Tax Laws Amendment (2007 Measures No. 5) Act 2007 - Proclamation

Overview

The Tax Laws Amendment (2007 Measures No. 5) Act 2007 was enacted to address the need for streamlined administration and oversight of the Government's innovation and venture capital programs, which were previously managed by the Industry Research and Development (IR&D) Board and the Venture Capital Registration (VCR) Board. This Act was introduced by the Parliament of Australia and aims to consolidate the administrative responsibilities into a single entity, Innovation Australia, to improve efficiency and coordination. The Act was designed to establish a new statutory body, Innovation Australia, to replace the existing IR&D and VCR Boards. This consolidation is intended to enhance the management of government innovation and venture capital programs, ensuring a more cohesive approach to fostering innovation and investment. The administration of these programs, previously spread across two separate boards, will now be managed by Innovation Australia under the same structures and processes that applied to the IR&D Board.

Scope and Application

The Tax Laws Amendment (2007 Measures No. 5) Act 2007, particularly Schedule 12, applies to the establishment of a new statutory body, Innovation Australia (the Board), which consolidates the administration and oversight of government's innovation and venture capital programs. This consolidation incorporates the roles previously held by the Industry Research and Development (IR&D) Board and the Venture Capital Registration (VCR) Board under the Industry Research and Development Act 1986, the Pooled Development Funds Act 1992, and the Venture Capital Act 2002. The Act's jurisdiction extends across the Commonwealth of Australia, affecting entities involved in innovation and venture capital programs. The Board will operate with the same administrative structures and member constitutions as the IR&D Board and will assume responsibility for past decisions made by the IR&D and VCR Boards. The Act does not specify any exclusions or exemptions, but it is acknowledged that subordinate instruments may further define or extend its application. The Proclamation issued under the Act fixed 27 September 2007 as the commencement date for Schedule 12, ensuring the effective transition of administrative responsibilities to the new Board.

Key Provisions

The main operative sections of the Tax Laws Amendment (2007 Measures No. 5) Act 2007, particularly Schedule 12, establish a new statutory body called Innovation Australia (the Board), which consolidates the administration and oversight of the Government's innovation and venture capital programs (s 12). This consolidation brings together responsibilities previously spread between two bodies: the Industry Research and Development (IR&D) Board and the Venture Capital Registration (VCR) Board (formerly the Pooled Development Funds Registration Board). The Board will operate under the same administrative and operating structures as the former IR&D Board, taking over past decisions made by the IR&D and VCR Boards. The constitution of the Board, including the number of members and appointment processes, will mirror arrangements that applied to the IR&D Board (s 12). The Act imposes obligations on the Board to manage and oversee the innovation and venture capital programs effectively. These responsibilities include ensuring the efficient administration of programs that were previously handled by two separate bodies, maintaining the administrative and operating structures that applied to the IR&D Board, and assuming past decisions made by the IR&D and VCR Boards (s 12). The Board is also tasked with continuing the work of its predecessors in promoting and supporting innovation and venture capital initiatives within Australia. The Act does not explicitly outline specific offences, penalties, or consequences for breaches of its provisions. However, it is important to note that the legislative framework governing the operation of statutory bodies such as Innovation Australia may include other relevant laws and regulations that could impose penalties or consequences for non-compliance. For example, under the Industry Research and Development Act 1986 and the Venture Capital Act 2002, there may be provisions for civil or criminal penalties for breaches of their respective requirements. These penalties could vary depending on the nature and severity of the breach, but they may include fines or other sanctions as prescribed by those Acts.