Customer Guide 1 August 2013 / 1
Plantation Manufacturing Innovation and Investment Fund
Customer Guide 1 August 2013 / 1
Plantation Manufacturing Innovation and Investment Fund
Customer guide
Plantation Manufacturing Innovation and Investment FundCustomer Guide 1 August 2013 / 1
Contents Page
1 Introduction 2
2 About the Plantation Manufacturing Innovation and Investment Fund 2
3 Who can apply? 3
4 Project eligibility 3
5 Eligible expenditure 3
6 Collaborative projects 4
7 How do I apply for the program? 5
8 What funding is available? 5
9 What are the Project Merit Criteria? 6
10 How will my application be assessed? 8
11 Privacy and confidentiality 8
12 What if I am successful? 9
13 If you need assistance 10
14 Submitting your application 10
15 Feedback 11
Plantation Manufacturing Innovation and Investment FundCustomer Guide 1 August 2013 / 1
1 Introduction
This Guide for Applicants is designed to assist prospective applicants in deciding whether to apply for a grant under the Plantation Management Innovation and Investment Fund (PMIIF) and to outline the processes for the submission and assessment of applications. It sets out the purpose of the PMIIF and explains who is eligible to apply, how to obtain an application form, how applications are assessed, and the criteria that will be used in assessing applications for funding.
2 About the Plantation Manufacturing Innovation and Investment Fund
This program supports the implementation of the Tasmanian Forest Intergovernmental Agreement (Agreement) signed on 2 May 2013 between the Australian Government and the State of Tasmania who have agreed to work together to support the Tasmanian forest industry to progressively transition to a more sustainable and diversified footing, to build regional economic diversity, community resilience and to deliver important conservation benefits.
The PMIIF is one of the program elements that will give effect to the Agreement which recognises the broad impacts of the restructuring of the forestry sector across the State of Tasmania.
The program has funding of up to $15.8 million (exclusive of GST) during the 201314, 2014-15 and 2015-16 financial years.
The minimum grant under the program will be $50,000. There is no maximum grant amount under the program.
The objective of the program is to assist industry to transition to greater use of hardwood plantation timber in Tasmania.
The program will support investment in new Tasmanian activities, innovations and technologies, including in plant and equipment, focused on solid and reconstituted hardwood plantation wood manufacturing to broaden the timber industry and to increase demand for hardwood plantation timber.
Projects that do not involve a sustained net increase in economic activity in Australia or that involve a relocation of activity to Tasmania from other states and territories will not be funded under the program.
The PMIIF will be administered by AusIndustry as a competitive, merit-based grants program. AusIndustry is a Division within the Australian Government's Department of Industry, Innovation, Climate Change, Science, Research and Tertiary Education (the Department).
3 Who can apply?
Applicants must be incorporated, and must engage in trading or financial activities that form a substantial or significant portion of their overall current activities.
All applicants are required to have an Australian Business Number and be registered for the Goods and Services Tax (GST).
The following are not eligible to apply:
· individuals and partnerships;
· trusts; however, an incorporated trustee can apply on behalf of a trust provided that the Commonwealth is satisfied that the incorporated trustee will remain sufficiently liable for the performance of any agreement it signs;
· Commonwealth, State and Local Government agencies and bodies (including government business enterprises); or
· entities that do not comply with State or Commonwealth law, such as Equal Opportunity for Women in the Workplace Act 1999.
Applications involving collaboration between at least two entities are encouraged. The program may support cooperation between businesses and/or researchers through collaborative projects.
4 Project eligibility
An eligible application must propose a project that:
· meets the program policy objective of assisting industry to transition to greater use of hardwood plantation timber in Tasmania;
· involves at least $100,000* in eligible expenditure;
· must be undertaken in Tasmania;
· demonstrate that any activities to be continued after the Project completion date can be undertaken without further grant funding;
· does not involve the movement of business activity from other areas of Australia; and
· is consistent with Australia’s international obligations, including under the World Trade Organization.
* This figure is due to the minimum grant being $50,000 which must be matched
5 Eligible expenditure
Eligible expenditure is defined as the direct project costs incurred in undertaking the project and may include:
· research or scoping activities;
· acquisition of new equipment or machinery that can be capitalised in the applicant’s accounts
· cost incurred undertaking an independent project audit certificate;
· construction or fit-out of a new building or extension to premises; and
· direct labour costs incurred on employees directly implementing/and or commissioning the agreed project and associated project management costs where the expenditure is directly attributable to the project.
The following costs will not be considered eligible expenditure:
· the acquisition of land;
· preparation of the grant application;
· full scale production and inventory costs;
· ongoing or routine business costs, including general business management and administration not directly related to the eligible project;
· retrospective activities (i.e. activities that occur prior to the date that the applicant and the Commonwealth execute a Funding Agreement); and
· activities that breach occupational health and safety or public safety.
6 Collaborative projects
Collaborative projects must be led by an eligible entity, with at least one partner. Collaborative partners can be either eligible or ineligible entities, and can be either Australian or internationally based.
Collaboration is a formal link between entities where key personnel from different institutions or companies are substantially involved in developing and undertaking the project. This relationship goes beyond the level of involvement under a traditional fee-for-service association—that is, it goes beyond normal arrangements that would exist with contractors.
In a collaborative project, only one entity can apply for funding and the eligibility criteria will only apply to the applicant entity, i.e. the lead applicant. If the application is successful, only the applicant will enter into a Funding Agreement. The lead applicant will be responsible for the performance of the entire project, even if it subcontracts the performance of any part of it. An applicant’s contribution to the project is also the responsibility of the lead applicant. Contributions do not need to all come directly from the lead applicant.
If applying for a grant to assist a collaborative project, the applicant must provide evidence of an agreement setting out existing and proposed ownership and disposition of associated intellectual property rights with the application.
7 How do I apply for the program?
Applicants must complete the Plantation Manufacturing Innovation and Investment Fund Application Form outlining their project and how it addresses the project merit criteria. Applicants will need to submit budget details as part of their proposal. The Application Form is available from the AusIndustry Hotline on 13 28 46 or visit www.ausindustry.gov.au.
The PMIIF closes to applications at 5pm AEDST on 01, November 2013.
AusIndustry can provide advice and support during the application period to assist you to apply for funding.
8 What funding is available?
The program has funding of up to $15.8 million (exclusive of GST) during the 2013-14, 2014-15 and 2015-16 financial years.
The minimum grant under the program will be $50,000. There is no maximum grant amount under the program.
The following conditions for program funding will apply:
· program funding will not be provided for retrospective activities; and
· an agreed proportion of the funding may be paid on execution of a funding agreement. Each subsequent payment of funds would then be made upon provision of satisfactory evidence that the agreed milestone(s) for that payment has been achieved.
For program grant payments that attract the GST, AusIndustry will increase your grant payments to compensate for the level of that tax. Grant funds should be included in assessable income unless the entity receiving the grant is exempted under the income tax law. It is recommended that you seek advice on your obligations from a tax adviser or the Australian Taxation Office.
9 What are the Project Merit Criteria?
Eligible applications will be assessed on a comparative basis relative to the merit of other applications received in a particular funding round against the following five equally-weighted criteria.
C1. The degree to which the project will enable transition of the industry to a greater use of hardwood plantation timber.
In addressing this criterion, an application should address the following issues.
· Describe how the activities of the project will be undertaken (research and development, feasibility study, commercialisation, proof of concept, capital investment or capacity expansion).
· Describe the pathways to commercialisation including timeframes and stages for the transition to greater use of hardwood plantation timber.
C2. The level of net economic benefit the proposed project will bring to Tasmania, including:
o the number of sustainable jobs;
o new investment and innovation; and
o the positive impact in regions adversely affected by the downturn in the forestry sector.
The project should not compromise competitive neutrality (e.g. taxpayers subsidising one participant in a market thereby reducing the competitiveness of other participants) unless it can be demonstrated that the benefits of grant assistance outweigh the costs.
In addressing this criterion, an application should address the following issues.
· How many sustainable jobs will be retained or created as a result of the project? On what basis have you determined this figure (eg, new sales contracts, increase in business revenue)?
· Describe the type of investment (eg, plant and equipment, project costs, and research and development).
· What is the impact of this project in the regions that have been affected by the downturn in the Forestry sector?
· Projects that include innovation and/or commercialisation should provide evidence to demonstrate potential of the project through two factors:
o market demand strategy which includes the target market and evidence of market demand; any competitive advantage of the project outcomes, strength of intellectual property and frequency of new product entry; and
o a sound commercialisation strategy which includes market entry barriers, manufacturing and market supply strategy, timeframe to market, market growth and financing market entry.
C3. The applicant’s demonstrated capacity to successfully undertake the project, including the skills, experience and resources to which it will have access
In addressing this criterion, an application should address the following issues.
· How long has your business been operating?
· Has your business undertaken other projects successfully in the past?
· Who will be managing the project? What are their skills and experience?
· Does your business have the necessary resources (eg, staff and equipment) to undertake the project?
· Do you have the required planning or other statutory approvals in place to undertake your project?
C4. The applicant’s demonstrated capacity to provide, at a minimum, matching funding for the project (matching funding may include in-kind contributions).
In addressing this criterion, an application should address the following issues.
· Identify the total amount of funds and / or in-kind contributions your business will make to the project. (eg, details of staff costs, production costs or value of providing assets).
· Describe how your business will fund these contributions (eg, from existing revenue, bank borrowings, assets, stock).
· Provide evidence to show how the business is able to make these contributions.
· Assure that the project is free of other concurrent government funding (Federal, State and Local)
C5. The value for public money offered by the project as measured by the extent to which the project will be unlikely to proceed without funding support
· In addressing this criterion an applicant will need to demonstrate why the project could not proceed without grant support
10 How will my application be assessed?
Applications will be assessed in a two-stage process.
Stage 1: AusIndustry will assess each application in terms of its eligibility, and its strengths and weaknesses against the Project Merit Criteria mentioned in these guidelines. As part of the assessment process, applicants may be required to submit additional information to support their applications.
AusIndustry, in assessing the strengths and weaknesses of a proposed project, may seek clarification from an applicant and may also seek additional information from:
· other Australian Government agencies;
· State or Territory government agencies;
· Local governments; or
· any other appropriate agencies or persons that AusIndustry considers necessary to assess an application.
AusIndustry will submit its assessment report of all applications to the PMIIF Advisory Committee for the Stage 2 assessment.
Stage 2: A PMIIF Advisory Committee will be established to review the AusIndustry assessment report and undertake further assessment of applications and make recommendations for funding to the Australian Minister for Innovation, Industry, Science and Research, or the Minister’s delegate.
The Advisory Committee will be appointed by the Australian Minister for Innovation, Industry, Science and Research. The PMIIF Advisory Committee will comprise a representative from the Australian Government and three other representatives, one of which must be an independent member of the Tasmanian business community and the others will have relevant technical experience in hardwood plantation timber industries.
AusIndustry will manage potential and actual Advisory Committee member conflicts of interest through a conflict of interest process that requires declaration of any potential conflict of interest by Advisory Committee members and exclusion of the member(s) from the application assessment if the Program Delegate determines that the conflict of interest is material.
Privacy and confidentiality