Industry Research and Development (Industry Innovation and Science Australia – Modern Manufacturing Initiative) Direction 2021
I, CHRISTIAN PORTER, Minister for Industry, Science and Technology, make the following direction to Industry Innovation and Science Australia.
Dated: 25 May 2021
CHRISTIAN PORTER
Minister for Industry, Science and Technology
Contents
1 Name
2 Commencement
3 Authority
4 Definitions
5 Advice about the award of grants
6 Relationship to object of Act
1 Name
This instrument is the Industry Research and Development (Industry Innovation and Science Australia – Modern Manufacturing Initiative) Direction 2021.
2 Commencement
(1) Each provision of this instrument specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.
Commencement information |
Column 1 | Column 2 | Column 3 |
Provisions | Commencement | Date/Details |
1. The whole of this instrument | The day that it is made | |
Note: This table relates only to the provisions of this instrument as originally made. It will not be amended to deal with any later amendments of this instrument.
(2) Any information in column 3 of the table is not part of this instrument. Information may be inserted in this column, or information in it may be edited, in any published version of this instrument.
3 Authority
This instrument is made under subsection 19(1) of the Industry Research and Development Act 1986.
4 Definitions
In this instrument:
IISA means the body established by section 6 of the Industry Research and Development Act 1986, known as Industry Innovation and Science Australia.
Modern Manufacturing Initiative means the program established by the Industry Research and Development (Modern Manufacturing Initiative Program) Instrument 2021.
Modern Manufacturing Strategy has the meaning given at page 120 of Budget Paper No 2, Budget Measures 2020-21, and includes the programs that are listed as being funded under the JobMaker Plan – Modern Manufacturing Strategy.
5 Advice about the award of grants
(1) A function of IISA is to provide advice to the Minister or delegate on the award of grants under the Modern Manufacturing Initiative, including but not limited to:
(a) whether or not the award of a grant supports the objectives of the Modern Manufacturing Initiative and Modern Manufacturing Strategy; and
(b) the degree to which the grant will be transformative and provide long-term value to the scale and/or competitiveness of the Australian manufacturing sector, as opposed to business as usual activities.
(2) IISA’s power to provide advice relating to specific grants under subsection (1) is limited to advice that relates to:
(a) the purposes of the Modern Manufacturing Initiative set out in subsection 5(3) of the Industry Research and Development (Modern Manufacturing Initiative Program) Instrument 2021; and
(b) the assessment criteria set out in the grant opportunity guidelines for each grant.
(3) For the purpose of paragraph (1)(a), the objectives of the Modern Manufacturing Strategy are to:
(a) make Australia a globally recognised, high-quality and sustainable manufacturing nation;
(b) renew focus on competitiveness and growth; and
(c) support business to expand and create jobs.
6 Relationship to object of Act
The function conferred on IISA by section 5 of this Instrument relates to the object of the Industry Research and Development Act 1986, to position Australia as a leading innovation nation, by authorising spending on programs relating to industry, innovation, science and research.
Overview
The Industry Research and Development (Industry Innovation and Science Australia – Modern Manufacturing Initiative) Direction 2021 was made under subsection 19(1) of the Industry Research and Development Act 1986. This notifiable instrument, dated 25 May 2021 and issued by Christian Porter, the Minister for Industry, Science and Technology, serves to direct Industry Innovation and Science Australia (IISA) in its advisory capacity on the award of grants under the Modern Manufacturing Initiative. The objective of this direction is to ensure that the grants awarded are in line with the overarching goals of the Modern Manufacturing Initiative and Modern Manufacturing Strategy, which include making Australia a globally recognised, high-quality, and sustainable manufacturing nation, renewing focus on competitiveness and growth, and supporting businesses to expand and create jobs. The policy objective of the direction is to position Australia as a leading innovation nation by authorising spending on programs that enhance industry, innovation, science, and research.
Scope and Application
The Industry Research and Development (Industry Innovation and Science Australia – Modern Manufacturing Initiative) Direction 2021 applies to Industry Innovation and Science Australia (IISA), a body established under the Industry Research and Development Act 1986. This direction pertains to the provision of advice to the Minister or their delegate concerning the awarding of grants under the Modern Manufacturing Initiative. The advice is limited to whether the grant aligns with the objectives of the Modern Manufacturing Initiative and Modern Manufacturing Strategy, and the extent to which it will be transformative and provide long-term benefits to the Australian manufacturing sector. The direction is effective from the date it is made, with specific provisions commencing as detailed in the instrument. It is applicable nationally, as it concerns federal initiatives and funding strategies outlined in the Industry Research and Development Act 1986 and the Modern Manufacturing Initiative Program. The direction does not specify any exclusions or exemptions, and its scope is further defined by the parameters of the Modern Manufacturing Strategy and the grant assessment criteria set out in the grant opportunity guidelines.
Key Provisions
The main sections of the Industry Research and Development (Industry Innovation and Science Australia – Modern Manufacturing Initiative) Direction 2021 (the Direction) clarify the scope and function of Industry Innovation and Science Australia (IISA) in providing advice on the award of grants under the Modern Manufacturing Initiative. Section 5 details the specific advice IISA must provide to the Minister or delegate, focusing on whether grant awards align with the objectives of the Modern Manufacturing Initiative and Modern Manufacturing Strategy, and the transformative impact on the Australian manufacturing sector (section 5(1)). The advice must relate to the purposes of the Modern Manufacturing Initiative and the assessment criteria set out in the grant opportunity guidelines (section 5(2)). Additionally, section 6 outlines the relationship of this function to the overarching object of the Industry Research and Development Act 1986, which is to position Australia as a leading innovation nation.
The Direction imposes specific obligations on IISA to provide informed advice on grant awards, ensuring that these align with the strategic objectives of the Modern Manufacturing Initiative and the broader Modern Manufacturing Strategy. IISA must evaluate whether proposed grants support the objectives of making Australia a globally recognised, high-quality and sustainable manufacturing nation, renewing focus on competitiveness and growth, and supporting business expansion and job creation (section 5(3)(a)-(c)). This advice is critical for ensuring that the grants contribute meaningfully to the strategic goals rather than merely continuing existing practices. Furthermore, IISA must base its advice on the purposes outlined in the Modern Manufacturing Initiative and the specific assessment criteria provided in the grant opportunity guidelines (section 5(2)).
Breaches of the obligations set out in the Direction may not explicitly detail specific penalties or consequences within the Direction itself, but non-compliance could potentially lead to broader repercussions under the Industry Research and Development Act 1986. While the Direction does not specify penalties, failure to adhere to the mandated advice-giving process could result in ineffective or misaligned grant allocations, ultimately impacting the objectives of the Modern Manufacturing Initiative. Such non-compliance might also invite scrutiny or corrective actions from the Minister or other relevant authorities under the overarching Act, which could include directives to rectify the advice or other administrative measures to ensure alignment with the legislative objectives.