EXPLANATORY STATEMENT
AMENDMENT OF INDUSTRIAL RESEARCH AND DEVELOPMENT INCENTIVES REGULATIONS
STATUTORY RULES 1982 No. 314
These Statutory Rules will 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 grant year that commenced on 1 July 1982.
Commencement Grants are provided under Division 1 of Part III of the Act to encourage eligible companies to become involved in industrial research and development. Sub-pargraphs 23(2)(g) (i) and (ii) of the Act provide that in respect of any grant year beyond 1981/82 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.
The Statutory Rules provide for the payment of Commencement Grants in respect of the grant year that commenced on 1 July 1982 of an amount equal to the lesser of an amount equal to 50 per cent of the eligible expenditure of the company in that grant year, or $40 000.
Overview
The Industrial Research and Development Incentives Regulations Amendment Statutory Rules 1982 No. 314 were enacted to amend the Industrial Research and Development Incentives Regulations, thereby updating the level of financial assistance available as Commencement Grants for the grant year commencing on 1 July 1982. These regulations are made under the authority of Section 23 of the Industrial Research and Development Incentives Act 1976, which aims to encourage eligible companies to engage in industrial research and development activities. The policy objective behind these amendments is to provide financial support that facilitates innovation and technological advancement in the industrial sector by offering grants that do not exceed 50% of eligible expenditure or $40,000, whichever is less. These statutory rules were enacted by the relevant legislature to ensure that the financial assistance remains aligned with the objectives of the Act, thereby supporting continued investment in research and development.
Scope and Application
The Industrial Research and Development Incentives Regulations, as amended by these Statutory Rules, apply to companies that are eligible for financial assistance under Division 1 of Part III of the Industrial Research and Development Incentives Act 1976. The Act provides Commencement Grants to eligible companies to encourage participation in industrial research and development activities. These grants are available for a specific grant year, in this case, the year commencing on 1 July 1982. The financial assistance is capped at either 50 per cent of the eligible expenditure of the company for that grant year or a maximum of $40,000, whichever is less. This regulation operates within the Commonwealth jurisdiction and applies to companies that meet the eligibility criteria as defined under the Act. There are no explicit exclusions, exemptions, or thresholds mentioned in the provided text beyond the criteria of eligibility and the financial caps on the grants. The application of the Act may be further extended or restricted through subordinate instruments, as permitted under Section 23 of the Act.
Key Provisions
The primary sections of the Industrial Research and Development Incentives Regulations, as amended, outline the conditions for Commencement Grants provided to eligible companies under the Industrial Research and Development Incentives Act 1976. Specifically, section 23(2)(g) (i) and (ii) of the Act establish the formula for calculating these grants. The regulations specify that for the grant year starting 1 July 1982, the amount of the grant must be the lesser of two options: either 50 per cent of the company's eligible expenditure for the grant year, or a fixed amount not exceeding $40,000. This dual approach ensures that the grants are neither excessively high nor too low, providing a balanced incentive for companies engaging in research and development activities.
The regulations impose obligations on eligible companies to ensure they meet the criteria for receiving Commencement Grants. These obligations include maintaining detailed records of their eligible expenditure during the grant year and submitting accurate claims to the relevant authority. Companies must also ensure that their research and development activities align with the objectives of the Act, which are to foster innovation and economic growth through industrial research and development. Additionally, companies are required to adhere to any additional conditions or requirements specified by the authority overseeing the grant program, such as reporting and compliance standards.
Failure to comply with the provisions of the Industrial Research and Development Incentives Regulations can result in various consequences. The Act includes specific offences and penalties for non-compliance, which can include both civil and criminal penalties. For example, knowingly providing false or misleading information in a grant application can lead to fines or other civil penalties as determined by the relevant authority. In more severe cases, where there is evidence of intentional fraud or deceit, criminal charges may be brought against the company or its representatives, which can result in imprisonment. The maximum penalties for such offences are detailed in the relevant sections of the Act and are designed to deter non-compliance and ensure the integrity of the grant program.