Industry Research and Development (Industry 4.0 Testlabs for Australia Program) Amendment Instrument 2019

Administered by Department of Industry, Science and Resources

Legislation au F2019L00354 Not in force Legislative Instrument

Legislation content

EXPLANATORY STATEMENT

Issued by the authority of the Minister for Industry, Science and Technology

Industry Research and Development Act 1986

Industry Research and Development (Industry 4.0 Testlabs for Australia Program) Amendment Instrument 2019

Purpose and Operation

Section 33 of the Industry Research and Development Act 1986 (the IR&D Act) provides a mechanism for the Minister to prescribe programs, by disallowable legislative instrument, in relation to industry, innovation, science or research, including in relation to the expenditure of Commonwealth money under such programs.

The statutory framework provided by s 33 of the IR&D Act enables a level of flexibility to provide authority for Commonwealth spending activities in relation to industry, innovation, science and research programs. This allows the Government to respond quickly and appropriately to the need to implement innovative ideas and pilot programs on an ongoing basis and as opportunities arise. Prescribing programs in legislative instruments provides transparency and parliamentary oversight of Government programs and spending activities, whilst reducing administrative burden on the Commonwealth.

Once a program is prescribed by the Minister under s 33, subsection 34(1) allows the Commonwealth to make, vary or administer arrangements in relation to activities under the prescribed program. Arrangements may include contracts, funding agreements or other arrangements, and may provide for money to be payable by the Commonwealth to one or more third parties. The power conferred on the Commonwealth by subsection 34(1) may be exercised on behalf of the Commonwealth by a Minister or an accountable authority of a non-corporate entity, or by their delegate (under s 36).

The Industry Research and Development (Industry 4.0 Testlabs for Australia Program) Instrument 2018 (the 2018 Instrument) prescribed the Industry 4.0 Testlabs for Australia Program (the Program) to establish five Industry 4.0 Testlabs at five Australian universities, namely University of Queensland, University of Technology Sydney, University of South Australia, University of Western Australia and Swinburne University of Technology. The Industry Research and Development (Industry 4.0 Testlabs for Australia Program) Amendment Instrument 2019 (the Amendment Instrument) amends that Program to establish an additional Industry 4.0 Testlab at the University of Tasmania. The funding for the Program was secured through the Department of Industry, Innovation and Science (the Department) 2017-18 Additional Estimates Statements for a period of one year (2018-19).

 

 

Authority

Section 33 of the Industry Research and Development Act 1986 provides authority for the Legislative Instrument.

In Williams v Commonwealth (2014) 252 CLR 416 (Williams No 2), the High Court, considering s 32B of the Financial Management and Accountability Act 1997 (the FMA Act), held (at [50]) that:

A law which gives the Commonwealth the authority to make an agreement or payment of that kind is not a law with respect to trading or financial corporations. The law makes no provision regulating or permitting any act by or on behalf of any corporation.

However, the relevant provisions of the Industry Research and Development Act 1986 (IRD Act) are substantially different to the provisions considered by the High Court in Williams No 2. Section 34 of the IRD Act corresponds to s 32B of the FMA Act considered by the High Court in Williams No 2. However, the FMA Act contained no provision in terms equivalent to those of s 35 of the IRD Act.

Section 35(2)(b) of the IRD Act expressly requires a constitutional corporation which is a party to an arrangement for the purposes of the Program to comply with the terms and conditions specified in a written agreement between the Commonwealth and the corporation. Further, s 35(3) provides that that agreement must provide for the circumstances in which the corporation must repay amounts to the Commonwealth.

The Amendment Instrument would amend the 2018 Instrument to include the University of Tasmania as a ‘participating university’ for the purposes of the Program. The 2018 Instrument specifies that spending for the Program is supported by the corporations power (s 51(xx) of the Constitution). Section 51(xx) of the Constitution empowers the Parliament to make laws with respect to ‘foreign corporations, and trading or financial corporations formed within the limits of the Commonwealth’ (together, ‘constitutional corporations). In that regard, the Program, as prescribed by the 2018 Instrument and amended by the Amendment Instrument, singles out and confers on some constitutional corporations (namely, trading or financial corporations) benefits which are directed to assisting those corporations in the conduct of their ordinary activities, and imposes terms and conditions on those corporations under the grant agreements in accordance with s 35 of the IRD Act in relation to receipt of the benefits under the Program. Eligibility to receive funding under the Program is limited to businesses which are trading or financial corporations to which section 51(xx) applies).


 

 

 

Consultation

In accordance with section 17 of the Legislation Act 2003, the Attorney-General’s Department has been consulted on this Legislative Instrument.

Regulatory Impact

The regulatory impact is nil.

 

 

 

 

 

 

 

 

 

 

 

 

Details of the Industry Research and Development (Industry 4.0 Testlabs for Australia Program) Amendment Instrument 2019

Section 1 – Name of Instrument

This section specifies the name of the Legislative Instrument as the Industry Research and Development (Industry 4.0 Testlabs for Australia Program) Amendment Instrument 2019.

Section 2 – Commencement

This section provides that the Legislative Instrument commences on the day after registration on the Federal Register of Legislation.

Section 3 – Authority

This section specifies the provision of the Industry, Research and Development Act 1986 (the Act) under which the Legislative Instrument is made.

Section 4 – Schedules

This section is a machinery clause that allows the Schedule to the Legislative Instrument to operate according to its terms.

Schedule 1 – Amendments

This Schedule amends the Industry Research and Development (Industry 4.0 Testlabs for Australia Program) Instrument 2018 (the 2018 Instrument) to include the University of Tasmania in the definition for participating universities.

 

 

 

 

 

 

 

 

 

 

Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

Industry Research and Development (Industry 4.0 Testlabs for Australia Program) Amendment Instrument 2019

This Disallowable Legislative Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

Overview of the Legislative Instrument

This Legislative Instrument provides legislative authority to commit Commonwealth funds for the Industry 4.0 Testlabs for Australia Program (the Program).

The Program provides $6 million to establish six Industry 4.0 Testlabs to build the skills required to capitalise on technological opportunities presented by Industry 4.0. The grant opportunity is delivered as a pilot program.

The intended outcomes of the grant opportunity are improved collaboration between the tertiary education sector and small and medium enterprises (SMEs) in areas of innovation; improved skills and capabilities of SMEs to incorporate technology and innovation associated with Industry 4.0 into their businesses; and improved competitiveness of Australian manufacturing industries.

Human rights implications

This Legislative Instrument does not engage any of the applicable rights or freedoms.

Conclusion

This Legislative Instrument is compatible with human rights as it does not raise any human rights issues.

 

The Hon Karen Andrews MP

Minister for Industry, Science and Technology

Overview

The Industry Research and Development (Industry 4.0 Testlabs for Australia Program) Amendment Instrument 2019 was enacted to amend the existing Industry Research and Development (Industry 4.0 Testlabs for Australia Program) Instrument 2018. The original instrument, established under the Industry Research and Development Act 1986, had prescribed the creation of five Industry 4.0 Testlabs at various Australian universities to foster innovation and technological advancement in Industry 4.0. This amendment adds a sixth testlab at the University of Tasmania, thus expanding the scope and geographical reach of the program. The purpose of the amendment is to further support the establishment of Industry 4.0 Testlabs, aiming to enhance collaboration between the tertiary education sector and small to medium enterprises, improve skills and capabilities in technology and innovation, and boost the competitiveness of Australian manufacturing industries. The enactment of this amendment reflects the government's commitment to fostering innovation and technological advancement through targeted funding and infrastructure support.

Scope and Application

The Industry Research and Development (Industry 4.0 Testlabs for Australia Program) Amendment Instrument 2019 amends the Industry Research and Development (Industry 4.0 Testlabs for Australia Program) Instrument 2018 to include the University of Tasmania as a participating university for the purposes of the Industry 4.0 Testlabs for Australia Program. The Program aims to establish six Industry 4.0 Testlabs across Australian universities to foster skills and capabilities required to capitalise on Industry 4.0 technologies, focusing on enhancing collaboration between the tertiary education sector and small and medium enterprises (SMEs). The funding for this initiative is supported by the corporations power under section 51(xx) of the Constitution, which empowers the Parliament to make laws concerning foreign corporations and trading or financial corporations formed within the Commonwealth. The Program is designed to benefit eligible trading or financial corporations by improving their innovation capabilities and competitiveness within Australian manufacturing industries. The amendment ensures the inclusion of the University of Tasmania, thereby extending the geographic scope of the Program and its benefits to the Tasmanian region. The Instrument does not engage any of the applicable rights or freedoms under the international human rights instruments, and it is compatible with human rights as it does not raise any human rights issues.

Key Provisions

The Industry Research and Development (Industry 4.0 Testlabs for Australia Program) Amendment Instrument 2019 amends the previously established Industry 4.0 Testlabs for Australia Program, which was initially set up by the Industry Research and Development (Industry 4.0 Testlabs for Australia Program) Instrument 2018. The primary change introduced by the Amendment Instrument is the inclusion of the University of Tasmania as a participating university in the Program (Schedule 1). This addition brings the total number of participating universities to six, with the other five being the University of Queensland, University of Technology Sydney, University of South Australia, University of Western Australia, and Swinburne University of Technology. The Program aims to establish Industry 4.0 Testlabs at these universities to foster skills development and innovation in line with technological advancements in Industry 4.0. The obligations imposed by the Act on the parties involved include the necessity for any constitutional corporation participating in the Program to comply with the terms and conditions specified in a written agreement with the Commonwealth. This agreement must also detail the circumstances under which the corporation must repay any amounts to the Commonwealth (s 35(2)(b) and (3)). Additionally, the spending for the Program is supported by the corporations power (s 51(xx) of the Constitution), which empowers the Parliament to make laws concerning foreign corporations and trading or financial corporations formed within the limits of the Commonwealth. The Act does not explicitly detail specific offences, penalties, or consequences for breach within the text provided. However, it does mention that any constitutional corporation that is a party to an arrangement for the purposes of the Program must comply with the terms and conditions specified in a written agreement between the Commonwealth and the corporation (s 35(2)(b)). Failure to comply with these terms and conditions could potentially lead to legal repercussions, although the exact nature of these consequences is not elaborated upon in the provided text. The Amendment Instrument was made under section 33 of the Industry Research and Development Act 1986, which allows the Minister to prescribe programs related to industry, innovation, science, or research. The authority for this legislative instrument is grounded in the constitutional corporations power (s 51(xx) of the Constitution), which enables the Commonwealth to make laws concerning foreign corporations and trading or financial corporations within the limits of the Commonwealth. The instrument ensures that any constitutional corporation participating in the Program must adhere to the terms and conditions outlined in the written agreement with the Commonwealth.

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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.