EXPLANATORY STATEMENT
Australian Research Council (ARC)
Administered Budget Funding Splits for 2018-19 and 2019-20
Issued by the authority of the Minister for Education and Training
Subject: Division of the ARC funding cap between categories of research programs.
Authority
Section 50(1) of the Australian Research Council Act 2001 (the Act) requires the Minister to determine in writing the division of the funding cap between categories of research programs. This is referred to as the Funding Cap Splits.
Subsection 50(1A) of the Act allows the Minister to specify a percentage range of up to plus or minus five per cent of the Funding Cap Splits. This allows for variation of research project approvals due to recoveries, research projects being declined or relinquished and variations in the quality of applications across schemes in new funding rounds.
Purpose and operation of the instrument
The instrument is a legislative instrument for the purposes of the Legislation Act 2003 (the LA). The instrument outlines the percentage and range of percentages for the Funding Cap Splits for the ARC Discovery and Linkage Programs for 2018-19 and 2019-20.
The Discovery and Linkage Programs are categories of the ARC National Competitive Grants Program (NCGP). These categories also align to the programs reported in the ARC’s Portfolio Budget Statement (PBS), Corporate Plan and Annual Report.
The Discovery Program recognises the importance of fundamental research to the national innovation system resulting in the development of new ideas, the creation of jobs, economic growth and an enhanced quality of life in Australia.
The Linkage Program aims to encourage and extend cooperative approaches to research and improve the use of research outcomes by strengthening links within Australia’s innovation system and with innovation systems internationally.
The Australian Research Council (ARC) Administered Budget: Funding Splits for 2018-19 and 2019-20 was approved by the Minister for Education and Training, Senator the Hon Simon Birmingham, on 2 July 2017. No amendments have been made.
Consultation
The ARC did not undertake any public consultation in relation to the instrument given that the instrument is financial in kind and minor in nature.
Regulatory Impact Statement
The instrument does not give rise to a regulatory change as defined by the Office of Best Practice Regulation. Therefore, a regulatory impact analysis process has not been applied.
Statement of compatibility with human rights
Section 9(1) of the Human Rights (Parliamentary Scrutiny) Act 2011 requires the rule maker in relation to a legislative instrument to which section 42 (disallowance) of the LA applies to cause a statement of compatibility to be prepared in respect of that legislative instrument.
The legislative instrument does not engage any of the applicable rights or freedoms. It is compatible with human rights, as it does not raise any human rights issues.
Commencement
The Division of Funding Caps Determination implementing the Australian Research Council (ARC) Administered Budget: Funding Splits for 2018-19 and 2019-20 shall take effect upon registration on the Federal Register of Legislative Instruments.
Overview
The Australian Research Council Act 2001, enacted by the Parliament of Australia, addresses the need for a structured approach to allocating funding for research programs administered by the Australian Research Council (ARC). This legislation requires the Minister for Education and Training to determine the division of the funding cap between different categories of research programs, known as the Funding Cap Splits. The Act allows for a specified percentage range, up to plus or minus five per cent, to account for variations in project approvals and application quality. The policy objective is to ensure that research funding is effectively allocated to support fundamental research, innovation, and economic growth, particularly through the Discovery and Linkage Programs, which respectively focus on fundamental research and cooperative research approaches. The instrument detailing the funding splits for the years 2018-19 and 2019-20 was approved by the Minister, Senator the Hon Simon Birmingham, on 2 July 2017, and it aligns with the ARC’s broader strategic goals as outlined in its Corporate Plan and Annual Report.
Scope and Application
The Australian Research Council (ARC) Administered Budget Funding Splits for 2018-19 and 2019-20 outlines the division of the funding cap between categories of research programs, specifically the Discovery and Linkage Programs, which are part of the ARC National Competitive Grants Program (NCGP). This legislative instrument is authorised under Section 50(1) of the Australian Research Council Act 2001, which mandates that the Minister for Education and Training determine in writing the allocation of funding between research program categories. The instrument was approved by the Minister on 2 July 2017 and outlines the percentage and range of percentages for the funding splits, aligning with the ARC’s Portfolio Budget Statement, Corporate Plan, and Annual Report. The Discovery Program supports fundamental research, while the Linkage Program encourages cooperative research approaches to enhance the use of research outcomes within and beyond Australia’s innovation system. The instrument does not require public consultation due to its financial nature and minor implications, nor does it necessitate a regulatory impact analysis. Furthermore, it is compatible with human rights, as it does not engage any applicable rights or freedoms.
Key Provisions
The Australian Research Council (ARC) Administered Budget: Funding Splits for 2018-19 and 2019-20 outlines the distribution of funding for the ARC's Discovery and Linkage Programs. According to section 50(1) of the Australian Research Council Act 2001, the Minister is required to determine, in writing, how the funding cap will be divided among the categories of research programs. This is referred to as the Funding Cap Splits. Section 50(1A) further allows for a percentage range of up to plus or minus five percent of these splits, accommodating variations in research project approvals, recoveries, declined or relinquished projects, and differences in application quality across funding rounds.
The obligations imposed by the Act on the Minister are to ensure that the funding cap splits for the Discovery and Linkage Programs are determined and documented. This includes taking into account the importance of fundamental research for innovation, economic growth, and quality of life, as well as the role of the Linkage Program in fostering cooperative research and improving the utilisation of research outcomes. The Act mandates that these splits are specified in a manner that aligns with the ARC's Portfolio Budget Statements, Corporate Plan, and Annual Report, ensuring transparency and accountability in the allocation of funds.
In terms of consequences for non-compliance, the Act does not explicitly outline specific offences or penalties within the explanatory statement. However, the regulatory nature of the document implies that failure to adhere to the determined funding cap splits could result in administrative or financial repercussions, given the importance of accurate and timely budget allocations for research programs. The legislative instrument itself, upon registration on the Federal Register of Legislative Instruments, will establish the legal framework within which these funding splits must be applied, and non-compliance could lead to administrative actions or adjustments in future funding rounds.