Web viewPurpose of this guide. The material in this customer guide aims to assist potential...

Textile, Clothing and Footwear Small Business

ProgramCustomer Information

GuideDecember 2013

Content1 Introduction.......................................................................11.1 Purpose of this guide..........................................................................11.2 TCF Small Business Program..............................................................11.3 Objectives of the program..................................................................12 The applicant.....................................................................22.1 Eligible applicants..............................................................................22.2 Eligibility criteria.................................................................................22.3 Consortia............................................................................................33 Eligible Projects.................................................................43.1 What makes an eligible project..........................................................43.2 Grant limit of eligible expenditure......................................................53.3 Eligible Expenditure............................................................................54 Merit Criteria.....................................................................64.1 Competitive assessment....................................................................75 The application process......................................................75.1 Applying for funding...........................................................................75.2 Submitting an application...................................................................75.3 Completing the application form........................................................75.4 Submitting an application...................................................................75.5 Acknowledgment of applications........................................................86 The assessment and decision process.................................86.1 Assessment of applications................................................................86.2 The decision process..........................................................................86.3 Announcement of successful projects................................................86.4 Applicant feedback.............................................................................86.5 AusIndustry customer service............................................................96.6 Confidentiality and disclosure of information.....................................97 Successful Applicants.........................................................97.1 Offer of a grant...................................................................................97.2 Grant agreement..............................................................................107.3 Grant payments...............................................................................107.4 Underperformance...........................................................................107.5 Final report.......................................................................................107.6 Variations to the grant agreement...................................................117.7 Taxation implications.......................................................................117.8 Record keeping................................................................................117.9 Site visits and document retention...................................................117.10 Program evaluation..........................................................................11Appendix A Completing the application form...................................12Eligibility checklist............................................................................................12Part A Applicant Details.......................................................................................................12Part B Project Details...........................................................................................................13Part C Merit Criteria.............................................................................................................17Part D Attachments to the application.................................................................................19Part E Applicant Declaration................................................................................................19Appendix B....................................................................................21

TCF SBP Customer information guide December 2013

Consortia applications and preparing a consortium agreement........21How should a consortium apply?......................................................................22Consortium Agreement.....................................................................................22What must be included in a consortium agreement?.......................................22Appendix C....................................................................................23Eligible TCF Activities.......................................................................................23Part A - Textile Fibre, Yarn and Fabric Manufacturing...................................................................23Part B - Knitting Mills Manufacturing.............................................................................................25Part C - Clothing and Manufacturing.............................................................................................25Part D - Footwear Manufacturing..................................................................................................27Part E - Leather and Leather Product Manufacturing....................................................................27Part G - Made-up Textile and Leather Product Manufacturing......................................................28

TCF SBP Customer information guide December 2013

1 Introduction1.1 Purpose of this guideThe material in this customer guide aims to assist potential applicants to decide:

whether or not to apply for a grant under the Textile, Clothing and Footwear (TCF) Small Business Program and, if so,

to provide the information they need to complete an application.

It will also assist grantees to understand how the program is administered. It will be most beneficial if read in full, as it includes information about how to address the concept of improving business enterprise culture, questions of eligible expenditure, has a detailed guide to completing the application form at Appendix A, information for consortia applicants at Appendix B, and Appendix C, which defines eligible TCF activities. Potential applicants should also read the application form and draft grant agreement, and familiarise themselves with the TCF Small Business Program Determination 2005, as amended in December 2011, available at www.ausindustry.gov.au.

1.2 TCF Small Business ProgramThe TCF Small Business Program will provide grants to improve the business enterprise culture of established TCF small businesses. It is a competitive, merit-based grant program that will provide up to $50,000 (exclusive of GST) for each successful project.

Funding of $2.5 million is available for grants each year for the ten year duration of the TCF Small Business Program. Grants will be awarded in annual funding rounds, for projects to be completed within a year. The program is delivered by the Department of Industry (the department), through its division of AusIndustry.

Applications will first be considered against the eligibility criteria and, if eligible, will then be considered against the merit criteria to determine whether or not the project is of sufficiently high merit to be funded, relative to other applications. As there is a limited amount of funding available, only the best eligible projects will be competitive. Applicants should note that meeting the eligibility and merit criteria does not guarantee an offer of funding.

The TCF Small Business Program is specifically aimed at TCF small businesses that do not qualify for assistance under the Clothing and Household Textile Building Innovative Capability (BIC) Scheme.

1.3 Objectives of the programThe TCF Small Business Program aims to improve the business enterprise culture of TCF small businesses.

What is Business Enterprise Culture?

For the purposes of the TCF Small Business Program, ‘Business Enterprise Culture’ (BEC) refers to the way you do business; i.e. the values of the business, the nature and style of its decision-making and production processes, and the extent to which a business can be described as entrepreneurial. Entrepreneurial behaviour can also be regarded as a reflection of a particular business’s culture.

A good enterprise culture is found in businesses which:

are focused on financial growth and expansion (a growth orientation) – they are also skilled at maintaining a competitive market edge and understand how to maximise commercial returns on products and services;

are flexible and adaptable (to market and economic changes);

emphasise characteristics such as initiative, self-reliance and creativity (e.g. the process of change is generated and managed largely from within); and

TCF SBP Customer information guide December 2013 Page 1 of 28

http://www.ausindustry.gov.au/

manage and mitigate risk – that is, have the ability to calculate and evaluate the benefits from taking risks.

The TCF Small Business Program aims to encourage projects which enhance these characteristics in a business.

2 The applicant2.1 Eligible applicantsAny TCF small business, or a consortium that includes at least one TCF small business, may apply if it meets the eligibility criteria (described below) set out in the TCF Small Business Program Determination 2005. A TCF small business is defined as any entity employing fewer than 20 employees and a turnover of at least $100,000 that undertakes eligible TCF activities within the meaning of the former TCF Post-2005 (SIP) Scheme (see Attachment C).

Fewer than 20 employees

An employee is defined as any individual—that is, a permanent full-time, part-time or casual worker—for whom the employer is required to withhold an amount under section 12-35 or 12-40 of schedule 1 to the Taxation Administration Act 1953. These amounts are salary, wages, commissions, bonuses or allowances, and remuneration paid to directors and committee members. If you employ part time staff, please calculate the Full Time Equivalent (FTE), for example, 20 staff working half time would be 10 FTE.

2.2 Eligibility criteriaIn order to be eligible for a grant, the project must meet eligibility criteria 1, 2, 3 and 4.

1. The project must meet the needs of a particular TCF small business that:a. has not received funding, or qualify to receive funding, from the former TCF (SIP)

Scheme, the former TCF Post-2005 (SIP) Scheme or the Clothing and Household Textile (BIC) Scheme;

b. is solvent and not under any administrative arrangement;c. have fewer than 20 employees (measured as full time equivalent);d. must be registered for GST.

2. The project must be aimed at improving the business enterprise culture of the TCF small business (or businesses, if part of a consortium).

3. The applicant must submit an accountant’s letter to indicate a turnover of not less than $100,000 in the financial or calendar year immediately prior to the financial year in which the application is made.

4. The applicant must demonstrate the ability to pay a cash contribution of at least 25% of the amount of the total eligible project expenditure. This means the contribution cannot be less than 25% of the eventual eligible project expenditure. The ‘cash contribution’ requirement refers to money, not to in-kind contributions. This contribution must not be obtained through another subsidy from either the Commonwealth Government or a state or territory government.

Eligible TCF activities

For the purposes of the TCF Small Business Program, an eligible TCF activity is as defined in Schedule 1 of the former TCF Post-2005 (SIP) Scheme (see Appendix C). A business that solely imports overseas product or only undertakes retail activities will not be eligible. To be eligible to apply, the business must undertake at least one of the activities below:

5 Manufacturing activities carried on in Australia


Activities such as the manufacture of clothing, footwear or leather, or textile fibre, yarn and fabric manufacturing (known as ‘Part A–E activity’ in schedule 1 of Appendix C) are eligible if they are carried on in Australia by an entity. In addition, certain activities undertaken on a fee or commission basis using client supplied materials, or materials purchased or transferred in from other entities (‘cut, make and trim operations’), may be eligible.

If an entity manufactures goods other than clothing, footwear or leather, that activity may also be eligible – for example, under Part A,4 (Textile Finishing), or Part G (made up products) if the process includes an activity under Parts A to E. If unsure whether the activity is clearly mentioned in Parts A to E, we recommend that you call the AusIndustry program area (03-9268 7565).

6 Design for manufacturing activities carried on in Australia

Activities will be eligible if:

they are carried on by an entity in Australia in respect of design in Australia of eligible TCF products;

the products are manufactured in Australia; and

some or all of those products are intended to be sold in Australia.

7 Certain ancillary activities carried on in Australia such as early stage processing activities or certain warehousing and distribution activities.

These ancillary activities are eligible only if the operations are wholly and mutually interdependent with eligible manufacturing or eligible design activities.

Examples of design and manufacturing activities 1. A business produces its own designs and then manufactures the TCF goods in-

house in Australia. Some products will be sold in Australia, some will be exported. The business would be considered to be undertaking eligible TCF activities—that is, manufacturing, and design for manufacture in Australia.

2. A business produces its own designs and then arranges for manufacturing to be undertaken by a different entity in Australia. Some of these products will be sold in Australia. The business would be considered to be undertaking an eligible TCF activity—that is, design for manufacture in Australia.

3. A business purchases designs from an Australian designer and then arranges for another entity to manufacture the goods in Australia. The business would not be considered to be undertaking an eligible TCF activity because it is not undertaking either a manufacturing activity or a design activity for manufacture in Australia.

Manufacture in Australia: We ask you to declare the percentage of manufacturing undertaken in Australia. This amount is recorded in your Grant Agreement and will be monitored for the duration of the project to indicate your intention to maintain manufacturing onshore. The Grantee must notify the Commonwealth within 28 days if their eligible onshore TCF activity falls below the minimum level of onshore TCF activity at Schedule 1 of the Grant Agreement.

If you are unsure whether an activity is eligible or not, please call the AusIndustry hotline on 13 28 46.

2.3 ConsortiaIf a consortium wishes to apply for a grant, the application must be made by the ‘lead member’ of the consortium. The lead member, as the applicant, should be appointed by all its other members as an agent with the power to act on their behalf for the purposes of the project. The consortium must include at least one eligible TCF small business. Where all businesses which are the focus of the grant are eligible TCF small businesses, the application is likely to be more competitive.


The applicant must propose, on behalf of the consortium, a project that is eligible under the program and is consistent with the terms of the consortium agreement. It must also provide, with its application, a draft or executed copy of a consortium agreement. (For more detailed information see Appendix B).

3 Eligible Projects3.1 What makes an eligible projectThe TCF Small Business Program seeks to fund projects that assist TCF small businesses to enhance their business enterprise culture. Projects should be standalone and targeted to a specific outcome (not a series of unconnected upgrade activity costs). A project should be comprised of a set of activities scheduled to achievable timelines and, where relevant, include management mentoring and staff training. Examples include:

marketing/branding strategy and/or e-commerce systems

enterprise resource planning and digitising and integrating systems

business process re-engineering to support a new strategic business approach

streamlining design/production systems or manufacturing processes

In identifying a project, you may wish to consider how improving the business enterprise culture could impact on your business’s:

decision-making processes—for example

the ability to quickly react to changes in the marketplace, including the ability to make and implement decisions;

streamlining decision-making processes, even with a small management team;

using information to make good commercial decisions;

mentoring to support development of a business plan.

manufacturing and/or design processes—for example

identifying and implementing appropriate innovative manufacturing technology and processes;

increased focus on innovative design processes.

internal and external communications—for example

communicating a company’s vision, business strategy and financial framework to its staff;

more effective communications to key stakeholders such as suppliers, and current and potential customers;

identifying synergies with other companies.

marketing strategy—for example

the ability to create a brand, adding value to a brand or re-branding as necessary;

identifying new export markets and then using effective marketing tools to exploit these commercial opportunities;

developing new marketing strategies for existing products.

up-to-date financial, management, production and accounting processes—for example

using financial information as a business tool to assist in growth and development;

integrating financial data with information from the production process to achieve specific goals.

strategic skills, such as planning—for example

implementing business strategies for the medium and long term;

improving financial reporting and forecasting.TCF SBP Customer information guide December 2013 Page 4 of 28

Project examples

Example 1: E-Commerce marketing projectHaving identified that revenue growth has stalled, a business has identified the need to expand its product range and build brand awareness and demand. Profitability will depend on growing the number of Australian stockists and plan for entry into new markets. The project, to develop an e-commerce marketing plan focused on online sales, will include a mentoring program to support strategy implementation, and a web designer will build an enhanced, integrated website. Business Enterprise Culture improvements will include more creative marketing and informed management decisions, better customer communication and new designs based on customer feedback, the ability to more quickly respond to market changes, and to make informed risk assessments about diversifying product and target markets.

Example 2: Improve operational processes with integrated digital business systemsA partnership proposes to improve and digitise operational processes to link all facets of the business from design, costing and specification through to production, sales and distribution. The current manual systems are unlinked and are not able to accommodate increased production demands. The new system should provide for detailed reports and will form the basis of an improved analytical capability and customer service. The implementation plan also includes the development of new operational procedures. The project will lead to improved communications, increased accuracy of data and support improved decision making in all areas of the business, including risk management.

These examples show it is important to demonstrate the need for the project and how the outcome will improve the business culture beyond the project completion. Projects should demonstrate some essential characteristics, including that they:

are practical and not theoretical;

clearly articulate how the business enterprise culture of the TCF small business will be improved;

consist of a series of clearly related activities to achieve the project outcome;

actively engage the small business in the project; and

address the merit criteria in detail.

The types of projects that can be funded are not fixed or prescribed and a wide variety of projects may be supported. The competitiveness of the project will be assessed by how well the merit criteria are addressed and the extent to which the project will improve the business. When addressing the criteria, consider the current needs of the business and whether a project will lead to fundamental changes to the way the business will operate.

3.2 Grant limit of eligible expenditureAlthough there is no upper limit to the size of the project, applicants are reminded that successful projects are only funded to a maximum of $50,000 (GST exclusive), regardless of the cost of the project. Be aware of this limit when costing a project, particularly if it is very high, as the grantee bears the additional cost as cash contribution and there may be an unintentional impact of a very high percentage cash contribution. A project over $75,000 may start to impact the amount you are able to fund: in this case Grant maximum = $50,000 and so cash contribution = $25,000 which is about 33%. The percentage is fixed in the grant agreement, so even if the project costs are later reduced, the cash contribution ratio stays the same and may impact on the final report and payment on reconciliation. The grant limit and fixed ratio cash contribution also means that if actual project expenditure is less than the budgeted amount, the grant amount will be reduced in accordance with this ratio.

3.3 Eligible Expenditure The grant can only be used for eligible project expenditure incurred during the project period set out in the funding agreement, and after the execution of a funding agreement.

Grant funding under the TCF Small Business Program is for specified project costs and cannot be used to meet routine business expenses, for example:

production costs including the design and manufacture of a new range


salaries for current ongoing employees

establishments costs, such as office equipment, to conduct routine business activities

establishment costs to set up new premises or start a business

plant or equipment costs that are usually incurred as part of the normal manufacturing and/or design activities of the business, including maintenance costs, spare parts and depreciation costs

routine or seasonal marketing costs

routine accounting costs, including the cost of audit certificates

routine IT expenses including fees for registration of domain names

routine rental costs and expenses

routine utility costs

routine training costs

high level travel expenses or travel expenses not directly related to the project

the purchase of plant or equipment not specifically related to the project.

If an application project contains a mixture of eligible and ineligible expenditure, the level of funding provided to the project may be reduced by the amount of expenditure assessed as ineligible.

Note that all expenditure costs must be GST exclusive.

4 Merit Criteria Applications that are eligible will be considered and assessed against the three key merit criteria:

1 Whether the project outcome will meet the overall program objective, including how it will enhance the entity’s:

strategy for growth;

business creativity;

flexibility or adaptability; and

willingness and ability to take risks.

2 The value for money of the project to the Commonwealth and the level of commitment to the project demonstrated by the applicant, including (but not limited to) the level of time, resources and cash (additional to the compulsory 25%) that are to be contributed to the project.

3 Whether the project is capable of being commenced and completed within 12 months.

The most competitive applications clearly demonstrate how the project will improve the business enterprise culture of the business when they address the first merit criterion. For more detail on the merit criteria, refer to Appendix A, which outlines some considerations in responding to each criterion.

Provide examples of how your business operates now, compared to how you intend it will operate after the project, describing:

a) the effect on your style of business operations – how the project outcome will increase management skills, enabling it to identify and take advantage of new business opportunities (i.e. ability to take risks and creative business decisions)

b) how the project will contribute to improved business practices that support adaptability and growth strategy:


skills to grow and adapt to markets (e.g. opportunity analysis tools, improved information co-ordination and business processes, supply chain management, communications, marketing innovations, etc.)

control of product innovation/quality/output (e.g. manufacturing and / or design processes, integrated systems, etc.)

4.1 Competitive assessment All applications received on or before the closing date for each funding round that meet the eligibility criteria will be assessed against the merit criteria. Consequently, applicants should answer all questions as clearly and succinctly as possible. Where necessary, provide supporting evidence in relation to claims. An application that does not meet the eligibility criteria will not be assessed.

5 The application process 5.1 Applying for fundingAusIndustry will advertise nationally for grant applications in selection rounds under the TCF Small Business Program.

5.2 Submitting an applicationTo obtain a copy of the application form, call the AusIndustry hotline on 13 28 46. A sample of the application form is available on the AusIndustry website at www.ausindustry.gov.au. Go to the AusIndustry home page and follow the links to the TCF Small Business Program.

5.3 Completing the application form The application you submit should be fully and consistently completed. Address all questions and pay particular attention to each merit criterion in relation to the proposed project. Generally, it will not be possible to include any new material or to make any significant changes to the application after the closing date. AusIndustry may, at its absolute discretion, seek clarification about aspects of an application after the application has been submitted.

The application form contains instructions on how an application form should be completed and submitted. These instructions will help applicants identify and address all information requirements, including the project description. Appendix A to this Customer Information Guide provides additional information on answering specific questions.

While an applicant may apply for funding for more than one project, it may be difficult to demonstrate that the business can meet the criteria to a high degree for each project. A TCF small business may also find it more difficult to demonstrate its capacity to successfully complete a project within one year if proposing multiple projects. If funding is being sought for more than one proposed project, the applicant should repeat sections B and C of the application form for each additional project.

5.4 Submitting an applicationApplications can be submitted by mail or in-person at an AusIndustry office by the due date and time. Email applications are not accepted. Applications submitted after the due date for that round will not be accepted, except in very exceptional circumstances, with the prior approval of the Program Manager. Applicants may be contacted to clarify minor aspects of their original applications. Applications can be submitted to an AusIndustry Regional Manager by prior arrangement.

Applications for Round 9 close at 5pm local time on Friday, 28 February 2014.


http://www.ausindustry.gov.au/

5.5 Acknowledgment of applicationsAll applications received will be acknowledged in writing after the closing date.

6 The assessment and decision process6.1 Assessment of applicationsThe eligibility of applicants will be determined for all applications received. If an applicant is ineligible, the applicant will be advised in writing. Applications from ineligible applicants will not be considered.

All applications received from eligible applicants will be assessed against the merit criteria. Projects that meet the objectives of the program and each of the merit criteria to a high degree will, in the absolute discretion of the Secretary of the Department of Industry, be considered for funding support under the program. The amount of grant funds offered (regardless of the amount of funding sought) will also be at the absolute discretion of the Secretary. Applicants should be aware that meeting the eligibility and merit criteria to a high degree does not guarantee that an offer of funding under the program will be made.

The final awarding of grants is dependent on the quality of the applications received, the availability of funds and the willingness of the applicant to enter into a funding agreement with the Commonwealth. The actual amount of grant monies awarded to a successful applicant is also dependent on what is assessed as eligible project expenditure. This may be less than the amount originally sought by the applicant.

During the assessment process, the department reserves the right to:

contact applicants in relation to their proposed projects;

seek additional expertise, including external assessors and experts, in evaluating the merits of a proposed project.

6.2 The decision processThe Secretary will decide whether to award a grant to an applicant for a project described in the application and the amount of the grant awarded. The decision of the Secretary is final. There will be no internal review of decisions.

Following the conclusion of the assessment process, the department will advise all successful applicants of the outcome of the application. If the Secretary has decided not to award a grant, the notification will include the reason for the decision.

6.3 Announcement of successful projectsSuccessful applicants and projects will be announced upon completion of the assessment and ranking process. The name of successful applicants, the project title and brief description, and the amount of the grant will be published on departmental websites.

Successful applicants will be contacted by AusIndustry to arrange for the finalisation of the grant funding agreement. As discussed elsewhere in these guidelines, one of the conditions of the offer of funding is that a successful applicant enters into a funding agreement with the Commonwealth.

6.4 Applicant feedbackAt the end of each round, applicants will be informed of the success, or otherwise, of their applications. Following the announcement of successful projects, feedback on the assessment process will be available to unsuccessful applicants on request. Information will be available on their project only.


6.5 AusIndustry customer serviceAusIndustry, a division of the department, aims to provide a high level of customer service in delivering industry programs for the Australian Government. The AusIndustry Customer Service Charter is available at www.ausindustry.gov.au.

Complaints about customer service

Although there will be no internal review of decisions, if a customer or applicant is not satisfied with AusIndustry’s standards of customer service they are encouraged to express their concerns about that issue. Complaints about AusIndustry’s service standards will be dealt with in accordance with the procedures set out in the AusIndustry Customer Service Charter. Complaints should be referred to AusIndustry through the AusIndustry hotline on 13 28 46 or by email at [email protected], or by calling the TCF Small Business Program manager.

6.6 Confidentiality and disclosure of informationThe use and disclosure of information provided to the department by applicants for the TCF Small Business Program is regulated by the relevant provisions and penalties of the Textile, Clothing and Footwear Small Business Program Determination 2005, the Public Service Act 1999, the Public Service Regulations, the Privacy Act 1988, the Crimes Act 1914, the Criminal Code and the general law.

The department will use the information provided in the application form for the purposes of discharging its functions under the program, and for related uses. These functions include determining eligibility for assistance under the program, assessing merit, preparing grant agreements, calculating the amount of funding that will be paid to successful applicants, and assisting with compliance activities. The department may also use information received in applications in any other legitimate departmental business.

While the department will seek to protect sensitive information from disclosure to external parties, disclosure of some confidential information may occur. Confidential information may be disclosed to:

the Auditor-General;

a third party contractor engaged by the department for audit-related purposes;

other Commonwealth agencies for law enforcement purposes; or

a technical, financial (including auditors), economic or industry expert from whom the Secretary wishes to seek advice.

Confidential information may also be released if the Secretary is required or permitted by law to do so, or where the consent of the applicant to the release of information is obtained prior to its release.

As part of the assessment of applications, the department may need to consult with and provide material from the application to other government agencies or bodies, other organisations and/or relevant individuals in order to substantiate any claims or statements made in the application form, or to otherwise assist in the assessment of the application. If this occurs, the department will endeavour to ensure that the parties who are consulted observe appropriate confidentiality.

7 Successful Applicants7.1 Offer of a grantAll successful applicants are required to enter into a written agreement with the Commonwealth of Australia governing the provision of funding for, and the conduct and management of, projects before any funding can be paid. The offer of a grant will lapse if a grant agreement has not been entered into within 30 days of the applicant being notified of the outcome of the application, unless extended in writing by the Commonwealth. No project expenditure should be spent before the official start date of the project in Schedule 1 of the Grant Agreement. Note the risk to your business if the project is commenced before there is a valid funding agreement. The grant agreement will detail the successful


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applicant’s responsibilities in regard to ensuring that the project is conducted according to the agreement and that project outcomes are achieved. It includes as a condition that the applicant must be registered for GST.

7.2 Grant agreementApplicants should familiarise themselves with the draft TCF Small Business Program grant agreement available on the AusIndustry website. The grant agreement will set out conditions including but not limited to:

the making and receiving of grant payments;

audit requirements;

the manner in which unspent program moneys must be dealt with, including recovery of grant funds;

variation and termination of agreements.

It is a condition of funding being paid under the program that successful applicants enter into a funding agreement with the Commonwealth governing the conduct of approved projects.

7.3 Grant paymentsUsually, there will be two grant instalment payments: an initial payment on execution of the agreement and a final payment following receipt of a satisfactory final report that includes an auditor’s statement verifying grant expenditure. However, sometimes AusIndustry may choose to schedule payments over three instalments rather than two. Note that the final grant payment will be reduced if the actual project expenditure is less than the budget total in the grant agreement.

7.4 UnderperformanceA grant agreement may require that an applicant provides regular reports on the overall progress of the project against the project plan. In the case of underperformance, remedial action may be undertaken. This may include:

consultation and negotiation with the grant recipient; deferral and/or staging of scheduled payments; recovery of grant monies already advanced; investigation of any improper conduct; pursuit of appropriate legal remedies, civil and/or criminal.

7.5 Final reportWithin six weeks of completion of the project, applicants are required to submit their final report. This report should include all of the following information:

details of the extent to which the project achieved its original objectives, described against completion of Milestones, and measures used against projected Outcomes;

any highlights, breakthroughs or difficulties;

conclusions and recommendations arising from the project;

details of any unexpended funds;

financial statements for the project;

an audit certificate verifying grant expenditure;

whether or not the project improved the business enterprise culture of the business.

Note that the final report must contain an *independent auditor’s statement verifying expenditure. Failure to do so may result in the Commonwealth seeking to recover some or all of the grant funds paid. Any unexpended funds must be returned to the Commonwealth with the final report.


*An independent auditor means a person who is: registered as a company auditor under the Corporations Act, or a member of the Institute of

Chartered Accountants in Australia or CPA Australia; or

a Member of the Institute of Public Accountants (MIPA) or Fellow of the Institute of Public Accountants (FIPA); and

not a principal, member, shareholder, officer or employee of the Grantee or any Consortium Member or of a related entity (as defined in the Corporations Act) of the Grantee or any Consortium Member; and

not a family member or related through family ties to the Grantee.

7.6 Variations to the grant agreementA variation to a grant agreement will only be considered by the department if it:

significantly improves the outcomes of the project;

is consistent with the program’s objectives;

is appropriate in all circumstances.

7.7 Taxation implicationsTen per cent will be added to the agreed amount of a grant offer for the purposes of GST. The successful applicant must pay this additional amount directly to the Australian Taxation Office (ATO). For example, if a project for $50,000 is approved, the Commonwealth will pay $55,000 to the successful applicant and the applicant must then pay $5,000 to the ATO.

Note that grants are not of themselves exempt from income and other taxes. It is for applicants to make their own assessment and decision on taxation issues as part of the process of deciding whether or not to apply for funding. The department does not give legal or taxation advice.

7.8 Record keepingIt is a condition of being paid a grant under the TCF Small Business Program that successful applicants retain all documents and records in relation to the application and the grant agreement for a period of two years after the completion of the project and that applicants provide this information to authorised officers of the department if requested to do so. In each funding round, 5% of successful applicants will be audited by the TCF Small Business Program area. All invoices, bank records and other project related documents are required for this process. Eligibility will also be checked retrospectively.

7.9 Site visits and document retentionThe grant agreement may also provide for employees of the department to visit sites where projects are being undertaken and where documents relevant to the conduct of projects are stored for the purposes of assessing the progress of the project. Such visits will be undertaken with a grantee’s consent, which must not be unreasonably withheld. 20% of successful customers are visited each round to monitor project progress.

7.10 Program evaluationThe customer may be required to provide reports after the completion of the project and to participate in a broader evaluation of the TCF Small Business Program. At some point in the future, the department may survey TCF Small Business Program customers and other stakeholders.


Appendix ACompleting the application form

Eligibility checklistThis eligibility checklist appears at the start of the application form and is designed to assist potential applicants to determine whether or not they are eligible to apply for funding under the TCF Small Business Program.

Applicants who answer NO to any of the following questions will not be eligible to apply for funding.

1. Can you confirm that the applicant business has not received funding from the TCF (SIP) Scheme, the former TCF Post-2005 (SIP) Scheme, or the Clothing and Household Textile Building Innovative Capability (BIC) Scheme?

2. Does the TCF small business have fewer than 20 employees?

3. Does the TCF small business undertake eligible TCF activities (e.g. manufacture, or design for manufacture, in Australia—refer to the TCF SBP Customer Information Guide)?

4. Did the TCF small business have a turnover greater than $100,000 in the last year?

5. Is the proposed project aimed at improving the ‘business enterprise culture’ of the TCF small business?

6. Can the applicant provide evidence that it can make a cash contribution of no less than 25% of eligible project expenditure towards the funding of the project?

7. Is the TCF small business solvent and not under any administrative arrangement?

8. Is the applicant applying for funding of no more than $50,000 (exclusive of GST)?

If you are unsure whether you undertake an eligible TCF activity, whether a component of your project expenditure is eligible, or if you have any other queries regarding eligibility, please contact the AusIndustry hotline on 13 28 46 prior to completing an application.

Part A Applicant Details

A1 Name of applicant

Legal business name: Provide the name under which the applicant business is registered with the ABR, in other words related to your ABN.

If you are a company, you will also have an ACN (registration is under the Australian Corporations Act 2001). If the applicant is a trustee applying on behalf of a trust, provide details of both the trust and the trustee. The Trustee name is the applicant, however the ABN will be related to the Trust.

Registered sole traders may apply, and provide their date of birth on the form. Other businesses that are not companies—for example, a partnership—are required to register their business name with the appropriate State/Territory authority unless the business is conducted under the name of the person or persons involved.

Trading Name: If trading under a name other than a registered business name, also provide the name under which the business is trading.

A2 Australian ACN and/or ABN

If the applicant is a registered company there will be an ACN, otherwise provide the ABN only. A trustee applying on behalf of a trust, provide the ABN of the trust. Note that you must be registered for GST to enter into a grant agreement.


A5 Applicant’s turnover

Provide an accountant’s letter clarifying that your turnover is at least $100,000. This amount should refer to the year (financial or calendar) immediately prior to the financial year in which the application is made. A template for an accountant’s letter is at Appendix B of the Application Form.

A6 Consortium details

If the applicant is part of a consortium, it must include at least one small business and each small business that is a beneficiary under the project should be an eligible TCF small business. Complete A8, A9 and A10 for each TCF small business that is a member of the consortium, by copying the relevant page for each. See Appendix B.

A8 Eligible TCF activities

a) Select and click on the check boxes to indicate whether the applicant undertakes TCF design and/or manufacturing activities; then

b) Indicate which type of TCF activity is undertaken by referring to Appendix C of the form (definitions for Eligible TCF activities). Note that Part G activities are only eligible if a part A to E activity is also conducted.

A9 Current business profile and operations The entity’s major product lines, key markets and various activities should be described, in particular which activities are undertaken in-house and which are outsourced to another entity. For example:

We design outdoor wear made from the highest quality Australian super-fine merino wool. 100% of our wool is sourced from Australian premier wool growing regions and driving our business is a passion to design and produce Australian made garments that are natural, sustainable and environmentally aware. Our manufacturing is undertaken locally, apart from an accessory item, in effect about 98% onshore.

We have identified a key risk to our business is that the current finish to the seams of our garments is inferior to other similarly priced brand name competitors who manufacture their product overseas. Another risk is that we are too reliant on one local manufacturer who may be unable to meet our supply demands in a timely manner or provide the quality output that the market demands.

Our current strategy is to aggressively build sales and business opportunities to ensure the company can grow to a more sustainable level. We will be focused on online opportunities through our new website, retail outlets in targeted Australian states and markets, and through word of mouth.

Our future direction is to further refine and develop our manufacturing process to make our local manufacturing capability world class; develop export sales by reaching international markets through the web site; and build our Australian sales with online and retail shop presence and grass root marketing to specific target audiences.

A10 Number of employees

a) How many employees, including part-time employees who are issued with a payment summary.b) Comparable number of full-time equivalents (FTE) – if part-time employees, calculate the total

hours as equivalent of a full time person – e.g. two part-timers doing a half day each equals one FTE.

Part B Project Details

B1 Project working title

The project working title should be what it is about, and up to 15 words long.


B2 Project descriptionThe application form has a total 300 word limit for describing the project (3 parts with 100 word limits). Excess text is unlikely to be considered.

The more specific the project description, the easier it will be to address the merit criteria and develop a project plan and budget. Projects that are not clearly focused on business enterprise culture are unlikely to be funded. Please review section 3.1 of the customer guide for more information regarding projects. Competitive applications will address the following, as requested, in parts:

a) Project description: What is the project about; its range of activities; how will it be structured and managed; who will be involved, etc.

b) The rationale for the project, i.e. why it is needed; how it fits in with your overall business strategy; what has been holding back the business.

c) Objective of the project: What will the business look like when the project is completed - how will the outcomes of the project improve the business enterprise culture of the TCF small business.

For example, a marketing project:

a) The project is to engage marketing consultants to assist with the development of a brand communication strategy and marketing plan. It will be coordinated by the consultant working with the director, and include brand development with e-commerce website re-engineering and involve the employees. Activities will include a business review, market analysis, the development of market opportunities, key messages and sales conversion strategies, individual mentoring sessions covering topics such as database growth, public relations, marketing communications and social media management, and the roll out of brand strategy through identified marketing channels. Following implementation there will be a review of marketing plan performance and implementation of a monitoring schedule.

b) The past 18 months of unsteady markets has lead to an urgent demand for a new approach to strategies and resources, including a review of cashflow outlays, cost of raw materials, production capacity, retail closures, etc. The project will support the current business growth plan by facilitating a transition to more efficient systems and strategies enabling better returns through online and retail sales. It will capitalise on recent successes with design awards and positive media coverage.

c) The objective is to transform the business from an operational focus to a market driven organisation and support the move from low margin wholesale. Tools, staff skills and business strategies provided by the project should result in a more efficient, creative and responsive orientation, providing better customer service, and reaching a broader customer base, thus enabling a growth focus.

B3 Project plan and dates

The project start date must not be before the start of the new financial year (that is, not before 1 July). Applicants should also note that one of the merit criteria considers whether the project is capable of being commenced and completed within 12 months, e.g.: Start: 01/07/2013 End: 30/06/2014.

The project plan should provide a concise representation of how the project will be conducted, by listing project stages, timelines and activities. To plan it in this way, the project is broken down into its natural progressive stages, or ‘milestones’, each stage being supported by the key activities necessary to complete it, and how long each stage will be.

Each key stage, or milestone, represents a planned estimate of progressive activities and how long these will take – based on consultant quotes, delivery dates, your business demands, etc. This then represents the timeframe of the project, outlined in table form, with start and end dates for each milestone, against which we can monitor the progress of the project at any particular point.

Under each milestone heading, list (in dot-points) the key activities that will be undertaken to complete that milestone. Note that all the activities should be related, progressive, and clearly directed at the particular project outcome. Therefore, proposals which involve a series of unrelated activities targeted


at different areas of the business, rather than focused on one aspect with a clear outcome, are unlikely to be competitive because they will more likely be viewed as multiple minor projects. For example:

Milestone

Give each Milestone a heading in the space alongside, and list related Activities below, as dot points. Use the tab key to enter each new grey text box below.

Proposed Start Date (dd/mm/yyyy)

ProposedEnd Date

(dd/mm/yyyy

Milestone 1: Consumer intelligence market research

Activities: engage international consumer & market research agency &

procure research attend export planning workshop analyse findings & develop marketing & operational channel

solutions

1/07/2013 20/08/2013

Milestone 2: Price, foreign exchange & export financial modelling

Activities: develop price, shipping, product costing tools receive training in new tools re-engineer chart of accounts, bookkeeping & financial document

management practices develop Profit & Loss forecast & Cash flow forecast in line with

new strategic plans

21/08/2013 17/09/2013

Milestone 3: Strategic Export & Market Plan

Activities: take part in export planning & mentoring sessions with consultants develop a Strategic Export Marketing & Business Management

Plan

18/09/2013 31/03/2014

Milestone 4: Implementation

Activities: develop an Implementation Plan implement next step solutions and system review outcomes

1/04/2014 30/06/2014

B4 Project budget

Provide a detailed breakdown of the proposed eligible project expenditure under the key categories in the budget table. Each item of expenditure in the proposed budget should be clearly identified and the activity described. If contract expenditure is applicable, the contractor’s or consultant’s brief and quote should be attached. Please review section 3.5 of the customer guide to ensure that ineligible expenditure is not included.

Project expenditure may include, but is not limited to, the following: contract expenditure or consultancy costs incurred as part of the project. Describe the

activities to be undertaken under the contract. Where a quote has been provided which details the activities to be undertaken by the contractor/consultant, the description may be brief;

equipment - plant, equipment or software directly related to the project;

travel specifically relating to the project. Describe the nature of the costs, destination and number of people ;

other expenditure - project related business expenses that are not routine in nature.

Note that all expenditure must be exclusive of GST. TCF Small Business Program funds cannot be used to pay for audit costs.TCF SBP Customer information guide December 2013 Page 15 of 28

Project Budget Example:

Base the budget on quotes or identified estimates, and attach any briefs and quotes. For example, a project for an Alice Springs based company that features business process improvement, including IT systems and a mentoring component for the business owner, might show its eligible project expenditure like this:

Eligible Expenditure Type Eligible expenditure amount (A$) excluding GST

A. Contract expenditure: Consultancy fees

Change Mentor: 8-month program (quote attached)

IT systems review and implementation (see quote)

14,000.00

20,000.00

B. Equipment—IT hardware and software 1,800.00

C. Travel—economy airfare to meet with IT consultant 900.00

D. Other expenditure—fee for 3-day Change Management for Line Managers Course for 3 attendees @ $1,100 each

3,300.00

Total Project Budget 40,000.00

The Total Eligible Expenditure entered in the Budget table is the Project Budget. The budget includes both Grant and Cash Contribution, i.e. Budget = Grant + Cash contribution (with Cash being 25%):

Project Budget = Cash Contribution + Grant soughtGrant sought (max 75%) $ 30,000.00

+ Cash Contribution (min 25%) $ 10,000.00

= Project Budget $ 40,000.00

Note that Grant requested and cash contribution equals the Total Project Budget. The cash contribution should be a minimum 25% of budget, so the calculation based on the minimum cash contribution, would be a 75% to 25% split, for example:

Total Project Budget Maximum Grant (75%) Minimum Cash Contribution (25%)

$60,000 $45,000 $15,000

Note: We require that you attach evidence of your cash contribution to your application form, for instance a bank statement (including term deposits) or a credit letter. An applicant may provide evidence of a cash contribution from an ‘angel’ investor or, if the applicant is part of a consortium, contingent cash funding from other members of the consortium.

B5 Project outcomes

Outline some key changes (outcomes) to the business as a result of the project. For each outcome, list how you will measure that the outcome has been achieved. If possible include figures, such as percentage sales growth. For example, an Enterprise Management System project could include:

Project Outcomes Performance Indicators

Reduction in raw materials holding Reduce by 10% the value of raw materials holdings at project completion.

Improve timeliness of order deliveries Achieve 20% reduction in the time it takes for orders to be delivered to customers.


Part C Merit CriteriaThe competitiveness of a project compared to other proposals depends on how well the merit criteria are addressed. All aspects of the merit criteria are important and applicants will need to consider how their project is competitive in relation to each criterion, providing examples of how, as a result of the project, your business will be better able to engage with risk, be more creative, be more adaptable and grow.

C1 Describe how the project's outcome will improve the business enterprise culture of the TCF small business

For each of the indicators of business enterprise culture, C1 (a) to (d), consider using a 3 part description:

1 Describe current business practice or performance, identifying areas requiring change, such as business skills, risk management and business planning, and why you need to change them.

2 Explain how the project will address these business improvements, providing examples such as how your business will be better able to identify opportunities, engage with risk, be more creative, be more adaptable and flexible, etc?

3 Support statements with specific examples of how the business will change as a result of the project, for example outcomes in areas such as:Manufacturing and/or design processes; Marketing innovations; Communications; and/or Business information systems and integrated processes.

Where possible, quantify. Your answers should be concise and structured. For example:

C1d) Risk – Marketing Strategy project response

WHY: Currently we’re a creative, entrepreneurial enterprise with a high-quality product, but lack the tools and strategic approach to aggressively pursue market opportunities as we have no way to assess and mitigate the risk. We simply don’t have the skill-set, experience or data to do this and so our approach to doing business has been largely ad-hoc and based on intuition and personal experience, which is high risk.

WHAT: Having a professionally-assisted Marketing Plan and receiving mentoring from professional marketers will allow us for the first time to have a planned approach, and manage risk proactively.

HOW: The frameworks developed, and knowledge learned will allow us to really embrace the marketing fundamentals as a foundation for ongoing future growth.

OUTCOME: These assets will be invaluable in analysing opportunities, assessing risks, executing mitigating actions should these risks occur, and confidently moving forward.

C1d) Risk – CAD Digital Design Process project response


WHY: Currently the organisation has design skills and a new e-commerce website has led to real growth in turnover. However, because our design and patternmaking processes are manual, we cannot take on the risk of expanding our customer base, because we may not be able to sustain supply. We cannot take the risk of recruiting new staff (we are also in a remote location) and face a decline in output and potential loss of market share.

WHAT: Digitising the design to pattern making process will deliver the quantity and quality to satisfy current customers and sustain growing customer base, as well as provide flexibility of design to attract new ones.

HOW: As the project will digitise the process, there will be time-savings of up to 70%, an increase in the quality of output, and ability to adapt designs and meet orders. The additional time also allows more time to be spent on monitoring industry trends and developing new products to remain competitive in the market place.

OUTCOME: In this way we will be able to mitigate the risk of more aggressive marketing, and achieve our ambition to diversify our range, and grow.

C2 The value for money of the project to the Commonwealth and the level of commitment to the project demonstrated by the applicant, including (but not limited to) the level of time, resources and cash that are to be contributed to the project by the applicant

Projects with outcomes that offer social, industry and/or environmental flow-on benefits and/or are achievable only with the assistance of government funding may be more competitive.

A key determinant in the successful outcome of any project is the level of commitment of participants. This can be demonstrated in a variety of ways. The most persuasive indicator of commitment is the size of the cash contribution in relation to the size of the grant requested. Therefore, an applicant who contributes more than the 25% minimum towards eligible project expenditure is more competitive than an applicant that only contributes the minimum. Also important is the extent to which senior management and other staff are involved in the project. The resources should be realistic and appropriate to the level of impact of the project on the business. The business may also be able to demonstrate ongoing commitment beyond the project end date to ensure success and lasting impact.

In addition, applicants can demonstrate commitment by outlining other financial contributions and resources supporting the project. Additional financial support can include funding or in-kind support from other sources such as regional economic development organisations, professional or industry associations.

In some circumstances, applicants have undertaken some preparatory work, for example developing a business plan, a feasibility study, market research and so on. Such preliminary work can be used to demonstrate commitment and provides a context for the proposal. Similarly, if there are ineligible activities as an adjunct to the project you are proposing, such as routine marketing or advertising costs, please describe these items as this will assist to demonstrate additional input to the project.

C3 Whether the project is capable of being commenced and completed within 12 months

Projects and businesses sought by the program are flexible, quick to market and outcome focused. In demonstrating whether a project can be completed within 12 months, carefully outline the basis and scope of the project plan, including the resources and expertise available to ensure a successful project outcome within this time frame. Ensure you show that you have sufficient resources available to complete the project, for example staff availability, business resources allocated to the project, and a


realistic timeline for the activities. Outline how the project outcome will have a rapid impact on the market. All other things being equal, a project that can realistically be completed in six months would be considered equally meritorious to one that takes 12 months. However, most significant projects take the full 12 months, in order to fully implement project developments, and assess the impact on the business, or customer feedback.

Part D Attachments to the application

D1 Required AttachmentsPlease limit your attachments to those that are referred to in the application or add significant value to your case:

Contractors/consultants quotes or statements of services are required.

Evidence of ability to make a minimum cash contribution of 25% of eligible project expenditure.

An accountant’s letter confirming your turnover was not less than $100,000 in the previous year. The letter must be prepared and signed and dated by a person who:

is not a director, other office holder, or employee of the applicant or a related body corporate of the applicant; and

has not been engaged by the applicant for the purpose of preparing the TCF SBP application; and

has no financial interest in the applicant.

These attachments add to the understanding of your eligibility, the project and activities you intend to undertake and quantify the budget.

D2 Additional Attachments

Additional attachments may accompany an application if they are directly relevant and supportive of the application. Please limit the nature and number of attachments. If supplementary material will add significantly to your proposal, for example, your project is in line with a business strategy, the executive summary may be appropriate.

Part E Applicant Declaration

E Declaration by authorised Applicant signatory

A declaration must be made by a person authorised to make the relevant declarations, confirming accuracy, eligibility, etc. This includes a Solvency Declaration:

All applicants (individuals, companies or businesses that are not companies) are to declare solvency and that they are not under any administrative arrangement.

E1 Declaration by authorised Applicant signatory details

The declaration must be signed by a person authorised to make the relevant declarations. If the applicant is a company, this is usually an employee. This also applies in the event that the application has been completed on the applicant’s behalf by an external entity – if so, complete the details at E2.

E2 External entity details

Please provide details requested where the application has been wholly or in part completed by another business, e.g. a consultant or advisor.


Final CheckPrior to submitting the application, check the following:

The project start date is not before 1 July.

You describe the business at A9 in such a way that it is clear that you are a suitable applicant with a good rationale for needing the project and grant funding.

The project description (B2) is easy to follow and has sufficient detail so that the project activities are understood. The project milestone plan (B3) should reflect and confirm it.

The project end date and milestone dates (B3) are aligned.

The project budget (B4) adds up correctly to the total of grant sought plus the cash contribution amount.

Your cash contribution is calculated as a percentage of the total budget expenditure, not of the grant. Eg, if it is the minimum 25%, the grant requested will be 75% of the total budget.

Check the budget contains all eligible expenditure for the project, based on quotes or explained estimates, and is GST exclusive.

All expenditure is GST exclusive.

It is clear from your application how the project will improve the business enterprise culture.

All the required attachments have been provided


Appendix BConsortia applications and preparing a consortium agreementThe definition of consortium according to the Determination is:

“a group of at least 2 entities (one of whom must be a TCF small business) who have come together for the common purpose of co-operatively carrying out the project in accordance with the terms of a consortium agreement, each member of this group being a party to that consortium agreement.”

Eligible Consortium members: The lead entity does not need to be a small business. Of a consortium of the minimum two members, if one member is say, a service provider or trainer, the other member must be an eligible small business. In practice, a strong, competitive consortium would consist of more than two members.

The test to apply in considering the number of eligible small business members in the group, is that the program intention is that the beneficiaries of the grant should be eligible small businesses. In practice, in a larger consortium group, there may be one or two businesses that do not fully meet every eligibility requirement (for example, being slightly under the minimum turnover requirement), but it should be noted that to present a competitive application, the consortium should represent eligible small businesses to as strong a degree as possible.

Shared purpose: There should be a benefit to working together (cooperatively) as a group, and it should also be apparent why these small businesses have a shared purpose. This could be similar business profiles, illustrating a readiness to aim for a common objective, for example, businesses ready to target the US export market. Or, in collaboration, they could be representatives of different businesses in a supply chain who will collaborate to achieve a shared outcome, such as developing and launching a new product.

Projects: The applicant must propose, on behalf of the consortium, a project that is eligible under the program and is consistent with program objectives for each small business, as well as with the terms of the consortium agreement. It must also provide, with its application, a draft or executed copy of a consortium agreement for the project to which the application relates.

Sample Consortia Projects

Example 1 – “Common Objective”A not-for-profit industry organisation proposes to mentor and lead a consortium of six established TCF small businesses to cooperatively plan, attend and display at major national trade shows. The project is to mentor and support each business towards the common objective, which is to maximise opportunities that come from this exposure while learning and practicing the business, marketing and PR skills required to plan and implement this project. The project will improve business enterprise culture for each business by overcoming barriers such as high individual cost of up-skilling, tradeshow entry, and geographic isolation, while improving the businesses’ ability to take risk, multiply and act on opportunity, pursue creative business solutions and grow their businesses.

Example 2 – “Collaboration”A vocational training provider proposes to coach and lead a consortium of three established TCF small businesses with the objective of creating a collaborative business model. The purpose is to develop the synergy between fibre research and development, fabric design and manufacturing capacity, and fashion design experience of the members. The lead consultant will mentor and create a new strategic approach for the businesses, and activities include review and development of business systems to support partnerships, manufacturing process, market research and sales strategy. The project will generate a creative business model including the development of a rural and regional manufacturing model with future strategic collaborative partners anticipated. Other outcomes for business enterprise culture will be increased risk taking capacity in approaching new markets and growth due to improved supply chain, production processes and capacity to identify and maximise new opportunities.


How should a consortium apply?If a consortium wishes to apply for a grant, the application must be made by the ‘lead member’ of the consortium. The lead member, as such becomes the applicant, and must be appointed by all its other members as an agent with the power to act on their behalf for the purposes of the project, and the agent must provide evidence of their appointment. The consortium seeking TCF Small Business Program funding needs to develop and submit a consortium agreement with their application.

Consortium AgreementThe agreement must be executed, or be at least at draft stage, when the application is made. If a draft of the consortium agreement is presented with the application, the consortium will need to provide evidence that the agreement has been executed before a grant agreement for funding under the Program can be executed. Consortium participants must seek their own professional legal, accounting and taxation advice to determine whether the consortium agreement appropriately addresses the objectives and risks applicable to their own project.

The consortium agreement must outline the terms and conditions under which a project will be jointly conducted by the consortium members, and should provide information on the consortium and the proposed project. Further requirements for consortia include:

the applicant must be able to demonstrate that the costs of the project that are not met by the Program grant can be met by the consortium;

the applicant must be able to demonstrate that the consortium has available to it, and has made available, the intellectual property necessary to conduct the project; and

the applicant, and the other consortium members, must not have been named as organisations that have not complied with the Equal Opportunity for Women in the Workplace Act 1999.

What must be included in a consortium agreement?

If the agreement submitted with an application is in draft form, it must have been agreed to in principle by all consortium members. This means that some form of acknowledgement from each member must also be provided stating that the member has seen, and in principle accepts, the terms of the agreement. A consortium agreement must at least:

describe the objectives and planned outcomes of the project;

specify the activities comprising the project;

describe the respective roles and contributions, including financial contributions, of each consortium member;

prohibit a consortium member from assigning any right or interest in the consortium agreement or any project assets; and

contain terms that are not inconsistent with the Department’s standard grant agreement.

It must also: include signatures of all members to the agreement, which may be provided as signed letters

of agreement from each consortium member; and

identify the name and contact details of each consortium member.

If an applicant consortium is successful in receiving an offer of a grant, the Department will not enter into an agreement until a consortium agreement that meets these requirements has been executed. The executed version of the consortium agreement that is in existence when the grant agreement is executed must be substantially the same as the version submitted with the application.

If the executed version of the consortium agreement is materially different from the draft consortium agreement or if there has been any change to the consortium members since the date of the application (unless it is regarded as not materially affecting the original decision to award a grant), any offer of a grant may be withdrawn.


Appendix CEligible TCF ActivitiesTextile, Clothing and Footwear Post-2005 Strategic Investment Program Scheme 2005

Schedule 1 Eligible TCF activities (sections 1.4 and 1.6 of the TCF Post-2005 (SIP) Scheme)

Note: The activities listed in this Schedule are based on Division C, Subdivision 22 of the Australian and New Zealand Standard Industrial Classification (ANZSIC)

Part A - Textile Fibre, Yarn and Fabric Manufacturing

1 Man-Made Fibre Textile Manufacturing (including blends)

This category consists of manufacturing continuous fibre filament, fibre staple or yarns, tyre cord yarn or fabrics woven, non-woven, felted, tufted, crocheted or knitted from those yarns, or mixed yarns, wholly or predominantly of man-made fibres. Manufacturing of elastic or elastomeric yarns or threads or fabrics are also included.

Fibres, manufacturing Filament, manufacturing Yarns, manufacturing Yarns, elastic or elastomeric, manufacturing Tyre cord yarns or fabrics, manufacturing Fabrics or other textiles, manufacturing Fabrics, elastic or elastomeric, manufacturing Lacing, woven, manufacturing

2 Cotton Textile Manufacturing (including blends)

This category consists of manufacturing of yarns, fabrics woven, non-woven, felted, tufted, crocheted or knitted, wholly or predominantly of cotton or similar fibres including flax, jute, hemp or kapok.

Yarns, manufacturing Tyre cord yarns or fabrics, manufacturing Fabrics or other textiles, manufacturing

3 Wool Textile Manufacturing (including blends)

This category consists of the manufacturing of yarns, fabrics woven, non-woven, felted, tufted, crocheted or knitted, wholly or predominantly of wool or other animal fibre including mohair, angora, cashmere, alpaca or silk.

Fellmongered, slipe or skin wool, manufacturing Yarns, woollen or other animal fibre, manufacturing Fabrics or other textiles, from woollen or worsted manufacturing processes, derived from

animal fibres


Part A - Textile Fibre, Yarn and Fabric Manufacturing

4 Textile Finishing

This category consists of any activities involved in the processes of dyeing, printing, and finishing, including any process of impregnation, coating or lamination for imparting particular end use properties to yarns, fabrics or other textiles except wool tops.

Textile dyeing, including textile pigmentation Textile printing, including flock printing Label, printed cloth, manufacturing Impregnation, coating or lamination

5 Textile Floor Covering Manufacturing

This category consists of manufacturing of carpets, rugs or other textile floor coverings and includes manufacturing of felt or felt products, mats or matting of jute or twisted rags.

Felt, manufacturing Floor coverings, textile, manufacturing Floor rugs, textile, manufacturing Underfelt, manufacturing The manufacturing of felt clothing, grass, sisal or coir mats or matting, rubber underlay and

rubber floor coverings is excluded from this category.

6 Textile Product Manufacturing n.e.c.

This category consists of textile product manufacturing n.e.c.

Cleaning cloth, manufacturing Embroidered fabrics, manufacturing Fabrics, manufacturing n.e.c. Flock, manufacturing Hemp product, manufacturing n.e.c. Hessian goods, manufacturing n.e.c. Kapok, manufacturing Labels or badges, woven cloth, manufacturing


Part B - Knitting Mills Manufacturing

1 Hosiery Manufacturing

This category consists of manufacturing of hosiery.

Panty hose, manufacturing Socks, manufacturing Stockings, manufacturing Tights, manufacturing

2 Cardigan and Pullover Manufacturing

This category consists of the manufacturing of knitted cardigans, pullovers or similar garments.

Custom knitting, of pullovers or cardigans Jackets, knitted, manufacturing Sweaters, knitted, manufacturing Twin sets, knitted, manufacturing Waistcoats, knitted, manufacturing

3 Knitting Mill Clothing and Manufacturing n.e.c

This category consists of the manufacturing of knitted or crocheted clothing n.e.c.

Outerwear, knitted, manufacturing (except hosiery, cardigans or pullovers) Sleepwear, knitted, manufacturing Swimwear, knitted, manufacturing Underwear, knitted, manufacturing (except hosiery)

Part C - Clothing and Manufacturing

1 Men’s and Boys’ Wear Manufacturing

This category consists of the manufacturing of men’s or boys’ outerwear from purchased or transferred in materials.

Coats or jackets, men’s or boys’, manufacturing (except from fur or leather) Dust coats, manufacturing Jeans, men’s or boys’, manufacturing Overalls, manufacturing Shirts, men’s or boys’, manufacturing Shorts, men’s or boys’, manufacturing Suits, men’s or boys’, manufacturing (except from leather) Trousers, men’s or boys’, manufacturing Uniforms, men’s or boys’, manufacturing The manufacturing of men’s or boys’ headwear, footwear, or garments made from leather or

fur, is excluded from this category.


Part C - Clothing and Manufacturing

2 Women’s and Girls’ Wear Manufacturing

This category consists of the manufacturing of women’s or girls’ outerwear from purchased or transferred in materials.

Blouses, manufacturing Coats or jackets, manufacturing (except from fur, leather, plastic or rubber) Jeans, women’s or girls’, manufacturing Outerwear, women’s or girls’, manufacturing (except fur, leather, plastic or rubber) Suits, women’s or girls’, manufacturing (except from leather or plastic) Tunics, women’s or girls’, manufacturing Uniforms, women’s or girls’, manufacturing The manufacturing of women’s or girls’ waterproof clothing or clothing made from fur,

leather, plastic or rubber, is excluded from this category.

3 Sleepwear, Underwear and Infant Clothing Manufacturing

This category consists of the manufacturing of foundation garments, underwear, sleepwear or infants’ clothing from purchased or transferred in materials.

Brassieres, manufacturing Corsets, manufacturing Foundation garments, manufacturing Girdles, manufacturing Infants’ clothing, manufacturing Sleepwear, manufacturing Underwear, manufacturing

4 Clothing and Manufacturing n.e.c.

This category consists of manufacturing of headwear, fur or leather clothing, clothing or clothing accessories n.e.c.

Belts, manufacturing (for clothing) Clothing accessories, manufacturing n.e.c. Clothing, fur, manufacturing Clothing, leather or leather substitute, manufacturing n.e.c. Clothing manufacturing n.e.c., including clothing for protective or safety purposes Gloves, manufacturing (except rubber gloves) Handkerchiefs, manufacturing Hats* or headwear,* manufacturing Laces, manufacturing (for footwear) Leather or leather substitute suit, coat or uniforms, manufacturing n.e.c Recreational clothing, manufacturing n.e.c.# Swimwear, manufacturing (except rubber bathing caps) Ties, manufacturing Waterproof clothing, manufacturing (except headwear, footwear or leather clothing) n.e.c.


Part D - Footwear Manufacturing

1 Men’s and Boys’ Wear Manufacturing

This category consists of the manufacturing of footwear, or footwear components.

Boots,* manufacturing Footwear component, manufacturing Footwear,* manufacturing Industrial footwear, including safety or protective footwear Sandals,* manufacturing Shoes,* manufacturing Slippers,* manufacturing Thongs, manufacturing

Part E - Leather and Leather Product Manufacturing

Leather Tanning and Fur Dressing

This category consists of post full substance activities including sammying, splitting, shaving, tanning, currying, dressing, dyeing, embossing or japanning leather, animal skins or fur.

Fur dressing or dyeing Hide and skin tanning, currying, dressing, crusting, dyeing or finishing Leather manufacturing Leather tanning


Part G - Made-up Textile and Leather Product Manufacturing

Note: Part G product manufacturing activities are only eligible if production includes a Part A to E activity.This category consists of manufacturing of made-up textile and leather products including household textile goods, blinds, tents, awnings, sails, or goods of canvas or related materials.

Animal rugs, manufacturing Awnings, textile, manufacturing Bags or sacks, textile or canvas, manufacturing for packaging Bags, leather or leather substitute, manufacturing Binding, textile, (including plastic coated) manufacturing Blinds, textile, manufacturing (including plastic coated blinds and woven slats for fabric

blinds) Canvas goods, manufacturing n.e.c. Curtains manufacturing 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

Flags or banners, manufacturing Harness, manufacturing Helmet*, manufacturing Hose, canvas or other textile, manufacturing Household textile goods, manufacturing Leather or leather substitute goods, manufacturing n.e.c. Machine belting, leather or leather substitute, manufacturing Motor vehicle covers, textile, manufacturing Nets, including fish nets, manufacturing Parachutes, manufacturing Pillow manufacturing (except rubber) Ropes, twine, cord or cordage, strings (except paper string), braids or cable, manufacturing

(except wire rope or wire cable) Saddles, manufacturing Sails, manufacturing Seat covers, manufacturing Sleeping bags, manufacturing Soft furnishings Suitcases, textile, manufacturing Tents, manufacturing (except oxygen tents or toy tents) Waterbags, textile, manufacturing

DefinitionsIn this Schedule: n.e.c. means not elsewhere classified. Man-made fibres include cellulosics and synthetics.Symbols# If made predominantly from the products of activities listed in items 1, 2, 3 and 6 of Part A, or

in item 3 of Part B.* If made predominantly from leather or the products of activities listed in items 1, 2, 3 and 6 of

Part A or in item 3 of Part B.


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