Directions in Respect of Competitive Grants for Research and Development (Cth)

Directions in Respect of Competitive Grants for Research and Development

as amended

made under section 20

Industry Research and Development Act 1986

This compilation was prepared on 18 September 2013 taking into account amendments up to Directions in Respect of Competitive Grants for Research and Development (Variation No. 1 of 1996) (F2008B00398)

Prepared by the Department of Industry, Innovation, Climate Change, Science, Research and Tertiary Education.

COMMONWEALTH OF AUSTRALIA

INDUSTRY RESEARCH AND DEVELOPMENT ACT 1986

DIRECTIONS IN RESPECT OF COMPETITIVE GRANTS

FOR RESEARCH AND DEVELOPMENT

I, PETER COOK, Minister of State for Industry, Science and Technology, pursuant to section 20 of the Industry Research and Development Act 1986

HEARBY DIRECT that in assessing an application for Competitive Grants for Research and Development, the Industry Research and Development Board shall:

1.have regard to the Commonwealth Government’s industry development policy objectives, including the objectives of these grants to:

1.a.      encourage companies, particularly small to medium sized enterprises, to develop internationally competitive goods, services and systems;

1.b.      encourage companies to adopt new products, materials and methods   to improve manufacturing capability, productivity and quality;

1.c.      strengthen linkages between technology developers and technology users;

1.d.     encourage the development of technologies, including emerging and enabling technologies, that are likely to have wide application in Australian industry; and

1.e.      foster collaboration between companies and research institutions.

2.provides grants, on a competitive basis, for:

2.a.       market driven  research and development in dynamic firms needing assistance but unable to gain full financial benefit from the 150% Tax Concession for Research and Development;

2.b.       collaborative research and development activities, that are high risk but could provide extensive benefit to Australia;

2.c.       trial and demonstration activities between technology developers and potential customers; and

2.d.      collaborative research and development activity between industry and research institutions.

Eligibility Criteria

3.consider only such applications where the Board is satisfied that:

3.a.      the project involves research and development or product  development (including the development of prototypes) or trial or demonstration or related market research; and

3.b.      the project is directed to the development of internationally competitive goods, systems or services; and

3.c.      the results of the project will be exploited for the benefit of Australia; and

3.d.     the project would not proceed satisfactorily without grant support;     and

3.e.      the grant will not exceed 50% of eligible  project expenditure; and

3.f.      the project will be completed within three years; and

3.g. the applicant, or a company that controls the applicant, is unable to obtain full financial benefit under Section 73B of the Income Tax Assessment Act 1936 to undertake the project while in receipt of Competitive Grants for Research and Development; or

3.h. the project involves a significant proportion of activities (trials, demonstration and marketing) that are outside the scope of eligible activities under Section 73B of the Income Tax Assessment Act 1936; or

3.i.       the project involves a graduate working on a specific company based R&D project which results in the formation of new and  appropriate linkages between a company and a tertiary/research institution.   These projects will receive grant support for up to $50,000 over a maximum of two years.

Relative Merit Criteria

4.for those applicants that meet the eligibility criteria, support only those projects that demonstrate a high order of relative merit with particular regard to the following factors:

Primary Factors:

4.a.    management capability;

4.b.    market need, growth and size;

4.c.    market competitiveness/dynamism; and

4.d.    national benefits that will accrue from the project.

Secondary Factors:

4.e.    project personnel expertise/capability;

4.f.    technical risk;

4.g.    product/process uniqueness/superiority;

4.h.    relative price of product/process; and

4.i.     technical and production synergy.

Sunsetting of Competitive Grants Program

5.The Board must not:

5.a.    consider an application for a Competitive Grant for Research and Development made after 31 March 1997; or

5.b.    enter into an agreement after 31 December 1997 to provide a Competitive Grant for Research and Development other than for varying an agreement made before that date.

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Note to the Directions in Respect of Competitive Grants for Research and Development

Note 1

The Directions in Respect of Competitive Grants for Research and Development in force under section 20 of the Industry Research and Development Act 1986, as shown in this compilation is amended as indicated in the Tables below.

Table of Instruments

Title	FRLI registration number	Date of FRLI registration	Date of commencement	Application, saving or transitional provisions
Directions in Respect of Competitive Grants for Research and Development	F2008B00397	23 July 2008	20 July 1994 (Date of Gazettal)
Directions in Respect of Competitive Grants for Research and Development (Variation No. 1 of 1996)	F2008B00398	23 July 2008	18 December 1996 (Date of Gazettal)

Table of Amendments

ad. = added or inserted      am. = amended      rep. = repealed      rs. = repealed and substituted
Provision affected		How affected
Clause 5	ad. F2008B00398