Industry Research and Development (PSMA Australia Limited Concessional Loan Program) Instrument 2019

Administered by Department of Industry, Science and Resources

Legislation au F2019L00141 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 (PSMA Australia Limited Concessional Loan Program) 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 s33 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 s33, 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 s36).

The purpose of the Industry Research and Development (PSMA Australia Limited Concessional Loan Program) Instrument 2019 (the Legislative Instrument) is to prescribe the PSMA Australia Limited Concessional Loan Program (the Program). The funding for the Program has been secured through the Department of Industry, Innovation and Science (the Department) 2018-19 Mid-Year Economic and Fiscal Outlook. The Program provides a concessional loan of up to $10.5 million over seven years (from 2018-19 to 2025-26) as part of the Australian Government’s commitment to support PSMA Australia Limited (PSMA) to upgrade its information technology (IT) infrastructure and invest in organisational capability to assist in delivery of enhanced national spatial data infrastructure.

PSMA is a company jointly owned (in equal parts) by Australia’s nine governments. PSMA addresses a gap in the market by aggregating and integrating geocoded address data and land parcel and property data at the national level. All this material is accessible only via the internet. The program will enable PSMA to improve its spatial data products by:

  • implementing continuous data sourcing and production for its customers;
  • developing a range of industry data solutions for sectors including but not limited to government, agriculture, emergency management, utilities and real estate;
  • developing new application programming interfaces to streamline data delivery and analytics;
  • delivering an improved value-creating data supply and distribution ecosystem; and
  • implementing a richer dataset development program.

This will allow PSMA to meet increasing demand across the economy for near real-time access to modernised, national-level spatial data.

In addition to these initiatives, PSMA will use loan funds to invest in staff capability across project management, IT and data science. This will ensure the organisation is appropriately skilled to effectively deliver the initiatives and continue modernising PSMA’s products.

The program will also support PSMA to assist in delivery of future national spatial data priorities that require a coordinated national approach, including a dynamic addressing ecosystem, a whole-of-government (Commonwealth) approach for address validation, and reformed land parcel and property data nationally.

Funding authorised by this Legislative Instrument comes from Program 2: Growing Business Investment and Improving Business Capability, Outcome 1, as set out in the Portfolio Budget Statements 2018-19, Budget Related Paper No. 1.13A,, Industry, Innovation and Science Portfolio (https://www.industry.gov.au/sites/default/files/2018-19-department-of-industry-innovation-and-science-pbs.pdf) at page 29.

The Program will be delivered by the Department and administered in accordance with the Department of Finance’s accounting policy guidelines and resource management guides for concessional loans (https://www.finance.gov.au/resource-management/reporting-accounting/accounting-guidance/), the Commonwealth Grant Rules and Guidelines (https://www.finance.gov.au/sites/default/files/commonwealth-grants-rules-and-guidelines-July2014.pdf) and the Commonwealth Procurement Rules (http://www.finance.gov.au/sites/default/files/2014%20Commonwealth%20Procurement%20Rules.pdf).

Spending decisions will be made by the delegate of the Department, who is the General Manager, Data Management and Analytics Branch responsible for administering the Program. The loan contract will outline the key spatial data priorities PSMA must deliver to continue receiving advances of funds under the loan from the Commonwealth. The contract will include the deliverables, milestones and reporting requirements.

The concessional loan will be up to $10.5 million in total, provided in two instalments. The first instalment of $4.5 million will be made in the first quarter of 2019 and the second instalment ($6.0 million) in the first quarter of 2020. Provision of the second instalment will be contingent on the Department’s assessments of PSMA’s progress implementing initiatives under the Program in 2019. The loan is due to be repaid in full by 2025-26.

As this will be a one-off targeted concessional loan to a particular service provider, there are no selection criteria as a basis to select one service provider over another and therefore the Program will not be subject to merits review.

Persons who are otherwise affected by decisions or who have complaints about the Program will have recourse to the Department. The Department investigates any complaints about the Program in accordance with its complaints policy and procedures. If a person is not satisfied with the way the Department handles the complaint, they may lodge a complaint with the Commonwealth Ombudsman.

Communications power

The Legislative Instrument specifies that the legislative power in respect of which it is made is the communications power (section 51(v) of the Constitution). Section 51(v) of the Constitution empowers the Parliament to make laws with respect to 'postal, telegraphic, telephonic and other like services'. The program will support activities relating to the delivery of information using electronic communication services.

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.

In developing the Program, the Department has consulted with all Australian Government central agencies and all Australian Government agencies and entities that regularly use PSMA’s spatial data products.

Regulatory Impact

It is estimated that the regulatory burden is likely to be minor (OBPR reference number 24089).

 

Details of the Industry Research and Development (PSMA Australia Limited Concessional Loan Program) Instrument 2019

Section 1 – Name of Instrument

This section specifies the name of the Legislative Instrument as the Industry Research and Development (PSMA Australia Limited Concessional Loan Program) 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 provides that the instrument is made under section 33 of the Industry Research and Development Act 1986.

Section 4 – Definitions

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

Section 5 – Prescribed Program

This section prescribes the PSMA Australia Limited Concessional Loan Program (the Program) for the purposes of s 33 of the Industry Research and Development Act 1986.

The Program provides a concessional loan of up to $10.5 million over seven years (from 2018-19 to 2025-26) to support PSMA Australia Limited to upgrade its information technology infrastructure and invest in organisational capability to assist in delivery of enhanced national spatial data infrastructure.

Section 6Specified Legislative Power

This section specifies that the legislative power in respect of which the Legislative Instrument is made is the power of the Parliament to make laws with respect to postal, telegraphic, telephonic, and other like services (within the meaning of section 51(v) of the Constitution).

Statement of Compatibility with Human Rights

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

Industry Research and Development (PSMA Australia Limited Concessional Loan Program) 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 supports provision of a concessional loan of up to $10.5 million over seven years (from 2018-19 to 2025-26) to PSMA Australia Limited (PSMA). The loan will enable the company to upgrade its information technology (IT) infrastructure and invest in organisational capability to assist in delivery of enhanced national spatial data infrastructure.

Investment in IT infrastructure upgrades and capability will enable PSMA to improve its spatial data products to meet increasing demand across the economy for near real-time access to modernised, national-level spatial data. These investments will also support PSMA to assist in delivery of future national spatial data priorities that require a coordinated national approach. Broadly, this will support digital and technological opportunities and business innovation across the economy.

Human rights implications

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

Conclusion

This Disallowable 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 (PSMA Australia Limited Concessional Loan Program) Instrument 2019, introduced under the Industry Research and Development Act 1986, was enacted to address a specific gap in the market by providing funding for PSMA Australia Limited to upgrade its information technology infrastructure and invest in organisational capability to deliver enhanced national spatial data infrastructure. This legislation was introduced by the Parliament of Australia to provide a concessional loan of up to $10.5 million over seven years to PSMA Australia Limited, a company jointly owned by Australia's nine governments. The policy objective of the legislation is to support PSMA in meeting the increasing demand for near real-time access to modernised, national-level spatial data across various sectors, including government, agriculture, emergency management, utilities, and real estate. This will enable the company to implement continuous data sourcing and production, develop new application programming interfaces, and deliver a more comprehensive data supply and distribution ecosystem. Additionally, the program will support PSMA in delivering future national spatial data priorities that require a coordinated national approach. The loan will be provided in two instalments, with the second contingent on the Department's assessment of PSMA's progress in implementing the initiatives under the program. The Industry Research and Development (PSMA Australia Limited Concessional Loan Program) Instrument 2019 provides the statutory framework for the Minister to prescribe programs in relation to industry, innovation, science or research, including in relation to the expenditure of Commonwealth money under such programs. This legislative instrument provides transparency and parliamentary oversight of Government programs and spending activities, while reducing administrative burden on the Commonwealth. The program will be delivered by the Department of Industry, Innovation and Science, and administered in accordance with the Department of Finance's accounting policy guidelines, the Commonwealth Grant Rules and Guidelines, and the Commonwealth Procurement Rules. The concessional loan will be repaid in full by 2025-26, and there are no selection criteria for the Program as it is a one-off targeted loan to a particular service provider.

Scope and Application

The Industry Research and Development (PSMA Australia Limited Concessional Loan Program) Instrument 2019 applies specifically to PSMA Australia Limited (PSMA), a company jointly owned by Australia's nine governments, which is dedicated to aggregating and integrating geocoded address data and land parcel and property data at the national level. 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 under such programs. This legislation provides a concessional loan of up to $10.5 million over seven years (from 2018-19 to 2025-26) to support PSMA in upgrading its information technology infrastructure and investing in organisational capability to assist in delivering enhanced national spatial data infrastructure. The Program will be delivered by the Department of Industry, Innovation and Science and administered in accordance with various financial and procurement guidelines. There are no selection criteria for this targeted concessional loan, and the Program will not be subject to merits review. The legislative power in respect of which this Instrument is made is the communications power under section 51(v) of the Constitution, as the program will support activities relating to the delivery of information using electronic communication services. The Instrument does not specify any exclusions, exemptions, or thresholds, but it is noted that the second instalment of the loan will be contingent on the Department’s assessments of PSMA’s progress implementing initiatives under the Program in 2019. The Instrument is compatible with human rights as it does not engage any of the applicable rights or freedoms, and any complaints about the Program can be lodged with the Commonwealth Ombudsman.

Key Provisions

The Industry Research and Development (PSMA Australia Limited Concessional Loan Program) Instrument 2019 (sections 5 and 6) prescribes the PSMA Australia Limited Concessional Loan Program (section 5) under section 33 of the Industry Research and Development Act 1986, and specifies that the legislative power in respect of which the Legislative Instrument is made is the power of the Parliament to make laws with respect to postal, telegraphic, telephonic, and other like services (section 6). This legislative instrument enables the Commonwealth to provide a concessional loan of up to $10.5 million over seven years (from 2018-19 to 2025-26) to PSMA Australia Limited to upgrade its information technology infrastructure and invest in organisational capability to assist in delivery of enhanced national spatial data infrastructure (sections 5 and 6). The Minister for Industry, Science and Technology has made this Legislative Instrument under the authority of section 33 of the Industry Research and Development Act 1986. The Instrument commences on the day after it is registered on the Federal Register of Legislation (section 2). The Legislative Instrument does not engage any of the applicable rights or freedoms and is compatible with human rights (Statement of Compatibility with Human Rights). The Program will be delivered by the Department of Industry, Innovation and Science and administered in accordance with the Department of Finance’s accounting policy guidelines and resource management guides for concessional loans, the Commonwealth Grant Rules and Guidelines and the Commonwealth Procurement Rules (section 1). The concessional loan will be up to $10.5 million in total, provided in two instalments. The first instalment of $4.5 million will be made in the first quarter of 2019 and the second instalment ($6.0 million) in the first quarter of 2020. Provision of the second instalment will be contingent on the Department’s assessments of PSMA’s progress implementing initiatives under the Program in 2019. The loan is due to be repaid in full by 2025-26. The loan contract will outline the key spatial data priorities PSMA must deliver to continue receiving advances of funds under the loan from the Commonwealth. The contract will include the deliverables, milestones and reporting requirements. As this will be a one-off targeted concessional loan to a particular service provider, there are no selection criteria as a basis to select one service provider over another and therefore the Program will not be subject to merits review. Persons who are otherwise affected by decisions or who have complaints about the Program will have recourse to the Department. The Department investigates any complaints about the Program in accordance with its complaints policy and procedures. If a person is not satisfied with the way the Department handles the complaint, they may lodge a complaint with the Commonwealth Ombudsman. The Legislative Instrument specifies that the legislative power in respect of which it is made is the communications power (section 51(v) of the Constitution). The Program will support activities relating to the delivery of information using electronic communication services. The 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. There are no offences, penalties or civil or criminal consequences for breach of the Legislative Instrument.

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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.