Overview

The Public Governance, Performance and Accountability (Relevant Company) Amendment (2017 Measures No. 2) Rules 2017 were introduced to amend the Public Governance, Performance and Accountability (Relevant Company) Rule 2016 under the authority of the Public Governance, Performance and Accountability Act 2013. This legislative instrument provides the Commonwealth with the authority to participate in forming relevant companies focused on research and development in technologies critical to Australia’s defence and national security sectors. The purpose of this amendment is to enable the formation of Defence Cooperative Research Centres (DCRC) companies that will drive innovation in next-generation technologies essential for national security. These rules were enacted by the Australian Parliament and are designed to enhance the Commonwealth's ability to collaborate with industry and research entities in developing technologies that are crucial for defence and national security, without exercising control over these companies. The Amendment Rules were prepared in consultation with the Department of Defence and are consistent with human rights as outlined in the Statement of Compatibility with Human Rights. They are intended to facilitate the establishment of DCRC companies, which must include at least one industry participant and one research participant, with equal voting rights among members. The Commonwealth will be a founding member but will not control these entities, which will enter into funding agreements with the government similar to those in the Cooperative Research Centre program. These amendments ensure the legislative framework supports the formation of such companies, thereby fostering innovation and collaboration in critical technology sectors.

Scope and Application

The Public Governance, Performance and Accountability (Relevant Company) Amendment (2017 Measures No. 2) Rules 2017 amends the Public Governance, Performance and Accountability (Relevant Company) Rule 2016 to provide the Commonwealth with the authority to form or participate in forming relevant companies limited by guarantee, with the primary objective of undertaking research on and developing technologies relevant to Australia’s defence and national security sectors. This amendment applies specifically to companies involved in the Defence Cooperative Research Centres (DCRC) Program, which aims to foster next-generation technologies critical to defence and national security. Each DCRC company must include at least one industry participant and one research participant as members, with the Commonwealth also serving as a founding member. The amendment ensures equal voting rights among members and explicitly states that the Commonwealth will not control these companies, which will not be classified as Commonwealth companies. Instead, these companies will enter into funding agreements with the Commonwealth, similar to the Cooperative Research Centre program. The Amendment Rules apply nationally across Australia and are subject to registration on the Federal Register of Legislation. These rules do not impose any exclusions or exemptions and do not establish any specific thresholds for their application. The Amendment Rules are supplementary instruments under the Public Governance, Performance and Accountability Act 2013, thereby extending the application of the Act by providing specific prescriptive details regarding the kinds of companies the Commonwealth can participate in forming. The Amendment Rules are compatible with human rights, as they do not infringe upon any applicable rights or freedoms, ensuring alignment with international human rights standards.

Key Provisions

The Public Governance, Performance and Accountability (Relevant Company) Amendment (2017 Measures No. 2) Rules 2017 amend the existing Relevant Company Rule to allow the Commonwealth to participate in forming companies involved in research and development of technologies relevant to Australia's defence and national security sectors (Schedule 1, Item 1). This amendment specifically relates to companies limited by guarantee, which must include at least one industry participant and one research participant as members, with the Commonwealth also serving as a founding member. It is important to note that the Commonwealth will not control these companies, which will not be classified as Commonwealth companies but will enter into funding agreements with the Commonwealth (Section 85(1)(a) of the Public Governance, Performance and Accountability Act 2013). The Amendment Rules impose specific obligations on the parties involved in the formation and operation of these companies. Each member, including the Commonwealth, must have equal voting rights, and the Commonwealth's role is strictly limited to that of a funding partner, ensuring no control over the companies' activities (Schedule 1, Item 1). Furthermore, these companies must adhere to the Defence Cooperative Research Centres (DCRC) Program guidelines, which include having at least one industry and one research participant as members, and entering into funding agreements with the Commonwealth. While the Amendment Rules do not specify particular offences or penalties for breach, the underlying PGPA Act and associated rules provide a framework within which non-compliance could lead to legal consequences. Offences under the PGPA Act could potentially lead to civil or criminal penalties, depending on the nature and severity of the breach. The maximum penalties for such breaches, as provided by the PGPA Act, could include fines and imprisonment, reflecting the seriousness of non-compliance with public governance and accountability standards. In summary, the Amendment Rules provide the necessary legislative authority for the Commonwealth to engage in the formation of companies focused on defence and national security research, under strict conditions that ensure equal participation and non-control by the Commonwealth. These companies must comply with specific membership and governance requirements to maintain the integrity of the DCRC Program. The compatibility statement assures that these amendments do not infringe upon any human rights, thereby affirming their lawful and ethical alignment with Australia's legislative and human rights frameworks.