Industry Research and Development Act 1986
No. 89, 1986
Compilation No. 34
Compilation date: 21 February 2025
Includes amendments: Act No. 14, 2025
About this compilation
This compilation
This is a compilation of the Industry Research and Development Act 1986 that shows the text of the law as amended and in force on 21 February 2025 (the compilation date).
The notes at the end of this compilation (the endnotes) include information about amending laws and the amendment history of provisions of the compiled law.
Uncommenced amendments
The effect of uncommenced amendments is not shown in the text of the compiled law. Any uncommenced amendments affecting the law are accessible on the Register (www.legislation.gov.au). The details of amendments made up to, but not commenced at, the compilation date are underlined in the endnotes. For more information on any uncommenced amendments, see the Register for the compiled law.
Application, saving and transitional provisions for provisions and amendments
If the operation of a provision or amendment of the compiled law is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes.
Editorial changes
For more information about any editorial changes made in this compilation, see the endnotes.
Modifications
If the compiled law is modified by another law, the compiled law operates as modified but the modification does not amend the text of the law. Accordingly, this compilation does not show the text of the compiled law as modified. For more information on any modifications, see the Register for the compiled law.
Self‑repealing provisions
If a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes.
Contents
Part I—Preliminary
1 Short title
2 Commencement
3 Object of Act
4 Interpretation
5 Application
Part II—Administration
6 Establishment of Industry Innovation and Science Australia
7 Functions of Board
8 Powers of Board
9 Constitution of Board
10 Period of appointment of members
11 Duties of Chairperson
12 Remuneration and allowances
13 Leave of absence
14 Resignation
15 Termination of appointment
16 Disclosure of interests by members of Board
17 Acting appointments
18 Meetings of Board
19 Minister may give directions to the Board
20A Minister may give advice to Board or committee
21 Delegation by Board
22 Committees
22A Delegation by committee
23 Directions of Board to committees
24 Disclosure of interests by members of committees
25 Staff, consultants etc.
Part III—Functions relating to the R&D tax offset
Division 1—Introduction
26 Objects
26A Simplified outline
Division 2—Registering for the R&D tax offset
Subdivision A—Introduction
27 Simplified outline
Subdivision B—Registering R&D entities for R&D activities
27A Registering R&D entities for R&D activities
27B Findings about applications for registration
27C Notice of decision about registration
Subdivision C—Applying to register R&D activities
27D Applying to register R&D activities
27E Board may request further information
Subdivision D—Examining registrations
27F Examining a registration
27G Applying for findings
27H Board may request information during an…
Overview
The Industry Research and Development Act 1986 (Cth) was enacted to establish a framework for fostering innovation and research in Australia. The Act was introduced to position Australia as a leading innovation nation by facilitating the provision of independent strategic advice about investment in industry, innovation, science, and research; supporting and encouraging collaboration in the development and delivery of programs relating to these areas; authorising spending on programs; and promoting the development, efficiency, and international competitiveness of Australian industry by encouraging research and development (R&D) activities, innovation, science activities, and venture capital activities. The Act was passed by the Commonwealth Parliament and came into operation on 1 July 1986.
Scope and Application
The Industry Research and Development Act 1986 (Cth) applies to entities and individuals involved in research and development (R&D) activities, including R&D entities seeking tax offsets and research service providers. The Act governs the registration and compliance of R&D entities, findings related to R&D activities, and the administration of R&D programs. It is applicable across Australia, including its external territories, and includes provisions for the establishment and functions of Industry Innovation and Science Australia, which succeeded Innovation and Science Australia. The Act extends to facilitating independent strategic advice on industry, innovation, science, and research, and promoting investment and collaboration in these areas. Subordinate instruments, such as regulations and fees, extend or modify the application of the Act. Notably, the Act excludes certain entities and activities, such as those related to coal or natural gas extraction subsidies.
Key Provisions
- The Industry Research and Development Act 1986 (the Act) serves to establish and regulate Industry Innovation and Science Australia, formerly known as Innovation and Science Australia, and sets out its functions and powers. The Act also outlines procedures for registering entities for research and development (R&D) activities, making findings about those activities, and providing for the review of decisions made by the Board. Under the Act, the Board can provide strategic advice, conduct audits, commission research, and evaluate the operation of related legislation. The Act also allows the Board to make findings on the nature of R&D activities, whether certain activities can be conducted outside Australia, and whether particular technology is considered core technology for R&D activities. It provides a framework for the registration of research service providers and sets out provisions for internal and external review of Board decisions. Furthermore, the Act includes provisions for the administration of programs related to industry, innovation, science, and research, including the establishment of arrangements for funding such programs. The Act also imposes obligations on entities to disclose relevant information and adhere to certain decision-making principles when making findings. Failure to comply with the Act's requirements can result in civil or criminal penalties, depending on the nature and severity of the breach. For instance, offences under the Act may be prosecuted within three years of their commission, and certain breaches can lead to fines or imprisonment.
- Area of Law
- Taxation Law
- Corporate Law & Governance
- Instrument
- Act
- Concepts
- Offence Provisions
- Regulatory Standards
- Reporting & Disclosure Obligations
- Review & Sunset Clauses
- Repeal & Amendment