Automotive New Markets Program (ANMP) Questions and Answers Program What are the ANMP Ministerial Guidelines? Where can I find them? The ANMP Ministerial Guidelines set out the full detail of the ANMP, including the terms and conditions of grants provided under the ANMP – including application process, merit criteria, eligibility criteria, eligible projects and activities, and eligible expenditure. The ANMP Ministerial Guidelines are available at http://www.innovation.gov.au/anmp. Do I need to consult the ANMP Ministerial Guidelines before submitting an application? Yes. Applicants should consult the Ministerial Guidelines before submitting an application. What type of program is the ANMP? The ANMP is a competitive merit based grant program. That is, each application will be assessed against the program’s merit criteria and relative to the merit of other competing applications received. Not all applications are guaranteed to be successful. Only successful applications will receive ANMP grant funding. Does the ANMP have limited funds? The total amount of grants made under the ANMP must not exceed $30 million for the life of the program. Given the ANMP is a competitive grant, will funds be quarantined for each year? The ANMP will have specific funding profiles per financial year. Why do I need to undertake a business capability development activity and does it need to have been completed at the time of applying? Undertaking a business capability development activity will help your company set a strategy for sustaining your company’s manufacturing operations by identifying opportunities for diversification of your product(s) and/or customer(s); and your company’s capacity to undertake diversification activities. At the time of application, an applicant must demonstrate that they have undertaken and completed an arms length business capability development activity, which has resulted in the implementation of at least one improvement in the business. 1 What is an eligible business development capability activity? For example, do activities undertaken through Automotive Supplier Excellence Australia (ASEA) and/or Enterprise Connect be considered an eligible business capability development activity? An eligible business capability development activity is an activity that has been undertaken through a capability development organisation which has resulted in the implementation of at least one improvement in the business. Business improvement activities undertaken through ASEA and/or Enterprise Connect would be considered as eligible business capability development activities. Does the business capability development/improvement activity have to be directly related to the project for which an ANMP grant is being sought? The business capability development / improvement activity is not required to be linked to the proposed project for which the business is seeking ANMP grant funding. My company undertakes internal business development/improvement activities. Do these activities count as eligible business capability development activities? Consistent with the ANMP Ministerial Guidelines, an eligible business capability development activity must have been undertaken at arms length. Section 4.4 of the ANMP Ministerial Guidelines sets out the definition of ‘arms length’. What is the project duration for ANMP-funded projects? ANMP grant projects are expected to have a maximum two year duration. Why have the grant thresholds for ANMP funding been set at a minimum of $50,000 and a maximum of $1 million? Aren’t these too high/too low? The upper and lower grant thresholds have been set with the aim of ensuring that projects are of sufficient size to make a commercial and strategic difference to individual grantees, while also ensuring that program funds are available for a range or meritorious projects that will make a difference for the automotive industry. In the Automotive New Markets Initiative (ANMI) Consultation Framework Paper, the minimum threshold was $100,000. Why has the minimum threshold been changed to $50,000? The threshold has been set at $50,000 in response to strong support from stakeholders. This is based on submissions received for the ANMI Consultation Framework Paper and consultations on the ANMI. Does my company need to match ANMP funding? Why can’t the ANMP fund up to 100 per cent of a project? Can I apply for a higher funding ratio? The ANMP has a funding ratio of one to one – the ANMP will contribute a dollar for each dollar the applicant contributes (up to a maximum value of $1 million). An applicant must be able to match dollar for dollar the funding it is seeking from the ANMP. Do other organisations in our consortia need to match ANMP funding? No. 2 We have already started talking to other groups/companies regarding a project. Should we stop our discussions/negotiations and wait to see if we qualify for an ANMP grant? This is a company decision. Is the ANMP similar to a Commercialisation Australia grant? No. Commercialisation Australia is aimed at helping researchers, entrepreneurs and innovative firms take their intellectual property to the market. The Commercialisation Australia governing principles state that Commercialisation Australia is ‘designed to increase the level of commercialisation skills and knowledge, as well as proof of concept and early state commercialisation activities…will only support projects up to the point where a new product, process or service has been sold to the first customers in Australia or overseas’. Further information on Commercialisation Australia and its Customer Information Guide are available at www.commercialisationaustralia.gov.au. The objective of the ANMP is to assist Australian supply chain companies broaden their customer and product base, both domestically and internationally. Eligibility Who is eligible to apply for an ANMP grant? An incorporated Australian automotive supply chain company, who is a producer of automotive components; automotive tools or tooling; or an Australian provider of automotive services, who supplies an original equipment manufacturer for motor vehicles is eligible to apply for an ANMP grant. An eligible ANMP applicant will also have undertaken an arms length business capability development activity to improve competitiveness and have a diversification project ready to be implemented An applicant will also need to be registered for GST. Can consortia apply for an ANMP grant? Applications from consortia will be considered provided that an eligible lead company representing the consortia or group is willing and able to commit to the legal and financial obligations arising from a funding agreement. Who can be in a consortia? Can a consortium include a motor vehicle producer? Individuals and groups can be a member of a consortium. A motor vehicle producer can be part of a consortium but can not receive funding from the ANMP. Do all members of a consortium need to be eligible to apply as if they were a sole applicant? No. The company representing the consortium must be eligible to apply as if they were a sole applicant. How many years does a company have to be in operation to be eligible to apply for an ANMP grant? For example, can a start-up company apply for an ANMP grant? The number of years of company operation is not part of the eligibility criteria. A start-up company will need to meet the eligibility criteria to apply for an ANMP grant. 3 Can I apply for an ANMP grant if my company already receives grant funding from other Commonwealth and/or state funding programs for the project that we are applying an ANMP grant for? You can apply for an ANMP grant as long as you meet the eligibility requirements. The ANMP Assessment Panel will take into account relevant Commonwealth policies that apply to the ANMP, for example the Commonwealth Grant Guidelines, which aim to ensure that new programs do not duplicate other programs. What are eligible activities under the ANMP? A diversification project undertaken in Australia that would allow a company to broaden their business capabilities and access markets internationally and domestically would be eligible for ANMP funding. Examples of eligible project activities include: research and development activities undertaken in Australia re-tooling activities undertaken in Australia proof-of-concept activities undertaken in Australia early-stage commercialisation activities undertaken in Australia pre-production development activities undertaken in Australia imbedding of Australian design and engineering employees other activities deemed to be necessary for broadening a company’s customer or product base. Why can’t automotive researchers and non-automotive firms apply? The ANMP has been developed with a view of helping the automotive supply chain respond to the demands of a transforming automotive manufacturing sector and ensure motor vehicle production capabilities remain in Australia. The Government’s policy is aimed at supporting the Australian supply chain’s capability to support motor vehicle production through new opportunities to build volume. Are there any minimum sales or production thresholds I need to meet to be eligible? Minimum sales or production thresholds have not been set as a requirement to be eligible to apply for an ANMP grant. It is important to note that ANMP grants will have a minimum of $50,000 up to a maximum of $1 million in value. ANMP-funded projects are expected to maintain the scale necessary for automotive supply chains to remain viable and competitive in the automotive and non-automotive industries. I’m an automotive supplier to the aftermarket, can I apply? An applicant must meet eligibility requirements stated in the ANMP Ministerial Guidelines to apply for an ANMP grant. Sections 7 and 8 of the ANMP Ministerial Guidelines set out the eligibility criteria. 4 I predominately supply to the automotive aftermarket but a small amount of my sales is to original equipment manufacturers, can I apply? An applicant must meet the eligibility requirements stated in the ANMP Ministerial Guidelines to apply for an ANMP grant. Section 7(c) of the ANMP Ministerial Guidelines states that ‘at the time of applying and for the life of the grant, supply an original equipment manufacturer’. Expenditure What kind of expenditure would be eligible for funding under the ANMP? Expenditure on the following will be eligible for grant funding if it is directly related to an eligible project activity: labour external education and training contractors (including payments to research organisations such as universities and Cooperative Research Centres) manufacturing machinery and equipment, including state-of-the-art second-hand manufacturing machinery and equipment tooling prototype and IP protection. Will the ANMP only fund eligible activities undertaken in Australia? With the exception of activities associated with imbedding of Australian automotive design and engineering employees with customers or joint venture partners to develop manufacturing or engineering solutions for a project which will directly lead to increasing the applicant’s Australian based capabilities, the ANMP will only fund eligible activities undertaken in Australia. The ANMP is providing support to the Australian automotive supply chain to help ensure automotive manufacturing capabilities remain in Australia. Will the ANMP fund activities such as inward and outward trade missions which are necessary to develop new markets internationally? The ANMP supports activities directly related to developing new products or supplying new customers. A strong case would need to be made with the respect to the importance or appropriateness of including trade missions in an application. What do you mean by ‘other’ eligible expenditure? ‘Other’ eligible expenditure is expenditure directly related to eligible project activities which may be assessed eligible by the ANMP Assessment Panel. This provides applicants with the flexibility to make a case that expenditure related to activities that are not clearly identified as eligible are critical to the project proposed and as a result should be assessed as eligible. 5 What do you mean by ‘labour’? For the purposes of the ANMP, labour means labour undertaken in respect of the project that is the subject of an ANMP application – for example, the labour associated with an employee taken offline to undertake work on the ANMP project. Will capital equipment be an eligible project under the ANMP (for example, new equipment to improve capability)? Eligible expenditure under the ANMP Ministerial Guidelines include: labour; external education and training; contractors (including payments to research organisations such as universities and Cooperative Research Centres); manufacturing machinery and equipment, including state-of-the-art second-hand manufacturing machinery and equipment; tooling; prototype; and intellectual property protection. Applicants should note that under the ANMP, ineligible expenditure includes infrastructure costs (for example, building costs). What kind of support can you provide regarding activities supporting IP protection? The ANMP will provide funding for an eligible project activity related to protection of intellectual property generated from or specific to the project that is subject of an ANMP grant. Examples include developing IP protection strategy, preparing a patent application (excluding fees to a patent office such as registration and maintenance fees) and developing or reviewing IP licensing agreements. Will the creation of joint ventures be considered an eligible activity for receiving an ANMP grant? No. The acquisition of all or part of a business and business mergers are ineligible expenditure under the ANMP. Will labour or R&D undertaken overseas be covered under an ANMP grant? With the exception of a project that involves the imbedding of an Australian designer or engineer with a customer, domestic or international, eligible projects and their activities under the ANMP must be undertaken in Australia. Application Process When can I apply for the ANMP? The first ANMP round was announced in August 2012. 6 How will I know when an application round is open? The opening of an application round and details of the rounds will be available at www.innovation.gov.au/anmp and on the websites of the Victorian Department of Business and Innovation (DBI) and South Australian Department for Manufacturing, Innovation, Trade, Resources and Energy (DMITRE). Email notifications will be sent to people who have registered for ANMP email updates. If you would like to be notified when rounds are opened, please send your contact details to [email protected]. Please ensure your details are kept up-to-date and notify the mailbox if your email address changes. How many rounds will there be and how often will they be held? Application rounds will be held annually during the life of the ANMP. A second round may be held in a year if sufficient funding is available. Who can I contact in regards to whether my project would be eligible and how to apply? Can I seek advice on whether I should go ahead with my application? Potential applicants can seek advice on information that should be provided in an application form and the eligibility of an applicant from DIISRTE, DBI and DMITRE. However, the departments can not provide advice in respect of the eligibility or prospective merit of a project – that is a company decision. Queries regarding ANMP application process may be sent to [email protected] My project is time sensitive and does not coincide with a funding round. Can I apply outside of rounds? Applications will not be accepted outside of designated application rounds. How many grants and how much funding will the ANMP provide in each round? The number of grants awarded and total value of funding provided each round is at the discretion of the Program Delegate. These will be based on the number of applications received, the size of ANMP funding sought for each application, the merit of applications and available ANMP funding. What information and supporting documents do I need to supply in my ANMP application? Why do you need all this information? Applicants must provide information and supporting documents sought after in the ANMP Application Form. All applicable sections in the application form must be completed. The Assessment Panel will consider information provided in the application form and supporting documents when assessing applications. Do I need to supply letters of support from organisations in our consortium? Applicants are encouraged to provide letters of support from organisations in their consortium. How will you judge that an applicant has progressed their business capability development activity? Applicants are expected to provide information in their application that clearly demonstrates they have undertaken a business capability development activity which has resulted in the implementation of at least one improvement in the business. 7 Applicants are required to give permission to allow the Program Delegate and ANMP Assessment Panel to access confidential information in relation to its project from the business development organisation which assisted the applicant in undertaking its business capability development activity. Will the Assessment Panel seek external advice when considering an ANMP application? The Assessment Panel may choose to seek technical, financial, economic or industry advice from external experts, including but not limited to a motor vehicle producer and letters of support from customers. The ANMP Ministerial Guidelines set out the terms and conditions for the Assessment Panel’s merit assessment considerations. Can I apply for multiple grants? If so, how many and how often? An applicant may only submit one application per round. Applicants should note that the cumulative value of grants an applicant may be awarded within a twelve month period is $1 million. Applicants should also note that the limit to the cumulative value of grants to an applicant over the life of the program is $2 million. Can I re-apply for a project if a previous application for the same project has been unsuccessful? An applicant may only re-apply for a grant for a particular project if the project has substantially changed since the last submission. Is there a draft grant agreement available that we can view before applying? If so, where can I get a copy? A draft grant agreement will be available on the website when the grant negotiations are underway. Is there a clawback provision? If yes, will this be at a project or company level? Clawback provision would be at project level. If a project receives other Commonwealth, State or Territory Government assistance, other than from a program with its own clawback provisions (including the Automotive Transformation Scheme), the value of that assistance must be deducted from any calculation to determine the value of a grant under the ANMP for the project. How will I know when my application has been dealt with? Applicants will receive an email acknowledging receipt of application. What happens after the application has been submitted? Eligible applications received by the closing date will be assessed by the ANMP Assessment Panel. Who will assess ANMP applications? The ANMP Assessment Panel is to conduct a merit assessment of all eligible applications. The Panel comprises of: an Independent Chair; a representative from the Commonwealth Department of Industry, Innovation, Science, Research and Tertiary Education; a representative from the 8 Victorian Department of Business and Innovation; and a representative from the South Australian Department for Manufacturing, Innovation, Trade, Resources and Energy. Will applicants from South Australia and Victoria receive preference over those from other states? No, the ANMP is a national program. Applications will be assessed based on their merit. Will the assessment panel seek confidential information from external sources? The Assessment Panel may seek technical, financial, economic or industry advice from an external expert/s. Applicants are required to give permission to allow the Program Delegate and ANMP Assessment Panel to access confidential information in relation to its project from the business development organisation which assisted the applicant in undertaking its business development activity. What if I don’t agree to release confidential information? Will my application still be assessed and will it be assessed fairly? The ANMP Assessment Panel will make assessments based on information and supporting documents provided by applicants. The applicant will have to sign a declaration releasing confidential information from its capability development provider. How long will the assessment process take? The assessment process is expected to take four weeks from the closing date of the application round. If I am not successful in receiving an ANMP grant, can I get feedback? What if I have a complaint about the assessment process? The ANMI has a dedicated email address [email protected] where queries regarding the initiative and its elements may be sent. Queries about the ANMP may be directed to [email protected]. Complaints about the administration of the ANMP, including the administration of the funding rounds will be dealt with in accordance with the Department’s Service Charter. The Charter is available at http://www.innovation.gov.au/AboutUs/Pages/DepartmentalServiceCharter.aspx Whilst the Program Delegate’s decision in awarding grants is final, applicants will be able to request feedback on their applications, including advice on how they might be improved. What information about the grant will be made public? A list of successful applicants is to be published on the Commonwealth Department of Industry, Innovation, Science, Research and Tertiary Education’s website, including details, on an individual basis, of each recipient, the value of the grant, the purpose of the grant and the grant term. This is a requirement under the Commonwealth Grant Guidelines. Program delegate Who is the Program Delegate? The Head of Manufacturing Division in the Department of Industry, Innovation, Science, Research and Tertiary Education is the Program Delegate for the ANMP. 9 Grant management and payments Who will be managing the grants and making payments to successful grantees? Grants including contract execution and management, and payments will be managed by AusIndustry Division in the Department of Industry, Innovation, Science, Research and Tertiary Education. AusIndustry is the Department’s specialist program delivery division. What do I have to do in order to receive a payment? Why do I have to submit progress reports in order to get paid? Grantees will need to submit progress reports on a quarterly basis. These reports will outline the project’s progress and achievement of milestones and expenditure. Payments will be based on grantees meeting pre-determined milestones and expenditure. How will I get paid? Payments will be by reimbursement at 50% of eligible expenditure following receipt of Quarterly Report and evidence of achieving project milestone(s) or investment. How frequently will I get paid? Payments will be made on a quarterly basis and will be based on the quarterly progress reports submitted by the grantee. Will retrospective funding be allowed? At what point of the project will ANMP grant cover? Retrospective funding is not provided under the ANMP. An ANMP grant would only cover expenditure incurred on or after the project start date, and on or before the project completion date. Final audit costs incurred within three months of the project completion date may be eligible for grant funding. Project expenditure incurred prior to the offer of a grant will not be supported by the ANMP. Will a project which has commenced when a grant application was submitted be covered by ANMP grant? A project which has commenced prior to grant application submission would be eligible for an ANMP grant provided it meets the eligibility criteria. However, project expenditure incurred prior to the offer of grant will not be supported by the ANMP. The ANMP does not provide retrospective funding. What happens if a project gets delayed (e.g. by six months / twelve months)? A grantee can apply for an extension to the length of a project of up to 6 months from the project completion date provided: the need for the extension could not have been anticipated before the project start date; and the extension would significantly improve the outcomes of the project. 10
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