The Australian Jobs Act 2013 (the Jobs Act) applies to any entity that carries out a major public or private project to establish or upgrade eligible facilities within Australia. A major project has an estimated capital expenditure of AUD $500 million or more. These entities, including companies and government authorities, are called project proponents.
An eligible facility includes:
Generally non-productive facilities are not covered by the Jobs Act. These include:
Procurement of machinery or transport equipment (rolling stock, vehicles and aircraft) without any associated physical infrastructure (factory, maintenance workshop or hangar) is not covered.
Australian Government defence facilities and materiel procurements are covered by their own industry participation arrangements.
Contact the AIP Authority for advice if your project is a combination of eligible and non-eligible facilities, for example a hotel and residential apartments.
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.
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 such as:
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 sets out the conditions that must be met by the state or territory plan for a project not to require an AIP plan. You must submit an AIP plan if these conditions are not met.
The state or territory 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.
The AIP Authority:
An AIP plan ensures Australian entities have full, fair and reasonable opportunity to bid for:
As a project proponent, you must:
See the links above for templates and guidelines to notify the AIP Authority, submit your plan and report compliance.
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.
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.
Find out about current major projects with an AIP plan.
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Last updated: 8 December 2020
Content ID: 43551