R & D Start Program (Additional Function of the IR&D Board) Direction No. 1 of 1996 (Amendment No. 1 of 1997)

Overview

The Industry Research and Development Act 1986 was enacted by the Commonwealth Parliament to encourage and support research and development activities across various industries in Australia. This legislation aimed to address the gap in fostering innovation and technological advancement by providing a framework for investment in research and development initiatives. The Act established the Industry Research and Development Board (IRD Board) to administer the provisions of the Act, with the policy objective of enhancing Australia's economic growth and competitiveness through innovation. In 1996, an amendment was introduced through the R&D Start Program (additional function of the IRD Board) Direction No. 1, which expanded the functions of the IRD Board to include authorising payments by way of grant, investment, loan, or other financial accommodation made by the Commonwealth, particularly to support early-stage companies based on new technology. This amendment was enacted by John Colinton Moore, the Minister for Industry, Science and Tourism, under subsection 19(1) of the Act, and it was made to further align the Board’s activities with the overarching goal of stimulating innovation and economic development.

Scope and Application

The Industry Research and Development Act 1986 applies to entities and individuals engaged in research and development activities within Australia. The Act provides a framework for the administration of research and development tax incentives and grants, thereby encouraging investment in innovation and technological advancement. Specifically, the Act applies to the Research and Development Start Program, an initiative designed to support early-stage companies that are based on new technology. This support can include grants, investments, loans, or other financial accommodations made by the Commonwealth through the Industrial Research and Development (IR&D) Board. The scope of the Act extends to any entity or individual involved in the management of funds intended for investment in these early-stage companies. The legislation operates on a national level, as it is a Commonwealth Act, meaning it applies across the entire country. However, there are certain exclusions and exemptions stipulated in the Act and its subordinate instruments, which may limit its application to specific types of research, development activities, or financial accommodations. The Act's reach can be further defined or restricted by amendments or additional directions, such as the R&D Start Program (additional function of the IR&D Board) Direction No. 1 of 1996, which was amended in 1997 to clarify the types of financial support that can be provided under the program.

Key Provisions

The main operative sections of this legislative instrument, R&D Start Program (additional function of the IR&D Board) Direction No. 1 of 1996, revolve around the additional function of the IR&D Board. Specifically, section 3 provides an amended interpretation of the "R&D Start Program" to include "investment in or provision of finance to managed funds to invest in or provide finance to early stage companies based on new technology" (section 4). Furthermore, section 5 modifies the Board's additional function by replacing the previous authorisation of payments by way of grant, investment, loan or other financial accommodation made by the Commonwealth with a new provision (section 4(1)(c)). The obligations and requirements imposed by this Act are primarily directed at the IR&D Board. Section 3 mandates that the Board must now interpret the "R&D Start Program" to encompass investments in or provision of finance to managed funds that invest in or provide finance to early stage companies based on new technology. Moreover, section 4(1)(c) requires the Board to authorise payments by way of grant, investment, loan or other financial accommodation made by the Commonwealth. This amendment places a specific focus on the Board's role in facilitating and supporting the funding of early-stage companies through managed funds, thus expanding the scope of its financial responsibilities. In terms of consequences for breach, the Act does not explicitly detail offences, penalties, or civil/criminal consequences within the text provided. However, as with most legislative instruments, failure to comply with the obligations and requirements outlined in the Act could potentially result in legal actions, administrative penalties, or other consequences as determined by the relevant authorities. The absence of specific penalties in this excerpt may imply that the consequences are to be determined by other applicable laws or regulations, which would be subject to the broader legal framework governing the enforcement and compliance of the Industry Research and Development Act 1986.