NSW Sustainable Communities Program Early Investment Round Program Guidelines

To be eligible for grant funding, an applicant must meet all the following requirements:

1. applicants must hold an Australian Business Number (ABN), Australian Company Number (ACN) or be registered under the Associations Incorporations Act 2009.
2. be one of the following entities:
   • a company incorporated in Australia
   • a Local Government organisation (Committees under section 355 of the Local Government Act 1993 (NSW) must apply via the relevant council)
   • a NSW Joint Organisations of Councils and Regional Organisations of Councils
   • a Local Aboriginal Land Council (LALC)
   • a Partnerships or trust
   • an incorporated association, public/private not-for-profit organisation or co-operative
   • a registered training organisation
   • a nationally accredited provider of tertiary education
   • an Aboriginal and Torres Strait Islander Corporation incorporated under the Corporations (Aboriginal and Torres Strait Islander) Act 2006.
3. be financially viable and able to demonstrate ongoing viability through provision of three years* of accounting statements (Profit and Loss, Cash Flow, Balance Sheet) from financial year 2021/2022.
4. hold or commit to obtaining public liability insurance of not less than $20 million per occurrence or hold equivalent or better self-insurance to the satisfaction of the department, prior to executing a funding deed with the department
5. be a fit and proper person/legal entity
6. not be insolvent, bankrupt or subject to ongoing legal proceedings
7. declare in the application form that the applicant is not aware of any issues which could cause reputational or other risks to the NSW Government
8. have previous project delivery experience
9. provide evidence of capacity to make the minimum co-contribution if successful.

*applicant entities with less than 3 years operating experience may be considered under exceptional circumstances and must contact the department prior to submitting an application.

If an applicant’s circumstances in relation to the above eligibility criteria change, the applicant should provide updated information by contacting the department using the Enquiries/Getting Support details in the Key Information.

Ineligible applicants include:

• individuals
• sole traders
• unincorporated associations
• Australian or NSW Government agencies, State Owned Corporations or statutory authorities
• businesses that are insolvent

The provision of financial assistance to businesses may require consideration of the impact on local competition. Competition issues will be reviewed as part of the assessment process to avoid advantaging or disadvantaging businesses legitimately competing in the same immediate market. Businesses whose primary operation is in the below industries will not be eligible for funding under this program:

• retail
• localised trades
• administrative or professional services that serve only the local or regional community
• hospitality, except where a proposal is unique to the existing market and considered regionally significant and/or iconic or a small part of a larger project (e.g. brewery expansion focussed on production enabling out of region sales, with a small hospitality element such as a kitchen/bar).

Applications must meet all of the following requirements to be eligible:

• the project must be able to meet the project delivery timeframe listed in the Key Information
• the project must not require the acquisition of a water licence or access to additional water as a result of the project over the life of the program or infrastructure.

In addition, Infrastructure projects must also ensure that all necessary approvals are in place at the time an application is submitted. Funding deeds for successful projects will not be established until any approvals required for the project to commence are secured. If required approvals to commence a project are not secured within 60 days of the applicant signing the confidentiality undertaking on the letter of conditional offer of funding, the offer may be withdrawn at the discretion of the department.

The following are indicative examples and not an exhaustive list. Examples shown may be applicable under more than one project type.

Eligible locations have been identified based on exposure and vulnerability to adverse socio-economic impacts to the Australian Government’s Year 1 water purchasing tender. 
Projects must be located within one of the following NSW Basin Local Government Areas (LGAs):

• Balranald
• Berrigan
• Carrathool
• Edward River
• Griffith
• Hay
• Leeton
• Murray River
• Murrumbidgee.

The project costs must support the objectives of the program.

The following types of project costs are eligible for funding: 

• construction costs for infrastructure development, expansion or upgrades that would not be considered business-as-usual activities and operations
• purchase of plant and equipment (including technology or software) that need additional workers to operate or retain jobs
• expanding built infrastructure to enable job creation activities or industry diversification
• program/training event delivery costs (i.e. facilitator, venue hire and workshop materials)
• costs associated with preparatory activities (i.e. revised design/QS estimates, regulatory approvals) will be considered part of project management and administration expenses and will only be considered eligible up to 10 per cent of the total funding requested. 

The total funding requested can include up to: 

• 20 per cent for contingency; and
• 10 per cent for project management and administration costs. 

The total of all eligible project costs, project management and contingency costs being claimed must be within the maximum grant amount for the project type.

The following project costs are ineligible for funding:

• costs associated with the purchase of, or improvement to, irrigation infrastructure, assets or equipment
• costs related to buying or upgrading non–fixed equipment, supplies or vehicles such as cars, trucks and vans, unless considered essential to the overall project delivery and are incidental costs to the project budget
• financing, including debt financing, insurance or rental costs
• costs relating to depreciation of plant and equipment beyond the life of the project
• advertising costs, including marketing campaigns, unless considered essential to the overall project delivery
• purchase of land or buildings
• funding for any ongoing staff or operational costs that are not directly related to the project or beyond the duration of the project
• costs that would be considered business-as-usual activities and operations (including costs associated with recruiting employees, staff development and training)
• operational expenditure, including but not limited to regular repairs, maintenance and administration
• costs associated with early project planning and future planning, (i.e. business case development, economic/financial or feasibility analysis, strategies or plans)
• ongoing or recurrent funding that is required beyond the stated timeframe of the project
• retrospective project costs already incurred prior to the executed funding agreement
• costs already funded by insurance or other NSW or Australian Government programs
• costs associated with exiting an industry or business
• project management and administration costs that exceed 10 per cent of the total funding requested; and/or
• project contingency costs that exceed 20 per cent of the total funding requested.

Applications that have met the eligibility criteria will be assessed against the merit assessment criteria. 

The table below lists the merit assessment criteria, the supporting evidence required and the weighting of the criteria.

Applicants must address all merit assessment criteria.

Each criterion will have an equal weighting.

Applicants can submit only one application.

Each application must consist of one project to be delivered in at least one eligible location.

Applicants must apply via SmartyGrants.

Applicants are encouraged to submit applications as early as possible to avoid disappointment as the application process will close once funding committed reaches the total funding available as outlined in the Key Information. 

Once a decision to close the application process is made, the department retains discretion to accept late applications in extenuating circumstances.

Applicants cannot seek to reopen or amend applications once the application process has been completed.

Each application must include the documents listed in the Application Form including:

• evidence of valid public liability insurance
• evidence of co-contribution (if required)
• evidence of financial viability
• landowner consent if the land is not owned by the Applicant (if required)
• evidence of regulatory approvals (if required)
• partnership deed/agreement to confirm partners and signatories for partnership entities
• current Trust Deed confirming signatories for trust entities
• proof of incorporation for community groups
• evidence of community support for the project
• recent evidence to support the costing of project activities (i.e. quotes).

For projects over $5 million total project cost, and in addition to completing the Application Form, applicants must attach the following documents:

• project management plan
• detailed project budget
• risk management plan
• NSW Government compliant Short-Form Assessment or Business Case for projects with a Total Project Cost exceeding $10 million (refer to Value for money for details).

Applicants may use the optional templates for these documents (where applicable) provided in the Application Form.

Applicants must not include false or misleading information in their applications. If an application contains false or misleading information, the department may deal with the application as the department determines in the circumstances and may, for example, determine that the application is ineligible.

Applicants will receive a notification of receipt via SmartyGrants upon submitting an application.

The department may contact applicants to verify information or seek further information.

Applicants can obtain support in preparing their applications, for example, technical support with online forms and practical guidance on how to complete an application.

Contact the department using the resources listed at Enquiries/Getting Support in the Key Information.

Determining which applications are successful involves these stages:

• eligibility assessment
• merit assessment
• decision-making.

Please note that the department typically receives far more applications than it can support. Applicants are not guaranteed funding even if the application is of high merit. Further, successful applications may not be funded to the full amount requested.

At any stage, applicants may be referred to other, more suitable NSW Government programs. Applicants may need to update their applications to meet the criteria of the referred program.

The Programs Team is comprised of staff from the department who are responsible for the delivery of the program. The Programs Team will coordinate assessors from within the department who will be called upon to undertake components of the assessment process.

The Programs Team may seek advice from other NSW Government agencies and other sources, such as probity advisors, to ensure decisions are made with integrity, fairness and accountability, while delivering value for money for NSW.

The Programs Team may contact applicants seeking clarification of information in their applications or further supporting material and will be responsible for responding to applicant queries and feedback.

The Programs Team will assess each application against the eligibility criteria identified in these Guidelines and provide a recommendation to the Assessment Panel. The Assessment Panel will determine the eligibility of each project. Applications deemed ineligible will not be considered for further assessment.

The Programs Team will coordinate relevant subject matter experts from within the NSW Government to assess each application against the merit assessment criteria.

Applications will be moderated and reviewed by an assessment panel convened by the department (Assessment Panel) to ensure consistency in assessment. Each application will be assessed on its merits before a recommendation is made in writing to the decision maker.

The Assessment Panel will consist of senior representatives from the department and an independent panel member.

The Assessment Panel will convene on a regular basis to assess batches of applications until the following occurs:

• the application period has run for at least 4 weeks and the applications received have been assessed by the department, and/or
• the funding requested for eligible applications received and assessed by the department is equal to or greater than $5,000,000.

The Assessment Panel will consider the relative merits of each application against the:

• outcomes of the Eligibility Assessment
• outcomes of the Merit Assessment
• any personal, businesses and/or probity issues and risks that could cause reputational or other risk to the NSW Government.

The Assessment Panel may request further details from applicants during this step to clarify information provided in their application. The Programs Team will notify applicants if additional information and supporting material is required and the timeframes in which it is required.

The Assessment Panel will form a list of projects that are deemed suitable/not suitable for funding consideration.

The Assessment Panel may recommend partial funding for projects where there is insufficient funding available for the whole project or where only a component of the project is considered eligible or suitable for funding.

Partial funding will only be granted if the project can be completed within the identified funding amount or where the project can be staged.

The Assessment Panel may also recommend specific funding condition(s), where appropriate (such as engaging a third-party to manage the project delivery).

The Assessment Panel may defer a recommendation pending further information or may take other factors into consideration when recommending an application for funding, including but not limited to the:

• total amount of funding available
• level of impact of the projects on the relevant local community
• importance of the project to the local economy or local community
• geographical distribution of projects across the eligible LGAs
• suitability of a project for other government funding opportunities; and,
• other factors that are deemed relevant and important in a whole of NSW context, such as alignment with existing NSW Government policies and strategies.

Advice may also be sought from other NSW Government agencies or other sources (such as probity advisors).

The Assessment Panel will make written recommendations to the decision maker.

The Assessment Panel may recommend a lesser amount of funding or defer a recommendation pending further information. 
 

The decision maker is the Minister for Regional NSW as listed in the Key Information.

The decision maker will review the availability of grant funds, the recommendations of the Assessment Panel and, where relevant, the outcomes of the eligibility assessment.

The decision maker may take other factors into account including advice from a probity advisor and issues that could cause reputational or other risks to the NSW Government.

In limited circumstances, the decision maker may waive selection criteria, for example, where not doing so would: lead to perverse or unfair outcomes; be contrary to the policy intent; or damage the reputation and integrity of the program.

If the decision maker departs from the Assessment Panel’s recommendations, the decision maker will arrange for the departures to be published with reasons. 

The decision maker’s decision is final in all matters, including:

• the approval to award a grant;
• the amount awarded; and,
• the terms and conditions of the grant.

An independent probity advisor will provide guidance on issues concerning integrity, fairness and accountability that may arise throughout the submission, assessment and decision processes. This will help ensure decisions are made with integrity, fairness and accountability, while delivering value for money for NSW. A probity advisor will be present at all Assessment Panel meetings. 
 

The department will send successful applicants a letter of conditional offer.

Successful applicants may be required to sign confidentiality undertakings, promising to keep the outcome of the application process confidential until the NSW Government makes a public announcement.

Successful applicants will be required to sign funding deeds with the department. Refer to Successful applications section.

The department will notify unsuccessful applicants in writing of the outcome of their applications.

The department will offer unsuccessful applicants a feedback information session.

There is no appeal mechanism from the decision-maker’s decisions.

The NSW Government may announce the outcome of funding applications at its discretion.

Key information about the grants awarded will be published on the NSW Government Grants and Funding Finder, in accordance with the requirements of the Grants Administration Guide.

This information, plus information submitted in applications and related correspondence, may be open access information under the Government Information (Public Access) Act 2009 (NSW) which must be made publicly available unless there is an overriding public interest against disclosure of the information. Information that is commercially sensitive may be withheld.

The NSW Government may use information submitted in applications and in funding deeds for promotional material and to develop case studies.

Successful applicants must execute a funding deed with the department within 60 days of receiving a Letter of Offer.

There is no promise of funding until both the applicant and the department have executed a funding deed (and the applicant has met any other funding conditions).

Successful applicants must not make financial commitments for the funded activities until both the applicant and the department have executed a funding deed.

The funding deed will set out the grant recipient’s obligations including, for example, to:

• meet activity timeframes and deliver the project on time
• notify the department of any delays
• be responsible for project cost overruns
• repay grant funds which are not spent in accordance with the funding deed
• repay unspent grant funds
• submit progress reports as required
• meet monitoring and acquittal requirements
• maintain insurances
• acknowledge the grant as per the Funding Acknowledgement Guidelines for Recipients of NSW Government Grants
• funding announcements and signage acknowledge both the NSW and Australian Governments, unless otherwise agreed
• provide data as requested by the department to support acquittal of grant funds and program evaluation
• participate in program evaluation and audits including to determine the extent to which the project has contributed to the Program objectives
• the department reserves the right to undertake an audit of grant funding within a period 7 years from the signing of the funding deed and applicants should maintain records for this period
• advise the department if additional funding is secured for the project
• advise the department of any changes to the grant recipient’s legal status.

The funding deed will include the department’s termination rights, including if the grant recipient has engaged in conduct that might cause reputational damage to the NSW Government or has provided misleading information in its application.

After funding deeds are executed, the department may consider requests for variations to projects only in limited circumstances at the departments discretion. 

The department will pay grants in instalments.

The funding deed will set out the instalment amounts and what the grant recipient needs to do receive each instalment (e.g. complete specified activities and provide evidence of completion and reports within a timeframe).

Grants are GST exclusive. If a grant recipient is registered for GST, GST will be applied on top of the grant value when payment is made (where applicable).

Grants are assessable income for taxation purposes, unless exempted by taxation law. Grant recipients should seek independent professional advice about taxation obligations or seek assistance from the Australian Taxation Office. The NSW Government does not provide advice on individual taxation circumstances.

If a grant recipient’s project is completed and there are unspent funds remaining from the grant allocation, the department may require the grant recipient to return the unspent funds.

Alternatively, the grant recipient may request to use the unspent funds on extending the scope of the project if the request aligns with the objectives of the program and the grant recipient provides supporting information to the department. The department is under no obligation to agree with the request.

The department will monitor how grant recipients are spending their grants and how their projects are progressing.

Grant recipients will be required to submit regular progress reports, final reports and other information to the department.

Grant recipients will be required to inform the department if their circumstances change.

The department will monitor the funded projects against the purpose and objectives of the program.

Grant recipients will be required to participate in evaluation activities, to inform a process, outcome and economic evaluation of the program. This will include the submission of regular project progress reporting and the provision of additional information on project delivery, outcomes and benefits consistent with the SCP objectives. Successful applicants will be provided with guidance on the data required to be collected for the evaluation.

If applicants have any concerns about the program or individual applications, please contact the department in writing using the contact information at Enquiries/Getting Support in the Key Information.

If applicants do not agree with the way the department handled an issue, applicants may contact the NSW Ombudsman.

The Government Information Public Access (GIPA) Act provides for the proactive release of government information by agencies and gives members of the public an enforceable right to access government information held by an agency (which includes Ministerial offices). Access to government information is only to be restricted if there is an overriding public interest against disclosure.

The NSW Legislative Council has the power to order the production of State papers by the Executive Government. Standing Order 52 provides that the House may order documents to be tabled by the Government in the House. The Cabinet Office coordinates the preparation of the papers – that is, the return to order. The return to order may contain privileged and public documents. Privileged documents are available only to members of the Legislative Council. 

Note that documents submitted as part of a grant application may be subject to an application under the GIPA Act or an order for papers under Standing Order 52.  

If applicants require further information about the GIPA Act and/or Standing Order 52, please contact the department using the contact information at Enquiries/Getting Support in the Grant Program Details.

Applicants (and their officers and staff) must declare any perceived, potential or real conflicts of interest in respect of the grant opportunity. They must declare such conflicts on the application form.

Where there is a conflict of interest detrimental to the grant opportunity, applicants must put mitigation measures in place. The department may require individuals not to participate in the application or delivery stage.

All applicants (successful and unsuccessful) must keep the outcome of the grant opportunity confidential until the NSW Government makes a public announcement. 

Applicants must not participate in any anti-competitive conduct.

Applicants must not offer any gifts, benefits or hospitality to any NSW Government employee at any time. Any inducement in contravention of this condition may result in an applicant’s application not being considered.

The NSW Government may, in its absolute discretion, and without limiting any other rights which it may have, do all or any of the following at any time without giving notice or reasons:

• require additional information from an applicant
• change any of the requirements of these Guidelines
• alter or vary any process, procedure or timing related to the grant
• suspend or terminate the grant opportunity
• negotiate with one or more preferred applicants without prior notice to any other applicant
• terminate any negotiations being conducted with any applicant
• readvertise for new applicants
• consider any non-conforming application
• terminate an applicant’s further participation in the grant opportunity for any reason (including if the department considers that an application contains false or misleading statements or may damage the reputation of the department or the program)
• not proceed to execute any funding deed.

Where significant changes are made in relation to the grant opportunity, the department will revise these guidelines and make them available here. 

The department may issue an addendum to these guidelines.  The addendum becomes part of these guidelines. 

The department will publish these guidelines and any revised versions and addenda on the NSW Government Grants and Funding Finder.

These guidelines are not an offer, recommendation or invitation by the department in respect of any grant.  There is no funding commitment until both a successful applicant and the department execute a funding deed.