This page belongs to: Australian Industry Participation Authority

Major projects to establish or upgrade Australian facilities

Major public and private projects with an expenditure of $500 million or more are subject to the Australian Jobs Act 2013. Learn about 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 any entity that carries out a major project (public or private) to establish or upgrade eligible facilities within Australia. These entities, including companies and government authorities, are called project proponents.

Project proponent responsibilities 

If you’re planning a major public or private project to establish or upgrade eligible facilities within Australia, you must:

AIP Authority 

The AIP Authority:

  • is the statutory officer responsible for administering the Jobs Act
  • evaluates, approves and publishes AIP plan executive summaries 
  • monitors and reports on AIP plan implementation 
  • reports annually to Parliament through our department's annual report.

There are a range of consequences that the AIP Authority may exercise in cases where a project proponent does not comply with the Jobs Act or their approved AIP plan. The consequences range from adverse publicity notices to performance and restraining injunctions.

AIP plan

An AIP plan ensures Australian entities have full, fair and reasonable opportunity to bid for:

  • the supply of key goods and services for the project
  • the supply of key goods or services for the new facility’s initial operational phase (if the project involves establishing a new facility). 

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 non-productive facilities are not covered by the Jobs Act. 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.

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 undertaken by Commonwealth, state, territory or local governments may have obligations under the Jobs Act.

$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.

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.

      Was this page helpful?

      Was this page useful?
      Yes
      No
      Neither

      Thank you for your feedback!

      Would you like to tell us more about your experiences with this page? (optional)

      Feedback you provide will not be directly answered. If you require a reply, please reach out to the page contact directly. For any other queries, please use our general enquiries web form.

      Please do not include personal or financial information (e.g. email addresses, phone numbers or credit card details).

      Your feedback is covered by our privacy policy.