Home Insulation Program Industry Payment
Scheme Ministerial Guidelines 2015
I, IAN ELGIN MACFARLANE MP, Minister for Industry and Science, issue these
Guidelines for the Home Insulation Program Industry Payment Scheme.
Dated:
07 July 2015
Minister for Industry and Science
1 Name of Guidelines and commencement
1.1
These are the Home Insulation Program Industry Payment Scheme
Ministerial Guidelines 2015.
1.2
These Guidelines commence on the day they are signed by the Minister.
2 Programme objective
2.1
The Scheme has been established in response to the recommendations of
the Report of the Royal Commission into the Home Insulation Program
20141.
2.2
The purpose of the Scheme is to make payments to Pre-Existing Home
Insulation Installation Businesses that suffered an Adverse Financial Impact
as a direct result of the HIP.
2.3
Payments will be offered in recognition of the Commonwealth’s moral
responsibility to Businesses.
3 Purpose of these Guidelines
3.1
The purpose of these Guidelines is to set out the framework for the
administration of the Scheme.
3.2
These Guidelines should be read in conjunction with the Commonwealth
Grants Rules and Guidelines, especially in relation to procedures to be
followed under relevant legislation.
4 Interpretation
4.1
In these Guidelines, words identified in bold have the following meanings
unless the contrary intention appears:

Adverse Financial Impact means the cumulative negative impact on
a) revenue; and/or
b) expenses
of the applicant, for the financial years 2007/08 to 2010/11 which is
directly attributable to the HIP; and/where applicable
c) capital investments which were undertaken (including ordered but
not delivered) during the period 3 February 2009 to
19 February 2010 which are directly attributable to the HIP.
1
RI Hanger AM QC, Report of the Royal Commission into the Home Insulation Program,
Commonwealth of Australia, 29 August 2014.
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Home Insulation Program Industry Payment Scheme Ministerial Guidelines
For the avoidance of doubt, Adverse Financial Impact does not
include personal loss or damage.

Applicant means a business that applies for a payment under the
Scheme.

Application means the application form and accompanying financial
documents submitted by an Applicant.

ATO means the Australian Taxation Office.

Australian Accounting Standards means the standards of that name
maintained by the Australian Accounting Standards Board (created by
section 226 of the Australian Securities and Investments Commission
Act 2001 (Cth)).

Business means a sole trader, partnership, trust or company.

Deed of Settlement means a release in the form approved by the
Commonwealth which Applicants are required to sign in order to
receive a payment under the Scheme in which Applicants agree to
waive their right to make any further legal claim against the
Commonwealth and to release the Commonwealth from all legal
liability in relation to the HIP.

Department means the Department of Industry and Science or the
department with responsibility for administering the Scheme under
Administrative Arrangements Orders, as they may be in force from time
to time.

Eligible Applicant means an Applicant that meets the eligibility
requirements set out in paragraph 6 of these Guidelines.

Eligible Capital Equipment means equipment directly related to the
installation of insulation and recorded as an asset in the Business’
accounts in accordance with the Australian Accounting Standards.

GST has the same meaning as in the A New Tax System (Goods and
Services Tax) Act 1999.

Guidelines means the Home Insulation Program Industry Payment
Scheme Ministerial Guidelines 2015.

HIP means the Home Insulation Program, which commenced on
3 February 2009 and closed on 19 February 2010, as part of the
Energy Efficient Homes Package.

HIP Guidelines means the guidelines for the HIP.
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Home Insulation Program Industry Payment Scheme Ministerial Guidelines

Minister means the relevant Commonwealth minister with portfolio
responsibilities for the Scheme.

Payee means an eligible applicant that has accepted a payment offer
under the Scheme, including having signed the required Deed of
Settlement.

Payment Offer means an offer of payment, including an advance partpayment offer, made to an Eligible Applicant by the Minister in
accordance with these Guidelines conditional upon the Applicant
signing the required Deed of Settlement.

Personal Information has the same meaning given to that term under
the Privacy Act 1988 (Cth).

Pre-Existing Home Insulation Installation Business means a
Business that installed insulation into existing domestic premises prior
to 3 February 2009.

Programme Delegate means an official of the Department, appointed
by the Minister to carry out specific functions for the Scheme as
outlined in paragraph 5 of these Guidelines.

Scheme means the Home Insulation Program Industry Payment
Scheme.

Substantially Breached the HIP Guidelines has the meaning given
to that term in paragraph 6.2 of these Guidelines.

Third-Party Accounting Firm means an independent accounting firm
which the Department has contracted to undertake a forensic
accounting analysis of Applicants’ financial documentation to determine
whether or not an Applicant suffered an Adverse Financial Impact.
5 Programme Delegate
5.1
The Minister will appoint a Programme Delegate to administer the Scheme.
5.2
The Programme Delegate is responsible for:
a) determining the eligibility of an Applicant;
b) giving permission for an extension to the Application period on a caseby-case basis to take into account special circumstances;
c) requesting an Applicant to provide additional information in support of
an Application;
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Home Insulation Program Industry Payment Scheme Ministerial Guidelines
d) determining the acceptability of an Application for assessment by the
Third-Party Accounting Firm;
e) forwarding applications to the Third Party Accounting Firm;
f) advising the Minister of possible payment amounts;
g) conveying Payment Offers on behalf of the Minister to Eligible
Applicants, as appropriate; and
h) authorising payments by the Department to Payees.
5.3
The Programme Delegate may have other responsibilities under the Scheme
as required by the Minister.
6 Business Eligibility
6.1 To be eligible to apply a Business must:
a) be, or have been, a Pre-Existing Home Insulation Installation Business;
and
b) not have Substantially Breached the HIP Guidelines.
6.2
A Business will be determined by the Programme Delegate to have
Substantially Breached the HIP Guidelines if the Department has evidence
that 10 per cent or more of the Business’ claims for payment under HIP were
previously found to be for:
a) non-existent dwellings; and/or
b) dwellings where no insulation had been installed; and/or
c) dwellings which had already been claimed by the business (duplicate
claims); and/or
d) dwellings where insulation was installed by a separate/un-associated
installer; and
the Department’s evidence is that the Business has not rectified the breach.
6.3 A Business may make only one application.
6.4 If a Business is not eligible, the Business will be informed (in writing) by the
Programme Delegate of the reasons why the Business is not eligible.
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Home Insulation Program Industry Payment Scheme Ministerial Guidelines
7 Applying for a payment
Application Period
7.1
The Scheme will open for Applications at midnight 1 June 2015 (Australian
Eastern Standard time) and close at midnight 31 July 2015 (Australian
Eastern Standard Time).
7.2
An Application must be made and submitted to the Department no later than
midnight 31 July 2015 (Australian Eastern Standard time).
7.3
A potential Applicant may write to the Programme Delegate seeking
permission for an extension of time to make the Application, on the grounds
of special circumstances.
Acceptable Applications
7.4
An Application must be in the form provided at www.business.gov.au. If an
Application is not in the specified form, it will not be accepted.
7.5
An Application must be submitted online at
www.industry.gov.au/HomeInsulationPaymentScheme
7.6
An Applicant must provide the required financial documents for (at a
minimum) the 2007-08 to 2010-11 financial years, as outlined in paragraphs
8.1 to 8.4 of these Guidelines.
7.7
An Application which does not include all of the required information
specified in the Application form, including the necessary financial
documents, will be treated as incomplete and will not be accepted.
7.8
The Programme Delegate may ask an Applicant to provide additional
information in support of an Application.
7.9
An Applicant will be advised (in writing) if:
a) the Application is accepted by the Programme Delegate and forwarded
to the Third-Party Accounting Firm for assessment; or
b) the Application is not accepted by the Programme Delegate, and the
reasons why the Applicant is not accepted.
7.10 If an Applicant seeks to provide additional information in support of an
accepted Application:
a) after the application period has closed; and/or
b) which has not been requested by the Programme Delegate under
paragraph 7.8;
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Home Insulation Program Industry Payment Scheme Ministerial Guidelines
then the Applicant must submit a case (in writing) to the Programme
Delegate for consideration.
7.11 A decision by the Programme Delegate to accept, or not accept, an
Application is final.
8 Application information
8.1
Subject to paragraph 8.5 of these Guidelines, an Application must include
the following financial documents:
a) financial reports for the financial years 2007-08 to 2010-11, including:
-
profit and loss reports, and
-
balance sheets, and
-
cash flow statements, and;
b) tax returns and ATO assessment notices for the financial years
2007-08 to 2010-11; and/where applicable
c) depreciation schedules for financial years 2007-08 to 2010-11 used for
tax returns which clearly show:
-
investment in Eligible Capital Equipment, including purchase
dates, and
-
any change of the valuation of Eligible Capital Equipment after
19 February 2010, and
-
any disposal of Eligible Capital Equipment after 19 February 2010,
including details of any loss which may have resulted from such
disposals.
8.2
Financial reports must show separately the income and expenses directly
related to the installation of insulation into existing domestic premises by the
Pre-Existing Home Insulation Installation Business. The remainder of the
income and expenses can be grouped together.
8.3
An Applicant also has the option to provide the Department with the financial
documents outlined in paragraphs 8.1 to 8.2 of these Guidelines, for the
additional financial years 2004-05 to 2013-14, to demonstrate Adverse
Financial Impact.
8.4
Copies of tax invoices and receipts will not be required to be submitted, but
must be able to be produced upon request from the Programme Delegate.
Note: The required ATO retention period for all businesses which are not
companies (excluding small proprietary businesses) is five years.
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Home Insulation Program Industry Payment Scheme Ministerial Guidelines
8.5
Where an Applicant is not able to provide any of the above information
required for financial years prior to 2010-11 (that is outside the ATO
retention period), the Applicant must provide for each of the required
financial years:
a) a summary document showing total income and expenses; and
b) a listing of invoices and receipts (containing only those transactions
relating to the retrospective installation of insulation in existing domestic
premises); and
c) a summary document listing all Eligible Capital Equipment; the useful
lives for all Eligible Capital Equipment; and all disposals of Eligible
Capital Equipment.
8.6
In its Application, an Applicant may indicate whether it elects to use the
services of the former HIP Royal Commissioner, Mr Richard (Ian) Hanger
AM QC (Mr Hanger).
Obtaining documentation from the ATO
8.7
Where an Applicant no longer has its Business tax returns and ATO
assessment notices required under paragraph 8.1 of these Guidelines, they
must be obtained from the ATO.
Note: An Applicant should allow at least 28 days for documents to be
provided. For more information please visit: www.ato.gov.au/Forms/Copiesof-tax-documents-request---non-individual-entities.
9 Assessment of Applications
9.1
An accepted Application must be forwarded to the Third-Party Accounting
Firm, by the Programme Delegate, for analysis to determine or re-determine
(refer to paragraph 9.5) whether or not an Applicant suffered an Adverse
Financial Impact.
Note: An assessment of Adverse Financial Impact will be made only in
relation to the installation element of a Business. The assessment will take
into account payments the Business received from the Commonwealth,
including from the Insulation Industry Assistance Package (IIAP) and the
Home Insulation Safety Plan (HISP), as a direct result of the HIP.
9.2
The Third-Party Accounting Firm must provide a written assessment report
to the Department in relation to each determination. The report must include
details of whether or not an Adverse Financial Impact was determined, the
extent of the impact, and an outline of the method used by the Third-Party
Accounting Firm to assess Adverse Financial Impact.
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Home Insulation Program Industry Payment Scheme Ministerial Guidelines
9.3
The extent of Adverse Financial Impact, determined by the Third-Party
Accounting Firm, must be categorised as:
a) Nil—No Adverse Financial Impact; or
b) Less than 25 per cent—Low Adverse Financial Impact; or
c) 25–50 per cent—High Adverse Financial Impact; or
d) Greater than 50 per cent—Extreme Adverse Financial Impact.
9.4
Applicants will be advised by either the Programme Delegate (in writing) or,
if so elected, by Mr Hanger, of the Adverse Financial Impact assessment
outcomes.
9.5
If an Application is forwarded to the Third-Party Accounting Firm to redetermine whether or not the Applicant suffered an Adverse Financial
Impact, then the Applicant will be advised of the assessment outcome by the
Programme Delegate (in writing).
10 Option for a meeting with Mr Hanger
10.1 If an Applicant has elected in its Application to use the services of Mr Hanger
and the Third-Party Accounting Firm has assessed the Application, then the
Applicant may have a meeting with Mr Hanger in person (where practical) or
via telephone.
10.2 Any costs incurred by an Applicant in attending a meeting must be borne by
the Applicant.
10.3 Mr Hanger must advise the Applicant whether or not an Adverse Financial
Impact was determined, the extent of the impact, the impact category, and
explain the method used to determine the impact.
10.4 An Applicant may have a representative (legal or other) present during the
meeting, but the cost of external representation must be borne by the
Applicant.
11 Re-determination given special circumstances
11.1 At the meeting with Mr Hanger, if the Applicant believes there are special
circumstances that, if taken into account, would result in a different
assessment of the extent of the Adverse Financial Impact, then the Applicant
may bring this to Mr Hanger’s attention.
11.2 If an Applicant had not previously elected to meet with Mr Hanger, and
following notification of the Adverse Financial Impact, then it may advise the
Programme Delegate (in writing) that it wishes to do so to bring its special
circumstances to Mr Hanger’s attention.
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Home Insulation Program Industry Payment Scheme Ministerial Guidelines
11.3 Mr Hanger may, at his discretion, refer the Application and the details of the
special circumstances to the Programme Delegate for forwarding the
Application to the Third-Party Accounting Firm for a re-determination.
12 Payment offer
12.1 A Payment Offer made to an Applicant under the Scheme does not
constitute a finding of fact or an admission of liability on the part of the
Commonwealth.
12.2 The Minister must decide the amount of payment to be offered to an
Applicant, taking into account:
a) the assessed Adverse Financial Impact; and
b) any recommendation of Mr Hanger as to the amount of payment to be
offered to the Applicant; and
c) the Programme Delegate’s advice on possible payment amounts; and
d) the current available and existing commitments of Scheme funds.
12.3 If the Minister determines that an Applicant did not have any Adverse
Financial Impact, the Applicant must not receive a Payment Offer under the
Scheme.
12.4 A decision of the Minister to offer a payment amount is final.
12.5 The Minister may decide to offer an advance part-payment to an Applicant,
prior to deciding the final payment amount to be offered.
12.6 The Programme Delegate must advise an Applicant (in writing) of the
Payment Offer.
12.7 A Payment Offer must require the Applicant to sign a Deed of Settlement
before any payment is made.
13 Accepting a payment
13.1 It is a condition of acceptance of a Payment Offer that the Applicant sign and
return the Deed of Settlement to the Department.
13.2 The Payment Offer lapses if an Applicant does not accept the offer or
provide a signed Deed of Settlement to the Department within the timeframe
prescribed by the Programme Delegate.
13.3 Payments will be inalienable—that is, they will be made directly to Applicants
only.
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Home Insulation Program Industry Payment Scheme Ministerial Guidelines
14 Payments under the Scheme
14.1 Payments under the Scheme are exempt from GST.
14.2 Payments under the Scheme are treated as assessable income for taxation
purposes. On this basis, Applicants should seek independent professional
advice about their taxation obligations.
15 Announcement of payments
15.1 As required by the Commonwealth Grants Rules and Guidelines
(paragraph 5.3), a list of Payees will be published on the Department’s
website including Business name and the amount of the payment.
16 Conditions: general
16.1 An Applicant must comply with these Guidelines.
16.2 A Payee must comply with these Guidelines.
16.3 These Guidelines may be amended from time to time.
17 Conditions: confidentiality
17.1 The use and disclosure of information provided to the Department is
regulated by legislation and the common law. Without limitation, relevant
legislation includes the Archives Act 1983 (Cth), Public Service Act 1999
(Cth), the Public Service Regulations, the Privacy Act 1988 (Cth), the Crimes
Act 1914 (Cth) and the Criminal Code Act 1995 (Cth).
17.2 Only information which satisfies all of the four criteria listed below must be
treated by the Commonwealth as confidential information:
a) the information is clearly identified by the Applicant as confidential and
reasons for the confidentiality are provided by the Applicant;
b) the information is commercially sensitive;
c) the disclosure of the information would cause unreasonable detriment
to the Applicant or another party;
d) the Applicant provided the information under an understanding that it
would remain confidential.
17.3 Only information which does not satisfy the above requirements must not be
treated as confidential.
17.4 Even if the information provided by the Applicant is identified by the
Applicant as confidential:
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Home Insulation Program Industry Payment Scheme Ministerial Guidelines
a) it may be disclosed by the Department (including its officials and
contractors) to the Third-Party Accounting Firm, Mr Hanger and other
Commonwealth officials and contractors for the purposes of
administering the Scheme;
b) it will be disclosed by the Department in accordance with paragraph 15
of these Guidelines; and
c) to the extent it is information received in an Application, it may be
disclosed for reporting and consultation with other Commonwealth
government agencies.
17.5 In addition to the other disclosures of confidential information the
Department may disclose any confidential information it receives as part of
the administration of the Scheme to:
a) the Auditor-General, Commonwealth Ombudsman or Australian
Information Commissioner;
b) the Minister;
c) a House or a Committee of the Parliament of the Commonwealth of
Australia;
d) a third party contractor engaged by the Commonwealth for audit-related
purposes; and/or
e) other Commonwealth agencies for law enforcement purposes, where
the disclosure will serve the Commonwealth’s legitimate interests and,
if necessary, to substantiate an Applicant’s claim.
17.6 Confidential information may also be disclosed if the Commonwealth is
otherwise required or permitted by law to do so, or where the information
enters the public domain due to the actions of someone other than the
Commonwealth.
18 Use and disclosure of Personal Information
18.1 The Department and its officials are required to treat Personal Information in
accordance with the Privacy Act 1988 (Cth).
18.2 The Department will collect Personal Information from Applicants for the
purposes of the administration of the Scheme.
18.3 The Department may provide Personal Information collected about an
Applicant to Departmental officials and contractors, the Third-Party
Accounting Firm, Mr Hanger and other Commonwealth officials and
contractors, for the purposes of administering the Scheme.
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Home Insulation Program Industry Payment Scheme Ministerial Guidelines
18.4 The Department and/or the Minister may publish Payees’ Personal
Information in accordance with paragraph 15 of these Guidelines.
18.5 The Department’s Privacy Policy, which is available on the Department’s
website, provides further information about how the Department collects,
uses, stores and discloses Personal Information and the way in which an
Applicant can access and correct their Personal Information.
19 Freedom of information
19.1 All documents created or held by the Department with regard to the Scheme
are subject to the Freedom of Information Act 1982 (Cth). Where a
document is relevant to a request under the Freedom of Information Act
1982 (Cth), unless the document falls under an exemption provision, or is
conditionally exempt and it is not in the public interest to give access to the
document, it will, subject to any obligations of third party consultation, be
disclosed in response to the request.
20 Disclosure of interest
20.1 The Department has procedures for managing disclosure of interest by
Departmental staff, technical experts and other third parties involved in the
assessment of applications and/or the administration of the Scheme.
Conflicts of interest will be managed in accordance with these procedures.
20.2 The Department’s procedures for managing disclosure of interest are in
accordance with the requirements of the APS Code of Conduct
(subsection 13 (7) of the Public Service Act 1999 (Cth)) and are published
on the Department’s website.
20.3 The Department will manage potential and actual conflicts of interest through
a disclosure of interest process that requires declaration of any conflict of
interest by departmental staff, technical experts and other third parties
involved in the assessment of applications and/or the administration of the
Scheme.
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Home Insulation Program Industry Payment Scheme Ministerial Guidelines