Primary Care Infrastructure Grants Guidelines 2011

Funding arrangements

Page last updated: 2011

About the funding process

A competitive Invitation to Apply (ITA) for all three grant streams will be advertised in the national and regional press and on the Tenders and Grants page of the Department’s website at Health Tenders

The assessment process will be conducted using the published selection criteria for each grant stream. Once applications are assessed, a recommendation will be made to the Minister for Health and Ageing, proposing a merit-based list of preferred applicants. Once approved, a letter will be sent to each preferred applicant inviting them to enter into negotiations with the Department.

For each grant, once a successful outcome to negotiations has been reached, the preferred applicant will be formally offered funding on the basis of the sample terms and conditions included in the template funding agreements forming part of the ITA document package.

Upon execution of each funding agreement, details of each grant will be published on the Department’s website.

Unsuccessful applicants will be notified in writing that their application has been unsuccessful and offered feedback as set out below.

Contact email GP SuperClinics Top of page

Who can apply?

Applications for funding are open to general practice (GP), primary care and community health services and Aboriginal Medical Services:

  • operating existing premises which are providing general practice services, and
  • who have tenure over a proposed premises as at the closing date, of the Invitation To Apply, of 2pm on Friday 10th June 2011.
All applicants are advised to seek both legal and taxation advice as part of preparing their application. Refer to the Important Notice to Applicants at below.

Please note the current Primary Care Infrastructure Grant funding round and GP Super Clinics funding round are separate, merit based processes. Should you be successful in your application for a Primary Care Infrastructure Grant and then go on to apply for and receive GP Super Clinic funding for the same premises the Department would need evidence that there was no duplication in the two proposals for funding.

Eligible Primary Care Infrastructure Grant funding recipients could include GP Super Clinics that are operational at the time. Top of page

What can the funding be used for?

Primary Care Infrastructure Grant funding is provided to assist the move towards multi disciplinary integrated models of care.

Primary Care Infrastructure Grants funding can be used to upgrade or extend existing premises to provide space for additional general practitioners, nurses and allied health professionals and/or students on clinical placements.

Relocation / transfer of an existing General Practice, Primary Care, Community Health Service or Aboriginal Medical Service (the existing premises) to an existing larger / more suitable premises will only be considered where all of the following requirements can be demonstrated:

  1. The proposed premises is adjacent to, attached to, or within 2 kms from the existing premises; and
  2. the same or improved level of accessibility is maintained for clients of the existing premises; and
  3. evidence of tenure to the alternative proposed premises is included in the application submitted by the closing date of the Invitation to Apply (acceptable evidence would generally be one or more of the following; a signed lease, Agreement to Lease or evidence of unconditional purchase); and
  4. an extension / refurbishment of the existing premises to accommodate the additional services set out in the proposal is deemed unachievable or unlikely to be supported by the relevant authorities. Please provide reasons and support your claim with appropriate documents (e.g. notice from Council, structural engineer etc). Top of page
Primary Care Infrastructure Grant funding may include the following elements as a part a capital works project:
  • Professional fees for the design of the capital works project;
  • Professional fees for legal and accountancy advice relating directly to the capital works project;
  • Application fees for Development Approval, Building Permits and the like;
  • Direct construction, including fit-out, costs for labour and materials for builders, plumbers, electricians etc;
  • Supply and installation of information and communication technology equipment including both hardware and software; or
  • Supply and installation (as appropriate) of essential medical equipment.
Primary Care Infrastructure Grant funding cannot be applied towards the cost of:
  • A capital works project that has been contracted, commenced or completed prior to the execution of a funding agreement;
  • Ongoing operating (recurrent) costs (e.g. rent, utilities, salaries, maintenance);
  • Professional health service delivery;
  • The purchase of consumables (other than a consumables pack that may be supplied with equipment on delivery);
  • Purchasing or fitting out a mobile medical unit / vehicle;
  • Projects entirely or predominantly seeking funding for IT / medical equipment;
  • The purchase of existing premises, businesses or land;
  • Travel and accommodation;
  • Student or staff overnight/residential accommodation;
  • Establishing / extending / fitting out premises for which the applicant does not have tenure as at the closing date of the Invitation To Apply, of 2pm on Friday 10th of June 2011;
  • Constructing new premises to establish a general practice, primary care or community health service or Aboriginal Medical Service;
  • Constructing a new building to house an existing general practice, primary care or community health service or Aboriginal Medical Service;
  • The costs of developing clinical service models or similar non construction activity.Top of page

Conditions of funding

Commonwealth funding will be provided through a funding agreement, based on the sample terms and conditions of the templates available for download as part of the Invitation to Apply document package. Applicants should ensure they are familiar with, and seek legal advice on, the terms and conditions of the proposed funding agreement for the grant stream for which they intend to apply.

Each funding agreement will be based upon the proposal that was approved for funding and will include the following Milestone Schedule, incorporating deliverables and associated payments:

  • Demonstration of tenure within 14 days of execution of the funding agreement – payment of an amount equivalent to 20% of Funds;
  • Provision of Project Plan and Project Budget;
  • Project approvals and procurement report – payment of an amount equivalent to 20% of Funds;
  • Progress Report due within 3 months of the Commencement of Works – payment of an amount equivalent to 20% of Funds;
  • Progress Report due within 6 months of the Commencement of Works (if required);
  • Progress Report due within 9 months of the Commencement of Works (if required) – payment of an amount equivalent to 10% of Funds;
  • Submission of the Certificate of Occupancy from a proper authority to the Commonwealth – payment of an amount equivalent to 30% of Funds;
  • Submission of Financial Report and Auditor’s Report (if required).
  • Submission of Bi-annual Operational Phase Reports detailing performance against Key Performance Indicators; and
  • Provision of a final Operational Phase Report detailing performance against Key Performance Indicators and comprehensive analysis on whether the Program Objectives were achieved. Top of page
The payment percentages refer to the payment as a nominal percentage of the total grant funds. These amounts within the Milestone schedule could be negotiated with the preferred applicant. Scheduled payments can only be made on satisfactory receipt of the deliverables in the Milestone Schedule and paid to a nominated bank account.

Funds unused and identified through audit processes at the end of an agreement must be returned to the Commonwealth.

Upon completion of the capital works project, the funding agreement will require the delivery of the new expanded health service delivery arrangements, consistent with the Objectives, for the following periods of time:

Stream A (up to $150,000) - 2 years
Stream B (up to $300,000) - 3 years
Stream C (up to $500,000) - 5 years

While the use of the premises must continue, the ownership of the premises may change during these periods (subject to the Commonwealth’s consent).
Top of page

Performance and reporting procedures

Key Performance Indicators:

Objective 1:

  • Achieve the identified capital works project in line with prescribed Milestones;
  • Describe the upgraded or extended premises supported by the grant funding;
Objective 2:
  • The number of additional general practitioners, nurses and allied health professionals and/or students on clinical placements;
  • Identify the local community health needs;
  • Identify the new or additional services provided to meet these health needs including preventative activities and chronic disease management services;
Objective 3:
  • Detail the processes introduced to support team based approaches to the delivery of care;
Objective 4:
  • Detail the extended hours of service introduced following completion of the capital works project;
Objective 5:
  • Describe the new or enhanced existing clinical training facilities. Top of page

Reporting Requirements:

During the construction period:

  • Against the Milestones in the Milestone Schedule to the Funding Agreement; and
  • Other reports as specified in the Funding Agreement for financial acquittal purposes such as bank account statements, audited reports.
Once operational:
  • Six-monthly reports against the Key Performance Indicators as appropriate for the preceding six month period;
  • Other reports as specified in the Funding Agreement for financial acquittal purposes such as construction completion report, bank account statements, audited reports.

Outcomes:

Expected outcomes for the Primary Care Infrastructure Grants initiative (subject to receipt of applications suitable for funding) include:

  • Additional primary care infrastructure in existing general practices, primary health and community care services, and Aboriginal Medical Services.
  • A broader range of primary health care services for communities and increased access to services for individuals.
  • Increased support for the future primary care workforce through:
    • The provision of additional clinical training placements; and
    • New or enhanced clinical training facilities. Top of page

Important notice to applicants

Taxation

Applicants are advised to carefully consider the likely taxation treatment of any funding provided by the Commonwealth as part of this Program prior to submitting an application for a Primary Care Infrastructure Grant. As a general principle, grants such as that available under this Program will be assessable as income in the hands of a funding recipient where they are received in relation to the carrying on of a business.

This may mean that unless you (or the entity that you propose to use to receive funding) have tax exempt status (such as a not for profit organisation) or are not currently carrying on a business, tax may be payable on the full amount of funding provided.

For some general guidance on the taxation treatment of grants and funding from the Commonwealth, applicants may wish to refer to the Australian Tax Office website. However, you are advised to seek your own independent advice on this issue from a taxation professional on how funding paid to you (or to any entity you propose to establish to receive funding) under the program would be treated for tax purposes. Top of page

Goods and Services Tax (GST)

The total funding payable to the funding recipient by the Commonwealth does not include an amount to cover GST. Applicants are advised to consider the likely implications of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) on the funding provided by the Commonwealth.

Where GST is payable, the Commonwealth will increase the funds payable to the funding recipient by the amount of GST that is payable for the purposes of the GST Act. For example, if the payment due at a particular milestone is $50,000 and GST is payable on that amount, then the Commonwealth will increase the payment provided to the funding recipient to $55,000.

Commencement, Tender and Completion

Primary Care Infrastructure Grants will Not be awarded in respect of a capital works project that has been contracted, commenced or completed prior to the execution of any funding agreement.

Funding recipients will assume responsibility for the proper and professional completion of the capital works project to meet local government, State and/or Territory and Commonwealth regulatory requirements.

Where the applicant is not the owner of the existing premises, the written consent of the owner to the proposed capital works project must be provided as part of the application for funding.