)
I, IAN ELGIN MACFARLANE, Minister for Industry, Tourism and Resources, make this instrument under sections 8 and 34 of the Textile, Clothing and Footwear Strategic Investment Program Act 1999.
Dated 24 May 2004
IAN MACFARLANE
Minister for Industry, Tourism and Resources
1 Name of instrument
This instrument is the Textile, Clothing and Footwear Strategic Investment Program Scheme Amendment 2004 (No. 1).
2 Commencement
This instrument commences on the date of its notification in the Gazette.
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 66
omit
The total
insert
Subject to section 68B, the total
[2] After section 68A
insert in Subdivision 5.2.1
68B Special cap arrangements: section 14A entities
(1) For section 14A of the Act, this section applies to Type 3 grants for a section 14A entity in respect of TCF value added by the entity during the 2003/2004 and 2004/2005 program years.
Note Section 14A entity is defined in subsection 14A (4) of the Act as follows:
section 14A entity means an entity:
(a) that carries on, in Australia, the following leather and leather product manufacturing activities:
(i) post full substance activities (including sammying, splitting, shaving, tanning, currying, dressing, dyeing, embossing or japanning leather, animal skins or fur);
(ii) fur dressing and dyeing;
(iii) hide and skin tanning, currying, dressing, crusting, dyeing or finishing;
(iv) leather manufacturing;
(v) leather tanning; or
(b) that manufactures, in Australia, eligible TCF products to which any of the following headings of Schedule 3 to the Customs Tariff Act 1995 apply:
(i) heading 5601 of Chapter 56;
(ii) heading 5602 of Chapter 56;
(iii) heading 5603 of Chapter 56;
(iv) heading 5911 of Chapter 59.
(2) The total of Type 3 grants to which this section applies made to a section 14A entity in respect of TCF value added by the entity during a program year must not exceed the sum of:
(a) the total of Type 1 grants made to the entity under this Division for the program year; and
(b) the total of Type 2 grants made to the entity under this Division for the program year; and
(c) the total of Type 4 grants made to the entity under this Division for the program year.
(3) The total of Type 3 grants paid to section 14A entities in each of the 2004/2005 and 2005/2006 financial years must not exceed by more than $3 900 000 the total of the interim amounts payable in that year to those entities.
(4) If a section 14A entity makes a request under section 75 of this Scheme for the determination and payment of a claim for a Type 3 grant to which this section applies:
(a) the interim amount payable to the entity may be paid to the entity as if this section did not apply; and
(b) any additional amount claimed under section 75 to which this section applies is to be paid as a supplementary payment to the entity after all claims from entities affected by this section are modulated.
(5) If the total of the additional amounts claimed by section 14A entities in a financial year to which this section applies exceeds $3 900 000, each claim for an additional amount payable in that financial year must be modulated in accordance with the following formula
where:
AC is the additional amount for the particular claim.
TG is the total of the additional amounts that, but for the operation of subsection (3), would have been payable to entities under this section.
(6) For subsection (4):
(a) a supplementary payment for the 2003/2004 program year must be paid in June 2005, and before 10 June 2005; and
(b) a supplementary payment for the 2004/2005 program year must be paid in June 2006, and before 10 June 2006.
(7) In this section:
additional amount, for an entity for a financial year, means the amount claimed by the entity under this section that exceeds the interim amount for the entity for that year.
interim amount, for an entity for a financial year, means the amount that, but for this section, would have been payable to the entity under section 66 of this Scheme for that year.
modulated means modulated in accordance with subsection (5).
Overview
The Textile, Clothing and Footwear Strategic Investment Program Scheme Amendment 2004 (No. 1), enacted under sections 8 and 34 of the Textile, Clothing and Footwear Strategic Investment Program Act 1999, addresses the need to refine and regulate the financial support structure for the textile, clothing, and footwear industries in Australia. This legislative instrument was introduced to make specific adjustments to the existing scheme to better manage and limit the financial aid given to certain entities within the sector. The policy objective is to ensure that the support provided is both effective and sustainable, maintaining the integrity and competitiveness of the industry. This amendment is a direct response to identified gaps and the need for clearer financial caps and monitoring mechanisms.
The enactment of this instrument by Ian Elgin MacFarlane, the Minister for Industry, Tourism, and Resources, on 24 May 2004, reflects a commitment to the ongoing development and support of the Australian textile, clothing, and footwear industries. By introducing amendments to the Textile, Clothing and Footwear Strategic Investment Program Scheme 1999, this legislation aims to provide a more structured approach to the allocation of grants, ensuring that the support is appropriately targeted and managed to foster industry growth and innovation.
Scope and Application
The Textile, Clothing and Footwear Strategic Investment Program Scheme Amendment 2004 (No. 1) amends the Textile, Clothing and Footwear Strategic Investment Program Scheme 1999, introducing new provisions that specifically pertain to Type 3 grants for entities involved in leather and leather product manufacturing or in the manufacture of eligible textile, clothing, and footwear (TCF) products within Australia. This legislation applies to entities that meet the definition of a section 14A entity as per the Textile, Clothing and Footwear Strategic Investment Program Act 1999, focusing on those engaged in specified activities such as post full substance activities, fur dressing and dyeing, and leather tanning, among others. The Act imposes limits on the total Type 3 grants that can be awarded to these entities, ensuring that such grants do not exceed the sum of Type 1, Type 2, and Type 4 grants combined. Additionally, it caps the total Type 3 grants paid to section 14A entities during the 2004/2005 and 2005/2006 financial years, setting a ceiling that cannot be exceeded by more than $3,900,000 compared to the interim amounts payable in those years. The instrument is applicable nationally across Australia, and its provisions are enforced through the mechanisms outlined in the original Act and subsequent amendments.
Key Provisions
The Textile, Clothing and Footwear Strategic Investment Program Scheme Amendment 2004 (No. 1) primarily introduces changes to the Textile, Clothing and Footwear Strategic Investment Program Scheme 1999. Section 14A of this amendment introduces a new set of rules governing Type 3 grants for entities defined as section 14A entities (section 68B). These entities are those involved in specific leather and leather product manufacturing activities, as well as the manufacturing of eligible textile, clothing, and footwear (TCF) products, as detailed in Schedule 3 to the Customs Tariff Act 1995. The new provisions under section 68B set caps on the total Type 3 grants for these entities, ensuring that the combined total of Type 1, Type 2, and Type 4 grants do not exceed the Type 3 grants. Additionally, there are financial year-specific caps on the total Type 3 grants, with a special provision for supplementary payments in the 2003/2004 and 2004/2005 program years.
The obligations imposed by this amendment require section 14A entities to comply with the new grant caps outlined in section 68B. These entities must ensure that their claims for Type 3 grants do not exceed the stipulated limits and adhere to the modulation formula if their claims surpass the financial year cap of $3,900,000. Moreover, entities must follow the timelines for supplementary payments, with payments for the 2003/2004 and 2004/2005 program years due in June 2005 and June 2006, respectively, before 10 June each year. These obligations are designed to maintain financial discipline and ensure equitable distribution of grants within the program.
Breaches of the provisions in this amendment can lead to various consequences. While specific offences and penalties are not detailed in the text, non-compliance with the grant caps and timelines could result in financial penalties or legal actions. The exact nature of these penalties would be determined based on the severity of the breach and the discretion of the relevant authorities. Additionally, entities found to have inaccurately claimed grants may face civil or criminal liability, as per the provisions of the Textile, Clothing and Footwear Strategic Investment Program Act 1999.