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Australian Industry Participation plan requirements extended

Consultation paper released

22 November 2011: The federal Government has released a consultation paper, ‘Measures to extend Australian Industry Participation’. The consultation paper provides information on the proposed implementation of AIP changes announced on 6 October 2011.

Submissions in response to the consultation paper can be made up to 12 December 2011.  View the consultation paper on the Department of Innovation, Industry, Science and Research website.

Currently, AIP plans are a requirement for entities seeking customs duty concessions under the Enhanced Project By-law Scheme (EPBS) and entities tendering for Commonwealth Government procurements worth $20 million or more.

The changes proposed on 6 October 2011 involve:

  • Extending AIP plan requirements to projects receiving Commonwealth Government grants of $20 million or more
  • Extending AIP plan requirements to large Commonwealth Government funded infrastructure projects delivered by state or territory governments ($20 million or more), unless a Local Industry Participation (LIP) plan is required under the applicable state or territory LIP policy
  • Publication of all AIP plans and all AIP implementation and outcomes reports. The proposed level of detail required about implementation and outcomes represents an increase to that currently required for EPBS and Commonwealth procurement projects
  • Tightening the AIP plan-related obligations for EPBS project proponents by:
    • Requiring all project proponents to provide more comprehensive evidence of the participation opportunities being made available to Australian industry through all stages of their project
    • Requiring proponents of EPBS projects over $2 billion to provide additional and more detailed information about participation opportunities for Australian industry, for publication on a public website
    • Requiring proponents of EPBS projects over $2 billion to report more regularly on their AIP plans and AIP outcomes
    • Require proponents of EPBS projects over $2 billion to obtain formal AusIndustry approval of eligible goods as an extra step in the EPBS process.

To discuss the potential implications of the AIP changes and how the Government is proposing to implement them, please contact:

Michael Roche
Tel: +61 2 9322 5341

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