Industry Research and Development (Onshore Gas Social and Economic Research Fund Program) Instrument 2017

Administered by Department of Industry, Science and Resources

Legislation au F2017L00752 In force Legislative Instrument

Legislation content

EXPLANATORY STATEMENT

Issued by the authority of the Minister for Resources and Northern Australia

Industry Research and Development Act 1986

Industry Research and Development (Onshore Gas Social and Economic Research Fund Program) Instrument 2017

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, by disallowable legislative instrument, programs 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 purpose of the Industry Research and Development (Onshore Gas Social and Economic Research Fund Program) Instrument 2017 (the Instrument) is to prescribe the Onshore Gas Social and Economic Research Fund Program (the Program). The then Minister for Resources, Energy and Northern Australia, Josh Frydenberg, announced the Program as an election commitment in June 2016.The Program comprises a single grant to the Commonwealth Scientific and Industrial Research Organisation (CSIRO), with a total administered value of $4 million over four years, beginning in the 2016-17 financial year. The grant will support the expansion of the Gas Industry Social and Environmental Research Alliance (GISERA) model from Queensland (QLD) and New South Wales (NSW) into other jurisdictions in Australia.

The GISERA is a collaborative vehicle established to undertake publicly-reported independent research addressing the social, economic and environmental impacts of Australia’s natural gas industry. The principal aim of the GISERA model is to increase, through scientific research, the knowledge and understanding of onshore gas development and report on the specific issues and concerns communities have about gas development.

The Australian Government expects industry, as well as State and Territory Governments, to support GISERA by providing matched funding and through their membership as Alliance partners of GISERA. 

The funding will be used to:

  • establish Regional Research Advisory Committees (RRACs) in each additional contributing state or territory. These RRACs will oversee social and environmental research that addresses community concerns and will consist of independent, industry, CSIRO and Government stakeholders. The RRACs will report to the National Research Management Committee (NRMC) on research progress against deliverables. The NRMC consists of five industry, three CSIRO and one government representative;
  • generate and report on relevant scientific research to support policy development;
  • provide research outputs on the benefits and impacts of onshore gas development to the public; and
  • build on the lessons learned from applying the GISERA in QLD and NSW.

Funding authorised by this instrument will come from the Growing Business Investment and Improving Business Capability: Onshore Gas Social and Economic Research Fund, as set out in the Mid-Year Economic and Fiscal Outlook 2016-2017 and the Portfolio Budget Statements 2017-18, Budget Related Paper No. 1.12, Industry, Innovation and Science Portfolio at page 32. The funding will be awarded through a one-off discretionary grant to the CSIRO. As an independent organisation within the Industry, Innovation and Science portfolio, the founder of GISERA, and as one of the world's premier public research entities, the CSIRO is uniquely placed to investigate the opportunities and risks of onshore gas development.

Merits review will not apply to decisions made on the grant for this Program given the non-competitive nature of the funding.

The Program will be administered by the Department of Industry Innovation and Science. Spending decisions will be made by the s 34 delegate, who will be the Manager with responsibility for the Onshore Gas Section. All grants-related decisions will be made in accordance with the Commonwealth Grants Rules and Guidelines (https://www.finance.gov.au/sites/default/files/commonwealth-grants-rules-and-guidelines-July2014.pdf).

The Legislative Instrument specifies that the legislative power in respect of which the Instrument is made is the implied nationhood power, which encompasses the Commonwealth’s ability to engage in activities which are peculiarly adapted to the government of a nation and cannot otherwise be carried on for the benefit of the nation (sections 61 and 51(xxxix) of the Constitution).

In this regard, funding provided under the Legislative Instrument will support the CSIRO, Australia’s national science agency, which has the lead role in the national GISERA program. The research funded under this program will contribute to the goals of a secure and sustainable energy supply and productive industry sectors, which are in Australia’s national interest to maintain. The GISERA program is also a national program, to be undertaken in partnership with participating states and territories, which will be required to provide matched funding to the program.

Consultation

In accordance with section 17 of the Legislation Act 2003, the Attorney-General’s Department and the Department of Finance have been consulted on this Legislative Instrument. The CSIRO was consulted on the development of the Program, however it was not considered necessary to consult on the Instrument itself, as it simply specifies the program as agreed.

Regulatory Impact

The Program is not expected to have a regulatory impact on businesses, community organisations or individuals.

Details of the Industry Research and Development (Onshore Gas Social and Economic Research Fund Program) Instrument 2017

Section 1 – Name of Instrument

This section specifies the name of the Legislative Instrument as the Industry Research and Development (Onshore Gas Social and Economic Research Fund Program) Instrument 2017.

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 sets out the provision of the Industry Research and Development Act 1986 under which the Legislative Instrument is made.

Section 4 – Definitions

This section provides for definitions of terms used in the Legislative Instrument.

Section 5 – Prescribed program

This section prescribes the Onshore Gas Social and Economic Research Fund Program under which funding will be provided to support the undertaking of scientific research relating to the social, economic and environmental impacts of Australia’s onshore natural gas industry; and communication of the research results.

The table specifies in column 1 the name of the program, and in column 2 the description and purpose of the program.

Section 6 – Specified legislative power

This section specifies the legislative powers in respect of which this Legislative Instrument is made are the powers of the Parliament to make laws with respect activities which are peculiarly adapted to the government of a nation and cannot otherwise be carried on for the benefit of the nation (ss61 and 51(xxxix) of the Constitution).

The CSIRO was established as Australia’s national science agency. It is uniquely placed to manage the GISERA, which seeks to implement a national scheme to conduct research which will be used to further Australia’s national interest in maintaining a secure and sustainable energy supply and productive industry sectors.

 

Statement of Compatibility with Human Rights

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

Industry Research and Development (Onshore Gas Social and Economic Research Fund Program) Instrument 2017

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

This instrument provides legislative authority to commit Commonwealth funds for the Onshore Gas Social and Economic Research Fund Program.

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 Barnaby Joyce

Minister for Resources and Northern Australia

 

Overview

The Industry Research and Development (Onshore Gas Social and Economic Research Fund Program) Instrument 2017 was enacted to provide legislative authority for the Onshore Gas Social and Economic Research Fund Program, which supports scientific research into the social, economic, and environmental impacts of Australia's onshore natural gas industry. The Instrument was introduced to address the need for comprehensive research into the implications of onshore gas development, particularly in relation to community concerns and national energy security. Enacted by the Minister for Resources and Northern Australia, the policy objective of the Instrument is to facilitate the expansion of the Gas Industry Social and Environmental Research Alliance (GISERA) model across additional Australian states and territories, ensuring that research is conducted independently and transparently. The Instrument aims to enhance the knowledge and understanding of onshore gas development and its effects, thereby supporting informed policy development and community engagement. The Instrument operates under the authority granted by section 33 of the Industry Research and Development Act 1986, allowing the Minister to prescribe programs related to industry, innovation, science, and research. This legislative framework ensures that the Commonwealth can efficiently allocate funds for specific research initiatives, such as the Onshore Gas Social and Economic Research Fund Program, which is designed to be administered by the Commonwealth Scientific and Industrial Research Organisation (CSIRO). The CSIRO, as Australia’s national science agency, is uniquely suited to manage this program, given its expertise and established role in conducting public research. The Instrument also specifies the legislative power under which it is made, namely the implied nationhood power, ensuring that the Commonwealth can undertake activities that are critical for the governance of the nation and the benefit of its people.

Scope and Application

The Industry Research and Development (Onshore Gas Social and Economic Research Fund Program) Instrument 2017 is an instrument under the Industry Research and Development Act 1986, which provides legislative authority to commit Commonwealth funds for the Onshore Gas Social and Economic Research Fund Program. The Program prescribes a single grant to the Commonwealth Scientific and Industrial Research Organisation (CSIRO) for a total administered value of $4 million over four years, aimed at supporting the expansion of the Gas Industry Social and Environmental Research Alliance (GISERA) model into other jurisdictions in Australia. The Program is designed to increase knowledge and understanding of onshore gas development through scientific research and to address community concerns regarding gas development. The funding will be used to establish Regional Research Advisory Committees (RRACs) in additional states or territories, generate and report on relevant scientific research, provide research outputs to the public, and build on lessons learned from applying the GISERA in Queensland and New South Wales. The Program will be administered by the Department of Industry, Innovation and Science, and the Minister for Resources and Northern Australia is the accountable authority for the Program. The Instrument specifies that the legislative power in respect of which it is made is the implied nationhood power, which encompasses the Commonwealth’s ability to engage in activities which are peculiarly adapted to the government of a nation and cannot otherwise be carried on for the benefit of the nation. The Program is not expected to have a regulatory impact on businesses, community organisations or individuals, and the Legislative Instrument is compatible with human rights as it does not raise any human rights issues. The Instrument specifies the legislative powers in respect of which it is made are the powers of the Parliament to make laws with respect activities which are peculiarly adapted to the government of a nation and cannot otherwise be carried on for the benefit of the nation. The CSIRO was established as Australia’s national science agency, and it is uniquely placed to manage the GISERA, which seeks to implement a national scheme to conduct research which will be used to further Australia’s national interest in maintaining a secure and sustainable energy supply and productive industry sectors.

Key Provisions

The Industry Research and Development (Onshore Gas Social and Economic Research Fund Program) Instrument 2017 (the Instrument) primarily prescribes the Onshore Gas Social and Economic Research Fund Program (the Program) under Section 5 (subsection 33(1) of the Industry Research and Development Act 1986 (the IR&D Act)). This program provides funding to support scientific research on the social, economic, and environmental impacts of Australia's onshore natural gas industry and the communication of research results. The Instrument specifies the legislative powers in respect of which it is made, as outlined in Section 6, under the implied nationhood power of the Commonwealth (sections 61 and 51(xxxix) of the Constitution). This funding will be awarded through a one-off discretionary grant to the Commonwealth Scientific and Industrial Research Organisation (CSIRO) to expand the Gas Industry Social and Environmental Research Alliance (GISERA) model to other jurisdictions in Australia. The Instrument imposes certain obligations on the parties involved, including the requirement for the Commonwealth to administer the Program in accordance with the Commonwealth Grants Rules and Guidelines. The CSIRO, as the recipient of the grant, must use the funding to establish Regional Research Advisory Committees (RRACs) in each additional contributing state or territory, oversee social and environmental research addressing community concerns, and report on research progress to the National Research Management Committee (NRMC). The RRACs will consist of independent, industry, CSIRO, and government stakeholders, and the NRMC will include representatives from industry, CSIRO, and the government. Additionally, the Instrument mandates that the research generated must support policy development, provide research outputs on the benefits and impacts of onshore gas development to the public, and build on the lessons learned from applying the GISERA in Queensland and New South Wales. The Instrument does not explicitly outline specific offences, penalties, or civil/criminal consequences for breach. However, given that the Program is administered under the Commonwealth Grants Rules and Guidelines, any breach of these rules or the terms of the grant agreement could potentially lead to administrative or financial consequences for the CSIRO. Furthermore, the Instrument specifies that the legislative powers under which it is made encompass the Commonwealth’s ability to engage in activities peculiarly adapted to the government of a nation and cannot otherwise be carried on for the benefit of the nation (sections 61 and 51(xxxix) of the Constitution). Any misuse of funds or failure to adhere to the Program's objectives could be viewed as an improper use of Commonwealth powers, which may attract scrutiny and corrective actions by relevant authorities.

Legal classification tags

Area of Law
Commercial Law
Instrument
Instrument
Concepts
Definitions & Interpretation
Commencement Provisions
Reporting & Disclosure Obligations
Consultation Requirements

Interactions

Authorises

All Versions

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.