The Textile, Clothing and Footwear Post-2005 Strategic Investment Program Scheme 2005 (TCF Post-2005 (SIP) Scheme) provides funding of up to $575 million over ten years. The object of the TCF Post-2005 (SIP) Scheme is to foster the development of a sustainable and internationally competitive TCF manufacturing industry and TCF design industry in Australia.
The TCF Post-2005 (SIP) Scheme is open to TCF manufacturers and designers for manufacturing activities in Australia for the initial five years to 2010. Entities undertaking eligible clothing and finished textile activities will be able to benefit under the Scheme for an additional five years to 2015.
What are the requirements to receive a grant payment?
A minimum expenditure threshold of $200,000 applies, which can be accumulated over the life of the program.
What does the program do?
The TCF Post-2005 (SIP) Scheme (‘the Scheme’) provides incentives in the form of grants, paid annually and in arrears, for investment and innovation activities.
What grants are available?
Two types of grants are available on an entitlement basis:
- Type 1 grants for new plant and equipment/building expenditure, trade showings and in-store promotions (brand support) and for clothing and finished textile entities non-production related IT
- Type 2 grants for research and development, including innovative product development activities. Expenditure in relation to eligible technical textile or leather activities that results in the manufacture of leather or technical textile products listed in Parts B or C of Schedule 2 of the Scheme will not receive Type 2 grant support.
What innovation is eligible under the Scheme?
As the terms ‘innovation’ or ‘innovative’ are not defined in the Scheme, the natural and ordinary meaning is applied. The Scheme covers the initial development of a particular innovative product design or innovative process improvement activity, but not the repeated application of the same claimed innovation. However, an activity routinely undertaken would fall outside the Scheme.
Similarly, if the innovative product design activity is directed solely at achieving visual product differentiation (for example, it has no other purpose than to effect a fashion change) then it would also fall outside the ambit of the Scheme.
Note: Only activities undertaken in Australia will be eligible.
How are activities assessed?
The delegate will need to understand the nature of the activities that were carried out in order to assess whether eligibility can be established. Each case is examined on its merits. Project templates have been developed, and must be completed as part of the claim form. To assist the case for eligibility, consider the following matters.
How are the grants calculated?
- Type 1 grants fund up to 40 per cent of eligible expenditure
- Type 2 grants fund up to 80 per cent of eligible expenditure
- Total benefits paid under the program in any one year will be limited to five per cent of an entity’s total eligible revenue in the 12 months preceding the claim year (amounts in excess of this are able to be carried over to a later year in which a claim is made). Modified limits apply for entities in a start-up period
- Claims are subject to an annual process of modulation to ensure that all claims are accommodated within the available funds, with all grants paid between 1 and 10 June
- Customers may receive payment before this time by requesting an advance—up to 20 per cent of grant eligibility for a Type 1 grant and 40 per cent of grant eligibility for a Type 2 grant.
To be eligible to register for the TCF Post-2005 (SIP) Scheme, you must be able to show that the entity carries on or proposes to carry on an eligible TCF activity as defined in the Scheme.
If you are interested in more information please visit the fund website at www.ausindustry.gov.au . If you wish to talk to Treadstone about our consulting services please contact us on 03 9016 3575.