EXPLANATORY STATEMENT

Issued by authority of the Assistant Minister for Competition, Charities and Treasury

Industry Research and Development Act 1986

Industry Research and Development (Supermarket Price Transparency and Comparison Reports Program) Instrument 2024

Subsection 33(1) of the Industry Research and Development Act 1986 (the Act) provides that the Minister for Industry and Science may, by disallowable legislative instrument, prescribe programs in relation to industry, innovation, science or research, including in relation to the expenditure of Commonwealth money under such programs.

Section 33 of the Act provides for a statutory framework 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 the administrative burden on the Commonwealth.

Once a program is prescribed by the Minister under section 33, subsection 34(1) of the Act 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 section 36 of the Act).

Subsection 33(6) of the Act provides that the Minister may delegate, to another Minister, the Minister’s power under subsection 33(1) of the Act to prescribe a program. Delegations under subsection 33(6) of the Act are in place for the Supermarket Price Transparency and Comparison Reports Program (the Program) that empower the Assistant Minister for Competition, Charities and Treasury to prescribe (and, by virtue of subsection 33(3) of the Acts Interpretation Act 1901, amend) the Program.

The purpose of the Industry Research and Development (Supermarket Price Transparency and Comparison Reports Program) Instrument 2024 (the Instrument) is to prescribe the Program.

The Program will support the Australian Consumers’ Association (CHOICE) to develop and publish, by way of the internet, supermarket price transparency and comparison reports. This will provide consumers with an indicative ‘basket price’ of the cost of shopping at different supermarket retailers. CHOICE will gather and publish price comparison data quarterly for three years commencing in the second quarter of 2024. The Program is one of a number of measures the Government announced to boost competition and put downward pressure on the price of essentials for Australians.

A grant of $1.1 million over four years from 2023-24 will be provided to CHOICE to deliver the Program.

For the purposes of subsection 33(3) of the Act, the Instrument specifies that the legislative power in respect of which the Instrument is made is the communications power (paragraph 51(v) of the Constitution). Paragraph 51(v) of the Constitution empowers the Parliament to make laws with respect to ‘postal, telegraphic, telephonic, and other like services’. In this regard, funding provided under the Instrument will support CHOICE to gather and report data for the purpose of publication on the internet. 

The Act does not specify any conditions that need to be satisfied before the power to prescribe programs can be exercised. 

In accordance with section 17 of the Legislation Act 2003, the Attorney-General’s Department and the Department of Industry, Science and Resources have been consulted on this Instrument.

The Instrument is a legislative instrument for the purposes of the Legislation Act 2003.

In accordance with section 42 of the Legislation Act 2003, the Instrument is subject to disallowance.

In accordance with section 50 of the Legislation Act 2003, the Instrument is subject to sunsetting.

The Instrument commenced on the day after registration on the Federal Register of Legislation.

Details of the Instrument are set out in Attachment A.

A statement of Compatibility with Human Rights is at Attachment B.

The Office of Impact Analysis has been (OIA) has been consulted (OIA ref: OIA24-06442) and agreed that an Impact Analysis is not required.

ATTACHMENT A

Details of the Industry Research and Development (Supermarket Price Transparency and Comparison Reports Program) Instrument 2024

Section 1 – Name

This section provides that the name of the Instrument is the Industry Research and Development (Supermarket Price Transparency and Comparison Reports Program) Instrument 2024 (the Instrument).

Section 2 – Commencement

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

Section 3 – Authority

The Instrument is made under the Industry Research and Development Act 1986 (the Act).

Section 4 – Definitions

This section provides definitions for the purposes of the Instrument.

Section 5 – Prescribed program

This section prescribes the Supermarket Price Transparency and Comparison Reports Program for the purposes of subsection 33(1) of the Act.

The program provides funding, by way of a grant, to Australian Consumers’ Association (CHOICE), to develop and publish, by way of the internet, supermarket price transparency and comparison reports. The reports are intended to provide Australian consumers with information on the comparative costs of grocery goods at different retailers.

Section 6 – Specified legislative power

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

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 (Supermarket Price Transparency and Comparison Reports Program) Instrument 2024

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 purpose of the Industry Research and Development (Supermarket Price Transparency and Comparison Reports Program) Instrument 2024 (the Instrument) is to prescribe the Supermarket Price Transparency and Comparison Reports Program (the Program). The program provides funding, by way of a grant to consumer group Australian Consumers’ Association (CHOICE), for the gathering and reporting of supermarket price comparison data for the purpose of publication of quarterly reports. The reports are intended to provide Australian consumers with information on the comparative costs of grocery goods at different retailers.

Human rights implications

The Instrument promotes the right to an adequate standard of living, including food, water and housing under Article 11 of the International Covenant on Economic, Social and Cultural Rights (ICESCR).

The right to an adequate standard of living provides that Australia must take appropriate steps towards the realisation of this right in its jurisdiction, and that the relevant standard must be continuously improving.

The Instrument promotes the right to an adequate standard of living by prescribing the Program that will assist Australian consumers to identify which retailers are providing more economically accessible grocery goods, including food. The Program provides funding to CHOICE to gather and publicly report comparative grocery goods costs across different retailers. The Program also has the aim of boosting competition between grocery retailers and putting downward pressure on grocery goods prices, further supporting the accessibility of grocery goods for Australians.

Conclusion

This Legislative Instrument is compatible with human rights as it promotes the right to an adequate standard of living.