Industry Research and Development (International Space Investment Initiative Program) Amendment Instrument 2023

Administered by Department of Industry, Science and Resources

Legislation au F2023L01400 Not in force Legislative Instrument

Legislation content

EXPLANATORY STATEMENT

Issued by the authority of the Minister for Industry and Science

Industry Research and Development Act 1986

Industry Research and Development (International Space Investment Initiative Program) Amendment Instrument 2023

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 section 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 section 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 noncorporate entity, or by their delegate (under section 36).

The purpose of the Industry Research and Development (International Space Investment Initiative Program) Amendment Instrument 2023 (the Legislative Instrument) is to prescribe an expansion of the International Space Investment Initiative Program (the Program). Initial funding of $15 million for the Program was secured through the Department of Industry, Innovation and Science’s (the Department) 2018-19 Budget. Subsequent funding of $23.7 million for an India-focused expansion of the Program was secured through the Department’s 2022-2023 (October) Budget. The Program provides funding as part of the Australian Government’s commitment to provide Australian organisations and businesses opportunities to be involved with international space projects and collaborate with relevant overseas organisations (such as international space agencies and foreign organisations or businesses). These projects will generate employment and business opportunities for Australians, with a minimum of 80 per cent of the investment to be made in Australia. Projects will encourage scientific and technical collaboration between Australians and relevant overseas organisations.

The Program is administered by the Department in accordance with the Commonwealth Grant Rules and Guidelines 2017 (https://www.finance.gov.au/sites/default/files/2019-11/commonwealth-grants-rules-and-guidelines.pdf).

This Legislative Instrument prescribes an expansion of the Program. The Program will otherwise continue to be administered consistent with the original scope of the Program. The explanatory statement to the Industry Research and Development (International Space Investment Initiative Program) Instrument 2020 (the Principal Instrument) provides further detail about how the Program is delivered and is available on the Federal Register of Legislation website: (https://www.legislation.gov.au/Details/F2020L00089/Explanatory%20Statement/Text)

For the purposes of subsection 33(3) of the IR&D Act, the Principal Instrument specifies that the legislative powers in respect of which it is made are:

                     (a)  trade and commerce with other countries, and among the States (within the meaning of paragraph 51(i) of the Constitution);

                     (b)  external affairs (within the meaning of paragraph 51(xxix) of the Constitution);

                     (c)  the government of a Territory (within the meaning of section 122 of the Constitution);

                     (d)  measures that are peculiarly adapted to the government of a nation and cannot otherwise be carried on for the benefit of the nation.

The Program specified in the Principal Instrument, as amended by this Legislative Instrument, will continue to rely on these powers.

Trade and commerce power

Paragraph 51(i) of the Constitution empowers the Parliament to make laws with respect to ‘trade and commerce with other countries, and among the states’.

In that regard, the Program prescribed by the Principal Instrument as amended by this Legislative Instrument will promote trade and commerce with other countries by providing funding so that Australian businesses and organisations can participate in international space projects with relevant overseas organisations. The Program will also allow Australian businesses and organisations to engage in global space industry supply chains by providing funding to allow them to supply goods and services to relevant overseas organisations.

External affairs power

Paragraph 51(xxix) of the Constitution empowers the Parliament to make laws with respect to ‘external affairs’. The external affairs power supports legislation with respect to places, persons, matters, or things outside the geographical limits of Australia. In that regard, funding provided under the Principal Instrument as amended by this Legislative Instrument will support international space projects, which will occur outside of Australia.

The external affairs power also supports legislation with respect to matters concerning Australia’s relations with other countries. In that regard, funding provided under the Principal Instrument as amended by this Legislative Instrument, will enhance Australia’s relations with other countries by allowing the Australian Space Agency to make contributions towards major projects propounded by its international counterparts.

Executive power and express incidental power

The express incidental power in paragraph 51(xxxix) of the Constitution empowers the Parliament to make laws with respect to matters incidental to the execution of any power vested by the Constitution in the Parliament, the executive or the courts. Section 61 of the Constitution supports activities that are peculiarly adapted to the government of a nation and cannot be carried out for the benefit of the nation otherwise than by the Commonwealth.

In that regard, funding provided under the Principal Instrument as amended by this Legislative Instrument will be used to grow Australia’s space industry. This requires a level of coordination and strategy that is peculiarly adapted to the government of the nation and cannot otherwise be carried on for the benefit of the nation. Moreover, space activities have historically been carried out at a national level of responsibility and have the potential to involve or raise matters of international concern.

Territories power

Section 122 of the Constitution empowers the Parliament to ‘make laws for the government of the territory’.

In that regard, funding provided under the Principal Instrument as amended by this instrument may include the provision of funding for an activity led by a Territory-based partner organisation or undertaken within a Territory. 

Background

This Legislative Instrument amends the Industry Research and Development (International Space Investment Initiative Program) Instrument 2020 to ensure it is inclusive of the policy intent of the India-focused expansion to the Program. This amendment expands the definition of ‘relevant overseas organisation’ to include ‘a foreign organisation or business’. In particular, in the context of international space projects, this amended definition will allow Australian organisations and businesses to be funded to collaborate with, or play a role in delivering products and services for use by, relevant overseas organisations that include foreign businesses and organisations across industry and academia.

Further details of the Legislative Instrument are set out at Attachment A.

 

 

Authority

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

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

It is estimated that the regulatory burden is likely to be minor (Office of Impact Analysis  reference numbers: OBPR 22970, 44427, and 04391).

Statement of Compatibility with Human Rights

A Statement of Compatibility with Human Rights for the purposes of Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011 is set out at Attachment B.

 

Attachment A

Details of the Industry Research and Development (International Space Investment Initiative Program) Amendment Instrument 2023

Section 1 – Name of instrument

This section specifies the name of the Legislative Instrument as the Industry Research and Development (International Space Investment Initiative Program) Amendment Instrument 2023.

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 IR&D Act under which the Legislative Instrument is made.

Section 4 – Schedules

This section provides that each instrument that is specified in a Schedule to this instrument is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this instrument has effect according to its terms.

Schedule 1 – Amendments

This schedule amends the definition of ‘relevant overseas organisation’ to add ‘a foreign organisation or business’.

 

 

 

 

 

 

Attachment B

Statement of Compatibility with Human Rights

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

Industry Research and Development (International Space Investment Initiative Program) Amendment Instrument 2023

This 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

The Industry Research and Development (International Space Investment Initiative Program) Amendment Instrument 2023 (the Legislative Instrument) amends the Industry Research and Development (International Space Investment Initiative Program) Instrument 2020 that provides legislative authority to commit Commonwealth funding for the International Space Investment Initiative Program (the Program).

The Program provides Australian businesses with opportunities to become involved with relevant overseas organisations and international space projects. Projects will generate employment and business opportunities for Australians, with a minimum of 80 per cent of the investment to be made in Australia.

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 Ed Husic MP

Minister for Industry and Science

Overview

The Industry Research and Development (International Space Investment Initiative Program) Amendment Instrument 2023, enacted to amend the Industry Research and Development Act 1986, was introduced to address the need for expanded funding and collaboration opportunities in the international space sector. This legislative instrument was enacted by the Parliament of Australia and aims to provide greater flexibility and oversight in managing Commonwealth spending on industry, innovation, science, and research programs. It specifically targets the expansion of the International Space Investment Initiative Program, facilitating Australian businesses and organisations to engage in international space projects and collaborate with overseas entities. This initiative seeks to foster employment and business opportunities within Australia, ensuring that a significant portion of the investment is directed towards domestic initiatives. The objective of this amendment is to expand the scope of the International Space Investment Initiative Program by amending the definition of "relevant overseas organisation" to include "a foreign organisation or business." This change allows Australian entities to collaborate with a broader range of overseas partners, enhancing participation in international space projects. By doing so, the program supports Australia's growing space industry, promotes trade and commerce, and strengthens international relations. The instrument also ensures compliance with constitutional powers related to trade and commerce, external affairs, and the government of territories.

Scope and Application

The Industry Research and Development (International Space Investment Initiative Program) Amendment Instrument 2023 amends the Industry Research and Development (International Space Investment Initiative Program) Instrument 2020, providing legislative authority for the International Space Investment Initiative Program. This program offers Australian businesses and organisations the opportunity to engage with relevant overseas entities and international space projects, generating employment and business opportunities for Australians, with a minimum of 80% of the investment to be made in Australia. The legislative instrument applies to the Department of Industry, Innovation and Science, which administers the program, and to Australian organisations and businesses that participate in the program. The program's geographic reach extends to international space projects occurring outside Australia, while the program itself is administered within Australia. The amendment extends the definition of 'relevant overseas organisation' to include 'a foreign organisation or business', facilitating collaboration between Australian entities and foreign organisations or businesses across various sectors. The instrument is 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, including the expenditure of Commonwealth money. The instrument is compatible with human rights as it does not engage any of the applicable rights or freedoms.

Key Provisions

The main operative sections of the Industry Research and Development (International Space Investment Initiative Program) Amendment Instrument 2023 (Legislative Instrument) focus on expanding the scope of the International Space Investment Initiative Program (Program) by amending the definition of "relevant overseas organisation" to include "a foreign organisation or business". This amendment broadens the scope of the Program to allow Australian businesses and organisations to collaborate with international space projects and engage with foreign organisations and businesses. The Legislative Instrument prescribes this expanded program under section 33 of the Industry Research and Development Act 1986 (IR&D Act), which provides the Minister with the authority to prescribe programs related to industry, innovation, science, or research. The obligations and requirements imposed by the Legislative Instrument primarily concern the administration of the Program by the Department of Industry, Innovation and Science. The Program must be administered in accordance with the Commonwealth Grant Rules and Guidelines 2017. The expanded Program is intended to provide Australian businesses and organisations with opportunities to participate in international space projects and collaborate with overseas entities, ensuring that at least 80 per cent of the investment is made in Australia. The Legislative Instrument also mandates that the Program be consistent with the original scope and delivery mechanisms outlined in the Industry Research and Development (International Space Investment Initiative Program) Instrument 2020. The Legislative Instrument does not explicitly outline specific offences, penalties, or consequences for breaches within its text. However, breaches of Commonwealth funding programs or regulations could potentially result in legal actions under the IR&D Act, the Public Governance, Performance and Accountability Act 2013, or other relevant legislation. Penalties for breaches of these Acts can vary significantly depending on the nature and severity of the breach but may include fines, recovery of funds, or other administrative actions. The exact penalties would be determined by the specific provisions of the applicable legislation and the circumstances of the breach.

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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.