Industry Research and Development Act 1986

Industry Research and Development Act 1986.

The Act is Commonwealth legislation enacted by the Parliament of Australia to promote industrial innovation through incentives for research and development, drawing on policy debates between the Hawke Ministry, Treasury of Australia, Department of Industry, Technology and Commerce, and stakeholders such as the Australian Industry Group, CSIRO and Australian Research Council. The statute emerged amid 1980s fiscal reforms associated with the Fraser Ministry legacy, the Prices and Incomes Accord, and international influences from Organisation for Economic Co-operation and Development and European Commission innovation policy.

Background and legislative history

The legislative history reflects policy formulation involving the Hawke Ministry, the Commonwealth Scientific and Industrial Research Organisation (CSIRO), and advisory reports from the Australian Science and Technology Council and the Industry Commission, with parliamentary debates in the House of Representatives and the Senate referencing submissions from the Australian Chamber of Commerce and Industry, Australian Council of Trade Unions, and multinational firms such as BHP and Wesfarmers. Influences included comparative models in the United Kingdom, United States, and Japan where instruments like the Bayh–Dole Act and tax credit regimes shaped drafting by the Attorney-General's Department and advice from the Treasury of Australia. The bill navigated committee review by the Parliamentary Joint Committee on Corporations and Financial Services and consultations with the Austrade export policy apparatus before receiving royal assent during negotiations over the Australian federal budget.

Key provisions and objectives

The Act established objectives to encourage collaboration among entities including Commonwealth Scientific and Industrial Research Organisation, universities such as the University of Melbourne, University of Sydney, and private firms like CSR Limited and Amcor. Provisions created eligibility criteria for research activities drawing on definitions from reports by the Australian Research Council and frameworks used by the International Monetary Fund and World Bank for innovation policy. The statute included mechanisms to grant tax offsets, incentives, and contributions administered by the Australian Taxation Office and coordinated with programs run through Austrade and the Department of Industry, Science and Resources. It specified compliance obligations aligned with corporate reporting standards from the Australian Securities and Investments Commission and audit arrangements influenced by practices at PricewaterhouseCoopers and KPMG.

Administration and funding mechanisms

Administration was allocated to Commonwealth agencies including the Department of Industry, Science and Resources and operationally supported by statutory authorities such as the Australian Research Council and the CSIRO. Funding mechanisms combined direct grants, tax provisions administered by the Australian Taxation Office, and matching contributions akin to frameworks used by the National Institutes of Health in the United States and the European Research Council in the European Union. Oversight involved reporting to parliamentary committees including the Joint Committee of Public Accounts and Audit and audit scrutiny by the Auditor-General (Australia). The Act enabled partnerships with state agencies such as New South Wales Treasury and Victorian Government innovation funds, and collaboration with industry bodies like the Australian Industry Group and the Business Council of Australia.

Implementation and impact

Implementation produced programs that affected firms ranging from multinational corporations like Rio Tinto and Fortescue Metals Group to small technology enterprises in precincts associated with Monash University and University of Queensland. Evaluations referenced by agencies such as the Productivity Commission and reports prepared for the Parliamentary Library assessed impacts on indicators used by the Organisation for Economic Co-operation and Development and the World Bank, including business expenditure on R&D and collaboration metrics with the CSIRO and universities. The Act shaped the landscape for innovation clusters similar to initiatives in Silicon Valley and Cambridge, England, influenced patent activity monitored by IP offices like the IP Australia and international filings with the World Intellectual Property Organization. Critiques from the Australian Council of Social Service and trade unions like the Australian Manufacturing Workers' Union addressed distributional effects, while industry advocates such as the Australian Chamber of Commerce and Industry highlighted competitiveness gains.

Amendments and subsequent legal developments

Subsequent amendments were enacted to harmonize the Act with tax law reforms administered by the Australian Taxation Office and regulatory changes influenced by reports from the Productivity Commission, the AusIndustry program, and the Australian Research Council. Later legislative adjustments responded to international agreements overseen by the World Trade Organization and intellectual property developments involving the World Intellectual Property Organization. Judicial interpretation and administrative practice interacted with decisions from courts such as the Federal Court of Australia and regulatory guidance from the Australian Securities and Investments Commission, while policy continuity was shaped by subsequent governments including the Howard Government and the Rudd Government.

Category:Australian legislation