Aboriginals Benefit Account section 64(4) Beneficial GrantGuidelines

December 2014

Preface

These guidelines set out the terms and conditions on which an applicant may access Australian Government grant fundingunderAboriginals Benefit Account section 64(4) Beneficial Grants. Applicants should read these guidelines, and other documents in the Application Kit, prior to preparing their Application for grant funding.These Guidelines may be amended from time to time.

Contents

PART I: INTRODUCTION

1Programme overview

1.1The Aboriginals Benefit Account

PART II: APPYLING FOR ABA BENEFICIAL GRANT FUNDING

2Making an application for ABA beneficial grant funding

2.1Types of selection processes

2.2Level of grant funding available

2.3ABA Funding Categories

2.4How to apply

2.5Application kit

2.6Partnership approach

2.7Selection Criteria

2.8Land or business proposals

2.9Business plan

2.10Eligibility for organisations

2.11Eligibility for individuals

2.12Ineligible activities for grant funding

2.13Other requirements

2.13.1Commonwealth Procurement Rules

2.13.2Incorporation requirement

2.14Role of the Minister for Indigenous Affairs

2.15Role of the Department of the Prime Minister and Cabinet

2.16Role of the ABA Advisory Committee

2.17Contact details

3Other information

ANNEXURE 1: APPLICATION FORM

ANNEXURE 2: PROGRAMME OUTCOMES

Supporting Enterprises

Supporting Community

Supporting Culture, Language and Leadership

Supporting Land, Sea and Waters Management and Use

Assessing performance

ANNEXURE 3: FURTHER INFORMATION

Application acknowledgment

Help preparing an application

Assessment of applications

Value for money

Screening Assessment for Employment – Northern Territory (SAFE NT)

Conflicts of Interest

Indigenous interpreters

Legal and financial advice

Insurance

Privacy and confidentiality

Agreements

Types of Agreement

Goods and services tax (GST)

Monitoring, performance reporting and improvement

Evaluation

Financial reporting

Other reporting requirements

Record keeping

Notification of Outcome

Successful applicants

Opportunity for feedback

Complaints processes

Other processes available

Freedom of Information

Glossary

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PART I: INTRODUCTION

1Programme overview

The Australian Government is committed to improving the lives of Indigenous Australians through increased participation in education and work and making communities safer.

The Indigenous Advancement Strategy (Strategy) began on 1 July 2014 with the objective of achieving real results in the key priority areas of getting children to school, adults into work, and building safer communities where the ordinary rule of law applies. Under the Strategy, the Government has streamlined more than 150 individual programmes and activities into five broad based programmes to make it easier for organisations delivering important services in communities. The five programmestreams are:

  • Jobs, land and economy
  • Children and schooling
  • Safety and wellbeing
  • Culture and capability
  • Remote Australia strategies.

The Aboriginals Benefit Account (ABA) is a Special Account under the Strategy thatcontributes to the Government’s priorities for Indigenous Australians specifically under the Jobs, Land and Economy Programme.

These guidelines apply to ABA beneficial grant funding.

1.1The Aboriginals Benefit Account

The ABA is continued under Part VI of the Aboriginal Land Rights (Northern Territory) Act 1976 (the Land Rights Act) and is a special account for the purposes of the Public Governance, Performance and Accountability Act 2013.

The ABA receives statutory royalty equivalent monies from appropriations, the level of which is determined by the value of royalties generated from mining on Aboriginal land in the Northern Territory. The ABA is funded by the Commonwealth from consolidated revenue. The ABA makes payment under sections 64(1), 64(3), 64(4), 64(4A) and 64(6) of the Land Rights Act.

ABA funding under section 64(4) of the Land Rights Act is provided for one-off grant funding (non-recurrent funding) proposals that are for the benefit of Aboriginal people living in the Northern Territory.

Information on ABA beneficial grant funding outcomes, objectives and performance is outlined in Annexure2.

PART II:APPYLING FOR ABA BENEFICIAL GRANT FUNDING

2Making an application for ABA beneficial grant funding

2.1Types of selection processes

An open competitive selection process is used to seek proposals for ABA beneficial grants.

Open competitive processes provide for transparency and can attract a wide range of potential Grant Funding Recipients including smaller organisations. The open competitive process also offers an opportunity for new Grant Funding Recipients to enter the sector.

Eligible applications will be assessed against selection criteria at Section 2.7and then prioritised against competing, eligible applications for available grant funding. Applicants should refer to Section 2.12 for a list of activities that will not be funded under the ABA. Further information on the assessment process is at Annexure 3.

2.2Level of grant fundingavailable

ABA beneficial grants are provided for one-off (non-recurrent) proposals that will benefit Aboriginal people in the Northern Territory.

Up to $30 million is available for ABA beneficial grants in 2014-15, though the final amount of funding available is at the discretion of the Minister for Indigenous Affairs (the Minister) and contingent on any priority activities approved by the Minister, as well as the number and scope of suitable applications received.

The amount of individual grant funding provided will be based on the scope and complexity of the proposal and the length of the Agreement will be dependent on the nature of the proposal approved. Grant funding will be provided to Grant Funding Recipients over relevant financial years.

Grant funding is allocated for small projects valued up to and including $250,000 and large projects valued over $250,000. There is no minimum or maximum amount of grant funding that can be applied for under ABA beneficial grants.

2.3ABA Funding Categories

Applicants must design their proposal for funding under one of the four funding categories below. It is possible for proposals to achieve benefits for Aboriginal people living in the Northern Territory across more than one funding category however applicants will be asked to nominate their main funding category when completing their Application Form. Refer to Annexure 2 for information on the outcomes, objectives, scope and performance for ABA beneficial grant funding.

  1. Supporting Enterprises

Proposals that support improved economic outcomes through small, medium or large business investments which foster wealth-creation for current and future generations of Aboriginal people living in the Northern Territory. This may include capital items necessary to generate investment in economic development or seed funding for initiatives to deliver economic development or business outcomes for Aboriginal people living in the Northern Territory.

  1. Supporting Community

Proposals that improve the benefits for Aboriginal people living in community including to the quality of life or services offered. This may include education, sporting and cultural facilities; buildings; community facilities; or capital items.The term ‘community’ is used in the broad sense to mean a group of Aboriginal people living within a particular local area in the Northern Territory.

  1. Supporting Culture, Language and Leadership

Proposals that enhance cultural activities for Aboriginal people living in the Northern Territory or support the maintenance or recording of language and undertake education and leadership training. Applicants seeking funding under this category will need to include stakeholder consultation requirements with key stakeholders as part of their application.

  1. Supporting Land, Sea and Waters Management and Use

Proposals that enable Aboriginal people living in the Northern Territory to engage in land, sea and river management to assist in protecting and caring for Aboriginal land.

2.4How to apply

Grant funding rounds will open and close at nominated dates and will be open for a minimum of four weeks. Applications must be received by the closing date and time to be assessed as eligible.

Information on grant funding rounds, the application process, and how to prepare and submit an application will be made available through the Department of the Prime Minister and Cabinet’s (the Department) website. Information may also be made available through the ABA Advisory Committee and the four Northern Territory Land Councils.

Applicants will be provided with reasonable prior notice of any open grant round by all or some of the means listed below:

  • on the Department’s website at
  • on the Government Grants website at

2.5Application kit

The Application Kit for ABA beneficial grant fundingwhich will be available on the Department’s website may include:

  • these Guidelines;
  • an Application Form; and
  • a Grant Agreement template.

2.6Partnership approach

A provider, community, region or jurisdiction may approach the Department to discuss proposals for placed-based strategies or demand driven activities at any time. Unless otherwise specified in an Application Kit:

  • Applications should be in the formation of the Application Form at Annexure 1.
  • For place based initiatives, contact should be made through the Department’s Northern Territory State Office outlined at Section 2.17.
  • Applicants must ensure their proposal is for the benefit of Aboriginal people living in the Northern Territory and must address outcomes at Annexure 2.
  • The Department will assess applications against the selection criteria outlined at Section 2.7.Applicants will be notifiedof the outcome for funding at the completion of the assessment process, refer to Annexure 3 for further details.

ABA beneficial grant fundingwill support a new way of engaging with Indigenous people, communities, industries, business and service providers, allowing for joint development and implementation of solutions that will sustainably improve outcomes, including through regional and/ or place-based solutions for Aboriginal people in the Northern Territory. Applicants will be expected to work closely with Aboriginal people living in the Northern Territory in the design of their proposal and in the delivery of activities.

The Department will work with Grant Funding Recipients to ensure that the Government’s grant funding achieves improved outcomes for Aboriginal people living in the Northern Territory. The Department may consider redirecting grant funding where outcomes are not being achieved.Agreements will provide specific detail about these requirements.

2.7Selection Criteria

The selection criteria have been developed to enable the selection of applications in a consistent, transparent and accountable manner. Applicants must address the selection criteria as part of their applicationincluding any land tenure issues associated with their request for grant funding. Applicants for Large Projects must respond to additional criteria.

The response provided against the selection criteria is fundamental to the assessment of an application. The response will be assessed to ensure that the proposal is suitable for grant funding and that it is designed to meet the intended objectives and outcomes of the programme. Proposals that align with outcomes outlined in Annexure 2 will be considered for grant funding.

A word limit has been set against the selection criteria and specified in the Application Form. The criteria are equally weighted.

All applicants will be assessed based on their ability to:

  • Demonstrate how the proposal will achieve benefits, what these benefits will be, and how these benefits will be measured and sustained over time, for Aboriginal people living in the Northern Territory. Where appropriate, applicants should demonstrate how their proposal will achieve improved outcomes for Aboriginal people living in the Northern Territory against the following priority areas:
  • creation of Indigenous jobs;
  • ensuring children go to school;
  • ensuring adults go to work; and
  • the ordinary rule of law operates in Indigenous communities to make sure everyone is safe.
  • Demonstrate the need for the proposal within Aboriginal community/communities in the Northern Territory and consider the following and provide supporting documentation.
  • the proposal is achievable, viable, costed and planned; and
  • key stakeholders have been identified and consulted.
  • Demonstrate that the applicant organisation has:
  • sufficient capacity to successfully implement the proposal, including experience in delivering similar proposals and staff capability;
  • the ability to identify and manage risks and monitor performance associated with the proposal; and
  • the connection and support from the community or individuals who are intended to benefit from the proposal.

Additional selection criteria for Large Projects

  • Demonstrate that the proposal has been appropriately planned, assessed for risk, and costed. The following information must be included with the application.

The Proposal:

  • Detailed Project Management Plan, including but not limited to:
  • budget for the life of the proposal
  • project timeline
  • risk assessment with mitigation strategies
  • performance framework showing how the proposal will be monitored
  • cost benefit analysis
  • stakeholder consultation plan

The Applicant Organisation:

  • Governance Arrangements in place
  • Copies of Audited Financial Statements (from the previous three years and/or evidence of solvency).

2.8Land or business proposals

Prior to submitting an application for ABA beneficial grant funding, applicants with proposals relating to land acquisition or management, agriculture, pastoral or business investment are required to consult either the Indigenous Land Corporation (ILC) or Indigenous Business Australia (IBA) seeking their view of the proposal, including whether they consider the proposal viable and value for money. Additionally, applicants are required to provide evidence that the ILC or IBA supports their proposal and reflect the ILC or IBA final assessment in their application for ABA beneficial grant funding.

Applicants should engage the ILC where their proposal relates to land acquisition or management, or agriculture. Applicants should engage the IBA where their proposal relates to pastoral or business investment.

2.9Business plan

All applicants are required to provide a business plan to support their proposal for grant funding. Information contained in the business plan will depend on the complexity of the proposal and whether the proposal is considered large or small. Regardless, the business plan must include an assessment of the risks associated with the proposal and an approach to managing grant funding for the life of the Agreement. The business plan must also demonstrate how the applicant will undertake ongoing monitoring and management of the proposal, as appropriate, to ensure intended outcomes are met.

2.10Eligibility for organisations

Unless otherwise set out in the Application Kit, applicants must:

  • Have a legal personality and full legal capacity to enter into an Agreement with the Commonwealth. An unincorporated association is not a legal person and will not be contracted by the Department;
  • Not be bankrupt or subject to insolvency proceedings (as relevant to the entity type);
  • Have an ABNand be registered for GST purposes, where relevant;
  • Be financially viable, as assessed by the Department; and
  • Not have been named as non-compliant under the Workplace Gender Equality Act 2012.

The Department may take into account any previous or current non-compliance with any Commonwealth agreements.

States or territories may apply for grant fundingunless the applicable Application Kit specifically excludes them.

Applicants that do not, as determined by the Department at its sole discretion, meet these requirements may be deemed ineligible for ABA beneficial grant funding.

2.11Eligibility for individuals

While it is expected that grant funding will primarily be delivered through organisations, individuals will not be precluded from receivinggrant funding, unless otherwise specified in the Application Kit.

2.12Ineligible activities for grant funding

ABA beneficial grant funding will not be provided for the following activities:

  • costs that would displace commercial operations (e.g. anti-competitive activities);
  • costs seeking funding for investment purposes;
  • costs which should be funded from other sources, including mainstream government funding;
  • recurrent costs (i.e. costs associated with the continuing operations of an activity);
  • costs that are not directly and specifically related to the activity (e.g. ongoing staff wages, rent, administrative costs of the applicant’s existing operations);
  • interstate travel and associated costs except where specifically approved for the activity by the Delegate;
  • overseas travel not agreed by the Delegate except for grant funding provided under the Supporting Culture, Language and Leadership funding category;
  • staff relocation costs;
  • costs incurred before an application is approved;
  • costs incurred in the preparation of an application;
  • salaries/wages/consultancy fees for non-indigenous staff without prior written approval of the Delegate;
  • debt financing; or
  • operational or capital expenditure for the four Northern Territory Land Councils that should be considered through the budget estimates process associated with section 64(1) of the Land Rights Act.

2.13Other requirements

2.13.1Commonwealth Procurement Rules

Funds appropriated for the purpose of ABA beneficial grant fundingmay also be used for the procurement of work directly related to the purpose of the grant, for example research projects. Such procurements will be undertaken in accordance with the requirements of the Commonwealth Procurement Rules and for purposes that are consistent with the priorities and required outcomes of the ABA beneficial grant. This includes through the use of Indigenous businesses where appropriate and in line with the Indigenous Opportunities Policy. Procurement processes will be conducted independently of any grant rounds.

2.13.2Incorporation requirement

From 1 July 2014, all organisations receiving grant fundingunder agreements or contract variations of $500,000 (GST exclusive) or more in any single financial year through theStrategy will be required to:

  • for an Indigenous Organisation, be incorporated under the Corporations (Aboriginal and Torres Strait Islander) Act 2006; or
  • for other organisations, be incorporated under the Corporations Act 2001;and
  • once applied, all organisations must continue to meet this requirement whilst receiving any amount of grant funding from the Strategy.

Organisations need to comply with the requirement as part of their Agreement and have six months from the date of execution of their Agreement to comply with the requirement. Organisations may apply for an exemption from the requirement which will be considered on a case-by-case basis.For more information on the requirement and exemptions email .