australian research council
amendment BILL 2019
OUTLINE
The purpose of the Australian Research Council Amendment Bill 2019 (the Bill) is to amend the Australian Research Council Act 2001 (the ARC Act) to apply current indexation rates to existing appropriation amounts and insert a new funding cap for the financial year commencing 1 July 2022.
The Bill supports the financial assistance for approved research programs administered by the Australian Research Council (ARC). These programs fund the high-quality research needed to grow knowledge and innovation for the benefit of the Australian community.
The Bill will amend the ARC Act to enable continued financial assistance to be provided for approved research programs administered by the ARC. The ARC supports the highest quality fundamental and applied research and research training through funding schemes under the National Competitive Grants Programs (NCGP). NCGP comprises of two programs—Discovery and Linkage. Funding awarded under the NCGP:
· is allocated on the basis of a competitive peer review process involving national and international assessors; and
· supports research across all disciplines (with the exception of health and medical research).
The ARC Act provides a maximum cap for financial assistance for approved research programs.
The amendments are essential as the ARC Act is the legislative basis that supports the financial operations of the ARC research programs through special appropriation mechanisms which must occur each financial year. Specifically the Bill will alter three existing financial year funding figures for current indexation (for the financial years starting on 1 July 2019, 1 July 2020 and 1 July 2021) and extend the forward estimate period to include the financial year starting on 1 July 2022, resulting in an additional appropriation of $829 million for the period of 1 July 2019 to 30 June 2023.
The amendments only impact the administered special appropriation; they do not alter the substance of the ARC Act.
FINANCIAL IMPACT STATEMENT
This Bill updates the special appropriation funding cap administered by the ARC to include indexation adjustments and an additional forward estimate for existing schemes within the NCGP. Indexation adjustments and adding the next year of the forward estimate are part of the standard budget process and are administrative in nature.
The Bill will alter three existing financial year funding figures for indexation and extend the forward estimate period to include the financial year starting on 1 July 2022, resulting in an additional appropriation of $829.052 million for the period of 1 July 2019 to 30 June 2023.
| | 2019–20 | 2020–21 | 2021–22 | 2022–23 |
| Proposed | $786,212,000 | $786,212,000 | $786,212,000 | $786,212,000 |
| Current | $771,932,000 | $771,932,000 | $771,932,000 | 0 |
| Difference | +$14,280,000 | +$14,280,000 | +$14,280,000 | +$786,212,000 |
STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS
Prepared in accordance with Part 3 of the Human Rights
(Parliamentary Scrutiny) Act 2011
The Australian Research Council Amendment Bill 2019 (the Bill) is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
Overview of the Bill
The purpose of the Bill is to amend the Australian Research Council Act 2001 (the ARC Act) applying current indexation rates to existing appropriation amounts and inserting a new funding cap for the financial year commencing 1 July 2022.
The amendments in the Bill seek to increase the general financial support available to the research programs that the ARC administers.
The amendments only impact on administered special appropriations; they do not alter the substance of the ARC Act.
Analysis of human rights implications
The Bill amends the ARC Act by applying indexation against appropriations for existing ARC research programs and including an additional figure for the last year of the forward Budget estimates (for the financial year starting on 1 July 2022). As a result, this Bill does not have any human rights implications.
Conclusion
The Bill is compatible with human rights as it does not raise any human rights issues.
australian research council amendment BILL 2019
NOTES ON CLAUSES
Clause 1 - Short title
This clause provides for the Act to be the Australian Research Council Amendment Act 2019.
Clause 2 - Commencement
The table in subclause 2(1) sets out when the Act will commence. The table provides that the whole of this Act will commence the day after the Act receives Royal Assent.
Subclause 2(2) provides that information in column 3 of the table at subclause 2(1) is not part of the Act and information may be inserted into column 3 or information in it may be edited in any published version of the Act.
Clause 3 - Schedules
This clause provides that any legislation that is specified in a schedule is amended or repealed as set out in the applicable items in the schedule and that any other item in a schedule has effect according to its terms.
Summary
This Schedule amends the Australian Research Council Act 2001 (the ARC Act) to apply current indexation rates to existing appropriation amounts and insert a new funding cap for the financial year commencing on 1 July 2022.
Detailed explanation
Australian Research Council Act 2001
Item 1 – At the end of subsection 48(2)
Division 1 of Part 7 of the ARC Act provides for financial assistance for approved research programs. Section 48 sets out the years to which this Division applies.
Item 1 inserts a new paragraph into subsection 48(2), the effect of which is to provide that Division 1 of Part 7 also applies to the financial year starting on 1 July 2022.
Items 2 and 3 – Section 49
Section 49 of the ARC Act specifies the annual funding caps for the purposes of Division 1 of Part 7 (financial assistance for approved research programs).
Currently, paragraphs 49(t) to (v) provide that the annual funding caps for the financial years starting on 1 July 2019, 1 July 2020 and 1 July 2021 is $771,932,000.
Item 2 increases the annual funding caps for these financial years to $786,212,000.
Item 3 inserts a new paragraph (w) into section 49 to specify that, for the financial year starting on 1 July 2022, the approved annual funding cap is $786,212,000.