Industry Research and Development (Underwriting New Generation Investments Program) (Repeal) Instrument 2022

Administered by Department of Industry, Science and Resources

Legislation au F2022L01393 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 (Underwriting New Generation Investments Program) (Repeal) Instrument 2022

 

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 non-corporate Commonwealth entity, or by their delegate (under section 36).

The purpose of the Industry Research and Development (Underwriting New Generation Investments Program) (Repeal) Instrument 2022 (the Legislative Instrument) is to repeal the Industry Research and Development (Underwriting New Generation Investments Program) Instrument 2021, thereby removing legislative authority to enter into commitments under the Underwriting New Generation Investments Program (the UNGI Program).

Background

The UNGI Program launched in 2018 with the stated aim of reducing wholesale electricity prices by increasing competition and supply, assisting commercial and industrial customers and smaller retailers to access affordable energy supply arrangements and improving reliability by increasing the level of firm and firmed capacity in the system. This Program was intended to do this by providing support, in the form of revenue floor arrangements, loans and/or grants, to support new dispatchable electricity generation projects, including projects to build new dispatchable generators and projects to upgrade the capacity or efficiency of existing dispatchable generators.

Twelve projects were shortlisted at the commencement of the program. No projects have been delivered and no underwriting commitments have been made.

The UNGI Program has now been closed because it was unlikely to achieve its objectives. This instrument repeals the instrument that prescribed the UNGI Program, meaning that the Government will not have legislative authority to enter into commitments under the UNGI Program.

Authority

Section 33 of the IR&D Act and section 33 of the Acts Interpretation Act 1901 provide authority for the Legislative Instrument.

Consultation

In accordance with section 17 of the Legislation Act 2003, the Department of Climate Change, Energy, the Environment and Water has been consulted in relation to the Legislative Instrument. Further consultation is not required because the sole purpose of the Legislative Instrument is to terminate the UNGI Program and there have been no commitments made that would be affected by that termination.

Regulatory Impact

No commitments have been made under the UNGI Program and so the regulatory burden is nil.

 

Details of the Industry Research and Development (Underwriting New Generation Investments Program) (Repeal) Instrument 2022

Section 1 – Name of Instrument

This section specifies the name of the Legislative Instrument as the Industry Research and Development (Underwriting New Generation Investments Program) (Repeal) Instrument 2022.

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 Industry, Research and Development Act 1986 (the IR&D Act) and the Acts Interpretation Act 1901 (the AI Act) under which the Legislative Instrument is made. Section 33 of the IR&D Act allows instruments to be made prescribing programs, and subsection 33(3) of the AI Act confirms that this includes the power to repeal such an instrument.

Section 4 – Schedules

This section is a machinery provision that provides for a schedule of repealed instruments.

Schedule 1 – Repeals

This schedule specifies that the whole of the Industry Research and Development (Underwriting New Generation Investments Program) Instrument 2021 is repealed.

Statement of Compatibility with Human Rights

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

Industry Research and Development (Underwriting New Generation Investments Program) (Repeal) Instrument 2022

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 UNGI Program launched in 2018 with the stated aim of reducing wholesale electricity prices by increasing competition and supply, assisting commercial and industrial customers and smaller retailers to access affordable energy supply arrangements and improving reliability by increasing the level of firm and firmed capacity in the system.

No projects have been delivered and no underwriting commitments have been made.

The UNGI Program has now been closed because it was unlikely to achieve its objectives. This instrument repeals the instrument that prescribed the UNGI Program, meaning that the Government will not have legislative authority to enter into commitments under the UNGI 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 Ed Husic MP

Minister for Industry and Science

Overview

The Industry Research and Development (Underwriting New Generation Investments Program) (Repeal) Instrument 2022 was enacted to repeal the Industry Research and Development (Underwriting New Generation Investments Program) Instrument 2021, thereby removing legislative authority for the Commonwealth to enter into commitments under the Underwriting New Generation Investments Program (UNGI Program). This repeal was introduced by the Parliament of Australia under section 33 of the Industry Research and Development Act 1986 and section 33 of the Acts Interpretation Act 1901. The UNGI Program, launched in 2018, aimed to reduce wholesale electricity prices through increased competition and supply, assist commercial and industrial customers and smaller retailers in accessing affordable energy supply arrangements, and improve reliability by increasing firm and firmed capacity in the system. However, given that no projects have been delivered and no underwriting commitments have been made, the Program has been closed, and this legislative instrument ensures the Government no longer has the authority to commit to the UNGI Program. The instrument is compatible with human rights, as it does not engage any of the applicable rights or freedoms.

Scope and Application

The Industry Research and Development (Underwriting New Generation Investments Program) (Repeal) Instrument 2022 repeals the Industry Research and Development (Underwriting New Generation Investments Program) Instrument 2021, removing legislative authority for the Commonwealth to enter into commitments under the Underwriting New Generation Investments Program (UNGI Program). The UNGI Program, which aimed to reduce wholesale electricity prices by increasing competition and supply, was established under section 33 of the Industry Research and Development Act 1986. The repeal of the legislative instrument follows the decision to close the UNGI Program, as it was unlikely to achieve its objectives, and no projects have been delivered or underwriting commitments made. The repeal takes effect on the day after registration on the Federal Register of Legislation, and the instrument is compatible with human rights as it does not raise any human rights issues. This legislative instrument highlights the flexibility provided by the IR&D Act in responding to the need for innovative programs and the importance of transparency and parliamentary oversight in government spending activities.

Key Provisions

The Industry Research and Development (Underwriting New Generation Investments Program) (Repeal) Instrument 2022 provides a clear framework for the cessation of a particular program established under the Industry Research and Development Act 1986 (IR&D Act). Section 33 of the IR&D Act empowers the Minister to prescribe programs that involve industry, innovation, science, or research, which includes the expenditure of Commonwealth funds (Section 33). The specific legislative instrument in question repeals the Industry Research and Development (Underwriting New Generation Investments Program) Instrument 2021, effectively removing the legislative authority for the Government to enter into commitments under the Underwriting New Generation Investments Program (UNGI Program). This repeal signifies the program's termination, as outlined in the instrument's Schedule 1, which details the repeal of the 2021 instrument in its entirety. The obligations imposed by this legislative instrument on the parties and entities it governs are primarily related to compliance with the repeal. The instrument clarifies that once the UNGI Program is repealed, the Government is no longer authorised to initiate or continue any commitments under this program. This includes ensuring that no new projects are pursued or funded under the auspices of the UNGI Program, thereby closing the door on any future activities that would have fallen under its original scope. In terms of legal consequences, the instrument does not detail specific offences or penalties for non-compliance, as the repeal itself serves as the primary mechanism for ensuring adherence to the legislative change. However, any attempts to continue the program in violation of this repeal could potentially be challenged in court, leading to judicial declarations that such actions are beyond the legal authority granted by the IR&D Act. There are no stated maximum penalties within the text, as the primary enforcement mechanism is the cessation of legislative authority to proceed with the program.

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Commencement Provisions
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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.