Primary Industries Research and Development Amendment Act 2018

Overview

The Primary Industries Research and Development Amendment Act 2018 (Act) was enacted to amend the Primary Industries Research and Development Act 1989. The legislation was introduced to address the need to clarify the circumstances under which Research and Development Corporations (R&D Corporations) can use funds for marketing activities. The Act was enacted by the Parliament of Australia and received Royal Assent on 24 August 2018. The policy objective of the Act is to ensure that R&D Corporations use funds appropriately for their intended purposes, which includes allowing the use of gifts, grants, bequests or devises specifically for marketing activities for the benefit of primary industries.

Scope and Application

The Primary Industries Research and Development Amendment Act 2018 amends the Primary Industries Research and Development Act 1989, extending the scope and application of the original Act to include marketing activities and those activities incidental to marketing, advertising, or promotion within the ambit of its provisions. This legislation applies to the entities established under the original Act, specifically the Research and Development Corporations (R&D Corporations) designated for primary industries. These amendments are intended to ensure that funds, including gifts, grants, bequests, or devises specifically for marketing activities, can be utilised for their intended purposes, while also clarifying the scope of permissible activities for these corporations. The amendments apply to agreements entered into and annual reports prepared on or after the commencement of the Act on 25 August 2018. The Act extends to the Commonwealth jurisdiction, impacting the operations of R&D Corporations that are established and operate under federal law. There are no exclusions, exemptions, or thresholds specified in this amendment, meaning that the changes apply broadly to the operations and funding of the relevant corporations.

Key Provisions

The Primary Industries Research and Development Amendment Act 2018 introduces several amendments to the Primary Industries Research and Development Act 1989, which primarily aim to allow Research and Development Corporations (R&D Corporations) to carry out marketing activities. Section 1 amends the definition of marketing activities to include activities incidental to marketing, advertising, or promotion (Schedule 1, item 1). Additionally, it allows R&D Corporations to use gifts, grants, bequests, or devises made for marketing activities to fund those activities (Schedule 1, item 2). This change is reflected in the amendment of sections 13 and 14 to include marketing activities in their scope (Schedule 1, items 3 and 4). The obligations and requirements imposed by the Act on R&D Corporations include using specific funds for marketing activities as intended. For instance, any gifts, grants, bequests, or devises intended for marketing activities must be used for those purposes (Schedule 1, item 2). R&D Corporations must also include details of their marketing activities in their annual reports (Schedule 1, item 5). Furthermore, the Act clarifies that certain funds received by R&D Corporations, such as gifts, grants, bequests, or devises for marketing activities, are exempt from certain financial constraints and must be used as intended (Schedule 1, items 7 and 8). Failure to comply with the provisions of the Act can result in various consequences. Although the Act does not explicitly detail specific offences or penalties, breaches of the Act could potentially lead to legal actions for misuse of funds or failure to adhere to the terms of gifts, grants, bequests, or devises. The maximum penalties for such breaches would depend on the specific nature of the breach and could range from fines to more severe penalties under relevant legislation governing the misuse of funds or breach of trust.