Australian Industry Participation (AIP) major project requirements
Major projects are those with an estimated capital expenditure of $500 million Australian dollars or more.
The Australian Jobs Act 2013 (the Jobs Act) applies to major projects to establish or upgrade eligible facilities within Australia.
Major projects are those with an estimated capital expenditure of $500 million Australian dollars or more. This can be a public or private project.
The company or government entity that carries out the major project is responsible for complying with the Jobs Act. We call them project proponents.
The Australian Industry Participation Authority administers the Jobs Act.
AIP plans
Under this law, project proponents need an AIP plan.
An AIP plan ensures Australian entities have full, fair and reasonable opportunity to bid to:
- supply key goods and services for the project
- supply key goods or services for the new facility’s first 2 years of operations (if the project involves establishing a new facility).
AIP plan compliance
There are a range of consequences that the AIP Authority may exercise when a project proponent does not comply with the Jobs Act or their approved AIP plan. These range from administrative consequences (such as public notices) to performance and restraining injunctions.
Project proponent responsibilities
If you’re planning a major public or private project to establish or upgrade eligible facilities within Australia, you must:
- notify the AIP Authority of your major project
- complete and submit a draft AIP plan for approval
- manage and implement your AIP plan by:
- reporting your compliance against the AIP plan to the AIP Authority every 6 months
- notifying the AIP Authority of any changes in your project
- keeping detailed records
The AIP Authority will publish a summary of your AIP plan.
Major project criteria
The Jobs Act applies to the following facilities and activities.
Eligible facilities
An eligible facility includes:
- mine or quarry
- land transport facility (railways and roads)
- wharf or port
- petroleum facility
- electricity facility (renewable energy projects, for example wind, solar, hydro)
- factory
- airport or passenger terminal
- water supply facility
- sewage or wastewater facility
- telecommunications facility
- any other productive facility like a hotel, resort, commercial and retail centre.
Non-eligible facilities or activities
Generally, the Jobs Act doesn't cover non-productive facilities.
These include:
- residential developments
- schools, universities or research institutes
- hospitals
- prisons or law courts.
Non-eligible activities include:
- procurement of machinery or transport equipment (rolling stock, vehicles and aircraft) without any associated physical infrastructure (factory, maintenance workshop or hangar).
- Australian Government defence facilities and materiel procurements, which are covered by their own industry participation arrangements.
Projects that combine eligible and non-eligible facilities
If your project is a combination of eligible and non-eligible facilities, for example a hotel and residential apartments, you can contact us for advice.
$500 million threshold
The $500 million threshold amount should include all expenditure of a capital nature incurred or likely to be incurred in carrying out the project. GST must be included where it is payable.
This includes, but is not limited to, expenditure directly related to capital construction costs like:
- land acquisition
- infrastructure
- buildings
- design fees (architecture and engineering)
- council building licences
- contingency sums
- equipment for the project.
Government expenditure, grants or loans
All projects to establish or upgrade eligible facilities worth $500 million or more have obligations under the Jobs Act. This includes publicly and privately funded projects or any combination of project funding sources and types.
Projects that federal, state, territory or local governments undertake may have obligations under the Jobs Act.
Read more about Australian government funded project requirements.
Projects with a state or territory industry participation plan
If your project must submit a state or territory industry participation plan, you may be eligible for an AIP plan exception.
Section 5 of the Australian Jobs (Australian Industry Participation) Rule 2014 explains the conditions that must be met by the state or territory industry participation plan for a project not to require an AIP plan. You must submit an AIP plan if you do not meet these conditions.
The state or territory industry participation plan must ensure that all Australian businesses have full, fair and reasonable opportunity to supply goods and services. It must not give preference to suppliers located in one state or territory over another. Project proponents must ensure the AIP Authority is notified when the plan is submitted to a state or territory, and when a decision on the plan has been made.
Secrecy
The AIP Authority and staff are bound by the secrecy provisions under Part 9 of the Jobs Act. Any information provided to the AIP Authority will only be dealt with in a manner specified under the Jobs Act or any other Commonwealth Law. Section 107 of the Jobs Act lists the agencies the AIP Authority may disclose information to.
Vendor identification agencies
The department recommends project proponents use Vendor Identification Agencies (VIAs). This is to develop an understanding of Australian suppliers’ capability. Also to connect major projects with capable Australian supply chains.
VIAs can provide services in capability matching and promotion of project supply opportunities. They can help drive diverse, sustainable and innovative supply chains.
Supply Nation has a database of verified First Nations businesses. You can search by business name, product, service, area or category.
The Industry Capability Network (ICN) gives businesses access to an online tool. It can help connect them to suitable suppliers, project managers and business opportunities across Australia and New Zealand. You can learn more about this tool at the ICN Gateway.
The Department of Finance’s Selling to government webpage has useful resources for engaging business in Australia.
Feedback and complaints
For feedback about major projects to establish or upgrade eligible Australian facilities:
- email: aip@industry.gov.au
- phone: +61 2 6213 6404.
If you disagree with a direction to amend your draft AIP plan or with any of the AIP Authority’s decisions, you may apply to the Administrative Appeals Tribunal (AAT) for a review of the decisions. For more information read Section 112 of the Jobs Act.