TEXTILE, CLOTHING AND FOOTWEAR STRATEGIC INVESTMENT PROGRAM AMENDMENT (BUILDING INNOVATIVE CAPABILITY) BILL 2010

i Textile, Clothing and Footwear Strategic Investment Program Amendment (Building

Innovative Capability) Bill 2009 No. , 2009

Contents

1 Short

title

...........................................................................................

2 Commencement

.................................................................................

3 Schedule(s)

........................................................................................

Schedule 1--Textile, Clothing and Footwear Strategic

Investment Program Act 1999

Textile, Clothing and Footwear Strategic Investment Program Amendment (Building Innovative

Capability) Bill 2009 No. , 2009 1

A Bill for an Act to amend the Textile, Clothing and

Footwear Strategic Investment Program Act 1999,

and for related purposes

The Parliament of Australia enacts:

1 Short title

This Act may be cited as the Textile, Clothing and Footwear

Strategic Investment Program Amendment (Building Innovative

Capability) Act 2009.

2 Commencement

This Act commences on the day this Act receives the Royal

Assent.

Textile, Clothing and Footwear Strategic Investment Program Act 1999 Schedule 1

Textile, Clothing and Footwear Strategic Investment Program Amendment (Building Innovative

Capability) Bill 2009 No. , 2009 3

Schedule 1--Textile, Clothing and Footwear

Strategic Investment Program Act 1999

1 Title

Omit "Strategic Investment Program", substitute "Investment and

Innovation Programs".

2 Section 1

Omit "Strategic Investment Program", substitute "Investment and

Innovation Programs".

Note:

This item amends the short title of the Act. If another amendment of the Act is

described by reference to the Act's previous short title, that other amendment has effect

after the commencement of this item as an amendment of the Act under its amended

short title (see section 10 of the Acts Interpretation Act 1901).

3 Section 3

Repeal the section, substitute:

3 Simplified outline

The following is a simplified outline of this Act:

�

This Act provides a framework for the implementation of the

Textile, Clothing and Footwear Strategic Investment and

Innovation Programs.

�

There are 2 schemes under the programs.

�

The TCF Post-2005 (SIP) scheme provides for 2 grants in

respect of expenditure incurred in the 2005-2006 to

2009-2010 income years. Part 3A deals with this scheme.

�

The Clothing and Household Textile (BIC) scheme provides

for innovation grants in respect of expenditure incurred in the

2010-2011 to 2014-2015 income years. Part 3C deals with this

scheme.

�

This Act also provides funding for the purposes of the TCF

Small Business Program (see Part 3B).

Schedule 1 Textile, Clothing and Footwear Strategic Investment Program Act 1999

4 Textile, Clothing and Footwear Strategic Investment Program Amendment (Building

Innovative Capability) Bill 2009 No. , 2009

4 Section 4

Insert:

authorised Commonwealth contractor has the meaning given by

section 52.

5 Section 4 (definition of bounty)

Repeal the definition.

6 Section 4

Insert:

business day means a day that is not a Saturday, a Sunday or a

public holiday in the place concerned.

7 Section 4

Insert:

Clothing and Household Textile (BIC) scheme (short for Clothing

and Household Textile (Building Innovative Capability) scheme)

has the meaning given by section 37ZM.

8 Section 4

Insert:

clothing/finished textile expenditure means expenditure in

connection with, or incidental to, the manufacture in Australia, or

the design in Australia, of products that, under a TCF scheme, are

taken to be:

(a) clothing products; or

(b) finished textile products.

9 Section 4 (definition of loan)

Repeal the definition.

10 Section 4 (definition of scheme debt)

Repeal the definition, substitute:

scheme debt means:

Textile, Clothing and Footwear Strategic Investment Program Act 1999 Schedule 1

Textile, Clothing and Footwear Strategic Investment Program Amendment (Building Innovative

Capability) Bill 2009 No. , 2009 5

(a) so much of an amount paid, or purportedly paid, to an entity

by way of a grant under a TCF scheme as represents an

overpayment; or

(b) an amount that is payable as mentioned in subsection 37V(2)

or 37ZZE(2) or (3) (advances); or

(conditional grants).

11 Section 4

Insert:

TCF scheme (short for Textile, Clothing and Footwear scheme),

means:

(a) the TCF Post-2005 (SIP) scheme; or

(b) the Clothing and Household Textile (BIC) scheme.

12 Section 4 (definition of TCF (SIP) scheme)

Repeal the definition, substitute:

TCF (SIP) scheme (short for Textile, Clothing and Footwear

(Strategic Investment Program) scheme) means the scheme in force

under section 8 immediately before the repeal of that section by the

Textile, Clothing and Footwear Strategic Investment Program

Amendment (Building Innovative Capability) Act 2009.

13 Parts 2 and 3

Repeal the Parts.

14 Subsection 37A(2)

Omit:

�

The total of the grants paid under the TCF Post-2005 (SIP)

scheme must not exceed $575 million.

substitute:

�

The total of the grants paid under the TCF Post-2005 (SIP)

scheme must not exceed $487.5 million.

15 Subsection 37A(2)

Schedule 1 Textile, Clothing and Footwear Strategic Investment Program Act 1999

6 Textile, Clothing and Footwear Strategic Investment Program Amendment (Building

Innovative Capability) Bill 2009 No. , 2009

Omit:

�

The TCF Post-2005 (SIP) scheme will provide for the making

of those grants in respect of expenditure incurred in the

2005-2006 to 2014-2015 income years.

substitute:

�

The TCF Post-2005 (SIP) scheme will provide for the making

of those grants in respect of expenditure incurred in the

2005-2006 to 2009-2010 income years.

16 Section 37B (definition of clothing/finished textile

expenditure)

Repeal the definition.

17 Subsection 37D(1)

Omit "(1)".

Note:

The heading to subsection 37D(1) is deleted.

18 Subsection 37D(1)

Omit "$575,000,000", substitute "$487,500,000".

19 Subsections 37D(2) and (3)

Repeal the subsections.

20 Paragraphs 37G(2)(b) and (c)

Repeal the paragraphs, substitute:

(b) is incurred by an entity during any of the 2005-2006 to

2009-2010 income years of the entity.

21 Subsection 37G(2) (note)

Repeal the note.

22 Paragraphs 37G(4)(b) and (c)

Repeal the paragraphs, substitute:

(b) is incurred by an entity during any of the 2005-2006 to

2009-2010 income years of the entity.

Textile, Clothing and Footwear Strategic Investment Program Act 1999 Schedule 1

Textile, Clothing and Footwear Strategic Investment Program Amendment (Building Innovative

Capability) Bill 2009 No. , 2009 7

23 Subsection 37G(4) (note)

Repeal the note.

24 Paragraph 37G(5)(b)

Omit "2014-2015", substitute "2009-2010".

25 Subsection 37G(5) (note)

Omit "section 37B", substitute "section 4".

26 Paragraphs 37H(1)(b) and (c)

Repeal the paragraphs, substitute:

(b) is incurred by an entity during any of the 2005-2006 to

2009-2010 income years of the entity.

27 Subsection 37H(1) (note)

Repeal the note.

28 Subsection 37P(8)

Repeal the subsection.

29 After subsection 37X(2)

Insert:

(2A) However, the scheme may contain provisions that specify

decisions in relation to which the provisions mentioned in

subsection (2) do not apply.

30 Section 37ZG

Omit all the words after "section 37C", substitute "is a legislative

instrument".

Note:

The heading to section 37ZG is altered by omitting "disallowable" and substituting

"legislative".

31 Section 37ZI

Omit "2015-2016", substitute "2010-2011".

32 After Part 3B

Insert:

Schedule 1 Textile, Clothing and Footwear Strategic Investment Program Act 1999

8 Textile, Clothing and Footwear Strategic Investment Program Amendment (Building

Innovative Capability) Bill 2009 No. , 2009

Part 3C--Clothing and Household Textile (BIC)

scheme

Division 1--Preliminary

37ZK Object of Part and simplified outline

Object

(1) The object of this Part is to foster the development of a sustainable

and internationally competitive manufacturing industry and design

industry for clothing and household textiles in Australia by

providing incentives which will promote innovation.

Simplified outline

(2) The following is a simplified outline of this Part:

�

The Minister must formulate a scheme (the Clothing and

Household Textile (BIC) scheme) for the making of grants in

connection with the design and manufacture, in Australia, of

eligible clothing and household textile products.

�

The total of the grants paid under the Clothing and Household

Textile (BIC) scheme must not exceed $112.5 million.

�

The Clothing and Household Textile (BIC) scheme will

provide for innovation grants in respect of clothing/finished

textile expenditure.

�

The Clothing and Household Textile (BIC) scheme will

provide for the making of those grants in respect of

expenditure incurred in the 2010-2011 to 2014-2015 income

years.

�

Grants under the Clothing and Household Textile (BIC)

scheme are to be made in arrears.

�

Entities that wish to obtain grants under the Clothing and

Household Textile (BIC) scheme will be required to register

Textile, Clothing and Footwear Strategic Investment Program Act 1999 Schedule 1

Textile, Clothing and Footwear Strategic Investment Program Amendment (Building Innovative

Capability) Bill 2009 No. , 2009 9

under the scheme and to submit strategic business plans and

accounts.

37ZL Definitions

In this Part:

authorised officer means a person appointed under subsection

37ZY(1) as an authorised officer of the Department.

innovation grant has the meaning given by section 37ZQ.

Division 2--Formulation of Clothing and Household

Textile (BIC) scheme

37ZM Clothing and Household Textile (BIC) scheme

The Minister must, by legislative instrument, formulate a scheme

(the Clothing and Household Textile (BIC) scheme) for the

making of grants in connection with, or incidental to, the

following:

(a) the manufacture in Australia of products that, under the

scheme, are taken to be eligible clothing and household

textile products;

(b) the design in Australia, for manufacture in Australia, of

products:

(i) that, under the scheme, are taken to be eligible clothing

and household textile products; and

(ii) some or all of which are intended to be sold in

Australia;

products to which both of the following apply, if the

importation into Australia of some or all of the products is or

will be covered by a designated industry program:

(i) products that, under the scheme, are taken to be eligible

clothing and household textile products;

(ii) products, some or all of which are intended to be sold in

Australia.

Note:

Clothing and Household Textile (BIC) scheme is short for Clothing

and Household Textile (Building Innovative Capability) scheme.

Schedule 1 Textile, Clothing and Footwear Strategic Investment Program Act 1999

10 Textile, Clothing and Footwear Strategic Investment Program Amendment (Building

Innovative Capability) Bill 2009 No. , 2009

37ZN Caps

The Clothing and Household Textile (BIC) scheme must make

provision for ensuring that the total of innovation grants (including

advances on account of innovation grants) paid under the scheme

does not exceed $112,500,000.

Note:

Section 37ZZE deals with advances on account of innovation grants.

37ZO Appropriation

Innovation grants (including advances on account of innovation

grants) are to be paid out of the Consolidated Revenue Fund, which

is appropriated accordingly.

Division 3--General policy objectives

37ZP General policy objectives

The Clothing and Household Textile (BIC) scheme must be

directed towards ensuring the achievement of the policy objectives

set out in this Division.

37ZQ Type of grants

It is a policy objective for the Clothing and Household Textile

(BIC) scheme that there are to be grants (innovation grants) in

respect of clothing/finished textile expenditure.

Note: For

clothing/finished textile expenditure, see section 4.

37ZR Provisions relating to innovation grants in respect of

clothing/finished textile expenditure

(1) It is a policy objective for the Clothing and Household Textile

(BIC) scheme that innovation grants are only to be made as set out

in this section.

(2) Innovation grants are to be made in respect of expenditure that:

(a) under the scheme, is taken to be clothing/finished textile

expenditure; and

(b) is incurred by an entity during any of the 2010-2011 to

2014-2015 income years of the entity.

Textile, Clothing and Footwear Strategic Investment Program Act 1999 Schedule 1

Textile, Clothing and Footwear Strategic Investment Program Amendment (Building Innovative

Capability) Bill 2009 No. , 2009 11

Note: For

clothing/finished textile expenditure, see section 4.

37ZS Grants to be made in arrears

It is a policy objective for the Clothing and Household Textile

(BIC) scheme that an innovation grant must not be made to an

entity in respect of expenditure incurred by the entity during an

income year of the entity unless the entity makes a claim for the

innovation grant after the end of the income year.

37ZT Grants cap based on eligible revenue and eligible start-up

investment amount

Cap based on eligible revenue

(1) It is a policy objective for the Clothing and Household Textile

(BIC) scheme that there be a cap on the total of the innovation

grants that become payable to an entity during an income year (the

claim year) of the entity in respect of expenditure incurred by the

entity otherwise than during a period that, under the scheme, is

taken to be an eligible start-up period of the entity.

(2) The total of the innovation grants must not exceed 5% of the

amount that, under the scheme, is taken to be the total eligible

revenue derived by the entity, during the income year of the entity

before the claim year, from sales of products that, under the

scheme are taken to be eligible clothing and household textile

products.

Cap based on eligible start-up investment amount

(3) It is a policy objective for the Clothing and Household Textile

(BIC) scheme that there be a cap on the total of the innovation

grants that become payable to an entity during an income year (the

claim year) of the entity and any income years of the entity that are

earlier than the claim year in respect of expenditure incurred by the

entity during a period that, under the scheme, is taken to be an

eligible start-up period of the entity.

(4) The total of the innovation grants must not exceed 15% of the

amount that, under the scheme, is taken to be the total of the

eligible start-up investment amounts of the entity for each of the

income years of the entity that is earlier than the claim year.

Schedule 1 Textile, Clothing and Footwear Strategic Investment Program Act 1999

12 Textile, Clothing and Footwear Strategic Investment Program Amendment (Building

Innovative Capability) Bill 2009 No. , 2009

When grant becomes payable

(5) For the purposes of this section, an innovation grant becomes

payable to an entity when a determination is made under the

scheme that the entity is entitled to be paid the innovation grant.

Division 4--Registration for the purposes of the scheme

37ZU Registration for the purposes of the scheme

Registration requirements

(1) The Clothing and Household Textile (BIC) scheme may impose

requirements relating to the registration of entities.

(2) The requirements may include (but are not limited to) any or all of

the following requirements:

(a) a requirement that an entity must apply for registration;

(b) a requirement that an entity's application for registration be

accompanied by a statement issued by a specified person as

to the entity's future financial viability;

accompanied by specified information about the entity

(which may include statistical information);

(d) a requirement that an entity's application for registration be

accompanied by such a fee as is ascertained in accordance

with the scheme.

Consequences of non-compliance with registration requirements

(3) The scheme may provide for one or more of the following

consequences for an entity that does not comply with a particular

requirement relating to registration:

(a) the consequence that the entity is not eligible for an

innovation grant;

(b) the consequence that the entity's eligibility for an innovation

grant is subject to restriction or reduction;

grant to the entity is deferred.

Textile, Clothing and Footwear Strategic Investment Program Act 1999 Schedule 1

Textile, Clothing and Footwear Strategic Investment Program Amendment (Building Innovative

Capability) Bill 2009 No. , 2009 13

Division 5--Strategic business plans and accounts

37ZV Strategic business plans

The Clothing and Household Textile (BIC) scheme must provide

that an entity is not eligible for an innovation grant unless the

entity has complied with such requirements (if any) as are imposed

by the scheme in relation to the content and submission of:

(a) strategic business plans; and

(b) variations of strategic business plans.

37ZW Accounts

The Clothing and Household Textile (BIC) scheme may provide

that an entity ascertained in accordance with the scheme is not

eligible for an innovation grant unless the entity has complied with

such requirements as are imposed by the scheme in relation to:

(a) the submission of audited accounts and audited financial

statements; or

(b) the submission of unaudited accounts and unaudited financial

statements.

Division 6--Conditional grants

37ZX Conditional grants

(1) The Clothing and Household Textile (BIC) scheme may make

provision for and in relation to the payment of innovation grants

subject to conditions (whether conditions precedent or conditions

subsequent).

Note:

Section 43 deals with the recovery of a conditional grant if there has

been a breach of a condition.

Condition--compliance with information gathering notice

(2) An innovation grant paid to an entity is subject to the condition that

the entity comply with any notice given to the entity under

section 38.

Note:

Section 43 deals with the recovery of a conditional grant if there has

been a breach of a condition.

Schedule 1 Textile, Clothing and Footwear Strategic Investment Program Act 1999

14 Textile, Clothing and Footwear Strategic Investment Program Amendment (Building

Innovative Capability) Bill 2009 No. , 2009

Condition--no false or misleading statements

(3) An innovation grant paid to an entity is subject to the condition

that:

(a) a false or misleading statement has not been made by, or on

behalf of, the entity in connection with a claim for the grant;

and

(b) false or misleading information or evidence is not given by,

or on behalf of, the entity in compliance or purported

compliance with section 38; and

behalf of, the entity in compliance or purported compliance

with section 38.

Note:

Section 43 deals with the recovery of a conditional grant if there has

been a breach of a condition.

Condition--entry to premises etc. to monitor compliance with

other conditions

(4) An innovation grant paid to an entity is subject to the condition that

in relation to the premises covered by subsection (5), the entity:

(a) allow authorised officers, and any authorised employees of

an authorised Commonwealth contractor accompanying those

officers, access to the premises at any reasonable time of a

business day for the purpose of monitoring compliance with

other conditions to which the innovation grant is subject; and

(b) allow authorised officers during that access to inspect and

search the premises and any thing on the premises for the

purpose of that monitoring; and

the premises to see whether documents in electronic form

relevant to that monitoring are accessible by doing so; and

Note:

See also sections 37ZZ to 37ZZC (which contain provisions

relating to the operation of electronic equipment at the premises).

(d) allow authorised officers to make copies of any documents in

hard copy form found on the premises that are relevant to that

monitoring; and

(e) provide authorised officers with all reasonable facilities and

assistance in connection with that monitoring.

Note 1:

For authorised officer, see section 37ZL and subsection 37ZY(1).

Textile, Clothing and Footwear Strategic Investment Program Act 1999 Schedule 1

Textile, Clothing and Footwear Strategic Investment Program Amendment (Building Innovative

Capability) Bill 2009 No. , 2009 15

Note 2:

Section 43 deals with the recovery of a conditional grant if there has

been a breach of a condition.

(5) This subsection covers the following premises:

(a) business premises specified in the notice that is given to the

entity notifying the entity that the entity is entitled to be paid

the innovation grant;

(b) business premises specified in a later notice given to the

entity by the Secretary under subsection (6).

(6) The Secretary may, by written notice given to an entity, specify

business premises for the purposes of paragraph (5)(b).

37ZY Appointment of authorised officers and authorised employees

of Commonwealth contractors

(1) The Secretary may, by writing, appoint an APS employee in the

Department to be an authorised officer of the Department for the

purposes of this Part. The Secretary may do so only if the Secretary

is satisfied that the employee has suitable qualifications for such an

appointment.

(2) The Secretary may, by writing, appoint an employee of an

authorised Commonwealth contractor to be an authorised

employee of the contractor for the purposes of this Part. The

Secretary may do so only if the Secretary is satisfied that the

employee has suitable qualifications for such an appointment.

Division 7--Monitoring of compliance

37ZZ Operation of electronic equipment by authorised officers

Scope

(1) This section applies if:

(a) an authorised officer has obtained access to premises for the

purpose of monitoring compliance with the conditions of an

innovation grant; and

(b) the authorised officer finds that documents in electronic

form, relevant to that monitoring, are accessible by operating

electronic equipment at the premises.

Note: For

authorised officer, see section 37ZL and subsection 37ZY(1).

Schedule 1 Textile, Clothing and Footwear Strategic Investment Program Act 1999

16 Textile, Clothing and Footwear Strategic Investment Program Amendment (Building

Innovative Capability) Bill 2009 No. , 2009

(2) If this section applies, the authorised officer may do only 1 of 2

things, as set out in subsection (3) or (4).

Produce documents in hard copy form

(3) One thing the officer may do is operate the equipment or other

facilities at the premises to put the documents in hard copy form.

Transfer to storage device

(4) The other thing the officer may do is operate the equipment or

other facilities at the premises to transfer the documents to a

storage device (including a disk or tape) if:

(a) the storage device is brought to the premises for the exercise

of the power; or

(b) the storage device is at the premises, and its use has been

agreed to in writing by the occupier of the premises.

Removal

(5) The authorised officer may then remove the documents in hard

copy form or remove the storage device.

37ZZA Operation of electronic equipment by experts

Scope

(1) This section applies if:

(a) an authorised officer has obtained access to premises for the

purpose of monitoring compliance with the conditions of an

innovation grant; and

(b) the officer believes on reasonable grounds that:

(i) documents in electronic form, relevant to that

monitoring, may be accessible by operating electronic

equipment at the premises; and

(ii) expert assistance is required to operate the equipment;

and

(iii) an authorised employee (the expert) of an authorised

Commonwealth contractor accompanying the officer in

relation to that monitoring has the expertise to operate

the equipment.

Note: For

authorised officer, see section 37ZL and subsection 37ZY(1).

Textile, Clothing and Footwear Strategic Investment Program Act 1999 Schedule 1

Textile, Clothing and Footwear Strategic Investment Program Amendment (Building Innovative

Capability) Bill 2009 No. , 2009 17

Expert may operate equipment

(2) The expert may operate the equipment to determine whether such

documents are accessible. If they are, the expert may do only 1 of 2

things, as set out in subsection (3) or (4).

Produce documents in hard copy form

(3) One thing the expert may do is operate the equipment or other

facilities at the premises to put the documents in hard copy form.

Transfer to storage device

(4) The other thing the expert may do is operate the equipment or other

facilities at the premises to transfer the documents to a storage

device (including a disk or tape) if:

(a) the storage device is brought to the premises for the exercise

of the power; or

(b) the storage device is at the premises, and its use has been

agreed to in writing by the occupier of the premises.

Removal

(5) The authorised officer may then remove the documents in hard

copy form or remove the storage device.

Section 70 of the Crimes Act 1914

(6) For the purposes of the application of the definition of

Commonwealth officer in subsection 3(1) of the Crimes Act 1914

to section 70 of that Act, an authorised employee of an authorised

Commonwealth contractor who exercises a power referred to in

this section is taken to be a person who performs services for the

Commonwealth.

37ZZB Pre-condition to operating electronic equipment

A person may operate electronic equipment at premises as

mentioned in this Division only if he or she believes on reasonable

grounds that the operation of the equipment can be carried out

without damage to the equipment.

Schedule 1 Textile, Clothing and Footwear Strategic Investment Program Act 1999

18 Textile, Clothing and Footwear Strategic Investment Program Amendment (Building

Innovative Capability) Bill 2009 No. , 2009

37ZZC Compensation for damage to electronic equipment

(1) This section applies if:

(a) as a result of equipment being operated as mentioned in

section 37ZX, 37ZZ or 37ZZA:

(i) damage is caused to the equipment; or

(ii) the data recorded on the equipment is damaged; or

(iii) schemes associated with the use of the equipment, or

with the use of the data, are damaged or corrupted; and

(b) the damage or corruption occurs because:

(i) insufficient care was exercised in selecting the person

who was to operate the equipment; or

(ii) insufficient care was exercised by the person operating

the equipment.

(2) The Commonwealth must pay the owner of the equipment, or the

user of the data or schemes, such reasonable compensation for the

damage or corruption as the Commonwealth and the owner or user

agree on.

(3) However, if the owner or user and the Commonwealth fail to

agree, the owner or user may institute proceedings in the Federal

Court of Australia for such reasonable amount of compensation as

the Court determines.

(4) In determining the amount of compensation payable, regard is to

be had to whether the occupier of the premises, or the occupier's

employees or agents, if they were available at the time, provided

any appropriate warning or guidance on the operation of the

equipment.

(5) Compensation is payable out of money appropriated by the

Parliament.

(6) For the purposes of subsection (1):

damage, in relation to data, includes damage by erasure of data or

addition of other data.

37ZZD Identity cards

(1) The Secretary must issue an identity card to an authorised officer.

Textile, Clothing and Footwear Strategic Investment Program Act 1999 Schedule 1

Textile, Clothing and Footwear Strategic Investment Program Amendment (Building Innovative

Capability) Bill 2009 No. , 2009 19

Form of identity card

(2) The identity card must:

(a) be in the form prescribed by the regulations; and

(b) contain a recent photograph of the authorised officer.

Offence

(3) A person commits an offence if:

(a) the person has been issued with an identity card; and

(b) the person ceases to be an authorised officer; and

soon as practicable.

Penalty: 1 penalty unit.

(4) An offence against subsection (3) is an offence of strict liability.

Note:

For strict liability, see section 6.1 of the Criminal Code.

Card lost or destroyed

(5) Subsection (3) does not apply if the identity card was lost or

destroyed.

Note:

A defendant bears an evidential burden in relation to the matter in this

subsection: see subsection 13.3(3) of the Criminal Code.

Authorised officer must carry card

(6) An authorised officer must carry his or her identity card at all times

when exercising powers as an authorised officer.

Authorised officer must produce card on request

(7) An authorised officer is not entitled to exercise any powers referred

to in this Division in relation to premises if:

(a) the occupier of the premises has requested the officer to

produce the officer's identity card for inspection by the

occupier; and

(b) the officer fails to comply with the request.

Schedule 1 Textile, Clothing and Footwear Strategic Investment Program Act 1999

20 Textile, Clothing and Footwear Strategic Investment Program Amendment (Building

Innovative Capability) Bill 2009 No. , 2009

Division 8--Other matters for which the scheme may

provide

37ZZE Advances on account of grants

Advances

(1) The Clothing and Household Textile (BIC) scheme may provide

for advances on account of innovation grants that may become

payable.

Repayments

(2)

If:

(a) an entity receives an amount by way of an advance on

account of a grant that may become payable to the entity; and

(b) that amount exceeds the amount of the grant;

the entity is liable to pay to the Commonwealth the amount of the

excess.

(3) An entity is liable to pay to the Commonwealth the whole amount

of an advance mentioned in paragraph (2)(a) if the entity does not

receive the innovation grant on account of which the advance was

given.

37ZZF Reconsideration and review of decisions

(1) The Clothing and Household Textile (BIC) scheme must contain

provisions for and in relation to the review of decisions of the

Secretary under the scheme that affect an entity.

(2) The scheme must contain provisions under which:

(a) an entity that is affected by a decision (the initial decision) of

the Secretary under the scheme may, if dissatisfied with the

decision, request the Secretary to reconsider the decision; and

(b) the Secretary is required to reconsider the initial decision and

to confirm, revoke or vary the decision; and

Tribunal for review of an initial decision that has been

confirmed or varied.

Textile, Clothing and Footwear Strategic Investment Program Act 1999 Schedule 1

Textile, Clothing and Footwear Strategic Investment Program Amendment (Building Innovative

Capability) Bill 2009 No. , 2009 21

(3) However, the scheme may contain provisions that specify

decisions in relation to which the provisions mentioned in

subsection (2) do not apply.

(4) If the scheme provides that the Secretary is taken to have

confirmed an initial decision after a specified period, the scheme

must specify the prescribed time for making an application for

review of the initial decision as so confirmed for the purposes of

section 29 of the Administrative Appeals Tribunal Act 1975.

37ZZG Guarantees relating to payment of scheme debts

The Clothing and Household Textile (BIC) scheme may provide

that an entity (the eligible entity) ascertained in accordance with

the scheme:

(a) is not eligible for an innovation grant; or

(b) is not entitled to request an advance on account of an

innovation grant;

unless another entity ascertained in accordance with the scheme

gives a guarantee to the Commonwealth that any scheme debts

owed by the eligible entity will be paid.

37ZZH Non-arm's length transactions

The Clothing and Household Textile (BIC) scheme may provide

that, if an entity incurs expenditure under a transaction that is not at

arm's length, the amount of that expenditure is taken to be the

amount that would reasonably have been expected to be incurred if

the parties had been dealing with each other at arm's length.

37ZZI Grants and advances to be inalienable

The Clothing and Household Textile (BIC) scheme may provide

for innovation grants (including advances on account of innovation

grants) to be absolutely inalienable (whether by way of, or in

consequence of, sale, assignment, charge, execution, bankruptcy or

otherwise) except with the approval of the Secretary.

37ZZJ Other matters

(1) The Clothing and Household Textile (BIC) scheme may make

provision for and in relation to the following matters:

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22 Textile, Clothing and Footwear Strategic Investment Program Amendment (Building

Innovative Capability) Bill 2009 No. , 2009

(a) the making of claims for innovation grants;

(b) the times within which claims for innovation grants are to be

made;

entity ascertained in accordance with the scheme be

accompanied by an audited statement relating to specified

activities;

(d) requiring that a claim for an innovation grant made by an

entity ascertained in accordance with the scheme be

accompanied by an unaudited statement relating to specified

activities;

(e) requiring that a claim for an innovation grant be accompanied

by such a fee as is ascertained in accordance with the

scheme;

(f) the assessment of claims for innovation grants;

(g) the apportionment of expenditure;

(h) the adjustment of eligibility for innovation grants in relation

to the transfer of the whole or a part of a business, including

(but not limited to):

(i) treating the transferee as if the transferee had incurred

particular expenditure, had derived particular revenue

and had done particular acts or things; and

(ii) treating the transferor as if the transferor had not

incurred particular expenditure, had not derived

particular revenue and had not done particular acts or

things;

(i) the times when innovation grants become payable;

(j) matters of a transitional nature (including any saving or

application provisions) arising out of the transition from the

TCF Post-2005 (SIP) scheme to the Clothing and Household

Textile (BIC) scheme.

(2) Subsection (1) does not, by implication, limit section 37ZM (power

to make Clothing and Household Textile (BIC) scheme).

(3) The amount of a fee under the Clothing and Household Textile

(BIC) scheme must not be such as to amount to taxation.

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37ZZK Scheme may confer administrative powers on the Secretary

The Clothing and Household Textile (BIC) scheme may make

provision with respect to a matter by conferring on the Secretary a

power to make a decision of an administrative character.

37ZZL Ancillary or incidental provisions

The Clothing and Household Textile (BIC) scheme may contain

such ancillary or incidental provisions as the Minister considers

appropriate.

37ZZM Variation of scheme

(1) The Clothing and Household Textile (BIC) scheme may be varied,

but not revoked, in accordance with subsection 33(3) of the Acts

Interpretation Act 1901.

(2) Subsection (1) does not limit the application of subsection 33(3) of

the Acts Interpretation Act 1901 to other instruments under this

Act.

Division 9--Publication of grant totals

37ZZN Publication of grant totals

As soon as practicable after the end of each of the 2011-2012 to

2015-2016 financial years, the Minister must publish the following

information:

(a) the name of each entity paid an innovation grant (including

an advance on account of an innovation grant) during the

financial year;

(b) the total of innovation grants (including advances on account

of innovation grants) paid to the entity during the financial

year.

33 Paragraphs 38(1)(a) and (b)

Omit "the TCF (SIP) scheme or the TCF Post-2005 (SIP) scheme",

substitute "a TCF scheme".

34 Paragraph 43(a)

Omit "a scheme under Part 2 or 3A", substitute "a TCF scheme".

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24 Textile, Clothing and Footwear Strategic Investment Program Amendment (Building

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35 Section 46

Repeal the section, substitute:

46 Recovery by set-off

(1) If an entity is liable to pay a scheme debt, the Commonwealth may

recover the scheme debt from the entity by deducting the amount

of the scheme debt from either or both of the following:

(a) one or more amounts that are payable to the entity by way of

an advance or advances on account of a grant or grants that

may become payable to the entity;

(b) one or more grants that are payable to the entity under a TCF

scheme.

(2) If the scheme debt is deducted as mentioned in subsection (1), the

amount covered by paragraph (1)(a) and the grant covered by

paragraph (1)(b) are taken to have been paid in full to the entity.

Example: An entity has a scheme debt of $1,000 in relation to a grant paid under

the TCF Post-2005 (SIP) scheme. An advance of $11,000 under the

Clothing and Household Textile (BIC) scheme is payable to the entity.

The $1,000 scheme debt may be deducted from the advance, so that

the entity only actually receives $10,000. However, the entity is taken

to have been paid an advance of $11,000.

36 Subparagraph 49(c)(i)

Omit "the TCF (SIP) scheme or the TCF Post-2005 (SIP) scheme",

substitute "a TCF scheme".

37 Subsection 52(1)

Omit "the TCF (SIP) scheme or the TCF Post-2005 (SIP) scheme",

substitute "a TCF scheme".

38 Subsection 52(1A)

Omit all the words after "under", substitute:

the following provisions:

(a) subsections 37P(6) and (7);

(b)

section

37ZY.

Note:

The provisions are about authorising persons in relation to entry to

premises etc.

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Textile, Clothing and Footwear Strategic Investment Program Amendment (Building Innovative

Capability) Bill 2009 No. , 2009 25

39 Subsection 52(3)

Repeal the subsection.

40 After subsection 52(3A)

Insert:

(3B) The Secretary may, by writing, delegate to one or more senior

employees of an authorised Commonwealth contractor any or all of

the Secretary's function or powers under the Clothing and

Household Textile (BIC) scheme, other than the function referred

to in paragraph 37ZZF(2)(b) (reconsideration of decisions).

41 Subsection 52(4)

Omit "(3) or (3A)" (wherever occurring), substitute "(3A) or (3B)".

42 Section 53

Omit "scheme under Part 2 or 3A", substitute "TCF scheme".

43 Section 54

Repeal the section.

44 Subsection 55(3)

Omit "the TCF (SIP) scheme or the TCF Post-2005 (SIP) scheme",

substitute "a TCF scheme".

45 After section 55

Insert:

55A Additional effect of Act

Without limiting its effect apart from this section, this Act also has

the effect, and is taken always to have had the effect, it would have

(or would have had) if each reference to an entity were, by express

provision, confined to a reference to an entity that is:

(a) a corporation to which paragraph 51(xx) of the Constitution

applies; or

(b) an entity that carries on business in a Territory;

relation to, trade or commerce:

(i) between Australia and places outside Australia; or

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(ii) among the States; or

(iii) within a Territory, between a State and a Territory or

between 2 Territories.

46 Transitional provision--section 37X

(1)

This item applies if, immediately before the commencement of this

Schedule, the TCF Post-2005 (SIP) scheme (the scheme) in force under

section 37C of the Textile, Clothing and Footwear Strategic Investment

Program Act 1999 contains a provision that has the effect described in

subsection 37X(2A) (as inserted by this Schedule).

(2)

At and after the commencement of this Schedule, the provision has

effect for the purposes of the scheme.

(3)

To avoid doubt, the insertion of subsection 37X(2A) by this Schedule

does not affect the validity of the scheme before the commencement of

this Schedule.

47 Savings provision--repeal of Parts 2 and 3

The repeal of Parts 2 and 3 of the Textile, Clothing and Footwear

Strategic Investment Program Act 1999 by item 13 of this Schedule

does not affect the operation of Parts 5 and 6 of that Act in respect of

the TCF (SIP) scheme (as in force under section 8 of that Act

immediately before the commencement of this Schedule).

Commonwealth of Australia Bills

TEXTILE, CLOTHING AND FOOTWEAR STRATEGIC INVESTMENT PROGRAM AMENDMENT (BUILDING INNOVATIVE CAPABILITY) BILL 2010