Australian Government, 2009‑10 Budget
Budget

Part 2: Expense Measures

Innovation, Industry, Science and Research

An Innovation and Higher Education System for the 21st Century — Anglo‑Australian Observatory — new governance arrangements

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Department of Innovation, Industry, Science and Research - 4.1 10.4 10.5 11.4

The Government will provide $36.5 million over four years to meet ongoing operational costs of the Anglo‑Australian Observatory under a new governance arrangement within the Innovation, Industry, Science and Research portfolio.

The Anglo‑Australian Observatory is Australia's main optical astronomy facility and is currently administered by the Anglo‑Australian Telescope Board (AATB) with funding contributions from the Australian and United Kingdom (UK) governments. The UK Government will reduce its contribution in 2009‑10 and fully withdraw its contribution from the commencement of 2010‑11. This additional funding will replace the UK Government's funding and cover increased site lease costs which reflect the commercial value of the site. The additional funding will ensure that from 1 July 2010, subject to the repeal of the Anglo‑Australian Telescope Agreement Act 1970, the Australian Government will acquire the assets of the AATB.

See also the related expense measure titled An Innovation and Higher Education System for the 21st Century — Anglo‑Australian Observatory — offsetting savings in the Innovation, Industry, Science and Research portfolio.

An Innovation and Higher Education System for the 21st Century — Anglo‑Australian Observatory — offsetting savings

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Department of Innovation, Industry, Science and Research - - -5.1 -5.3 -5.2

The Government will replace the Anglo‑Australian Telescope Board (AATB), which currently administers the Anglo‑Australian Observatory, with new governance arrangements for the observatory within the Innovation, Industry, Science and Research portfolio. The abolition of AATB reflects the withdrawal of funding support by the United Kingdom Government and the transfer of ownership of the observatory to the Australian Government.

This measure will provide savings of $15.6 million over three years.

See also the related expense measure titled An Innovation and Higher Education System for the 21st Century Anglo‑Australian Observatory — new governance arrangements in the Innovation, Industry, Science and Research portfolio.

An Innovation and Higher Education System for the 21st Century — Australian Space Science Program

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Department of Innovation, Industry, Science and Research - 6.4 12.9 14.1 15.1

The Government will provide $48.6 million over four years to support the establishment of the Australian Space Science Program.

Funding of $40.0 million over four years will be available for the establishment of the Australian Space Research Program, which will support space research, innovation and skills development.

Funding of $8.6 million over four years will help establish a Space Policy Unit in the Department of Innovation, Industry, Science and Research to coordinate Australia's national and international civil space activities, including partnerships with international space agencies.

An Innovation and Higher Education System for the 21st Century — Collaborative Research Networks program

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Department of Innovation, Industry, Science and Research - - 10.0 21.0 21.0

The Government will provide $114.1 million over six years from 2010‑11 (including $20.7 million per annum from 2013‑14 to 2015‑16) to establish the Collaborative Research Networks program. The program will assist those regional universities that are less research intensive, but have identified areas of research strength, to develop collaborative links with other universities and make the structural adjustments required to boost their international competitiveness and research quality in line with the Government's reforms in this area.

See also the related expense measures titled An Innovation and Higher Education System for the 21st Century — Sustainable Research Excellence in Universities and An Innovation and Higher Education System for the 21st Century — Joint Research Engagement.

An Innovation and Higher Education System for the 21st Century — Commonwealth Commercialisation Institute — establishment

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Department of Innovation, Industry, Science and Research - 20.6 38.5 58.9 78.1

The Government will provide $196.1 million over four years to establish the Commonwealth Commercialisation Institute, which will support research commercialisation and early stage company development by small and medium enterprises. The Government will develop guidelines to ensure funding supports viable additional innovation activity.

An Innovation and Higher Education System for the 21st Century — Education Investment Fund — Super Science — strengthening Australia's research infrastructure

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Department of Innovation, Industry, Science and Research 28.0 208.4 258.4 239.6 172.6

The Government will provide $906.9 million over five years to support a range of projects that will strengthen Australia's research infrastructure. Funding of $901.0 million over five years will be allocated from the Education Investment Fund (EIF) for direct investment in infrastructure, while $6.0 million over four years will be separately appropriated for administrative expenses to support the delivery of these projects. The EIF expenditure includes support for the Australian Nuclear Science and Technology Organisation ($62 million over four years starting in 2009‑10), the Australian Institute of Marine Science ($55 million over three years starting in 2009‑10) and the Commonwealth Scientific and Industrial Research Organisation ($120 million over four years starting in 2009‑10).

This Super Science initiative will boost infrastructure and research capacity in three key areas of Australian research strength: space science and astronomy, marine and climate science, and future technology (nanotechnology and life sciences). These areas have been identified as both existing research strengths and of strategic importance for Australia's future. They are also consistent with the priorities identified in the Strategic Roadmap for Australian Research Infrastructure announced by the Minister for Innovation, Industry, Science and Research in September 2008.

The projects that will be funded under this initiative are:

  • the replacement of Australia's Marine National Facility, the RV Southern Surveyor, operated by the CSIRO ($120 million);
  • a national network of research data storage and collaboration infrastructure to be built by the Australian Research Collaboration Service ($97 million);
  • a new facility in Perth to support the proposed Square Kilometre Array radio astronomy telescope ($80 million);
  • additional facilities for the Australian Nuclear Science and Technology Organisation ($62 million);
  • additional tropical marine research facilities for the Australian Institute of Marine Science ($55 million);
  • support for the Integrated Marine Observing System hosted by the University of Tasmania ($52 million);
  • the Australian National Fabrication Facility, involving participation from 13 universities, the CSIRO, and private industry ($50 million);
  • the Bio‑molecular Platforms and Informatics Project managed by Bioplatforms Australia ($50 million);
  • upgrade of the Climate High Performing Computing Facilities hosted by the Australian National University ($50 million);
  • the Australian Research and Data Commons project led by Monash University ($48 million);
  • extension and upgrading of the Australian Research and Education Network run by AARNet Pty Ltd, comprising 38 Australian universities and the CSIRO ($37 million);
  • support for the Terrestrial Ecosystem Research Network hosted by the University of Queensland ($35 million);
  • establishment of collaborative infrastructure networks to support new drug discovery, novel cell therapies, development of nanomedicines, and integrated population health solutions, through a collaboration of universities, non‑profit research institutions, the CSIRO and private industry ($35 million);
  • the Atlas of Living Australia project hosted by the CSIRO ($30 million);
  • the establishment of facilities to enhance understanding of urban resource use and management, involving a collaboration between several universities including the University of Melbourne, University of New South Wales, Australian National University and Griffith University ($20 million);
  • the Australian Phenomics Network project led by the Australian National University ($15 million);
  • the Climate Geoscience Platform project for groundwater monitoring led by AuScope ($15 million);
  • support to Astronomy Australia Limited to sustain investments in national radio and optical astronomy infrastructure ($10 million);
  • the Australian Plant Phenomics Facility led by the University of Adelaide ($10 million);
  • upgrade of the National Plasma Fusion Facility at the Australian National University ($10 million);
  • the National Ion Accelerators project led by the Australian National University and the University of Melbourne ($10 million); and
  • the Population Health Research Network hosted by the University of Western Australia ($10 million).

In addition to laying strong foundations for future scientific achievement in Australia, many of the projects that will be funded through this measure are able to be implemented at short notice, and will thereby provide economic stimulus.

An Innovation and Higher Education System for the 21st Century — European Molecular Biology Laboratory partner facility

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Department of Innovation, Industry, Science and Research - 2.0 2.0 2.0 2.0

The Government will provide $8.0 million over four years to support the establishment and development of a European Molecular Biology Laboratory (EMBL) facility on the campus of Monash University in Victoria. As an associate member of the EMBL, Australia is collaborating with a world leader in molecular biology research.

This measure will support Australia's participation in major international research projects and also provide access to the EMBL's world‑leading research infrastructure and expertise in bioinformatics, researcher training and research commercialisation. It will also promote research collaboration and researcher mobility between Australia and Europe.

An Innovation and Higher Education System for the 21st Century — Excellence in Research for Australia

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Australian Research Council - 9.6 7.3 4.3 4.7
Australian Research Council - 4.5 2.6 1.4 1.4

The Government will provide $35.8 million over four years to establish the Excellence in Research for Australia (ERA) initiative. The initiative will involve the Australian Research Council (ARC) using quantitative and qualitative analysis to evaluate the quality of research conducted by Australia's tertiary education institutions. From this analysis, the ARC will be able to detail, by institution and by discipline, those areas in which research is internationally competitive and emerging areas where there are opportunities for development and further research investment. This will allow Australia's academic achievements to be more readily measured against international peers.

An Innovation and Higher Education System for the 21st Century — Joint Research Engagement program

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Department of Innovation, Industry, Science and Research - - - - -

The Government will redirect $1.2 billion over four years (including $158.8 million in 2009‑10, $323.9 million in 2010‑11, $330.0 million in 2011‑12 and $337.6 million in 2012‑13) from the Institutional Grants Scheme for a new Joint Research Engagement program. The new program will use a revised allocation formula which removes competitive grant income as a driver of funding. This change is intended to give greater emphasis to end‑user research by encouraging and supporting collaborative research activities between universities, industry and end‑users.

See also the related expense measure titled An Innovation and Higher Education System for the 21st Century — Sustainable Research Excellence in Universities in the Innovation, Industry, Science and Research portfolio.

An Innovation and Higher Education System for the 21st Century — maintaining Australia's Marine National Facility

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Commonwealth Scientific and Industrial Research Organisation - 6.8 5.7 7.3 9.8

The Government will provide $29.6 million over four years to carry out maintenance on Australia's Marine National Facility, the RV Southern Surveyor, and increase its operating time to 180 sea days per year until June 2013.

The RV Southern Surveyor is a research vessel owned and operated by the CSIRO that is available to marine scientists to explore and study Australia's oceans.

This measure includes $2.4 million over three years for project management costs associated with the purchase of a replacement vessel. Funding of the replacement vessel will, subject to meeting the requirements of the fund, be provided through the Education Investment Fund.

See also the related expense measure titled An Innovation and Higher Education System for the 21st Century — Education Investment Fund — Strengthening Australia's research infrastructure.

An Innovation and Higher Education System for the 21st Century — National Enabling Technologies Strategy

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Department of Innovation, Industry, Science and Research - 7.5 7.6 7.7 7.8
Department of Innovation, Industry, Science and Research - 3.9 1.5 1.4 1.1

The Government will provide $38.2 million over four years to develop a National Enabling Technologies Strategy. The strategy will set the direction for future technology development, including the uptake of biotechnology and nanotechnology products and processes across the economy and society, and thus position Australia to better capture the potential of this technology.

The funding will provide for the establishment of a National Office of Enabling Technology as a business unit in the Innovation, Industry, Science and Research portfolio, which will develop and manage the implementation of a four‑year strategy. Additional resources will also be provided to the National Measurement Institute to build its capacity and expertise in nanometrology and biotechnology measurement infrastructure.

An Innovation and Higher Education System for the 21st Century — postgraduate research — student support

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Department of Innovation, Industry, Science and Research - 5.5 12.3 13.5 20.4

The Government will provide $51.7 million over four years to increase the annual stipend provided to postgraduate research students through the Australian Postgraduate Awards and International Postgraduate Research Scholarships from $20,007 to $22,500. This stipend will be indexed annually by the Consumer Price Index to ensure that financial support for postgraduate students is maintained in real terms.

An Innovation and Higher Education System for the 21st Century — Questacon — continuation of the national science outreach program

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Department of Innovation, Industry, Science and Research - 1.9 1.9 1.9 1.9

The Government will provide $7.6 million over four years to continue Questacon's national science outreach programs, such as early childhood and Indigenous education programs and the Invention Convention. Funding under this measure will include the development and coordination of science communication activities to support students, teachers and communities across Australia.

An Innovation and Higher Education System for the 21st Century — Research and Development Tax Credit

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Australian Taxation Office - 120.4 411.1 432.4 452.5
Department of Innovation, Industry, Science and Research - 4.7 6.4 10.2 9.8
Total - 125.1 417.5 442.6 462.3
Australian Taxation Office - - 55.0 400.0 400.0
Australian Taxation Office - - 1.3 - -

The Government will provide $1.4 billion over four years to replace the existing Research and Development Tax Concessions with a new Research and Development (R&D) Tax Credit with effect from 1 July 2010. This measure is expected to be partially offset by the revenue gain over the same period from abolishing the existing R&D Tax Concessions. On a underlying cash basis, the ongoing measure (the R&D Tax Credit) is expected to be revenue neutral over its first four years of operation.

The R&D Tax Credit will consist of a 40 per cent non‑refundable tax credit and a 45 per cent refundable tax credit for firms with a turnover of $20 million or less. The new refundable tax credit will not be subject to an expenditure cap. The definition of R&D that is eligible for the new R&D Tax Credit will be tightened to ensure that the support is better targeted. R&D expenditure undertaken in Australia by foreign‑owned firms will be eligible for the 40 per cent non‑refundable tax credit.

Since the program does not start until 1 July 2010, as an interim measure the Government will lift the expenditure cap on eligible R&D that can be claimed under the existing R&D Tax Offset from $1 million to $2 million with effect from 1 July 2009.

This funding includes $31 million over four years to the Department for Innovation, Industry, Science and Research and $7.2 million over four years to the Australian Taxation Office to administer the new R&D Tax Credit.

An Innovation and Higher Education System for the 21st Century — Super Science Fellowships program

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Australian Research Council - 2.6 7.3 9.8 7.5

The Government will provide $29.7 million over five years (including $2.5 million in 2013‑14) to establish a three‑year postdoctoral fellowship program that will focus on encouraging postdoctoral research into space science and astronomy; marine science and the climate frontier; and future industries such as nanotechnology and life sciences.

The program will be administered under the National Competitive Grants Program by the Australian Research Council and will involve two rounds, with individual grants awarded being up to $72,500 per annum.

An Innovation and Higher Education System for the 21st Century — Support for Industry Service Organisations program

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Department of Innovation, Industry, Science and Research - 3.7 3.7 3.7 3.7

The Government will provide $14.7 million over four years to continue its assistance for Standards Australia and the National Association of Testing Authorities. The assistance will support Australian participation in international standards and conformance bodies, and ensure Australian standards and conformity assessment procedures are in alignment with international practices and do not disadvantage Australian consumers or industry.

An Innovation and Higher Education System for the 21st Century — Sustainable Research Excellence in Universities

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Department of Innovation, Industry, Science and Research - 30.5 120.5 160.5 200.5

The Government will provide $813.0 million over five years (including $301.0 million in 2013‑14) to supplement the Research Infrastructure Block Grants (RIBG) program so that it is better able to assist universities meet the indirect costs of their research.

Research grants provided by bodies such as the Australian Research Council and the National Health and Medical Research Council cover only the direct costs of research — indirect costs such as capital maintenance and administrative overheads are not funded. The RIBG program is currently used to help universities cover some of these indirect costs but, despite this, many universities need to use funding from other sources to meet the full costs of their research. This measure will help address this gap.

In addition to the extra funding, there will be changes to the way in which the funding allocations to universities are calculated. Funding will be allocated on the basis of negotiated funding agreements as follows: 20 per cent on the basis of a university's relative success in attracting research income (the current means of determining all of the RIBG funding); and 80 per cent contingent on universities undertaking activity‑based costing of the indirect costs of research and meeting performance targets which are to be developed and agreed during 2009‑10.

See also the related expense measure titled An Innovation and Higher Education System for the 21st Century — Joint Research Engagement in the Innovation, Industry, Science and Research portfolio.

Australian Nuclear Science and Technology Organisation — additional funding of operational activities

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Australian Nuclear Science and Technology Organisation - 2.1 2.1 2.2 -

The Government will provide $6.4 million over three years to the Australian Nuclear Science and Technology Organisation (ANSTO) to assist it to meet increased operating expenses, particularly those relating to reactor fuel assemblies.

Operating costs associated with the OPAL Reactor have increased substantially over the past few years. This additional funding will help ANSTO to meet its contractual obligations to the suppliers of fuel for continued operation of its OPAL reactor, which will enable the continuation of its key operating and research activities.

Bushfire Cooperative Research Centre — extension

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Department of Innovation, Industry, Science and Research - - 5.0 5.0 5.0

The Government will provide $15.0 million over three years from 2010‑11 to the Bushfire Cooperative Research Centre (CRC) in Melbourne. The Bushfire CRC brings together university and public sector researchers with industry to collaborate on research and development projects associated with bushfires. Its current focus is on prevention, preparation and suppression of bushfires, community self‑sufficiency (including education) and protection of people and property.

This measure was agreed with the Australian Greens as part of negotiating the Nation Building and Jobs Plan announced on 3 February 2009.

Consolidation of National Measurement Institute and Commonwealth Scientific and Industrial Research Organisation (CSIRO) Sydney accommodation

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Department of Innovation, Industry, Science and Research - 0.9 - - -
Commonwealth Scientific and Industrial Research Organisation - 0.6 - - -
Total - 1.5 - - -

The Government will provide $1.5 million in 2009‑10 to conduct scoping and feasibility studies for the proposed consolidation of the National Measurement Institute's chemical and physical metrology laboratories on the CSIRO West Lindfield site in Sydney.

Development of innovative health technologies — bionic eye

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Australian Research Council - 10.0 10.0 15.0 15.0

The Government will provide $50.0 million over four years to establish a competitive grant program managed under the Australian Research Council's Special Research Initiatives Scheme to facilitate research leading to the development of a functional bionic eye.

Funding will be available to assist up‑front research efforts to prove the efficacy and biostability of implantable medical devices such as a bionic eye and to develop appropriate mechanical and software control systems. Funding will be awarded to organisations and associated partners that can best deliver a collaborative approach that brings together specialists from a wide range of relevant fields to position Australia as a leader in bionic vision technology.

This measure responds to a key priority identified at the 2020 Summit by the group that discussed policy challenges arising from developing a Long‑Term National Health Strategy.

International Science Linkages program — discontinuing 2009 funding round

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Department of Innovation, Industry, Science and Research - -2.0 - - -

The Government will not proceed with funding for the 2009 competitive grants round under the International Science Linkages program announced in the 2001‑02 Budget.

This program supported a range of collaborative projects. However, a funding round will not proceed in 2009, given the significant support for innovation, science, commercialisation and research being provided through the Government's response to the Review of the National Innovation System.

This measure will provide savings of $2.0 million in 2009‑10.

Liquified Petroleum Gas (LPG) Vehicle Scheme — reduced rebate for post‑factory conversions

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Department of Innovation, Industry, Science and Research - 48.8 26.7 -4.1 -27.5
Australian Taxation Office - -8.0 -17.2 -21.9 -22.8

The Government will manage strong demand under the LPG Vehicle Scheme by reducing the rebate for post‑factory conversions to LPG fuel systems, at an estimated cost of $7.9 million over five years (including a saving of $36.0 million in 2013‑14).

The rebate will be reduced from the current $2,000 per conversion to $1,750 per conversion from 1 July 2009, and then reduce further to $1,500 from 1 July 2010, $1,250 from 1 July 2011, and $1,000 from 1 July 2012. For privately owned new cars the $2,000 rebate for factory fitted LPG fuel systems will remain unchanged.

While the reduced rebate will help to manage expenditure over the life of the program, higher levels of demand are still expected in 2009‑10 and 2010‑11, resulting in an increase in the expenditure in those years.

This measure results in a reduction in excise revenue of $83.9 million over five years (including $14.0 million in 2013‑14) because LPG displaces other, fully excisable fuels.

Questacon — maintenance of the National Science and Technology Centre

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Department of Innovation, Industry, Science and Research - 3.7 - - -

The Government will provide $3.7 million in 2009‑10 to enable Questacon to carry out urgent maintenance and repair works on the National Science and Technology Centre in Canberra.

Royal Institution of Australia — establishment

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Department of Innovation, Industry, Science and Research 15.0 - - - -

The Government will provide $15.0 million in 2008‑09 to establish the Royal Institution of Australia as a national science exchange with the intention of it becoming a leading national institution in the fields of science and technology. The Royal Institution of Australia will be established in Adelaide and will bring together scientists, industry, government and the community to further public knowledge on the use of science and technology in everyday life. The Government's contribution is a one‑off endowment to the Royal Institution of Australia.

Small Business Online Program

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Department of Innovation, Industry, Science and Research - 5.0 5.0 - -

The Government will provide $10.0 million over two years to assist small businesses take advantage of e‑business opportunities and expand their online presence. Funding under this measure will be provided to eligible organisations to provide advice and assistance to small businesses on e‑business issues.

Small Business Support Line — establishment

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Department of Innovation, Industry, Science and Research - 5.0 5.0 - -

The Government will provide $10.0 million over two years to establish a small business support line and referral service to assist small businesses better manage in the current global recession. The support line will provide initial advice on issues such as: obtaining finance; cash flow management; retail leasing; personal stress and hardship counselling; and promotion and marketing. The support line will refer small businesses to specialist advisers for more complex or detailed advice.

Textiles, clothing and footwear — Clothing and Household Textile Building Innovative Capability Program — additional funding

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Department of Innovation, Industry, Science and Research - - - 5.0 5.0

The Government will provide $25.0 million over five years (including $5.0 million in 2013‑14, $5.0 million in 2014‑15 and $5.0 million in 2015‑16) for the Textiles, Clothing and Footwear Post‑2005 Strategic Investment Program Scheme to be expanded and renamed the Clothing and Household Textile Building Innovative Capability Program.

The expanded program will increase the level of assistance to clothing and household textile firms and refocus support to develop innovative capability at the enterprise level.

See also the related savings measure titled Textiles, clothing and footwear — Product Diversification Scheme — redirect funds to build innovative capability in the Innovation, Industry, Science and Research portfolio.

Textiles, clothing and footwear — competitive grants to build innovative capability — establishment

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Department of Innovation, Industry, Science and Research - 0.5 4.4 9.5 9.5

The Government will provide $32.5 million over six years (including $4.4 million in 2013‑14 and $4.2 million in 2014‑15) to establish a competitive grants program to support larger strategic projects that will build innovative capability at the enterprise and workplace level in the textiles, clothing and footwear industries. The first grants for this program will be provided in 2010‑11.

This measure responds to recommendations one and five of the Review of the Australian Textile, Clothing and Footwear Industries, Building Innovative Capability.

See also the related savings measure titled Textiles, Clothing and Footwear — Supply Chain Opportunities — redirect funds to build innovative capability in the Innovation, Industry, Science and Research portfolio.

Textiles, clothing and footwear — Product Diversification Scheme — redirect funds to build innovative capability

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Department of Innovation, Industry, Science and Research - - -0.2 -5.3 -5.3

The Government will redirect funding from the Textiles, Clothing and Footwear Product Diversification Scheme. This measure will provide savings of $26.7 million over seven years (including savings of $5.3 million in 2013‑14, $5.3 million in 2014‑15, $5.3 million in 2015‑16 and $0.1 million in 2016‑17) to partially offset the additional funding provided to the Clothing and Household Textile Building Innovative Capability Program.

As the recipients of the Product Diversification Scheme must have importing and manufacturing capabilities, use of the program has been limited to a small number of large firms who receive duty credits under the scheme. The Product Diversification Scheme has therefore provided little incentive for innovation and skills enhancement.

See also the related expense measure titled Textiles, Clothing and Footwear — Clothing and Household Textile Building Innovative Capability — additional funding in the Innovation, Industry, Science and Research portfolio.

Textiles, clothing and footwear — Supply Chain Opportunities — redirect funds to build innovative capability

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Department of Innovation, Industry, Science and Research - -0.5 -4.5 -4.5 -4.5

The Government will redirect funding from the Textiles Clothing and Footwear Supply Chain Opportunities Program. This measure will provide savings of $23.0 million over seven years (including $4.5 million in 2013‑14, $4.3 million in 2014‑15 and $0.2 million in 2015‑16) to partially offset the new Textiles, Clothing and Footwear Strategic Capability Program. This measure will support the change in focus of government assistance towards supporting greater innovation in the textile, clothing and footwear industries.

The Textiles, Clothing and Footwear Supply Chain Opportunities Program was designed to provide grants to subsidise key capital investment to strengthen the domestic supply chain. Redirecting the funding to support building innovative capacity at the enterprise level is consistent with the reform directions set out in the Review of the Australian Textile, Clothing and Footwear Industries, Building Innovative Capability.

See also the related expense measure titled Textiles, Clothing and Footwear — Strategic Capability — competitive grants to build innovative capability in the Innovation, Industry, Science and Research portfolio.

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