Revocation of the Venture Capital Committee - Innovation Australia

Overview

The Industry Research and Development Act 1986, enacted by the Commonwealth Parliament, was established to foster innovation and economic growth through support for research and development initiatives. The Act aimed to address the gap in funding and support mechanisms for industry-led research and development activities. As part of its ongoing review and reform processes, the Venture Capital Committee of Innovation Australia was revoked by the Minister for Industry, Ian Macfarlane, on 31 July 2014. This revocation was intended to streamline the administration and functions related to industry research and development funding, reflecting a policy objective to enhance efficiency and effectiveness in supporting Australia's innovation ecosystem.

Scope and Application

The Industry Research and Development Act 1986, as revoked by the Gazette C2014G01187, applies to entities and individuals engaged in research and development activities within the Commonwealth of Australia. The Act was designed to promote and support industry research and development through various mechanisms, including the establishment of committees to oversee funding and initiatives. The Venture Capital Committee of Innovation Australia, previously tasked with managing venture capital activities under the Act, was revoked effective from 31 July 2014, as per the provisions of the Act. The revocation impacts those who were involved in or reliant on the Venture Capital Committee's operations, including entities seeking venture capital funding for research and development projects and the committee members themselves. The geographic reach of the Act is national, affecting the entire Commonwealth of Australia. The Act does not explicitly state exclusions, exemptions, or thresholds in the revocation, but its impact is limited to the specific revocation of the Venture Capital Committee. The Act may extend or restrict its application through subordinate instruments, which are not detailed in the revocation notice itself.

Key Provisions

The key operative sections of the revocation notice C2014G01187 pertain directly to the formal dissolution of the Venture Capital Committee of Innovation Australia as outlined in the Industry Research and Development Act 1986 (sections 22(1)). This means that the Venture Capital Committee, which was previously established under the Act, is no longer in existence as of 31 July 2014. This revocation is a clear directive from the Minister for Industry, Ian Macfarlane, acting under the powers granted by the Act. In terms of obligations and requirements, the revocation notice does not impose any additional duties on the parties involved. Instead, it marks a significant change in the administrative structure of Innovation Australia by eliminating the Venture Capital Committee. This change is expected to streamline or alter how research and development funds are assessed or allocated, as previously managed by the Committee. The Act does not specify new entities or mechanisms to replace the Committee, implying that Innovation Australia will need to adapt its operations in the absence of the Committee. Breaching the provisions of the Industry Research and Development Act 1986 by failing to adhere to the revocation notice could result in legal consequences. However, the notice itself does not detail specific offences or penalties for non-compliance. Generally, under the Act, any failure to comply with ministerial directives or statutory requirements could lead to legal action. While the notice does not explicitly outline maximum penalties, breaches of similar legislative instruments typically involve fines or other civil penalties as determined by the courts. Furthermore, the revocation of the Venture Capital Committee could have broader implications for entities that previously engaged with the Committee for funding or advisory purposes. They may need to seek alternative sources of support or guidance, as the mechanisms that were previously in place are no longer operational. The Minister's directive, while administrative, carries substantive changes that require adaptation by stakeholders within the research and development sector.