Chapter 32. Capacity Building Fund

Supporting Documents for this Chapter:

• Acquittal Summary Formsign-in required (sign-in required)

32.1. Chapter OverviewCopy citation · §32.1

A Capacity Building Fund (the Fund) has been established to support greater diversity in the employment market through two key elements; assisting small Workforce Australia Services Providers to establish themselves under Workforce Australia Services and to build the capacity of First Nations organisations to deliver employment services.

Specifically, the Fund is available to eligible Workforce Australia Services Providers to provide financial assistance in helping cover some of the costs associated with attaining the required quality assurance standards these being ISO 9001 or National Standards for Disability (NSDS) and/or the Department’s Right Fit for Risk (RFFR) IT security accreditation.

The Fund is also available to the National Indigenous Employment and Training Alliance (NIETA) to provide financial support in building the capacity of new and emerging First Nations organisations in delivering employment services. Using the Capacity Building Fund, the Department will work in partnership with NIETA to co-design projects that will help improve employment opportunities for Aboriginal and Torres Strait Islander Peoples and progress under the National Agreement on Closing the Gap.

This section sets out who is eligible for the Fund, guidance around the kinds of costs can be reimbursed under the Fund and how claims for reimbursement can be lodged.

32.2. Provider EligibilityCopy citation · §32.2

For a Workforce Australia Services Provider to be eligible for the Fund, all 3 of the following criteria must be met:

• the Provider has been issued a Head Licence, and

• is a Small Business Entity, and

• does not currently have or has not previously been required to have, under any agreement with the Commonwealth Government for the delivery of employment services,

  • ISO 9001 or NSDS certification, and/or

  • the Department’s RFFR accreditation for information security.

Workforce Australia Services Providers may be eligible to claim reimbursement of Right Fit for Risk (RFFR) costs through the Capacity Building Fund where the Provider's RFFR requirements have increased due to their Workforce Australia Services Licence(s). This includes eligible Small Business Entity Providers, who previously were required to meet RFFR accreditation requirements under any agreement with the Commonwealth Government for the delivery of employment services prior to being granted a Workforce Australia Services Licence.

Capacity Building for First Nations Organisations

The Capacity Building Fund eligibility has been broadened to allow NIETA to co-design projects to build the capacity of the Aboriginal community-controlled sector. Contracting arrangements with NIETA will be undertaken via a grant opportunity process.

(Deed Reference(s): Clauses 98.2, 98.3) 

32.2.1. Small Business Entity (SBE)Copy citation · §32.2.1

At the time a Head Licence is issued, the Provider must be a Small Business Entity (SBE) as defined by the Australian Taxation Office. That is, the Provider's aggregated turnover (being all ordinary income that the Provider earned in the ordinary course of running a business, plus the annual turnover of any entities connected with the Provider or that are the Provider's affiliates) was less than $10 million for the most recent Financial Year ending prior to the Head Licence Start Date.

Eligibility as an SBE will be based on the Provider’s most recent financial statements at the time a Head Licence is issued. For example, if the Provider receives a Head Licence as part of the initial tender, the Provider must supply evidence in the form of financial statements for 30 June 2021 or 31 December 2021 (depending on financial year cycle).

If the Provider’s business status changes after the Head Licence is issued, the Provider will continue to be eligible for the Fund.

Group Respondent

Where the Provider is a Group Respondent, the financial statement of each individual member (for the relevant financial year) will be assessed in aggregate to determine if the Group Respondent as a whole, is an SBE.

Panel Members

A Panel Member offered a Head Licence will need to confirm they are still an SBE in order to be eligible for the Fund. This check will be completed as part of the licensing process through the form of providing the latest financial statements relevant at the time the Head Licence is issued. If a Panel Member’s business status changes from being an SBE before a Head Licence is issued, they will not be eligible for the Fund.

Panel Members can attain the required certification/accreditation while on the Panel, however, claims for reimbursement cannot be made unless a Head Licence is issued, and all the eligibility requirements as outlined under the ‘Provider Eligibility’ section are met.

(Deed Reference(s): Clauses 98.2) 

32.2.2. Certification/Accreditation requirementsCopy citation · §32.2.2

In addition to meeting the SBE requirement, to be eligible for the Fund, a Provider (including through any Related Entity) must not currently have or been required to have under any agreement with the Commonwealth Government for the delivery of employment services,

• ISO 9001 or the NSDS certification for Quality, and/or

• the Department’s RFFR accreditation for information security.

For Group Respondents if any of the members within the Group have or are required to have the ISO 9001 or NSDS certification and RFFR accreditation, the Group as a whole will not be eligible to access the Fund.

Where the Provider (including any member of a Group Respondent) has:

• obtained some but not all the required certification/accreditation; and

• has not been required to have this certification/accreditation under any agreement with the Commonwealth Government for the delivery of employment services, or

• where the Provider's RFFR requirements have increased due to their Workforce Australia Services Licence(s), including eligible SBE Providers, who previously were required to meet RFFR accreditation requirements under any agreement with the Commonwealth Government for the delivery of employment services,

the Provider is eligible for the Fund.

Example: If the Provider has obtained the RFFR accreditation under a previous employment services agreement; however, has not obtained (and has not been required to have) ISO 9001 or NSDS, the Provider is eligible to access the Fund to help with attaining the outstanding certification.

(Deed Reference(s): Clauses 98.3, 98.4) 

32.2.3. Obtaining and Maintaining Certification/AccreditationCopy citation · §32.2.3

ISO 9001 or NSDS Certification for Quality

Providers are required to meet the Department’s Quality Assurance Framework (QAF) certification requirements as outlined in the Quality Assurance Framework Chapter.

The Fund is only for reimbursements related to Providers obtaining and maintaining the ISO 9001 or the NSDS certification for the purposes of delivering Workforce Australia Services and is not for reimbursements associated with meeting the Quality Principles component of the QAF. A Provider is considered certified against the ISO 9001 or the NSDS when the Provider has received their certification from a third party auditor approved by the Department. Once this certification is attained or renewed, a claim for reimbursement can be made.

Where a Provider ceases to deliver Disability Employment Services or Inclusive Employment Australia while delivering services under a Head Licence and transitions to achieving ISO 9001 certification, the Provider can claim for those expenses if the Provider has not already exceeded the $300,000 cap and all other eligibility criteria is met. Note, Providers cannot seek reimbursement for expenses that have already been claimed and paid by another Commonwealth Agency.

Right Fit for Risk Accreditation

Providers are required to meet the Department’s External Systems Accreditation Framework (ESAF) to ensure confidential data stored outside of the Department’s IT Systems, i.e. in a Provider’s IT system, is secure.

Under ESAF, Providers are required to undertake a Right Fit for Risk (RFFR) Accreditation process that provides a tailored assurance approach to inform the Department’s accreditation decision.

The Fund is only for reimbursements related to Providers obtaining and maintaining the full RFFR Accreditation component. To obtain the full accreditation, the Department requires Providers to complete a set of milestones within a prescribed period that demonstrates the Provider’s IT systems meets the RFFR requirements. The accreditation and milestone process for each Provider will depend on their size and risk profile to the department. Refer to the Part A Guideline: External Systems Assurance Framework Chaptersign-in required (sign-in required).

Providers are encouraged to contact the Department’s Digital Information Assurance Section through the SecurityComplianceSupport@dewr.gov.au mailbox for additional support and guidance towards meeting the RFFR accreditation requirements.

32.2.4. Eligibility CheckCopy citation · §32.2.4

Figure 32‑A: Capacity Building Fund Eligibility Check Flowchart

Source diagram not reproduced ServiceCite note: This is Figure 32-A, the Capacity Building Fund eligibility decision flowchart. The official guideline includes a diagram at this location. ServiceCite has not reproduced or indexed the image because images are excluded from DEWR’s default Creative Commons licence unless otherwise indicated. View the authoritative diagram in the official PDF on page 413. The surrounding guideline text remains searchable.

32.3. Eligible Reimbursement ExpensesCopy citation · §32.3

In addition to claiming reimbursement attributed to obtaining the required certification/accreditation, effective 1 January 2025, eligible Providers (as above) can also claim reimbursement for costs associated with the maintenance and renewal of the required certification/accreditation. As of 1 January 2025, there are two reimbursement caps per Head Licence (for the life of the Head Licence) as follows:

• up to $300,000 for obtaining the initial ISO 9001 or the NSDS certification and/or the full RFFR Accreditation component, and

• up to $300,000 for expenses directly attributed to the maintenance and renewal of the initial ISO 9001 or the NSDS certification and/or the full RFFR Accreditation component.

All expenses submitted for reimbursement must be GST inclusive. The $300,000 caps include the value of GST paid by the Provider in purchasing the service and/or products.

For Group Respondents, reimbursements can be claimed for any of the Group members that form the Head Licence, however the $300,000 caps apply collectively at the Head Licence level.

The Department will not fully prescribe reimbursement expenses; however, claims for reimbursement must be for costs directly associated with obtaining, maintaining and renewing the required certification/accreditation for the purpose of delivering Workforce Australia Services.

Reimbursement examples include:

• Obtaining professional advice and support (from relevant consultants, auditors, etc.) to undertake services such as:

  • a gap analysis to identify areas in the organisation’s current structure that require adjustments for obtaining, maintaining and renewing certification/accreditation,

  • creating documents needed for obtaining and renewing certification/accreditation,

  • designing, implementing and maintaining the system to meet information security requirements,

  • training and working with employees to implement and maintain the new system.

• Procuring services of an independent certifying body to externally audit a system (quality or cybersecurity) against all specific requirements needed for obtaining, maintaining and renewing certification/accreditation.

• Software upgrades, new hardware, other IT infrastructure to comply with information security requirements, such as Australian cloud storage and Essential Eight Maturity Level One.

• Hiring of additional staff to specifically obtain and renew certification/accreditation.

In addition, reimbursements are only payable for expenses that are incurred by the Provider:

• on or after the date the Deed has been executed by the Parties (the Provider and Department). For example, if a Provider has commenced obtaining quality certification before the Deed has been executed only those expenses incurred on or after the date the Deed was executed are payable, and

• on or before the Head Licence Completion Date.

(Deed Reference(s): Clauses 98.5) 

32.4. Ineligible Reimbursement ExpensesCopy citation · §32.4

The following expenses are not eligible for reimbursement through the Fund:

• Paying for mentoring from another employment services provider or industry body.

• New or upgraded software, hardware or other IT infrastructure that is not required for the purpose of supporting the requirements of information security.

• Certification/accreditation costs directly associated with a Related Entity.

The Department may also exclude any other expenses for which a Provider may seek reimbursement if not considered appropriate spending under the Fund.

(Deed Reference(s): Clauses 98.6) 

32.5. Lodging Claim for ReimbursementCopy citation · §32.5

Reimbursement to obtain initial certification/accreditation

Eligible Providers are required to lodge a claim for reimbursement within 30 calendar days of obtaining the initial RFFR accreditation and/or ISO 9001 or National Standards for Disability quality assurance certification.

A Provider can only submit up to 2 claims for attaining initial certification/accreditation, one for each claim type (ISO 9001/NSDS and RFFR). Providers must ensure all amounts for reimbursement are submitted for each claim type as Providers can only lodge one claim per accreditation/certification. Where a Provider is only eligible for reimbursement of one accreditation type, only that claim type can be submitted, however, the full cap of up to $300,000 (GST inclusive) can still be claimed for reimbursement.

Reimbursement for the maintenance and renewal of certification/accreditation

Effective 1 January 2025, eligible Providers can lodge claims for reimbursement for reasonable costs incurred and directly attributed to the maintenance and required renewal of the initial ISO 9001 or the NSDS certification and/or the full RFFR Accreditation component. Providers can submit claims for reimbursement retrospectively for any costs already incurred as long as the expenses are directly associated with the maintenance of the initial certification/accreditation and sufficient documentary evidence is provided.

A Provider can submit multiple claims for reimbursement associated with the maintenance and renewal of each certification/accreditation type they are eligible for (ISO 9001/NSDS and/or RFFR) until the Head Licence Completion Date, however the aggregate amount for all claims approved must not exceed the $300,000 cap.

Lodging a claim in the Department’s IT Systems

When lodging a claim for reimbursement, the Provider must upload:

• supporting documentation for the expenses being claimed,

• the completed Acquittal Summary Formsign-in required (sign-in required) clearly linking the supporting evidence to the certification/accreditation expense (GST inclusive) for reimbursement, and

• for ISO 9001/NSDS related reimbursements claims only, evidence that full certification or renewal has been attained.

Note: as the Department is the certifying body for attaining, maintaining and renewing the RFFR accreditation, evidence of achieving this does not need to be uploaded for reimbursements related to RFFR.

• Documentary evidence — Providers must upload and retain sufficient Documentary Evidence as outlined below.

• System step — Providers must lodge claims for Reimbursement using the 'Request Payment' function, selecting the applicable claim type as follows:

• PRO6 Capacity Building Fund - ISO 9001/NSDS Certification

• PRO6 Capacity Building Fund - RFFR Accreditation.

32.6. Documentary EvidenceCopy citation · §32.6

Examples of supporting evidence for reimbursement claims can include:

• Valid tax invoice that distinguishes between individual item costs:

  • if required, the Provider can issue a recipient created tax invoice (RCTI) as long as the supplier is registered for GST. The RCTI must contain all of the information required of a tax invoice.

• Evidence of payment from the Provider to a third party supplier which may include:

  • a record of transaction (bank statement or a record of transaction from the organisation’s financial system);

  • a Tax Invoice with the receipt from the supplier;

  • a remittance advice;

  • other valid proof of payment; or

  • timesheets for staff wages that relate to attaining certification/accreditation.

32.7. Assessment of ReimbursementCopy citation · §32.7

Once a claim for reimbursement has been lodged in the Department’s IT Systems, the Department will assess the evidence provided and approve as relevant. When assessing the claim/s the Department will consider the following:

• does the Provider meet the eligibility criteria to access the Fund,

• are the expenses directly associated with attaining, maintaining or renewing the required accreditation/certification being claimed,

• do the expenses fall within any of the ineligible reimbursement categories,

• has the Provider already claimed for reimbursement against the certification/accreditation for which they are making a claim against, and

• are funds available from the applicable $300,000 cap.

Where the total expenses claimed exceed the applicable $300,000 cap (including GST), the Department will only reimburse expenses up to the value of the cap.

Where the Department requires further information to assess the claim, it will be sought from the nominated contact person on the acquittal summary via the Provider’s Provider Lead. The Provider Lead will work with the contact person to resolve any issues that may arise throughout the claim assessment and reimbursement process. The Provider will be informed of the claim reimbursement result through either approving the claim in the Department’s IT Systems or communication from the Provider Lead where a claim is not valid or is only partially valid.

The Department will assess the claim lodged in Department’s IT Systems. Where Documentary Evidence is not sufficient to assess the claim in full, the assessment process and therefore payment may be delayed while the issues are resolved.

(Deed Reference(s): Clauses 98.7)