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

Administered by Department of Resources, Energy and Tourism

Legislation au F2005L00416 Not in force Legislative Instrument

Legislation content

Explanatory Statement

 

Textile, Clothing and Footwear Strategic Investment

Program Scheme Amendment 2005 (No. 1)

 

General Outline

 

The Textile, Clothing and Footwear Strategic Investment Program Scheme 1999 (“the TCF (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 clarify provisions in relation to the extension of time for registering under the Scheme and for lodging a claim for a grant under the Scheme.  It will also make it clear that the threshold amount of eligible expenditure under the Scheme is an accumulated amount over the life of the Scheme and is not on an annual basis. Also, the amendment will make it clear that determinations can be revoked and remade in certain circumstances.

 

Consequential to the Textile, Clothing and Footwear Strategic Investment Program Amendment (Post-2005 scheme) Act 2004, the amendment introduces provisions that make it clear that payment of a grant or regular advance is subject to conditions, that documents must be retained and that entities may be subject to post-grant payment compliance monitoring.

 

Legislative Authority

 

The legislative basis for the TCF (SIP) Scheme and variations thereto is the Textile, Clothing and Footwear Strategic Investment Program Act 1999.

 

Financial Implications

 

The total amount of funding available for the Textile, Clothing and Footwear Strategic Investment Program Act 1999 will remain unchanged.

 

Notes on Sections to be Amended

 

Section 1 Name of instrument

 

This prescribes the name of the instrument as the Textile, Clothing and Footwear Strategic Investment Program Scheme Amendment 2005.

 

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 Strategic Investment Program Scheme 1999

 

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

 

 

Schedule 1 Amendments

 

1. Section 43, Extension of time for registration or renewal

Subparagraph (4) is added to provide that the Secretary, regardless of the circumstances, may not extend the period for registration or renewal of registration beyond the end of the program year for which registration or renewal of registration is sought.  Subparagraph (5) clarifies that failure to apply for registration or renewal of registration on time due to oversight or ignorance is not to be regarded as an exceptional circumstance for the purpose of subsection (3).

 

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

Subsubparagraph (b) is substituted to clarify in relation to the threshold amount that the total amount of eligible expenditure for regular advances of Type 1 and Type 2 grants includes amounts incurred by the entity in previous program years and in respect of which the entity has made a claim.

 

3. Section 59, Extension of time for making claim

 

Subparagraph (4) is added to provide that the Secretary must not agree to extend the period for lodging a claim if that request is made after the end of the relevant financial year.  Subparagraph (5) is added to provide that, regardless of the circumstances, the Secretary must not provide an extension of time for an entity in relation to a claim for a previous program year for which the entity has already made a claim under the Scheme.  Subparagraph (6) clarifies that failure to lodge a claim on time due to oversight or ignorance is not to be regarded as an exceptional circumstance for the purpose of subsection (3).

 

4. Section 79, Threshold expenditure for Type 1, Type 2 and Type 3 grants

 

Subsubparagraph 79(2)(b) is amended to clarify in relation to the threshold amount that the total amount of eligible expenditure for Type 1 and Type 2 grants includes amounts incurred by the entity in previous program years and in respect of which the entity has made a claim.

 

5. Section 81, Determination and payment of Type 1, Type 2 and Type 3 grants

 

Subparagraphs (6A) is added to provide that if a claimant entity has breached a condition in relation to a regular advance of a grant, the Secretary may reduce the amount of the grant payable to the entity by the amount (if any) to which, because of the breach, the entity would not otherwise have been entitled as part of the regular advance.  Subparagraph (6B) provides that a determination under Subdivision 5.3.1 is revocable under section 81A and may be remade under that section.

 

Subparagraph (8) is added to provide that if a claimant is not eligible, in accordance with Subdivision 5.2.1, for a grant of an amount for a program year, the Secretary must not determine that the claimant is entitled to be paid the amount for the program year or pay a grant to the claimant of the amount for the program year.

 

6. Section 81A, Revocation and remaking determinations etc

 

Section 81A is added to make clear that determinations can be revoked and remade in certain circumstances.

 

Subparagraph (1) provides that if a determination is made in relation to an entity and the amount determined, or paid to the entity under the determination, is not the amount (if any) to which the entity is entitled under the Scheme then, in any of the circumstances mentioned in subsection (2), the Secretary may revoke the determination and, if appropriate, make a revised determination in its place.

 

Subparagraph (2) provides for the purposes of subparagraph (1) that the relevant circumstances are:

(a) the determination or payment contains or relies on a clerical error;

(b) the determination or payment was based wholly or in part on incorrect information;

(c) the determination or payment was based wholly or in part on a misinterpretation of a provision of the Act or Scheme by a self-assessing entity;

(d) the determination or payment is contrary to a provision of the Act or Scheme.

 

Subparagraph (3) provides that if the Secretary revokes a determination in relation to which a grant has been paid then, in a case in which a revised determination is not made under subparagraph (1), the amount of the grant must be repaid by the entity and may be recovered as a scheme debt.  Also, in a case in which a revised determination is made under subsection (1) and the amount of the grant under the revised determination is less than the original grant, the difference between the original grant and the revised grant must be repaid by the entity and may be recovered as a scheme debt.

 

7. Section 82, Request for determination of a Type 4 or Type 5 grant

 

Subparagraph (6) is added to provide that if a claimant entity has breached a condition in relation to a regular advance of a grant, the Secretary may reduce the amount of the grant payable to the entity by the amount (if any) to which, because of the breach, the entity would not otherwise have been entitled as part of the regular advance.  Subparagraph (7) is added to provide that a determination under Subdivision 5.3.2 is revocable under section 82A and may be remade under that section.

 

Subparagraph (8) is added to provide that if a claimant is not eligible, in accordance with Subdivision 5.2.2, for a grant of an amount for a program year, the Secretary must not determine that the claimant is entitled to be paid the amount for the program year or pay a grant to the claimant of the amount for the program year.

 

8. Section 82A, Revocation and remaking determinations etc

 

Section 82A is added to make clear that determinations can be revoked and remade in certain circumstances.

 

Subparagraph (1) provides that if a determination is made in relation to an entity and the amount determined, or paid to the entity under the determination, is not the amount (if any) to which the entity is entitled under the Scheme then, in any of the circumstances mentioned in subsection (2), the Minister may revoke the determination and, if appropriate, make a revised determination in its place.

 

Subparagraph (2) provides for the purposes of subparagraph (1) that the relevant circumstances are:

(a) the determination or payment contains or relies on a clerical error;

(b) the determination or payment was based wholly or in part on incorrect information;

(c) the determination or payment was based wholly or in part on a misinterpretation of a provision of the Act or Scheme by a self-assessing entity;

(d) the determination or payment is contrary to a provision of the Act or Scheme.

 

Subparagraph (3) provides that if the Minister revokes a determination in relation to which a grant has been paid then, in a case in which a revised determination is not made under subparagraph (1), the amount of the grant must be repaid by the entity and may be recovered as a scheme debt.  Also, in a case in which a revised determination is made under subsection (1) and the amount of the grant under the revised determination is less than the original grant, the difference between the original grant and the revised grant must be repaid by the entity and may be recovered as a scheme debt.

 

9. Section 96, Statutory conditions

 

Section 96 is added to provide that the payment of a grant, or regular advance of a grant, to an entity is subject also to the condition that the entity complies, or has complied, with all relevant provisions of the Act and the Scheme and that each grant and regular advance of a grant under the Scheme is subject to the conditions set out in section 18A of the Act.

 

10. Section 97, Condition – document retention

 

Section 97 is added to provide that the payment of a grant, or regular advance of a grant, to an entity is subject to the condition that the entity retain each of the documents mentioned in the section for not less than 5 years from the date on which the grant, or regular advance of a grant, is paid to the entity.

 

Subparagraph (2) provides for the purposes of subparagraph (1) that the documents are:

 

(a) each document that the entity is, under the Scheme, required to prepare or obtain in relation to the grant, or regular advance of a grant, including (but not limited to) each such document prepared or obtained in relation to:

 (i) the registration of the entity under the Scheme; and

 (ii) a claim for a grant or a request for a regular advance of a grant; and

 (iii) a request for a determination and payment of a claim; and

(b) any record relied upon to prepare such a document.

 

11. Section 98, Post-payment compliance monitoring

 

Section 98 is added to provide that if an entity receives a grant, the entity may be subject to post-grant payment compliance monitoring.

 

 

Overview

The Textile, Clothing and Footwear Strategic Investment Program Scheme Amendment 2005 (No. 1) was enacted to address issues and gaps in the Textile, Clothing and Footwear Strategic Investment Program Scheme 1999 (the TCF (SIP) Scheme), which provides grants for manufacturing and designing eligible textile, clothing, and footwear products in Australia. This amendment was introduced by the Parliament of Australia to clarify provisions regarding time extensions for registration, grant claims, the threshold amount of eligible expenditure, and the revocability of determinations. It also introduces conditions for grant payments, document retention requirements, and post-grant payment compliance monitoring, ensuring better compliance and accountability within the scheme. The policy objective of the amendment is to ensure that the TCF (SIP) Scheme operates efficiently and effectively by providing clearer guidelines and conditions for entities seeking grants, thereby supporting the Australian textile, clothing, and footwear industry. The financial implications of this amendment are such that the total amount of funding available for the program remains unchanged. The amendment is set to commence on the day after it is registered under the Legislative Instruments Act 2003.

Scope and Application

The Textile, Clothing and Footwear Strategic Investment Program Scheme Amendment 2005 (No. 1) applies to entities within the textile, clothing, and footwear industries that are involved in the manufacture or design of eligible products in Australia, including those intended for sale within Australia. The amendment seeks to clarify and refine the operation of the Textile, Clothing and Footwear Strategic Investment Program Scheme 1999, which provides for grants related to the specified activities. It applies nationally across Australia, governed by the Commonwealth under the legislative authority of the Textile, Clothing and Footwear Strategic Investment Program Act 1999. The amendment outlines specific conditions and procedures for grant applications, including provisions for the extension of time for registration, the calculation of threshold expenditure, and the revocation and remaking of determinations. Notably, it stipulates that the threshold amount of eligible expenditure is an accumulated figure over the life of the scheme, rather than on an annual basis. The amendment also introduces conditions for the payment of grants, such as compliance with statutory requirements, the retention of specific documents, and the possibility of post-grant payment compliance monitoring. The amendment does not alter the total funding available under the Act but seeks to ensure more precise and effective administration of the grant program.

Key Provisions

The Textile, Clothing and Footwear Strategic Investment Program Scheme Amendment 2005 (No. 1) (the "Amendment") makes several key changes to the Textile, Clothing and Footwear Strategic Investment Program Scheme 1999 (the "Scheme"). First, it clarifies the circumstances under which the Secretary can extend the period for registration or renewal of registration (Section 43(4)) and for lodging a claim for a grant (Section 59(4)). It also clarifies that failure to apply for registration or renewal of registration on time due to oversight or ignorance is not to be regarded as an exceptional circumstance (Sections 43(5) and 59(5)). Second, the Amendment clarifies that the threshold amount of eligible expenditure under the Scheme is an accumulated amount over the life of the Scheme and not on an annual basis (Sections 51S(b) and 79(2)(b)). It also makes it clear that determinations can be revoked and remade in certain circumstances (Sections 81A and 82A). For instance, a determination may be revoked if it contains or relies on a clerical error, was based on incorrect information, was based on a misinterpretation of a provision of the Act or Scheme by a self-assessing entity, or is contrary to a provision of the Act or Scheme. Third, the Amendment imposes certain obligations and requirements on the parties or entities it governs. For example, the payment of a grant, or regular advance of a grant, to an entity is subject to the condition that the entity complies, or has complied, with all relevant provisions of the Act and the Scheme (Section 96). Additionally, an entity that receives a grant may be subject to post-grant payment compliance monitoring (Section 98). Lastly, the Amendment provides for offences, penalties, or civil/criminal consequences for breach. If the Secretary revokes a determination in relation to which a grant has been paid, and in a case in which a revised determination is not made, the amount of the grant must be repaid by the entity and may be recovered as a scheme debt (Section 81A(3)). Similarly, if the Minister revokes a determination in relation to which a grant has been paid, and in a case in which a revised determination is not made, the amount of the grant must be repaid by the entity and may be recovered as a scheme debt (Section 82A(3)). Failure to repay a scheme debt may result in further legal action being taken against the entity.

Legal classification tags

Area of Law
Industrial Law
Regulatory Law
Instrument
Regulation
Concepts
Commencement Provisions
Regulatory Standards
Reporting & Disclosure Obligations

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.