Government announces extra obligations for $500m+ projects
On Sunday 17 February 2013, the Government announced new measures that will affect major projects across all industry sectors. If the measures are implemented as announced:
- Projects with a capital expenditure of $500 million or more will be required to prepare and implement an Australian Industry Participation Plan (AIP Plan). The AIP Plan will have to be prepared at the early stages of project planning, and must outline how Australian companies will be given opportunities to win work on the project. Large resources projects will be required to identify opportunities in the operational phase as well as the construction phase. AIP Plans will be required to meet specific requirements, such as project needs being specified in Australian (or other commonly used international) standards, or risk being deemed non-compliant. The preparation and implementation of AIP Plans will be overseen by a new Australian Industry Participation Authority
- The Enhanced Project By-Law Scheme will be changed to require proponents of projects worth $2 billion or more to embed Australian Industry Opportunity officers in their procurement teams or global supply offices to ensure that Australian suppliers have access to and can win work on global supply chains. We anticipate that non-compliance with this new EPBS requirement could result in project proponents being denied concessional customs duty treatment for imported capital goods.
The timing of these changes has yet to be announced.