STATE & TERRITORY GOVERNMENT ASSISTANCE BUSINESS AND INDUSTRY TRANSFORMATION INCENTIVES - QUEENSLAND (BITI) Paper CONTENTS

Transcription

1 STATE & TERRITORY GOVERNMENT ASSISTANCE BUSINESS AND INDUSTRY TRANSFORMATION INCENTIVES - QUEENSLAND (BITI) CONTENTS Page 1. Overview Priority Industries Regional Priority Industry Sectors & Locations Closing Dates For 2012 Applications Focus Of The Financial Incentives Types Of Projects Scheme's Aims What Projects Will Be Supported Projects That Support Innovation Eligibility Not Eligible - Business Project Eligibility Not Eligible - Project Grants Project Activities Activities Ineligible For Funding Application Professional Advice... 6 Page 1

2 STATE & TERRITORY GOVERNMENT ASSISTANCE BUSINESS AND INDUSTRY TRANSFORMATION INCENTIVES - QUEENSLAND (BITI) 1. Overview The Queensland government's Business and Industry Transformation Incentives are available for businesses to undertake projects that will promote transformation in priority industries. 2. Priority Industries Preference will be given to projects that advance key sectors and related supply chains, such as: liquefied natural gas digital economy food bioindustrial products clean energy transport and logistics mining and petroleum technology and services tourism industries other areas of strategic economic interest* *Areas of strategic economic interest are those than enhance Queensland's comparative strengths and provide clear and direct alignment with Queensland government priorities (e.g. regional development, Towards Q2 targets and employment generation.) 3. Regional Priority Industry Sectors & Locations The regional priority industry sectors and locations are: Centre of Enterprise Area Tropical North Queensland Townsville & Mount Isa Priority Industry Aviation Services Tropical Expertise Marine Services Mining & Minerals Processing Mackay & Whitsundays Mining Services & Technologies Marine Services Page 2

3 Centre of Enterprise Area Gladstone Stuart Basin Wide Bay Burnett Southern Regional Queensland Priority Industry Coal, Coal Seam Gas (CSG) and Liquefied Natural Gas (LNG) Coal, Coal Seam Gas (CSG) and Liquefied Natural Gas (LNG) Aviation Engineering, Machinery and Equipment Manufacturing Food Value Chains 4. Closing Dates For 2012 Applications Closing dates for rounds in 2012 are yet to be announced by the Queensland government. Details will be included when announced. 5. Focus Of The Financial Incentives The focus of the financial incentives is on projects that will create a diverse economy, powered by bright ideas to produce a strong Queensland. Incentives are available for progressive businesses with significant growth potential within Queensland. Applicants are particularly encouraged from groups of businesses working on a collaborative project. 6. Types Of Projects The incentive scheme essentially seeks projects that will: be transformational at a business as well as industry level; forge change, lift standards and drive substantial improvements for customers and/or suppliers; raise competitiveness in priority industries and ultimately in the Queensland economy. 7. Scheme's Aims The scheme aims to achieve transformation through providing funds to projects that will support innovation, increasing productivity, exporting for growth, building regional strengths. Projects that focus on job creation and/or retention will be highly regarded. Page 3

4 8. What Projects Will Be Supported A project may be considered transformational if it benefits both the business and Queensland through supporting innovation, increase productivity, export growth or the building of regional strengths. However, the project does not have to achieve all four objectives. A project is not transformational if it only involves incremental capacity expansion with no change in capability for the business. 9. Projects That Support Innovation Projects that support innovation include those that: produce new intellectual property or new technology that will meet growing demand and/or create new markets; apply research and development to improve business operations or products and services; introduce processes to significantly improve productivity, setting a new standard for industry efficiency; make changes that lead to major improvements across a supply chain, improving the competitiveness of a number of firms; promote exports and create global supply chain opportunities in new overseas markets; promote an industry that is new or emerging in a region, or give that industry a new competitive edge. 10. Eligibility A business is eligible if it: operates, or intends to operate, in a priority industry sector; has an established operating base in Queensland; has been trading for, at least, the last two years; has an Australian Business Number and is registered for GST; and is able to provide funds equal to any incentive awarded from its own financial resources (not in kind). A Not for Profit organisation, cooperative or industry association is eligible for the scheme if it can demonstrate its project will contribute significantly to the businesses in a priority industry sector. 11. Not Eligible - Business A business is not eligible if: its primary focus is outside of the priority industry sectors; its primary focus is retail, wholesale, importing, accommodation, hospitality, property development, leasing or non-value added primary production; it s a research institution (including a university); it s a government department of agency, government owned corporation or a regional development organisation. Page 4

5 12. Project Eligibility A project is eligible if it: demonstrates the potential to contribute to transformation in an industry sector; demonstrates the benefits will be realised in Queensland, not interstate or overseas; is clearly linked to the business' business plan; is supported by a fully costed project plan. 13. Not Eligible - Project The project is not eligible if it: falls outside the priority industry sectors; contributes only to the routine operations of the business, such as systems improvements; is primarily research and development; can be more appropriately funded by another government programme. 14. Grants Grants of $30,000 to $250,000 (excluding GST) are available for approved projects. Funding is provided on a 50% cost of eligible activities basis. The business will need to provide its own funds equal to any grants awarded. The contribution must be sourced from the business' own financial resources and cannot in an "inkind" contribution or sourced from another government programme. Where the project costs are not covered by the incentive awarded and the business' mandatory contribution, the business may source those additional funds from other government programmes. There is no limit to the number of applications a business may submit, but there is a maximum of $250,000 (excluding GST) that can be awarded to a business in any 3-year period under the scheme. 15. Project Activities To keep the emphasis on project outcomes, the scheme adopts a flexible approach to the types of activities its supports. Funding will be considered for a broad range of activities, provided those activities directly support the stated objectives of the project and are not ineligible. 16. Activities Ineligible For Funding Activities ineligible for funding include: planning; pre-feasibility and feasibility studies; individual product promotion; provision of working capital or funds to service financing arrangements; property development; Page 5

6 building construction and land purchase; offshore investment and production; routine operations. 17. Application A business' final application package must contain: a fully completed application form; accountant prepared financial statements for the previous two financial years and interim results for the current financial year; detailed estimates of the expenditure for which funding is sought, includes quotes, where applicable; other relevant supporting documentation, as outlined in the application form. An application involving multiple businesses will need to include a formal agreement detailing the roles and responsibilities of all businesses involved. 18. Professional Advice If you'd like assistance on completing an application for Business and Industry Transformation Incentives - Queensland, please contact your professional accountant. Page 6

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