EXPLANATORY STATEMENT
STATUTORY RULES 1983 No 198
Issued by the authority of the Minister for Science and Technology
INDUSTRIAL RESEARCH AND DEVELOPMENT INCENTIVES REGULATIONS
The purpose of the accompanying regulations is to amend the Industrial Research and Development Incentives Regulations by prescribing, in accordance with section 23 of the Industrial Research and Development Incentives Act 1976 (the Act), the level of financial assistance payable as commencement grants in relation to the year that commenced on 1 July 1983.
2 Commencement grants are provided under Division I of Part III of the Act to encourage eligible companies to become involved in industrial research and development. Sub-paragraphs 23(2)(g)(i) and (ii) of the Act provide that in respect of any grant year after 1981/1982 the level of commencement grants shall be an amount equal to whichever is the lesser of the following amounts:
i an amount equal to such percentage of the eligible expenditure of the company in respect of the grant year as is prescribed in relation to that grant year, being a percentage that does not exceed 50 per centum;
ii such amount as is prescribed in relation to that grant year, being an amount that does not exceed $40 000.
3 The regulations provide for the payment of commencement grants in respect of the grant year that commenced on 1 July 1983 of an amount equal to either an amount equal to 50 per cent of the eligible expenditure of the company in that grant year, or $40 000, whichever is the less.
4 This level of assistance is considered necessary to give an effective degree of encouragement to Australian manufacturing, mining and construction companies to establish an industrial research and development capability.
Overview
The Industrial Research and Development Incentives Regulations, issued in 1983 under the authority of the Minister for Science and Technology, were enacted to amend the Industrial Research and Development Incentives Regulations and set the financial assistance levels for commencement grants applicable to the fiscal year starting on 1 July 1983. The primary objective of the Industrial Research and Development Incentives Act 1976, from which these regulations derive their authority, is to provide financial incentives in the form of commencement grants to eligible companies in order to encourage them to engage in industrial research and development activities. The policy goal is to bolster the research and development capabilities within Australian manufacturing, mining, and construction sectors by offering a financial incentive that is deemed sufficient to motivate companies to invest in these crucial areas.
Scope and Application
The Industrial Research and Development Incentives Regulations apply to companies involved in industrial research and development within Australia. The Act, from which these regulations derive their authority, is concerned with providing financial assistance to eligible companies to encourage their participation in research and development activities. The geographic scope of these regulations is national, extending across all states and territories within Australia. The regulations specifically target manufacturing, mining, and construction companies to bolster their research and development capabilities. The assistance provided is either a percentage of the company's eligible expenditure or a fixed amount, whichever is lesser, capped at 50% or $40,000 respectively. These regulations do not explicitly state any exclusions or exemptions, but the criteria for eligibility and the limitations on the amount of assistance are clearly defined within the Act itself. The application of these regulations can be extended or modified through subordinate instruments, allowing for adjustments to the levels of financial assistance as needed over time.
Key Provisions
The Industrial Research and Development Incentives Regulations, issued under the Industrial Research and Development Incentives Act 1976, focus on prescribing the level of financial assistance for commencement grants for the year commencing 1 July 1983. According to section 23(2)(g)(i) and (ii) of the Act, these grants aim to encourage eligible companies to engage in industrial research and development activities. The regulations specify that for the 1983 grant year, companies can receive an amount equal to either 50% of their eligible expenditure for that year, or $40,000, whichever is less. This approach ensures that the financial assistance provided does not exceed a maximum of 50% of the eligible expenditure and is capped at $40,000.
The Industrial Research and Development Incentives Act imposes several obligations on eligible companies seeking commencement grants. These companies must ensure their expenditures qualify as 'eligible expenditure' as defined by the Act and comply with the criteria set forth in the regulations. Companies need to accurately report their eligible expenditures and provide the necessary documentation to substantiate their claims for the grant. Additionally, companies must adhere to the timeframes and processes outlined in the regulations for applying for and receiving the commencement grants.
Breaching the obligations and requirements set out in the Industrial Research and Development Incentives Act can result in significant consequences. While the regulations do not explicitly state the penalties for non-compliance, breaches of statutory provisions under the Act could lead to civil or criminal penalties. Civil penalties might include fines, while criminal penalties could result in imprisonment, depending on the nature and severity of the breach. The specific penalties would be determined by the relevant courts in accordance with Australian law, but the potential consequences underscore the importance of adhering to the Act's requirements.