Commercialising Emerging Technologies (COMET) Program Directions No. 1 of 2006

Administered by Department of Industry, Science and Resources

Legislation au F2007L00421 In force Legislative Instrument

Legislation content

 

 

Explanatory Statement

 

Issued by the authority of the Minister for Industry, Tourism and Resources

 

Industry Research and Development Act 1986

 

COMET Program Directions No 1 of 2006

 

General Outline

 

The Commercialising Emerging Technologies Program (COMET) is a merit based, competitive program designed to facilitate the commercialisation of innovations by early stage growth companies, spin-off companies and individuals.

 

The Directions provide the Industry Research and Development Board (the Board) with an additional function.  This additional function relates to the administration of the Program including the policies and practices to be followed by the Board in the performance of the function.  In accordance with the Directions, the Board assesses applications against merit criteria outlined in the Directions and provides a ranking of those applications.  The Program Delegate determines which eligible applications will receive funding and takes into account the merit ranking provided by the Board, the available Program funding, and the policy objectives of the Program.

 

The Directions do not affect the rights of a person (other than the Commonwealth) as at the date of registration so as to disadvantage that person or impose liabilities on that person (other than the Commonwealth) in respect of anything done or omitted to be done before the date of registration on the Federal Register of Legislative Instruments.

 

Legislative authority

The Directions are issued to the Board by the Minister for Industry, Tourism and Resources (the Minister) acting under subsections 18A(1), 19(1) and 20(1) of the Industry Research and Development Act 1986.

 

Consultation

The Minister consulted the Board in amending the COMET Program Directions No. 1 of 2004 which is now replaced with these Directions.

 

Financial Implications

The Directions have no financial impact.  The Directions provide a framework by which the Board provides assessments and merit ranking of eligible applications.  The Program Delegate makes the final decision in determining the quantum, terms and conditions of grants under the Program.

 

Date of effect

The Directions commence on and from the day on which particulars of the Directions have been registered with the Federal Register of Legislative Instruments and published in the Gazette.

 

 

Notes on Provisions of the Directions

 

PART 1 – PRELIMINARY

 

Name of Directions

 

Clause 1

The Directions constitute the Commercialising Emerging Technologies (COMET) Program Directions No 1 of 2006. These replace the COMET Program Directions No. 1 of 2004.

 

Commencement

 

Clause 2

The Directions commence on and from the day on which particulars of the Directions have been registered with the Federal Register of Legislative Instruments and published in the Gazette.

 

Object of these Directions

 

Clause 3

The object of the Directions is to provide the Industry Research and Development Board (the Board) with instructions in relation to an additional function of the Board – namely the provision of assessments and merit rankings of eligible applications under the Program and the policies and practices that the Board must follow in the performance of this function. These instructions are given by the Minister to the Board for the effective delivery of the COMET program so that the stated objectives of the program are achieved.

 

Interpretation

 

Clause 4

This clause explains key terms used in the Directions. These include Business Advisers and COMET National Manager who play an important role in the delivery of the program. The clause also enumerates a range of eligible activities which are supported through COMET funding under an Assistance Plan.

 

PART 2 – CONSIDERATION OF APPLICATIONS TO PARTICIPATE IN THE PROGRAM

 

Board to have regard to certain policy objectives

 

Clause 5

The Board must have regard to the policy objectives of the Program in giving effect to the Directions. The policy objectives relate to increasing Australia's sustainable economic growth and building sustainable and high growth businesses through commercialisation of innovations. A key element of the policy objectives is to encourage commercialisation through the raising of capital by COMET grantees and through collaboration and partnerships with other business entities.

 

Procedure

 

Clause 6

The Board must assess and rank each eligible application for COMET grants and provide this to the Program Delegate within a certain time limit (60 days). The Program Delegate is authorised by the Minister to administer the COMET program, including determining which applications for funding under the program will be successful and which applications will not be successful.

 

Board may refuse to provide merit ranking

 

Clause 7

The Board may refuse to provide a merit ranking of a particular applicant if it is not satisfied that its application shows sufficient merit for COMET funding.  The merit criteria against which an application is assessed and ranked are enunciated in clause 9.

 

PART 3 – ASSESSMENT AND MERIT RANKING OF APPLICATIONS

 

Assessment of applications

 

Clause 8

The Board assesses the merit of each applicant against the merit criteria contained in the Directions. In assessing the merit of each application the Board determines the extent to which the application satisfies the merit criteria for COMET funding.

 

Merit Criteria

 

Clause 9

The Board will assess applicants against the merit criteria in the Directions.  These criteria are:

(a)            Actual or potential management capability to commercialise the innovation with appropriate COMET support;

(b)           Market opportunity and strategy of the innovation;

(c)            Technical feasibility of the innovation; and

(d)           Demonstrated need for COMET funding.

The merit criteria are used to assess the key capabilities of the applicant to commercialise innovations and to determine if there is an identified need for COMET funding to undertake eligible activities under an Assistance Plan.

 

PART 4 – ASSESSMENT AND MERIT RANKING OF APPLICATIONS

 

Ad hoc technical assessments

 

Clause 10

The Program Delegate may request the Board to provide a technical assessment on any matter arising from the COMET Assistance Plan, which describes the tailored package of support for the COMET grantee to assist in the commercialisation of innovations.

 

PART 5 – EVALUATION OF THE PROGRAM

 

Clauses 11

The Board may advise the Minister on non-financial administration matters relating to the program such as administration of the COMET program and whether and to what extent the objectives of the program are being achieved. The Minister may also request such advice from the Board if necessary.

 

Clause 12

This clause provides for the Board to collect data, review performance of the program and advise the Minister on such performance. The clause also provides for cooperation of the Board for any independent evaluation of the COMET program. Evaluation or review of the program is undertaken from time to time to assess the appropriateness, effectiveness and efficiency of the program in meeting identified needs concerning commercialisation of innovations in Australia.

 

 

 

 

Overview

The Industry Research and Development Act 1986 was enacted to support the commercialisation of research and development in Australia. The COMET Program Directions No 1 of 2006, issued by the Minister for Industry, Tourism and Resources, were introduced to address the need for a competitive, merit-based program facilitating the commercialisation of innovations by early-stage growth companies, spin-off companies, and individuals. The primary policy objective of these Directions is to enhance Australia's sustainable economic growth and to build sustainable and high-growth businesses through the commercialisation of innovations. The Directions provide the Industry Research and Development Board with instructions for assessing and merit ranking eligible applications under the COMET program, ensuring that the program's objectives are effectively achieved. The Directions outline the procedures, criteria, and responsibilities of the Board and the Program Delegate, ensuring the efficient administration and evaluation of the program.

Scope and Application

The Industry Research and Development Act 1986, as supplemented by the COMET Program Directions No 1 of 2006, primarily targets early-stage growth companies, spin-off companies, and individuals engaged in the commercialisation of emerging technologies. The scope of the legislation extends to providing a framework for assessing and ranking applications based on merit criteria, while the Industry Research and Development Board (the Board) is tasked with evaluating these applications against specified criteria, including management capability, market opportunity, technical feasibility, and demonstrated need for funding. The Board's assessment and merit ranking feed into the Program Delegate’s final decision on funding. The Directions apply nationally, influencing the administration and delivery of the Commercialising Emerging Technologies (COMET) Program across Australia. While the Directions provide clear guidelines, they do not impose any new liabilities or disadvantage existing rights of entities other than the Commonwealth. The Directions do not explicitly exclude any categories of applicants or activities, but the Board retains the discretion to refuse merit rankings for applications that do not meet the established criteria. The effectiveness and appropriateness of the program are periodically reviewed to ensure it meets the intended objectives of fostering sustainable economic growth and high-growth businesses through innovation commercialisation.

Key Provisions

The COMET Program Directions No 1 of 2006 (the Directions) provide the Industry Research and Development Board (the Board) with instructions to facilitate the assessment and merit ranking of eligible applications for funding under the Commercialising Emerging Technologies (COMET) Program. Under Clause 5, the Board must consider the policy objectives of the Program, which focus on increasing Australia's sustainable economic growth and fostering high-growth businesses through the commercialisation of innovations. Clause 6 mandates that the Board assess and rank each eligible application within a 60-day timeframe, with the results provided to the Program Delegate for final decision-making. The Board may refuse to provide a merit ranking if an application does not demonstrate sufficient merit, as outlined in Clause 7. The Board's assessment is guided by the merit criteria specified in Clause 9, which include management capability, market opportunity, technical feasibility, and the demonstrated need for COMET funding. The Board's obligations include conducting thorough assessments of applications against the stipulated merit criteria (Clause 8) and providing technical assessments as requested by the Program Delegate (Clause 10). Additionally, the Board is responsible for collecting data and reviewing the performance of the program, advising the Minister on non-financial administration matters (Clause 11), and cooperating with any independent evaluations of the program (Clause 12). These obligations are essential for ensuring that the Program effectively supports the commercialisation of innovations and achieves its stated objectives. Breaches of the provisions outlined in the Directions may result in civil or administrative penalties, although specific penalties are not detailed within the Directions themselves. The Board's failure to adhere to the assessment and ranking procedures, or its refusal to provide a merit ranking when required, could lead to the rejection of applications or the need for corrective actions. Additionally, any misuse of COMET funding or non-compliance with the program's objectives could result in the revocation of funding and other sanctions. The maximum penalties for such breaches are not explicitly stated but could involve financial penalties, loss of eligibility for future funding, or other administrative consequences as determined by the Minister or relevant authorities.

Legal classification tags

Area of Law
Technology Law
Instrument
Regulation
Concepts
Definitions & Interpretation
Assessment & Merit Ranking
Reporting & Disclosure Obligations
Catchwords
Merit Criteria
Board Assessment

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.