Department of State Growth

1

Contents

Background

Program objective

Definitions

Applicant and program eligibility

Selection criteria

Eligible expenditure

Application process

Successful applicants

Taxation and financial implications of grant funding

Administration

Confidentiality

Publicity of grant assistance

Right to Information

Personal Information Protection

Disclaimer

Defence Industry Support Program

1

Background

The Tasmanian Government regards the defence sector to be a major growth opportunity for Tasmania, given our strength in advanced manufacturing and our role as an Antarctic and Southern Ocean gateway. The Government is committed to ensuring that Tasmania receives its fair share of defence spending.

The Government is committed to working collaboratively with Tasmanian businesses to support Tasmanian businesses working in, or seeking to move into, the defence sector.

This pilot program will provide eligible individual enterprises with financial support to effectively compete for, and potentially win defence contracts.

Limited funding of $100 000 is available until 30 April 2018.

The program provides up to 50 per cent of the cost to enterprises of developing defence industry tenders.

Maximum grant assistance is $15 000 subject to an amount no less than the grant being contributed by the applicant in cash (i.e. not in kind).

Program objective

The objective of the programis to supportTasmanian enterprises to gain or increase defence contracts.

Definitions

Grant Agreement means the legal agreement entered into between an approved applicant and the Crown in Right of Tasmania.

Project means that which is the subject of a funding application under the program.

Project costincludes costs incurred by an applicant directly attributable to the project, but excludes ongoing running costs associated with a Project.

Program means this Doing Business in Defence Grant Program.

Applicant and program eligibility

To be eligible for financial assistance from the program:

  • the applicant must have an Australian Business Number(ABN) and be registered for GST;
  • the applicant must demonstrate the necessary capabilities, resources and capacity to successfully undertake the proposeddefence projects;
  • the applicant’s products must be manufactured in Tasmania and also be dispatched from Tasmania;
  • the applicant cannot receive in excess of $15 000 per financial year under this program;
  • the applicant must have annual sales turnover greater than $300 000 and less than $20 million;
  • the application must be received a minimum of 30 days prior to the planned project commencement;
  • theapplicant must not be subject to any legal disability, including bankruptcy or liquidation.

Selection criteria

All applications are subject to a merit process, based on the following criteria:

  1. the enterprise’s capability and capacity to undertake defence work; and
  2. theenterprise’s capability and capacity to complete the tender documentation, process and project in its entirety.

Eligible expenditure

The programprovides a reimbursement of up to 50 per cent of approved expenses. As a guide the following expense items are eligible for up to 50 per cent reimbursement, to a maximum of $15 000 in total per activity:

  • Tender response assistance – expert assistance preparing defence tenders. This could include engaging consultants to write tenders, third party testing of products to confirm that they meet tender specifications, or a third party review of the tender documentation to ensure it is compliant and fit for purpose.
  • Industry specific compliance requirements – to help meetindustry specific compliance requirements such as International Traffic in Arms Regulations (ITAR) and Defence Industry Security Program(DISP).
  • Business systems and process certifications– (e.g. ISO9001) for those enterprises not deemed as advanced manufacturers under the department’sAdvanced Manufacturing Innovation and Growth Voucher System (AMIG) program.
  • Tender preparation training – from experienced and recognised consultancies in preparation, for individuals or consortia of businesses, to upskill in preparation to pursue identified upcoming tenders.

Retrospective or normal business operational expenditure will be ineligible.

Application process

For an enterprise’s application to be approved, the application must be submitted and assessed before the proposed activity takes place. Steps in the process are as follows:

  1. An enterprise is briefed on the Doing Business in Defence Grant Programby the Client Services division in the Department of State Growth. At this stage the enterprise should review the application form in detail to ascertain eligibility.
  2. The application is submitted to the Client Services division for assessment.
  3. The enterprise will be advised of the outcome.
  4. A Grant Agreement will be prepared for execution by the successful enterprise.

Applicants are encouraged to discuss their application with the department prior to submitting their application.

Successful applicants

  1. If successful the enterprise will need to submit the following for the reimbursement to be processed:
  2. satisfactory proof of expenditure (with original receipt document to be sighted upon request);
  3. a detailed written report on the activities undertaken and outcomes achieved;
  4. tax invoice.
  1. Additional reports on the outcomes of the activity may be requested up to 18 months after reimbursement.
  2. If a significant outcome occurs as a result of the funded activity, the enterprise agrees to the government publicising the outcome (where appropriate) and the enterprise will cooperate in any joint media opportunity involving Ministers that the Department of State Growthmay require.

Note: Doing Business in Defence Grant Programassistance is not available to enterprises failing to comply with the application process.

Taxation and financial implications of grant funding

Grants under the program attract GST. Grant payments to grantees are increased to compensate for the amount of GST payable.

The receipt of funding from this program may be treated as income by the Australian Taxation Office (ATO). While grants are typically treated as assessable income for taxation purposes, how they are treated will depend on the grantee’s particular circumstances.

It is strongly recommended that potential applicants consider seeking independent advice about the possible tax implications for receiving a grant under the program from a tax advisor, financial advisor and/or the ATO, prior to submitting an application.

Administration

The program will be administered by the Department of State Growth on behalf of the Crown in Right of Tasmania.

Any person requiring further advice or information of the program, or submitting an application, is asked to direct enquiries to the Manufacturing Program Manager: or phone 64777090.

Confidentiality

The relevant parties will use and disclose the information provided by applicants for the purposes of discharging their respective functions under the Program Guidelines and otherwise for the purposes of the program and related uses. The department may also:

  1. use information received in applications in any other departmental business;
  2. use information received in applications and during the performance of the project for reporting.

Publicity of grant assistance

The Department of State Growth disburses public funds and is therefore accountable for the distribution of those funds. As part of the accountability process, the department may publicise the level of financial assistance, the identity of the recipient, the purpose of the financial assistance, and any other details considered by the department to be appropriate.

Right to Information

Information provided to the Department of State Growth may be subject to disclosure in accordance with the Right to Information Act 2009.

Personal Information Protection

Personal Information will be managed in accordance with the Personal Information Protection Act 2004. This information may be accessed by the individual to whom it related, on request to the Department of State Growth. A fee for this service may be charged.

Disclaimer

Although care has been taken in the preparation of this document, no warranty, express or implied, is given by the Crown in Right of Tasmania, as to the accuracy or completeness of the information it contains.

The Crown in Right of Tasmania accepts no responsibility for any loss or damage that may arise from anything contained in or omitted from or that may arise from the use of this document, and any person relying on this document and the information it contains does so as their own risk absolutely.

The Crown in Right of Tasmania does not accept liability or responsibility for any loss incurred by any applicant that is in any way related to the program.

/ Department of State Growth
GPO Box 536
Hobart TAS 7001 Australia
Phone: / 64777090
Email: /
Web: /

Defence Tenders Assistance Pilot Program1