TCF Small
Business Program
Customer
Information
Guide
December 2012
Content
Page
1
Introduction ............................................................................................... 1
1.1
1.2
1.3
Purpose of this guide ................................................................. 1
TCF Small Business Program ...................................................... 1
Objectives of the program .......................................................... 1
2
The applicant .............................................................................................. 2
2.1
2.2
Eligible applicants ..................................................................... 2
Consortia ................................................................................. 3
3
Eligible Projects .......................................................................................... 3
3.1
3.2
3.3
3.4
Eligibility criteria ....................................................................... 3
Eligible projects ........................................................................ 4
Grant limit of eligible expenditure ............................................... 6
Eligible Expenditure ................................................................... 6
4
Merit Criteria .............................................................................................. 6
4.1
Competitive assessment ............................................................ 7
5
The application process .............................................................................. 7
5.1
5.2
5.3
5.4
5.5
Applying for funding .................................................................. 7
Submitting an application........................................................... 7
Completing the application form ................................................. 7
Submitting an application........................................................... 8
Acknowledgment of applications ................................................. 8
6
The assessment and decision process ......................................................... 8
6.1
6.2
6.3
6.4
6.5
6.6
Assessment of applications ......................................................... 8
The decision process ................................................................. 8
Announcement of successful projects .......................................... 9
Applicant feedback .................................................................... 9
AusIndustry customer service ..................................................... 9
Confidentiality and disclosure of information ................................. 9
7
Successful Applicants ............................................................................... 10
7.1
7.2
7.3
7.4
7.5
7.6
7.7
7.8
7.9
7.10
Offer of a grant ....................................................................... 10
Grant agreement .................................................................... 10
Grant payments ...................................................................... 10
Underperformance .................................................................. 10
Final report ............................................................................ 11
Variations to the grant agreement ............................................. 11
Taxation implications ............................................................... 11
Record keeping ....................................................................... 11
Site visits and document retention ............................................ 12
Program evaluation ................................................................. 12
Appendix A ................................................................................................................. 13
Completing the application form ................................................................................ 13
Eligibility checklist ................................................................................. 13
Part A
Applicant Details ........................................................................................... 13
Part B
Project Details .............................................................................................. 15
Part C
Merit Criteria ................................................................................................ 18
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December 2012
i
Part D
Attachments to the application ....................................................................... 20
Part E
Applicant Declaration .................................................................................... 20
Appendix B ................................................................................................................. 22
Consortia applications and preparing a consortium agreement .................................. 22
How should a consortium apply? ...................................................................................... 23
Consortium Agreement ................................................................................................... 23
What must be included in a consortium agreement? ........................................................... 23
Appendix C ................................................................................................................. 24
Eligible TCF Activities ............................................................................. 24
Part A
.................................................................................................................. 24
Textile Fibre, Yarn and Fabric Manufacturing ...................................................................... 24
Part B
.................................................................................................................. 25
Knitting Mills Manufacturing ............................................................................................. 25
Part C
.................................................................................................................. 26
Clothing and Manufacturing ............................................................................................. 26
Part D
.................................................................................................................. 28
Footwear Manufacturing .................................................................................................. 28
Part E
.................................................................................................................. 28
Leather and Leather Product Manufacturing ....................................................................... 28
Part G
.................................................................................................................. 28
Made-up Textile and Leather Product Manufacturing ........................................................... 28
TCF SBP Customer information guide
December 2012
ii
1
1.1
Introduction
Purpose of this guide
The purpose of this customer guide is to assist potential applicants to decide whether or not to apply
for a grant under the TCF Small Business Program and, if so, to provide the information they need to
complete an application. Applicants, grant recipients and those responsible for administering the
program will generally operate in accordance with this guide. This guide should be read in full,
including Appendix C which defines eligible TCF activities, Appendix A is a detailed guide to
completing the application form, and Appendix B is for consortia applicants. Potential applicants
should also read the application form and draft grant agreement, and familiarise themselves with the
TCF Small Business Program Determination 2005, as amended in December 2011, available at
www.ausindustry.gov.au.
1.2
TCF Small Business Program
The program is part of the Australian Government’s $397 million TCF innovation package to foster
innovation in the Australian textile, clothing and footwear (TCF) industry. One component of this
package is funding for a program specifically aimed at TCF small businesses that are unable to receive
assistance under the Textile Clothing and Footwear Strategic Investment Program (TCF SIP) Scheme
or the TCF Post-2005 (SIP) Scheme and do not qualify for assistance under the Clothing and
Household Textile Building Innovative Capability (BIC) Scheme. Funding of $2.5 million is available
for grants each year for the duration of the TCF Small Business Program. Grants will be awarded
annually via funding rounds for projects to be completed within a year. The program is delivered by
the Department of Industry, Innovation, Science, Research and Tertiary Education (the department),
through its division of AusIndustry.
The TCF Small Business Program will provide grants to improve the business enterprise culture of
established TCF small businesses. It is a competitive, merit-based grant program that will provide up
to $50,000 (exclusive of GST) for each successful project.
Applications will first be considered against the eligibility criteria and, if eligible, will then be
considered against the merit criteria to determine whether or not a particular project is of sufficiently
high relative merit to be funded. As there is a limited amount of funding available, only the best
eligible projects will be considered for funding. Applicants should note that meeting the eligibility and
merit criteria to a high degree does not guarantee an offer of funding.
1.3
Objectives of the program
The TCF Small Business Program aims to improve the business enterprise culture of TCF small
businesses that do not qualify for assistance under the TCF (SIP) Scheme or the TCF Post-2005 (SIP)
Scheme or under the Clothing and Household Textile (BIC) Scheme.
What is Business Enterprise Culture?
For the purposes of the TCF Small Business Program, ‘business enterprise culture’ refers to the nature
and style of the decision-making and production processes of a business.
Business enterprise culture describes the extent to which the dominant values and attitudes in a
business can be described as entrepreneurial. A good enterprise culture is found in businesses which:

engage with risk - that is, have the ability to calculate and evaluate the benefits from taking risks

emphasise characteristics such as initiative, self-reliance and creativity

are flexible and adaptable

are focused on financial growth and expansion (growth orientation).
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December 2012
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They are also skilled at maintaining a competitive market edge and understand how to maximise
commercial returns on products and services. The process of change is generated and managed largely
from within.
The TCF Small Business Program aims to encourage projects which enhance these characteristics in a
business. Entrepreneurial behaviour can also be regarded as a reflection of a particular business’s
culture.
2
The applicant
2.1
Eligible applicants
Any interested TCF small business, or a consortium that includes at least one TCF small business, may
apply if it meets the eligibility criteria (described below) set out in the TCF Small Business Program
Determination 2005.
A TCF small business is defined as any entity employing fewer than 20 employees, with a turnover of
at least $100,000, that is solvent and not under any administrative arrangement; and that undertakes
eligible TCF activities within the meaning of the TCF Post-2005 (SIP) Scheme. An eligible entity
could be a company, partnership or sole trader, including a trustee on behalf of a trust.
Successful applicants must be registered for GST prior to signing a Grant Agreement with
AusIndustry.
Fewer than 20 employees
An employee is defined as any individual—that is, a permanent full-time, part-time or casual
worker—for whom the employer is required to withhold an amount under section 12-35 or 12-40 of
schedule 1 to the Taxation Administration Act 1953. These amounts are salary, wages, commissions,
bonuses or allowances, and remuneration paid to directors and committee members. For example, if a
TCF small business has fewer than 20 employees who are issued with a payment summary, the small
business would be eligible. If you employ part time staff, please calculate the Full Time Equivalent
(FTE).
Eligible TCF activities
For the purposes of the TCF Small Business Program, an eligible TCF activity is as defined in detail in
schedule 1 of the TCF Post-2005 (SIP) Scheme (see appendix C). A business that solely imports
overseas product or only undertakes retail activities will not be eligible. To be eligible to apply, the
business must undertake at least one of the activities below.
1
Manufacturing activities carried on in Australia
Activities such as the manufacture of clothing, footwear or leather, or textile fibre, yarn and fabric
manufacturing (known as ‘Part A–E activity’ in schedule 1 of appendix C) are eligible if they are
carried on in Australia by an entity. In addition, certain activities undertaken on a fee or commission
basis using client supplied materials, or materials purchased or transferred in from other entities (‘cut,
make and trim operations’), may be eligible.
If an entity manufactures goods other than clothing, footwear or leather, the activity may be eligible
for example, under Part A,4 Textile Finishing. If unsure whether the activity is clearly mentioned in
Part A-E, it is recommended that the entity discuss the eligibility of the activity with AusIndustry.
2
Design for manufacturing activities carried on in Australia
Activities will be eligible if:
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December 2012
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 they are carried on by an entity in Australia in respect of design in Australia of eligible TCF
products
 the products are manufactured in Australia
 some or all of those products are intended to be sold in Australia.
3
Certain ancillary activities carried on in Australia such as early stage processing activities or
certain warehousing and distribution activities.
These ancillary activities are eligible only if the operations are wholly and mutually interdependent
with eligible manufacturing or eligible design activities. If you are unsure whether an activity is
eligible call the AusIndustry hotline on 13 28 46.
Examples of design and manufacturing activities
1. A business produces its own designs and then manufactures the TCF goods in-house in Australia. Some
products will be sold in Australia, some will be exported. The business would be considered to be
undertaking eligible TCF activities—that is, manufacturing, and design for manufacture in Australia.
2. A business produces its own designs and then arranges for manufacturing to be undertaken by a
different entity in Australia. Some of these products will be sold in Australia. The business would be
considered to be undertaking an eligible TCF activity—that is, design for manufacture in Australia.
3. A business purchases designs from an Australian designer and then arranges for another entity to
manufacture the goods in Australia. The business would not be considered to be undertaking an eligible
TCF activity because it is not undertaking either a manufacturing activity or a design activity for
manufacture in Australia.
Manufacture in Australia: We ask you to declare the percentage of manufacturing undertaken in
Australia, because the definition of an eligible business is one that designs for manufacture or
manufactures TCF products in Australia. This amount is recorded in your Grant Agreement and will
be monitored for the duration of the project to indicate your intention not to increase manufacturing
offshore. The Grantee must notify the Commonwealth within 28 days if their eligible onshore TCF
activity falls below the minimum level of onshore TCF activity at Schedule 1 of the Agreement.
2.2
Consortia
If a consortium wishes to apply for a grant, the application must be made by the ‘lead member’ of the
consortium. The lead member, as the applicant, should be appointed by all its other members as an
agent with the power to act on their behalf for the purposes of the project. The consortium must
include at least one eligible TCF small business. Where all businesses which are the focus of the grant
are eligible TCF small businesses, the application is likely to be more competitive.
The applicant must propose, on behalf of the consortium, a project that is eligible under the program
and is consistent with the terms of the consortium agreement. It must also provide, with its application,
a draft or executed copy of a consortium agreement. (For more detailed information see Appendix B).
3
Eligible Projects
3.1
Eligibility criteria
In order to be eligible for a grant, the project must meet eligibility criteria 1, 2, 3 and 4.
1
The project must meet the needs of a particular TCF small business that:
 has not received funding, or qualify to receive funding, from the TCF (SIP) Scheme, the TCF
Post-2005 (SIP) Scheme or the Clothing and Household Textile (BIC) Scheme;
 is solvent and not under any administrative arrangement;
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December 2012
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 have fewer than 20 employees;
 must be registered for GST.
2
3
4
The project must be aimed at improving the business enterprise culture of the TCF
small business (or businesses, if part of a consortium).
The applicant must submit an accountant’s letter to indicate a turnover of not less than
$100,000 in the financial or calendar year immediately prior to the financial year in
which the application is made.
The applicant must demonstrate the ability to pay cash contribution, matching not less
than 25% of the amount of the total eligible project expenditure. This means the
contribution cannot be less than 25% of the eventual eligible project expenditure. The
‘cash contribution’ requirement refers to money, not to in-kind contributions. This
contribution must not be obtained through another subsidy from either the
Commonwealth Government or a state or territory government.
Eligible projects
3.2
The TCF Small Business Program seeks to fund projects that assist TCF small businesses to enhance
their business enterprise culture. Projects should be standalone and targeted to a specific outcome (not
a series of unconnected upgrade costs), comprised of a set of activities scheduled to achievable
timelines and, where relevant, include management mentoring and staff training. Examples include:
 marketing/branding strategy and/or e-commerce systems

enterprise resource planning and management systems

business process re-engineering to support a new strategic business approach

streamlining design/production systems or manufacturing processes
The types of projects that can be funded have not been set, and a wide variety of projects may be
supported. The competitiveness of the project will be assessed by how well the merit criteria are
addressed. When addressing the criteria, consider the needs of the business and whether a project will
lead to fundamental changes to the way the business will operate.
Example 1
Having identified that revenue growth has stalled, a business has identified the need to build brand awareness,
regain profitability, grow the number of Australian stockists and build demand. The project, to develop an ecommerce marketing plan to focus on online sales, will include a mentoring program to support strategy
implementation, and a web designer will build an enhanced website, which will be integrated with existing
business systems. Business Enterprise Culture improvements will include more creative marketing and informed
management decisions, better customer communication and new designs based on customer feedback, the ability
to more quickly respond to market changes, and to make informed risk assessments about diversifying product
and target markets.
Example 2
A partnership proposes to implement a computer based enterprise management system to link all facets of the
business from design, costing and specification through to production, sales and distribution. The system provides
for detailed reports and will form the basis of an improved analytical capability. The current manual systems are
unlinked and are not able to accommodate increased production demands. The implementation plan also includes
the development of new procedures in various parts of the business to ensure increased use of data. The project
will lead to improved communications, increased accuracy of data and the ability to support improved decision
making in all areas of the business, including risk management.
Example 3
A business has identified an opportunity to expand its product range and introduce a new, competitive product to
the market. The project includes a review of current production and its capacity to diversify, and a broader
investigation of prospective markets for a new range. While a marketing strategy will be developed as part of the
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December 2012
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project, a business mentor will also assist the business to ascertain whether diversification would be feasible
using its existing resources, determine market demand for a select range of products and develop a long-term
business strategy. The project will result in a new direction for the business, a plan for entry into new markets.
All these projects demonstrate how the outcome will improve the culture beyond the project
completion. Projects should demonstrate some essential characteristics, including that they:
 are practical and not theoretical

clearly articulate how the business enterprise culture of the TCF small business will be
improved

consist of a series of clearly related activities to achieve the project outcome

actively engage the small business in the project

address the merit criteria in detail.
In identifying a project, you may wish to consider how improving the business enterprise culture could
impact on your business’s:

decision-making processes—for example
 the ability to quickly react to changes in the marketplace, including the ability to make and
implement decisions;
 streamlining decision-making processes, even with a small management team
 using information to make good commercial decisions;
 mentoring to support development of a business plan.

manufacturing and/or design processes—for example
 identifying and implementing appropriate innovative manufacturing technology and processes;
 increased focus on innovative design processes.

internal and external communications—for example
 communicating a company’s vision, business strategy, and financial framework to its staff;
 more effective communications to key stakeholders such as suppliers, and current and potential
customers;
 identifying synergies with other companies.

marketing strategy—for example
 the ability to create a brand, adding value to a brand or re-branding as necessary;
 identifying new export markets and then using effective marketing tools to exploit these
commercial opportunities;
 developing new marketing strategies for existing products.

up-to-date financial, management, production and accounting processes—for example
 using financial information as a business tool to assist in growth and development;
 integrating financial data with information from the production process to achieve specific
goals.

strategic skills, such as planning—for example
 implementing business strategies for the medium and long term;
 improving financial reporting and forecasting.
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Grant limit of eligible expenditure
3.3
Although there is no upper limit to the size of the project, applicants are reminded that successful
projects are only funded to a maximum of $50,000 (GST exclusive). This limit applies regardless of
the amount of cash contribution made by the applicant.
Eligible Expenditure
3.4
Grant funding is only to subsidise actual expenditure incurred on project costs for activities that occur
following the execution of a funding agreement—that is, during the project period set out in the
funding agreement.
Grant funding under the TCF Small Business Program must not be used to meet routine business
expenses—for example:

production costs including the design and manufacture of a new range

salaries for current ongoing employees

establishments costs, such as office equipment, to conduct routine business activities

establishment costs to set up new premises or start a business

plant or equipment costs that are usually incurred as part of the normal manufacturing
and/or design activities of the business, including maintenance costs, spare parts and
depreciation costs

routine or seasonal marketing costs

routine accounting costs, including the cost of audit certificates

routine IT expenses including fees for registration of domain names

routine rental costs and expenses

routine utility costs

routine training costs

excessive travel expenses or travel expenses not directly related to the project

the purchase of plant or equipment not specifically related to the project.
If a project contains a mixture of eligible and ineligible expenditure, the level of funding provided to
the project may be reduced by the amount of expenditure assessed as ineligible. The key is to
demonstrate the types and amount of eligible (non-routine) expenditure expected to be incurred.
Note that all expenditure must be GST exclusive.
4
Merit Criteria
Applications that are eligible will be considered and assessed against the three key merit criteria:
1
Whether the project outcome will meet the overall program objective, including how it will
enhance the entity’s:
 strategy for growth;
 business creativity;
 flexibility or adaptability; and
 willingness and ability to take risks.
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December 2012
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2
The value for money of the project to the Commonwealth and the level of commitment to the
project demonstrated by the applicant, including (but not limited to) the level of time, resources
and cash (additional to the compulsory 25%) that are to be contributed to the project.
3
Whether the project is capable of being commenced and completed within 12 months.
The most competitive applications clearly demonstrate how the project will improve the business
enterprise culture of the business when they address the first merit criterion. For more detail on the
merit criteria, refer to appendix A, which outlines some considerations in responding to each criterion.
Provide examples of how your business operates now, compared to how you intend it will operate
after the project, describing:
a) the effect on your style of business operations – how the project outcome will increase
management skills, enabling it to identify and take advantage of new business opportunities
(i.e. ability to take risks and creative business decisions)
b) how the project will contribute to improved business practices that support adaptability and
growth strategy:
4.1

skills to grow and adapt to markets (e.g. opportunity analysis tools, improved information
co-ordination & business processes, supply chain management, communications, marketing
innovations, etc.)

control of product innovation/quality/output (e.g. manufacturing &/ or design processes,
integrated systems, etc.)
Competitive assessment
All applications received on or before the closing date for each funding round that meet the eligibility
criteria will be assessed against the merit criteria. Consequently, applicants should answer all
questions as clearly and succinctly as possible. Where necessary, provide supporting evidence in
relation to claims. An application that does not meet the eligibility criteria will not be assessed.
5
5.1
The application process
Applying for funding
AusIndustry will advertise nationally for grant applications in selection rounds under the TCF Small
Business Program.
5.2
Submitting an application
To obtain a copy of the application form, call the AusIndustry hotline on 13 28 46. A sample of the
application form is available on the AusIndustry website at www.ausindustry.gov.au. Go to the
AusIndustry home page and follow the links to the TCF Small Business Program.
5.3
Completing the application form
The application you submit should be fully and consistently completed. Address all questions and pay
particular attention to each merit criterion in relation to the proposed project. Generally, it will not be
possible to include any new material or to make any significant changes to the application after the
closing date. AusIndustry may, at its absolute discretion, seek clarification about aspects of an
application after the application has been submitted.
The application form contains instructions on how an application form should be completed and
submitted. These instructions will help applicants identify and address all information requirements,
including the project description. Appendix A to this Customer Information Guide provides additional
information on answering specific questions.
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December 2012
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While an applicant may apply for funding for more than one project, it is difficult to demonstrate that
the business can meet the criteria to a high degree for each project. A TCF small business may also
find it more difficult to demonstrate its capacity to successfully complete a project within one year if
proposing multiple projects. No multiple projects from one applicant have been funded in recent
rounds. If funding is being sought for more than one proposed project, the applicant should repeat
sections B and C of the application form for each additional project.
Submitting an application
5.4
Applications can be submitted by mail or in-person at an AusIndustry office by the due date and time.
Email applications are not accepted. Applications submitted after the due date for that round will not
be accepted. Applicants may be contacted to clarify minor aspects of their original applications.
Applications can be submitted to an AusIndustry Regional Manager by prior arrangement.
Applications for Round 8 close at 5pm Local Time on Friday, 1 March 2013
Acknowledgment of applications
5.5
All applications received will be acknowledged in writing after the closing date.
6
The assessment and decision process
Assessment of applications
6.1
The eligibility of applicants will be determined for all applications received. If an applicant is
ineligible, the applicant will be advised in writing. Applications from ineligible applicants will not be
further considered.
All applications received from eligible applicants will be assessed against the merit criteria. Projects
that meet the objectives of the program and each of the merit criteria to a high degree will, in the
absolute discretion of the Secretary of the Department of Industry, Innovation, Science, Research and
Tertiary Education be considered for funding support under the program. The amount of grant funds
offered (regardless of the amount of funding sought) will also be at the absolute discretion of the
Secretary. Applicants should be aware that meeting the eligibility and merit criteria to a high degree
does not guarantee that an offer of funding under the program will be made.
The final awarding of grants is dependent on the quality of the applications received, the availability
of funds and the willingness of the applicant to enter into a funding agreement with the
Commonwealth. The actual amount of grant monies awarded to a successful applicant is also
dependent on what is assessed as eligible project expenditure. This may be less than the amount
originally sought by the applicant.
During the assessment process, the department reserves the right to:
6.2

contact applicants in relation to their proposed projects

seek additional expertise, including external assessors and experts, in evaluating the merits
of a proposed project.
The decision process
The Secretary will decide whether to award a grant to an applicant for a project described in the
application and the amount of the grant awarded. The decision of the Secretary is final. There will be
no internal review of decisions.
Following the conclusion of the assessment process, the department will advise all successful
applicants of the outcome of the application. If the Secretary has decided not to award a grant, the
notification will include the reason for the decision.
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Announcement of successful projects
6.3
Successful applicants and projects will be announced upon completion of the assessment and ranking
process. The name of successful applicants, the project title and brief description, and the amount of
the grant will be published on departmental websites.
Successful applicants will be contacted by AusIndustry to arrange for the finalisation of the grant
funding agreement. As discussed elsewhere in these guidelines, one of the conditions of the offer of
funding is that a successful applicant enters into a funding agreement with the Commonwealth.
Applicant feedback
6.4
At the end of each round, applicants will be informed of the success, or otherwise, of their
applications. Following the announcement of successful projects, feedback on the assessment process
will be available to unsuccessful applicants on request. Information will be available on their project
only.
AusIndustry customer service
6.5
AusIndustry, a division of the department, aims to provide a high level of customer service in
delivering industry programs for the Australian Government. The AusIndustry Customer Service
Charter is available at www.ausindustry.gov.au.
Complaints about customer service
Although there will be no internal review of decisions, if a customer or applicant is not satisfied with
AusIndustry’s standards of customer service they are encouraged to express their concerns about that
issue. Complaints about AusIndustry’s service standards will be dealt with in accordance with the
procedures set out in the AusIndustry Customer Service Charter. Complaints should be referred to
AusIndustry through the AusIndustry hotline on 13 28 46 or by email at hotline@ausindustry.gov.au,
or by calling the TCF Small Business Program manager.
Confidentiality and disclosure of information
6.6
The use and disclosure of information provided to the department by applicants for the TCF Small
Business Program is regulated by the relevant provisions and penalties of the Textile, Clothing and
Footwear Small Business Program Determination 2005, the Public Service Act 1999, the Public
Service Regulations, the Privacy Act 1988, the Crimes Act 1914, the Criminal Code and the general
law.
The department will use the information provided in the application form for the purposes of
discharging its functions under the program, and for related uses. These functions include determining
eligibility for assistance under the program, assessing merit, preparing grant agreements, calculating
the amount of funding that will be paid to successful applicants, and assisting with compliance
activities. The department may also use information received in applications in any other legitimate
departmental business.
While the department will seek to protect sensitive information from disclosure to external parties,
disclosure of some confidential information may occur. Confidential information may be disclosed to:

the Auditor-General

a third party contractor engaged by the department for audit-related purposes

other Commonwealth agencies for law enforcement purposes

a technical, financial (including auditors), economic and industry expert from whom the
Secretary wishes to seek advice.
Confidential information may also be released if the Secretary is required or permitted by law to do so,
or where the consent of the applicant to the release of information is obtained prior to its release.
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December 2012
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As part of the assessment of applications, the department may need to consult with and provide
material from the application to other government agencies or bodies, other organisations and/or
relevant individuals in order to substantiate any claims or statements made in the application form, or
to otherwise assist in the assessment of the application. If this occurs, the department will endeavour to
ensure that the parties who are consulted observe appropriate confidentiality.
7
Successful Applicants
Offer of a grant
7.1
All successful applicants are required to enter into a written agreement with the Commonwealth of
Australia governing the provision of funding for, and the conduct and management of, projects before
any funding can be paid. The offer of a grant will lapse if a grant agreement has not been entered into
within 30 days of the applicant being notified of the outcome of the application, unless extended in
writing by the Commonwealth. No project expenditure should be spent before the official start date of
the project in Schedule 1 of the Grant Agreement. Note the risk to your business if the project is
commenced before there is a valid funding agreement. The grant agreement will detail the successful
applicant’s responsibilities in regard to ensuring that the project is conducted according to the
agreement and that project outcomes are achieved. It includes as a condition that the applicant must be
registered for GST.
Grant agreement
7.2
Applicants should familiarise themselves with the draft TCF Small Business Program grant agreement
available on the AusIndustry website. The grant agreement will set out conditions including but not
limited to:

the making and receiving of grant payments;

audit requirements;

the manner in which unspent program moneys must be dealt with, including recovery of
grant funds;

variation and termination of agreements.
It is a condition of funding being paid under the program that successful applicants enter into a
funding agreement with the Commonwealth governing the conduct of approved projects.
Grant payments
7.3
Usually, there will be two grant instalment payments: an initial payment on execution of the
agreement and a final payment following receipt of a satisfactory final report (that includes an
auditor’s statement verifying grant expenditure). However, sometimes AusIndustry may choose to
schedule payments over three instalments rather than two.
Underperformance
7.4
A grant agreement may require that an applicant provides regular reports on the overall progress of the
project against the project plan. In the case of underperformance, remedial action may be undertaken.
This may include:

consultation and negotiation with the grant recipient

deferral and/or staging of scheduled payments

recovery of grant monies already advanced

investigation of any improper conduct
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
pursuit of appropriate legal remedies, civil and/or criminal.
Final report
7.5
Within six weeks of completion of the project, applicants are required to submit their final report. This
report should include all of the following information:

details of the extent to which the project achieved its original objectives (described against
completion of Milestones, and measures used against projected Outcomes, such as increased
sales)

any highlights, breakthroughs or difficulties

conclusions and recommendations arising from the project

details of any unexpended funds

financial statements for the project

an audit certificate verifying grant expenditure

whether or not the project improves the business enterprise culture of the business.
Note that the final report must contain an *independent auditor’s statement verifying expenditure.
Failure to do so may result in the Commonwealth seeking to recover some or all of the grant funds
paid. Any unexpended funds must be returned to the Commonwealth with the final report.
*An independent auditor means a person who is:

registered as a company auditor under the Corporations Act, or a member of the Institute of
Chartered Accountants in Australia or CPA Australia; or

a Member of the Institute of Public Accountants (MIPA) or Fellow of the Institute of Public
Accountants (FIPA); and

not a principal, member, shareholder, officer or employee of the Grantee or any Consortium
Member or of a related entity (as defined in the Corporations Act) of the Grantee or any
Consortium Member; and

not a family member or related through family ties to the Grantee.
Variations to the grant agreement
7.6
A variation to a grant agreement will only be considered by the department if it:
7.7

significantly improves the outcomes of the project;

is consistent with the program’s objectives;

is appropriate in all circumstances.
Taxation implications
Ten per cent will be added to the agreed amount of a grant offer for the purposes of GST. The
successful applicant must pay this additional amount directly to the Australian Taxation Office (ATO).
For example, if a project for $50,000 is approved, the Commonwealth will pay $55,000 to the
successful applicant and the applicant must then pay $5,000 to the ATO.
Note that grants are not of themselves exempt from income and other taxes. It is for applicants to
make their own assessment and decision on taxation issues as part of the process of deciding whether
or not to apply for funding. The department does not give legal or taxation advice.
7.8
Record keeping
It is a condition of being paid a grant under the TCF Small Business Program that successful
applicants retain all documents and records in relation to the application and the grant agreement for a
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December 2012
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period of two years after the completion of the project and that applicants provide this information to
authorised officers of the department if requested to do so.
7.9
Site visits and document retention
The grant agreement may also provide for employees of the department to visit sites where projects
are being undertaken and where documents relevant to the conduct of projects are stored for the
purposes of assessing the progress of the project. Such visits will be undertaken with a grantee’s
consent, which must not be unreasonably withheld.
7.10 Program evaluation
The customer may be required to provide reports after the completion of the project and to participate
in a broader evaluation of the TCF Small Business Program. At some point in the future, the
department may survey TCF Small Business Program customers and other stakeholders.
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Appendix A
Completing the application form
Eligibility checklist
This eligibility checklist is designed to assist potential applicants to determine whether or not they are
eligible to apply for funding under the TCF Small Business Program.
If you are unsure whether you undertake an eligible TCF activity, whether a component of your
project expenditure is eligible, or if you have any other queries regarding eligibility, please contact the
AusIndustry hotline on 13 28 46 prior to completing an application.
Applicants who answer NO to any of the following questions will not be eligible to apply for funding.
1. Can you confirm that the applicant business has not received funding from the TCF (SIP)
Scheme, the TCF Post-2005 (SIP) Scheme, or the Clothing and Household Textile Building
Innovative Capability (BIC) Scheme?
2. Does the TCF small business have fewer than 20 employees?
3. Does the TCF small business undertake eligible TCF activities (e.g. manufacture, or design for
manufacture, in Australia—refer to the TCF SBP Customer Information Guide)?
4. Did the TCF small business have a turnover greater than $100,000 in the last year?
5. Is the proposed project aimed at improving the ‘business enterprise culture’ of the TCF small
business?
6. Can the applicant provide evidence that it can make a cash contribution of no less than 25% of
eligible project expenditure towards the funding of the project?
7. Is the TCF small business solvent and not under any administrative arrangement?
8. Is the applicant applying for funding of no more than $50,000 (exclusive of GST)?
Part A Applicant Details
A1
Name of applicant
Legal business name: Provide the name under which the applicant business is registered with the
ABR, in other words related to your ABN.
If you are a company, you will also have an ACN (registration is under the Australian Corporations
Act 2001). If the applicant is a trustee applying on behalf of a trust, provide details of both the trust
and the trustee. The Trustee name is the applicant, however the ABN will be related to the Trust.
Registered sole traders may apply, and provide their date of birth on the form. Other businesses that
are not companies—for example, a partnership—are required to register their business name with the
appropriate State/Territory authority unless the business is conducted under the name of the person or
persons involved.
Trading Name: If trading under a name other than a registered business name, also provide the name
under which the business is trading.
A2
Australian ACN and/or ABN
If the applicant is a registered company there will be an ACN, otherwise provide the ABN only. A
trustee applying on behalf of a trust, provide the ABN of the trust. Note that you must be registered for
GST to enter into a grant agreement.
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A5
Applicant’s financials
Provide an accountant’s letter clarifying that your turnover is at least $100,000. This amount should
refer to the year (financial or calendar) immediately prior to the financial year in which the application
is made. A template for an accountant’s letter is at Appendix B of the Application Form.
A6
Consortium details
If the applicant is part of a consortium, it must include at least one small business and each small
business that is a beneficiary under the project should be an eligible TCF small business. See
Appendix B.
A8
Eligible TCF activities
A: tick the check boxes to indicate whether the applicant undertakes TCF design and or manufacturing
activities. Then indicate which type of TCF activitity is undertaken by referring to Appendix C of the
form (definitions for Eligible TCF activities). Note that Part G activities are only eligible if a part A to
E activity is also conducted.
B: Support Part A by a description of the applicant business’s TCF activities. The level of description
should be detailed enough to enable AusIndustry to assess whether the activities are eligible. For
example:
We design and manufacture an eligible product under Part G, being car seat covers, from natural and
man-made fabrics, including neoprene. The Part A activity involved in this product is textile finishing
– we emboss or weld designs and logos into a variety of materials we source in Australia, to cut and
sew.
A9
Current business profile and operations
The entity’s major product lines, key markets and various activities should be described, in particular
which activities are undertaken in-house and which are outsourced to another entity. For example:
We design outdoor wear made from the highest quality Australian super-fine merino wool. 100% of
our wool is sourced from Australian premier wool growing regions and driving our business is a
passion to design and produce Australian made garments that are natural, sustainable and
environmentally aware. Our manufacturing is undertaken locally, apart from an accessory item, in
effect about 98% onshore.
We have identified a key risk to our business is that the current finish to the seams of our garments is
inferior to other similarly priced brand name competitors who manufacture their product overseas.
We must demonstrate that Australian made products are just as good, and can be finished to an equally
high standard. Another risk is that we are too reliant on one local manufacturer who may be unable to
meet our supply demands in a timely manner or provide the quality output that the market demands.
Our current strategy is to aggressively build sales and business opportunities to ensure the company
can grow to a more sustainable level. We will be focused on online opportunities through our new
website, retail outlets in targeted Australian states and markets, and through word of mouth.
Our future direction is to further refine and develop our manufacturing process to make our local
manufacturing capability world class; develop export sales by reaching international markets through
the web site; and build our Australian sales with online and retail shop presence and grass root
marketing to specific target audiences.
A10
Number of employees
a) How many employees– this includes part-time employees who are issued with a
payment summary.
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December 2012
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b) Comparable number of full-time equivalents (FTE) – if part-time employees, calculate
the total hours as equivalent of a full time person – eg two part-timers doing a half day
each equals one FTE.
Part B Project Details
B1
Project title and short project description
The project title should be what it is about, and up to 10 words long. The short project description
should include what are the activities and broad objectives. The two should total no more than 50
words.
B2
Project budget and dates
The project start date must not be before the start of the new financial year (that is, not before 1 July).
Applicants should also note that one of the merit criteria considers whether the project is capable of
being commenced and completed within 12 months, eg: Start: 01/07/2013 End: 30/06/2014
The maximum project grant is $50,000. The project budget is the total of the grant and your cash
contribution. Note the cash contribution should be a minimum 25% of budget. We require that you
attach evidence of your cash contribution to your application form, for instance a bank statement
(including term deposits) or a bank overdraft. An applicant may provide evidence of a cash
contribution from an ‘angel’ investor or, if the applicant is part of a consortium, contingent cash
funding from other members of the consortium. As below, Budget = Grant + Cash contribution (with
Cash being 25%).
Total project budget
$65,000.00 (100% eligible expenditure)
B3
Grant sought (A$)
$48,750.00 (75% budget)
Cash Contribution (A$)
$16,250.00 (minimum 25% budget)
Project description
The application form has a 300 word limit for describing the project. Excess text is unlikely to be
considered.
The more specific the project description, the easier it will be to address the merit criteria and develop
a project plan and budget. Projects that are not clearly focused on business enterprise culture are
unlikely to be funded. Please review section 3.2 of the customer guide for more information regarding
projects. Competitive applications will address the following, as requested, in two parts:
a) What is the project about; its range of activities; how will it be structured and managed; who will be
involved, etc.
b) The rationale for the project, ie why it is needed; how it fits in with your overall business strategy;
and how will the outcomes of the project improve the business enterprise culture of the TCF small
business.
For example, a marketing project:
a) [It is about]: The project is to engage marketing consultants to assist with the development of a
brand communication strategy and marketing plan. The objective is to transform the business
from an operational focus to a market driven organisation and support the move from low margin
wholesale. It will be coordinated by the consultant working with the director, and include brand
development with e-commerce website re-engineering and involve the employees. Activities will
include a business review, market analysis, the development of market opportunities, key
messages and sales conversion strategies, individual mentoring sessions covering topics such as
database growth, public relations, marketing communications and social media management, and
the roll out of brand strategy through identified marketing channels. Following implementation
there will be a review of marketing plan performance and implementation of a monitoring
schedule.
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b) [The rationale]: The past 18 months of unsteady markets has lead to an urgent demand for a
review of strategies and resources, including but not limited to cashflow outlays, cost of raw
materials, production capacity, retail closures, etc. The project will support the current business
growth plan by facilitating a transition to more efficient systems and strategies enabling better
returns through online and retail sales. It will capitalise on recent successes with design awards
and positive media coverage.
B4
Project outcomes
Outline some key changes (outcomes) to the business as a result of the project. For each outcome, list
how you will measure that the outcome has been achieved. If possible include figures, such as
percentage sales growth. For example, an Enterprise Management System project could include:
Project Outcomes
Performance Indicators
Reduction in raw materials holding
Reduce by 10% the value of raw materials holdings at project
completion.
Achieve 20% reduction in the time it takes for orders to be delivered
to customers.
Improve timeliness of order deliveries
B5
Project plan
The project plan should provide a concise representation of how the project will be conducted, by
listing project stages, timelines and activities. To plan it in this way, the project is broken down into
its natural progressive stages, or ‘milestones’, each stage being supported by the key activities
necessary to complete it, and how long each stage will be.
Each key stage, or milestone, represents a planned estimate of progressive activities and how long
these will take – based on consultant quotes, delivery dates, your business demands, etc. This then
represents the timeframe of the project, outlined in table form, with start and end dates for each
milestone, against which we can monitor the progress of the project at any particular point.
Under each milestone heading, list (in dot-points) the key activities that will be undertaken to
complete that milestone. Note that all the activities should be related, progressive, and clearly directed
at the particular project outcome. Therefore, proposals which involve a series of unrelated activities
targeted at different areas of the business, rather than focused on one aspect with a clear outcome, are
unlikely to be competitive because they will more likely be viewed as multiple minor projects. For
example:
Proposed
Proposed
Milestone
Name each key milestone with timeframe dates in order, and underneath Start Date
End Date
them list the activities to be undertaken to achieve each milestone.
(dd/mm/yyyy) (dd/mm/yyyy)
Milestone 1: Consumer intelligence market research
Activities:
 engage international consumer & market research
agency & procure research
1/07/2012
 attend export planning workshop
 analyse findings & develop marketing & operational
channel solutions
20/08/2012
Milestone 2: Price, foreign exchange & export financial modelling
Activities:
 develop price, shipping, product costing tools
 receive training in new tools
21/08/2012
 re-engineer chart of accounts, bookkeeping &
financial document management practices
 develop Profit & Loss forecast & Cashflow forecast
in line with new strategic plans
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Proposed
Proposed
Milestone
Name each key milestone with timeframe dates in order, and underneath Start Date
End Date
them list the activities to be undertaken to achieve each milestone.
(dd/mm/yyyy) (dd/mm/yyyy)
Milestone 3: Strategic Export & Market Plan
Activities:
 take part in export planning & mentoring sessions
with consultants
 develop a Strategic Export Marketing & Business
Management Plan
18/09/2012
31/03/2013
1/04/2013
30/06/2013
Milestone 4: Implementation
Activities:
 develop an Implementation Plan
 implement next step solutions and system
 review outcomes
All milestone start and completion dates should be within the project period. Note also that the
proposed project start and end dates (question B2) should relate to the milestones, ie the start of the
first milestone and the end of the last. Remember to leave enough time for project review in the last
milestone, ie, time to fully integrate your project (new plan, systems or process) into your business.
In some circumstances you may want to outline activities for which you are not seeking grant funding
and to which the cash contribution does not apply. For example, the production of a new range is not
eligible expenditure but may be necessary in order for you to implement a marketing strategy which
forms part of your project. If so, indicate in the project plan that funding is not being sought for that
activity. You can attach the project plan separately to the application form, if you need more space.
B6
Project budget
Provide a detailed breakdown of the proposed eligible project expenditure under the key categories.
Each item of expenditure in the proposed budget should be clearly identified and the activity
described. If contract expenditure is applicable, the contractor’s or consultant’s brief and quote should
be attached. Please review section 3.5 of the customer guide to ensure that ineligible expenditure is not
included.
Project expenditure may include, but is not limited to, the following:
 contract expenditure or consultancy costs incurred as part of the project. Describe the
activities to be undertaken under the contract. Where a quote has been provided which
details the activities to be undertaken by the contractor/consultant, the description may be
brief

equipment - plant, equipment or software directly related to the project

travel specifically relating to the project. Describe the nature of the costs, destination and
number of people

other expenditure project related business expenses that are not routine in nature
Note that all expenditure must be exclusive of GST. TCF Small Business Program funds cannot be
used to pay for audit costs.
Project Budget Example:
Base the budget on quotes or identified estimates, and attach any briefs of quotes. A project for an
Alice Springs-based company that features business process improvement, including IT systems and a
mentoring component for the business owner, might show its eligible project expenditure like this:
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December 2012
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Eligible Expenditure Type
Eligible expenditure amount
(A$) excluding GST
A. Contract expenditure: Consultancy fees
1. Change Mentor: 8-month program (quote attached)
2. IT systems review and implementation (see quote)
B. Equipment—IT hardware and software
$ 14,000.00
$ 20,000.00
$ 1,800.00
C. Travel—economy airfare to meet with IT consultant
D. Other expenditure—fee for Adelaide TAFE 3-day Change
Management for Line Managers Course for 3 attendees @
$1,100 each
Total Project Budget
$900.00
$ 3,300.00
$ 40,000.00
Grant requested and cash contribution equals the Total Project Budget. The calculation based on the
minimum cash contribution, would be a 75% to 25% split, as follows:
Total Project Budget
Maximum Grant (75%)
Minimum Cash Contribution (25%)
$40,000
$30,000
$10,000
$60,000
$45,000
$15,000
Part C
Merit Criteria
The competitiveness of a project compared to other proposals depends on how well the merit criteria
are addressed. All aspects of the merit criteria are important and applicants will need to consider how
their project is competitive in relation to each criterion, providing examples of how, as a result of the
project, your business will be better able to engage with risk, be more creative, be more adaptable and
grow.
C1
Describe how the project's outcome will improve the business enterprise culture
of the TCF small business
For each of the indicators of business enterprise culture, C1 (a) to (d), consider using a 3 part
description:
5
6
7
Describe current business practice or performance, identifying areas requiring change
(such as business skills, risk management and business planning) and why you need to
change them.
Explain how the project will address these business improvements, providing examples
such as how your business will be better able to identify opportunities, engage with risk,
be more creative, be more adaptable and flexible, etc?
Support statements with specific examples of how the business will change as a result
of the project, for example outcomes in areas such as:
Manufacturing and/or design processes; Marketing innovations; Communications; and/or
Business information systems and integrated processes.
Where possible, quantify. Your answers should be concise and structured. For example:
C1d) Risk – Marketing Strategy project response
WHY: Currently we’re a creative, entrepreneurial enterprise with a high-quality product, but lack the
tools and strategic approach to aggressively pursue market opportunities as we have no way to assess
and mitigate the risk. We simply don’t have the skill-set, experience or data to do this and so our
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approach to doing business has been largely ad-hoc and based on intuition and personal experience,
which is high risk.
WHAT: Having a professionally-assisted Marketing Plan and receiving mentoring from professional
marketers will allow us for the first time to have a planned approach, and manage risk proactively.
HOW: The frameworks developed, and knowledge learned will allow us to really embrace the
marketing fundamentals as a foundation for ongoing future growth.
OUTCOME: These assets will be invaluable in analysing opportunities, assessing risks, executing
mitigating actions should these risks occur, and confidently moving forward.
C1d) Risk – CAD Digital Design Process project response
WHY: Currently the organisation has design skills and a new e-commerce website has lead to real
growth in turnover. However, because our design and patternmaking processes are manual, we can
not take on the risk of expanding our customer base, because we may not be able to sustain supply.
We cannot take the risk of recruiting new staff (we are also in a remote location) and face a decline in
output and potential loss of market share.
WHAT: Digitising the design to pattern making process will deliver the quantity and quality to satisfy
current customers and sustain growing customer base, as well as provide flexibility of design to attract
new ones.
HOW: As the project will digitise the process, there will be time-savings of up to 70%, an increase in
the quality of output, and ability to adapt designs and meet orders. The additional time also allows
more time to be spent on monitoring industry trends and developing new products to remain
competitive in the market place.
OUTCOME: In this way we will be able to mitigate the risk of more aggressive marketing, and
achieve our ambition to diversify our range, and grow.
C2
The value for money of the project to the Commonwealth and the level of
commitment to the project demonstrated by the applicant, including (but not
limited to) the level of time, resources and cash that are to be contributed to the
project by the applicant
Projects with outcomes that offer social, industry and/or environmental flow-on benefits and/or are
achievable only with the assistance of government funding may be more competitive.
A key determinant in the successful outcome of any project is the level of commitment of participants.
This can be demonstrated in a variety of ways. The most persuasive indicator of commitment is the
size of the cash contribution in relation to the size of the grant requested. Therefore, an applicant who
contributes more than the 25% minimum towards eligible project expenditure is more competitive
than an applicant that only contributes the minimum. Also important is the extent to which senior
management and other staff are involved in the project. The resources should be realistic and
appropriate to the level of impact of the project on the business. The business may also be able to
demonstrate ongoing commitment beyond the project end date to ensure success and lasting impact.
In addition, applicants can demonstrate commitment by outlining other financial contributions and
resources supporting the project. Additional financial support can include funding or in-kind support
from other sources such as regional economic development organisations, professional or industry
associations.
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In some circumstances, applicants have undertaken some preparatory work, for example developing a
business plan, a feasibility study, market research and so on. Such preliminary work can be used to
demonstrate commitment and provides a context for the proposal. Similarly, if there are ineligible
activities as an adjunct to the project you are proposing, such as routine marketing or advertising costs,
please describe these items as this will assist to demonstrate additional input to the project.
C3
Whether the project is capable of being commenced and completed within 12
months
Projects and businesses sought by the program are flexible, quick to market and outcome focused. In
demonstrating whether a project can be completed within 12 months, carefully outline the basis and
scope of the project plan, including the resources and expertise available to ensure a successful project
outcome within this time frame. Ensure you show that you have sufficient resources available to
complete the project for example, staff availability, business resources allocated to the project, and a
realistic timeline for the activities. Outline how the project outcome will have a rapid impact on the
market. All other things being equal, a project that can realistically be completed in six months would
be considered equally meritorious to one that takes 12 months. However, most significant projects take
the full 12 months, in order to fully implement project developments, and assess the impact on the
business, or customer feedback.
Part D
D1
Attachments to the application
Required Attachments
Please limit your attachments to those that are referred to in the application or add significant value to
your case:

Contractors/consultants quotes or statements of services are required;

evidence of ability to make a minimum cash contribution of 25% of eligible project
expenditure;

an accountant’s letter confirming your turnover was not less than $100,000 in the previous year.
The letter must be prepared and signed and dated by a person who:
 is not a director, other office holder, or employee of the applicant or a related body corporate of
the applicant; and
 has not been engaged by the applicant for the purpose of preparing the TCF SBP application;
and
 has no financial interest in the applicant.
These attachments add to the understanding of your eligibility, the project and activities you intend to
undertake and quantify the budget.
D2
Additional Attachments
Additional attachments may accompany an application if they are directly relevant and supportive of
the application. Please limit the nature and number of attachments. If supplementary material will add
significantly to your proposal, for example, your project is in line with a business strategy, the
executive summary may be appropriate.
Part E
E
Applicant Declaration
Declaration by authorised Applicant signatory
A declaration must be made by a person authorised to make the relevant declarations, confirming
accuracy, eligibility, etc. This includes a Solvency Declaration:
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All applicants (individuals, companies or businesses that are not companies) are to declare solvency
and that they are not under any administrative arrangement.
E1
Declaration by authorised Applicant signatory details
The declaration must be signed by a person authorised to make the relevant declarations. If the
applicant is a company, this is usually an employee. This also applies in the event that the application
has been completed on the applicant’s behalf by an external entity – if so complete the details at E2.
E2
External entity details
Please provide details requested where the application has been wholly or in part completed by
another business, eg a consultant or advisor.
Final Check
Prior to submitting the application, check the following:

The project start date is not before 1 July.

You describe the business at A9 in such a way that it is clear that you are a suitable applicant
with a good rationale for needing the project and grant funding.

The project end date (B2) and milestone dates (B5) are aligned.

Your cash contribution is calculated as a percentage of the total budget expenditure, not of the
grant. Eg, if it is the minimum 25%, the grant requested will be 75% of the total budget.

The project budget (B6) adds up correctly to the total of grant sought plus the cash contribution
amount (B2).

Check the budget contains all eligible expenditure for the project, based on quotes or explained
estimates, and is GST exclusive.

Expenditure is all GST exclusive.

The project description (B3) is easy to follow and has sufficient detail so that the project
activities are understood. The project milestone plan (B5) should reflect and confirm it.

It is clear from your application how the project will improve the business enterprise culture.

All the required attachments have been provided
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Appendix B
Consortia applications and preparing a consortium agreement
The definition of consortium according to the Determination is:
“a group of at least 2 entities (one of whom must be a TCF small business) who have come together
for the common purpose of co-operatively carrying out the project in accordance with the terms of a
consortium agreement, each member of this group being a party to that consortium agreement.”
Eligible Consortium members: The lead entity does not need to be a small business. Of a
consortium of the minimum two members, if one member is say, a service provider or trainer, the
other member must be an eligible small business. In practice, a strong, competitive consortium would
consist of more than two members.
The test to apply in considering the number of eligible small business members in the group, is that the
program intention is that the beneficiaries of the grant should be eligible small businesses. In practice,
in a larger consortium group, there may be one or two businesses that do not fully meet every
eligibility requirement (for example, being slightly under the minimum turnover requirement), but it
should be noted that to present a competitive application, the consortium should represent eligible
small businesses to as strong a degree as possible.
Shared purpose: There should be a benefit to working together (cooperatively) as a group, and it
should also be apparent why these small businesses have a shared purpose. This could be similar
business profiles, illustrating a readiness to aim for a common objective, for example, businesses ready
to target the US export market. Or, in collaboration, they could be representatives of different
businesses in a supply chain who will collaborate to achieve a shared outcome, such as developing and
launching a new product.
Projects: The applicant must propose, on behalf of the consortium, a project that is eligible under the
program and is consistent with program objectives for each small business, as well as with the terms of
the consortium agreement. It must also provide, with its application, a draft or executed copy of a
consortium agreement for the project to which the application relates.
Sample Consortia Projects
Example 1 – “Common Objective”
A not-for-profit industry organisation proposes to mentor and lead a consortium of six established
TCF small businesses to cooperatively plan, attend and display at major national trade shows. The
project is to mentor and support each business towards the common objective, which is to maximise
opportunities that come from this exposure while learning and practicing the business, marketing and
PR skills required to plan and implement this project. The project will improve business enterprise
culture for each business by overcoming barriers such as high individual cost of up-skilling, tradeshow
entry, and geographic isolation, while improving the businesses’ ability to take risk, multiply and act
on opportunity, pursue creative business solutions and grow their businesses.
Example 2 – “Collaboration”
A vocational training provider proposes to coach and lead a consortium of three established TCF small
businesses with the objective of creating a collaborative business model. The purpose is to develop
the synergy between fibre research and development, fabric design and manufacturing capacity, and
fashion design experience of the members. The lead consultant will mentor and create a new strategic
approach for the businesses, and activities include review and development of business systems to
support partnerships, manufacturing process, market research and sales strategy. The project will
generate a creative business model including the development of a rural and regional manufacturing
model with future strategic collaborative partners anticipated. Other outcomes for business enterprise
culture will be increased risk taking capacity in approaching new markets and growth due to improved
supply chain, production processes and capacity to identify and maximise new opportunities.
TCF SBP Customer information guide
December 2012
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How should a consortium apply?
If a consortium wishes to apply for a grant, the application must be made by the ‘lead member’ of the
consortium. The lead member, as such becomes the applicant, and must be appointed by all its other
members as an agent with the power to act on their behalf for the purposes of the project, and the
agent must provide evidence of their appointment. The consortium seeking TCF Small Business
Program funding needs to develop and submit a consortium agreement with their application.
Consortium Agreement
The agreement must be executed, or be at least at draft stage, when the application is made. If a draft
of the consortium agreement is presented with the application, the consortium will need to provide
evidence that the agreement has been executed before a grant agreement for funding under the
Program can be executed. Consortium participants must seek their own professional legal, accounting
and taxation advice to determine whether the consortium agreement appropriately addresses the
objectives and risks applicable to their own project.
The consortium agreement must outline the terms and conditions under which a project will be jointly
conducted by the consortium members, and should provide information on the consortium and the
proposed project. Further requirements for consortia include:

the applicant must be able to demonstrate that the costs of the project that are not met by the
Program grant can be met by the consortium;

the applicant must be able to demonstrate that the consortium has available to it, and has
made available, the intellectual property necessary to conduct the project; and

the applicant, and the other consortium members, must not have been named as
organisations that have not complied with the Equal Opportunity for Women in the
Workplace Act 1999.
What must be included in a consortium agreement?
If the agreement submitted with an application is in draft form, it must have been agreed to in
principle by all consortium members. This means that some form of acknowledgement from each
member must also be provided stating that the member has seen, and in principle accepts, the terms of
the agreement. A consortium agreement must at least:

describe the objectives and planned outcomes of the project;

specify the activities comprising the project;

describe the respective roles and contributions, including financial contributions, of each
consortium member;

prohibit a consortium member from assigning any right or interest in the consortium
agreement or any project assets; and

contain terms that are not inconsistent with the Department’s standard grant agreement.
It must also:
 include signatures of all members to the agreement, which may be provided as signed letters
of agreement from each consortium member; and

identify the name and contact details of each consortium member.
If an applicant consortium is successful in receiving an offer of a grant, the Department will not enter
into an agreement until a consortium agreement that meets these requirements has been executed. The
executed version of the consortium agreement that is in existence when the grant agreement is
executed must be substantially the same as the version submitted with the application.
If the executed version of the consortium agreement is materially different from the draft consortium
agreement or if there has been any change to the consortium members since the date of the application
(unless it is regarded as not materially affecting the original decision to award a grant), any offer of a
grant may be withdrawn.
TCF SBP Customer information guide
December 2012
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Appendix C
Eligible TCF Activities
Textile, Clothing and Footwear Post-2005 Strategic Investment Program Scheme 2005
Schedule 1
Eligible TCF activities (sections 1.4 and 1.6 of the TCF Post-2005 (SIP) Scheme)
Note: The activities listed in this Schedule are based on Division C, Subdivision 22 of the Australian and New
Zealand Standard Industrial Classification (ANZSIC)
Part A
1
Textile Fibre, Yarn and Fabric Manufacturing
Man-Made Fibre Textile Manufacturing (including blends)
This category consists of manufacturing continuous fibre filament, fibre staple or yarns, tyre
cord yarn or fabrics woven, non-woven, felted, tufted, crocheted or knitted from those yarns,
or mixed yarns, wholly or predominantly of man-made fibres. Manufacturing of elastic or
elastomeric yarns or threads or fabrics are also included.
2

Fibres, manufacturing

Filament, manufacturing

Yarns, manufacturing

Yarns, elastic or elastomeric, manufacturing

Tyre cord yarns or fabrics, manufacturing

Fabrics or other textiles, manufacturing

Fabrics, elastic or elastomeric, manufacturing

Lacing, woven, manufacturing
Cotton Textile Manufacturing (including blends)
This category consists of manufacturing of yarns, fabrics woven, non-woven, felted, tufted,
crocheted or knitted, wholly or predominantly of cotton or similar fibres including flax, jute,
hemp or kapok.
3

Yarns, manufacturing

Tyre cord yarns or fabrics, manufacturing

Fabrics or other textiles, manufacturing
Wool Textile Manufacturing (including blends)
This category consists of the manufacturing of yarns, fabrics woven, non-woven, felted,
tufted, crocheted or knitted, wholly or predominantly of wool or other animal fibre including
mohair, angora, cashmere, alpaca or silk.

Fellmongered, slipe or skin wool, manufacturing

Yarns, woollen or other animal fibre, manufacturing

Fabrics or other textiles, from woollen or worsted manufacturing processes, derived
from animal fibres
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December 2012
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4
Textile Finishing
This category consists of any activities involved in the processes of dyeing, printing, and
finishing, including any process of impregnation, coating or lamination for imparting
particular end use properties to yarns, fabrics or other textiles except wool tops.
5

Textile dyeing, including textile pigmentation

Textile printing, including flock printing

Label, printed cloth, manufacturing

Impregnation, coating or lamination
Textile Floor Covering Manufacturing
This category consists of manufacturing of carpets, rugs or other textile floor coverings and
includes manufacturing of felt or felt products, mats or matting of jute or twisted rags.
6

Felt, manufacturing

Floor coverings, textile, manufacturing

Floor rugs, textile, manufacturing

Underfelt, manufacturing

The manufacturing of felt clothing, grass, sisal or coir mats or matting, rubber underlay
and rubber floor coverings is excluded from this category.
Textile Product Manufacturing n.e.c.
This category consists of textile product manufacturing n.e.c.

Cleaning cloth, manufacturing

Embroidered fabrics, manufacturing

Fabrics, manufacturing n.e.c.

Flock, manufacturing

Hemp product, manufacturing n.e.c.

Hessian goods, manufacturing n.e.c.

Kapok, manufacturing

Labels or badges, woven cloth, manufacturing
Part B
Knitting Mills Manufacturing
1
Hosiery Manufacturing
This category consists of manufacturing of hosiery.

Panty hose, manufacturing

Socks, manufacturing
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December 2012
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2

Stockings, manufacturing

Tights, manufacturing
Cardigan and Pullover Manufacturing
This category consists of the manufacturing of knitted cardigans, pullovers or similar
garments.
3

Custom knitting, of pullovers or cardigans

Jackets, knitted, manufacturing

Sweaters, knitted, manufacturing

Twin sets, knitted, manufacturing

Waistcoats, knitted, manufacturing
Knitting Mill Clothing and Manufacturing n.e.c.
This category consists of the manufacturing of knitted or crocheted clothing n.e.c.

Outerwear, knitted, manufacturing (except hosiery, cardigans or pullovers)

Sleepwear, knitted, manufacturing

Swimwear, knitted, manufacturing

Underwear, knitted, manufacturing (except hosiery)
Part C
Clothing and Manufacturing
1
Men’s and Boys’ Wear Manufacturing
This category consists of the manufacturing of men’s or boys’ outerwear from purchased or
transferred in materials.

Coats or jackets, men’s or boys’, manufacturing (except from fur or leather)

Dust coats, manufacturing

Jeans, men’s or boys’, manufacturing

Overalls, manufacturing

Shirts, men’s or boys’, manufacturing

Shorts, men’s or boys’, manufacturing

Suits, men’s or boys’, manufacturing (except from leather)

Trousers, men’s or boys’, manufacturing

Uniforms, men’s or boys’, manufacturing
The manufacturing of men’s or boys’ headwear, footwear, or garments made from leather or
fur, is excluded from this category.
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December 2012
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2
Women’s and Girls’ Wear Manufacturing
This category consists of the manufacturing of women’s or girls’ outerwear from purchased
or transferred in materials.
3

Blouses, manufacturing

Coats or jackets, manufacturing (except from fur, leather, plastic or rubber)

Jeans, women’s or girls’, manufacturing

Outerwear, women’s or girls’, manufacturing (except fur, leather, plastic or rubber)

Suits, women’s or girls’, manufacturing (except from leather or plastic)

Tunics, women’s or girls’, manufacturing

Uniforms, women’s or girls’, manufacturing

The manufacturing of women’s or girls’ waterproof clothing or clothing made from
fur, leather, plastic or rubber, is excluded from this category.
Sleepwear, Underwear and Infant Clothing Manufacturing
This category consists of the manufacturing of foundation garments, underwear, sleepwear or
infants’ clothing from purchased or transferred in materials.
4

Brassieres, manufacturing

Corsets, manufacturing

Foundation garments, manufacturing

Girdles, manufacturing

Infants’ clothing, manufacturing

Sleepwear, manufacturing

Underwear, manufacturing
Clothing and Manufacturing n.e.c.
This category consists of manufacturing of headwear, fur or leather clothing, clothing or
clothing accessories n.e.c.

Belts, manufacturing (for clothing)

Clothing accessories, manufacturing n.e.c.

Clothing, fur, manufacturing

Clothing, leather or leather substitute, manufacturing n.e.c.

Clothing manufacturing n.e.c., including clothing for protective or safety purposes

Gloves, manufacturing (except rubber gloves)

Handkerchiefs, manufacturing

Hats* or headwear,* manufacturing
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December 2012
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Part D

Laces, manufacturing (for footwear)

Leather or leather substitute suit, coat or uniforms, manufacturing n.e.c

Recreational clothing, manufacturing n.e.c.#

Swimwear, manufacturing (except rubber bathing caps)

Ties, manufacturing

Waterproof clothing, manufacturing (except headwear, footwear or leather clothing)
n.e.c.
Footwear Manufacturing
This category consists of the manufacturing of footwear, or footwear components.
Part E

Boots,* manufacturing

Footwear component, manufacturing

Footwear,* manufacturing

Industrial footwear, including safety or protective footwear

Sandals,* manufacturing

Shoes,* manufacturing

Slippers,* manufacturing

Thongs, manufacturing
Leather and Leather Product Manufacturing
Leather Tanning and Fur Dressing
This category consists of post full substance activities including sammying, splitting, shaving,
tanning, currying, dressing, dyeing, embossing or japanning leather, animal skins or fur.
Part G

Fur dressing or dyeing

Hide and skin tanning, currying, dressing, crusting, dyeing or finishing

Leather manufacturing

Leather tanning
Made-up Textile and Leather Product Manufacturing
Note: Part G product manufacturing activities are only eligible if production includes a
Part A to E activity.
This category consists of manufacturing of made-up textile and leather products including
household textile goods, blinds, tents, awnings, sails, or goods of canvas or related materials.
TCF SBP Customer information guide
December 2012
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
Animal rugs, manufacturing

Awnings, textile, manufacturing

Bags or sacks, textile or canvas, manufacturing for packaging

Bags, leather or leather substitute, manufacturing

Binding, textile, (including plastic coated) manufacturing

Blinds, textile, manufacturing (including plastic coated blinds and woven slats for
fabric blinds)

Canvas goods, manufacturing n.e.c.

Curtains manufacturing

Filters, manufacturing, if produced by a manufacturing process made predominantly
from yarns, fabrics or other textiles of a kind listed in item 1, 2, 3, or 6 of Part A, or
fabrics of a kind listed in item 3 of Part B

Flags or banners, manufacturing

Harness, manufacturing

Helmet*, manufacturing

Hose, canvas or other textile, manufacturing

Household textile goods, manufacturing

Leather or leather substitute goods, manufacturing n.e.c.

Machine belting, leather or leather substitute, manufacturing

Motor vehicle covers, textile, manufacturing

Nets, including fish nets, manufacturing

Parachutes, manufacturing

Pillow manufacturing (except rubber)

Ropes, twine, cord or cordage, strings (except paper string), braids or cable,
manufacturing (except wire rope or wire cable)

Saddles, manufacturing

Sails, manufacturing

Seat covers, manufacturing

Sleeping bags, manufacturing

Soft furnishings

Suitcases, textile, manufacturing

Tents, manufacturing (except oxygen tents or toy tents)
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December 2012
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
Waterbags, textile, manufacturing
Definitions
In this Schedule: n.e.c. means not elsewhere classified. Man-made fibres include cellulosics and
synthetics.
Symbols
#
If made predominantly from the products of activities listed in items 1, 2, 3 and 6 of Part A, or
in item 3 of Part B.
*
If made predominantly from leather or the products of activities listed in items 1, 2, 3 and 6 of
Part A or in item 3 of Part B.
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December 2012
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