Directions to Innovation Australia in relation to the BTF Programme

Administered by Department of Industry, Science and Resources

Legislation au C2016G00694 In force Gazette

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NOTICE UNDER SUBSECTION 19A(2) AND 20(3) OF THE INDUSTRY RESEARCH AND DEVELOPMENT ACT 1986

Directions to Innovation Australia under sections 18A, 19 and 20(1) of the Industry Research and Development Act 1986

I, CHRISTOPHER PYNE, Minister for Industry, Innovation and Science, direct pursuant to sections 18A, 19 and 20(1) of the Industry Research and Development Act 1986:

Part 1: Preliminary

Commencement

  1. These directions commence on

Object of these directions

2.              The object of these directions is to give direction to Innovation Australia to:

(a)           provide Technical Assessments to the Minister in relation to the BTF Programme under section 18A of the Act, including, but not limited to, the merit ranking of Eligible Applications under the BTF Programme; and

(b)           undertake the additional function under section 19 of the Act to administer the BTF Programme, including providing advice to the Minister in relation to the delivery and performance of the BTF Programme; and

(c)           the policies and practices to be followed by Innovation Australia in the performance of the activities set out in paragraphs (a) and (b) in accordance with subsection 20(1) of the Act.

Interpretation

3.              In these directions:

“Act” means the Industry Research and Development Act 1986 (Cth).

“Commonwealth” means the Commonwealth of Australia.

“Biomedical Discovery” means a therapeutic, medical or pharmaceutical product, process, service (including digital health services), technology or procedure that represents the application and commercialisation of the outcomes of health and medical research for the purpose of improving health and wellbeing through prevention, diagnosis and treatment. It does not include alternative or complementary medicine, or traditional medicine.

“BTF Programme” means the Biomedical Translation Fund Programme.

“Department” means the Department of the Minister responsible for administering the Act.

“Eligible Application” means an application for a Licence under the BTF Programme in a form required by the Programme Delegate from time to time, that is an application that the Programme Delegate has determined is eligible for competitive merit based Technical Assessment and ranking by Innovation Australia in accordance with the BTF Programme Guidelines.

“Fund Manager” means the successful applicant licensed under the BTF Programme

“Governing Documents” in relation to a Licensed Fund includes:

  • the Licence with the Commonwealth
  • the limited partnership deed, trust deed, constitution or other documents establishing the Licensed Fund, and
  • any documents between the Licensed Fund, its Fund Manager and the investors (or any of them)

“Innovation Australia” means the body established by section 6 of the Act.

“Licence” means the Licence to be granted to a successful applicant in accordance with the Programme Guidelines.

“Licensed Fund” means a fund whose Fund Manager has been granted a Licence under the BTF Programme in respect of that fund.

“Minister” means the Minister that administers the Act.

“Programme Delegate” means an employee of the Department who has been empowered by the Minister, or is otherwise duly authorised, to carry out the Minister’s functions and powers in relation to the administration of the BTF Programme.

“Programme Guidelines” means the guidelines that are given by the Minister and the Minister for Health to the Department to provide a framework for the operation and administration of the BTF Programme, as in force from time to time.

“Technical Assessment” has the meaning given to it in section 4 of the Act.

Introduction

4.              The Department of Health has policy responsibility for the BTF Programme and is working together with the Department of Industry, Innovation and Science to implement the policy of the BTF programme, The BTF Programme will help translate Biomedical Discoveries into high growth potential companies that are improving long term health benefits and national economic outcomes.

5.              Innovation Australia has administrative responsibility for the BTF Programme, subject to the restrictions imposed by the Industry Research and Development Act 1986, in particular section 19A, on the functions that may be conferred on Innovation Australia.

6.              Innovation Australia will conduct Technical Assessments in relation to Eligible Applications. The application process will be competitive, based on merit criteria and other information as identified under these directions and the Programme Guidelines.

7.              The Programme Delegate will consider the advice of Innovation Australia and select private sector Fund Managers to whom a Licence will be offered and under the BTF Programme.

Additional functions

8.              As set out in these directions, Innovation Australia will be responsible for the administration of the BTF Programme, subject to the restrictions imposed by the Act, in particular section 19A, on the functions that may be conferred on Innovation Australia.

Innovation Australia to have regard to policy objectives

9.              Innovation Australia must have regard to the following policy objectives of the BTF Programme in giving effect to these directions:

  • to invest in promising Biomedical Discoveries and assist in their commercialisation
  • by addressing capital and management constraints, to encourage the development of companies which are commercialising Biomedical Discoveries.

Part 2: Technical Assessment of Eligible Applications

10.          Innovation Australia will assess the technical merit of each Eligible Application referred by the Programme Delegate in accordance with the Programme Guidelines, and provide a merit ranking of those applications to the Programme Delegate. Eligible Applications will be assessed on a competitive basis relative to the merit of other Eligible Applications in a Licensing Round.

11.          Innovation Australia must consider Eligible Applications as soon as practicable after those applications have been provided to Innovation Australia.

12.          Innovation Australia may interview any applicant as part of the merit ranking process for Eligible Applications.

13.          Innovation Australia and the Programme Delegate may request additional information from applicants after the lodgement of an Eligible Application in order to assist in assessing and ranking Eligible Applications.

14.          Innovation Australia may decide to refuse to provide a merit ranking in respect of a particular Eligible Application if it is not satisfied with the level of merit of an Eligible Application in relation to one or more of the merit criteria.

Part 3: Other advice related to the administration of the BTF Programme

15.          The Programme Delegate may make decisions in relation to the administration of the BTF Programme. When making such decisions the Programme Delegate may seek the advice of Innovation Australia.

16.          The Programme Delegate may make policies of general application in relation to the administration of the BTF Programme. When making such policies the Programme Delegate will seek the advice of Innovation Australia.

17.          The Programme Delegate will seek the advice of Innovation Australia on the following matters:

(a)           changes to the structure of a Licensed Fund;

(b)           the application of sanctions against a Fund Manager or investor;

(c)           the suspension of funding in relation to a Licensed Fund;

(d)           the termination of a Licence; and

(e)           any matters that, in the Programme Delegate’s opinion, relate to a Licensed Fund achieving the policy objectives of the BTF Programme.

18.          In making a decision on whether to vary any provision of the Governing Documents, the Programme Delegate may seek the advice of Innovation Australia and may seek the advice of other third parties.

Part 4: Innovation Australia to provide advice on policies and operations of the BTF Programme

19.          Innovation Australia may advise the Minister, on non-financial administration matters relating to the BTF Programme, including programme administration and the extent to which the BTF Programme is meeting its objectives.

20.          Innovation Australia may collect and analyse data on the performance of the BTF Programme, provide advice to the Minister on such performance, and will cooperate with any independent evaluation of the BTF Programme.

 

 

 

 

CHRISTOPHER PYNE

_______________________________

The Hon Christopher Pyne

Minister for Industry, Innovation and Science

Dated: 2 May 2016

Overview

The Industry Research and Development Act 1986 (Cth) was enacted to promote and encourage industry research and development activities in Australia, with the aim of enhancing the nation's innovation capacity and economic growth. The Act established Innovation Australia as the body responsible for facilitating and supporting research and development initiatives, including the assessment and ranking of eligible applications for funding programs. These directions, issued under the authority of the Minister for Industry, Innovation and Science, provide specific guidance to Innovation Australia regarding the administration of the Biomedical Translation Fund (BTF) Programme. The BTF Programme aims to support the commercialisation of biomedical discoveries by investing in promising projects and alleviating capital and management constraints for emerging companies. Innovation Australia is tasked with conducting technical assessments of eligible applications, providing merit rankings, and offering advice to the Programme Delegate on various administrative matters, including the potential suspension or termination of licences. The policy objectives of the BTF Programme, as outlined in the directions, include investing in promising biomedical discoveries and fostering the development of high-growth potential companies that contribute to long-term health benefits and national economic outcomes.

Scope and Application

The Industry Research and Development Act 1986, as directed by the Minister for Industry, Innovation and Science under sections 18A, 19, and 20(1), governs the Biomedical Translation Fund (BTF) Programme through specific directions. These directions apply to Innovation Australia, the body established under the Act, which is responsible for providing technical assessments and administering the BTF Programme. The Act applies to eligible applications for a licence under the BTF Programme, which must be submitted in the form required by the Programme Delegate. The BTF Programme aims to translate biomedical discoveries into high-growth potential companies that improve health outcomes and national economic benefits. The geographic reach of these directions is national, applying across the Commonwealth of Australia. While the Act and these directions provide a framework for the operation and administration of the BTF Programme, there are no explicit exclusions, exemptions, or thresholds mentioned in the text. The Act may extend or restrict its application through subordinate instruments, but no such instruments are detailed in this excerpt.

Key Provisions

The main operative sections of this legislation outline the directions given to Innovation Australia concerning the Biomedical Translation Fund (BTF) Programme under the Industry Research and Development Act 1986. Section 2 specifies the object of these directions, which is to guide Innovation Australia to provide technical assessments and merit rankings of eligible applications, administer the BTF Programme, and follow certain policies and practices. Section 10 states that Innovation Australia will assess the technical merit of eligible applications and provide a merit ranking. Section 15 allows the Programme Delegate to seek advice from Innovation Australia when making decisions about the administration of the BTF Programme. Section 19 permits Innovation Australia to advise the Minister on non-financial administration matters related to the BTF Programme. The obligations imposed by these directions on Innovation Australia and the Programme Delegate include assessing the technical merit of eligible applications and providing merit rankings, conducting interviews with applicants as necessary, and requesting additional information from applicants to assist in the assessment and ranking process. Innovation Australia must consider eligible applications as soon as practicable after they are provided and may refuse to provide a merit ranking if the level of merit is unsatisfactory. The Programme Delegate is required to seek advice from Innovation Australia on various matters related to the administration of the BTF Programme, including changes to the structure of a Licensed Fund, the application of sanctions against a Fund Manager or investor, the suspension of funding, and the termination of a Licence. Innovation Australia may also advise the Minister on programme administration and the extent to which the BTF Programme is meeting its objectives. Breach of any of the directions given under the Industry Research and Development Act 1986 may result in civil or criminal penalties. However, the specific offences, penalties, or consequences for breach are not detailed in these directions. It is important to note that the Act itself may outline the penalties for non-compliance with its provisions, which could include fines or imprisonment. The maximum penalties for breaches of the Act would be determined by the relevant courts based on the severity and nature of the breach.

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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.