Industrial Research and Development Incentives Regulations (Amendment)

Overview

The Industrial Research and Development Incentives Regulations 1979, made under the Industrial Research and Development Incentives Act 1976, were enacted to provide a framework for offering financial incentives to companies engaged in research and development activities. These regulations were introduced by the Parliament of Australia to address the need for encouraging innovation and industrial research within the country. The primary policy objective was to stimulate economic growth and technological advancement by providing financial support to eligible companies undertaking research and development projects. The regulations were made by the Governor-General, acting on the advice of the Federal Executive Council, and came into effect on 7 March 1979. They include amendments to the original regulations, such as the substitution of eligible companies and adjustments to the prescribed percentages and amounts for specific grant years.

Scope and Application

The Industrial Research and Development Incentives Regulations, 1979, made under the Industrial Research and Development Incentives Act 1976, apply to specific companies engaged in research and development activities within Australia. The regulations define the eligibility criteria for companies that can benefit from the incentives, with specific mention of Stamford Industries, The Australian Gas Light Company, and Wm. Olds & Sons. These regulations provide a framework for determining the time frames within which applications can be submitted, with exceptions as determined by the Minister. Furthermore, the regulations specify the prescribed percentages and amounts for eligible expenditures for the grant years commencing on 1 July 1979 and 1 July 1980, setting these at 50 per cent and $25,000, respectively. The scope of these regulations is national, impacting eligible entities across Australia, and they may be subject to amendments through subordinate instruments.

Key Provisions

The main provisions of the Industrial Research and Development Incentives Regulations, as amended, are outlined in the statutory rules issued under the Industrial Research and Development Incentives Act 1976. Regulation 1B identifies eligible companies for the purposes of the Act, listing specific companies such as Stamford Industries, The Australian Gas Light Company, and Wm. Olds & Sons (1B). Regulation 2 allows for flexibility in the time for applications, stating that applications must be made within a specified period unless the Minister determines otherwise (2). Regulation 3 specifies a 50% prescribed percentage for eligible expenditure for the grant years commencing on 1 July 1979 and 1 July 1980 (3). Regulation 4 sets a prescribed amount of $25,000 for the same grant years (4). The Regulations impose several obligations on the parties or entities they govern. Companies seeking to benefit from the research and development incentives must ensure that their applications are made within the specified timeframe, unless otherwise determined by the Minister (2). Additionally, eligible companies must meet the prescribed percentage of eligible expenditure, which is set at 50% for the specified grant years (3). Furthermore, companies must adhere to the prescribed amount of $25,000 for the same grant years (4). Failure to comply with these requirements may result in the company not being eligible for the incentives provided under the Act. There are no specific offences, penalties, or civil/criminal consequences mentioned within the text of the Regulations for breaches of the provisions. However, the regulations are made under the authority of the Industrial Research and Development Incentives Act 1976, which may include provisions for penalties and enforcement actions for non-compliance. The penalties and consequences for breaches would depend on the specific provisions of the primary Act and any related legislation.