Federal Register of Legislation - Australian Government

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Other as made
This instrument prescribes the Automotive Aftermarket Innovation Lab Program.
Administered by: Industry, Science, Energy and Resources
Registered 21 Jun 2018
Tabling HistoryDate
Tabled HR25-Jun-2018
Tabled Senate25-Jun-2018

 

EXPLANATORY STATEMENT

Issued by the authority of the Minister for Jobs and Innovation

Industry Research and Development Act 1986

Industry Research and Development (Automotive Aftermarket Innovation Lab Program) Instrument 2018

Purpose and Operation

Section 33 of the Industry Research and Development Act 1986 (the IR&D Act) provides a mechanism for the Minister to prescribe programs, by disallowable legislative instrument, in relation to industry, innovation, science or research, including in relation to the expenditure of Commonwealth money under such programs.

The statutory framework provided by s33 of the IR&D Act enables a level of flexibility to provide authority for Commonwealth spending activities in relation to industry, innovation, science and research programs. This allows the Government to respond quickly and appropriately to the need to implement innovative ideas and pilot programs on an ongoing basis and as opportunities arise. Prescribing programs in legislative instruments provides transparency and parliamentary oversight of Government programs and spending activities, whilst reducing administrative burden on the Commonwealth.

Once a program is prescribed by the Minister under s33, subsection 34(1) allows the Commonwealth to make, vary or administer arrangements in relation to activities under the prescribed program. Arrangements may include contracts, funding agreements or other arrangements, and may provide for money to be payable by the Commonwealth to one or more third parties. The power conferred on the Commonwealth by subsection 34(1) may be exercised on behalf of the Commonwealth by a Minister or an accountable authority of a non-corporate entity, or by their delegate (under s36).

The purpose of the Industry Research and Development (Automotive Aftermarket Innovation Lab Program) Instrument 2018 (the Legislative Instrument) is to prescribe the Automotive Aftermarket Innovation Lab Program (the Program). The funding for the Program has been authorised through the Department of Industry, Innovation and Science 2017-18 Budget. The Program provides $583,333 (plus GST) as part of the Australian Government’s commitment to providing support for developing automotive firm capability. The objective of the grant is to set up an automotive aftermarket innovation laboratory. The laboratory will support the testing and development of new automotive aftermarket products by Australian advanced manufacturing companies, by giving them access to special high-tech tools and equipment, vehicles and vehicle data. The laboratory will be a bricks and mortar shared facility where businesses from around Australia can come together to utilise services which could include 3D scanning and printing, measuring sessions, technology transfer and computer aided design. The grant will be provided to the Australian Automotive Aftermarket Association.

Funding authorised by this Legislative Instrument comes from Encouraging Innovation in Advanced Manufacturing, Outcome 1, Program 2, Sub-program 2.3 as set out in the Portfolio Budget Statements 2018-19, Budget Related Paper No. 1.13A, Industry, Innovation and Science Portfolio at page 33.

The Program will be delivered by the Department of Industry, Innovation and Science’s (the Department) Business Grants Hub, which is a specialised design, management and delivery body with extensive expertise and capability in delivering similar programs.

The Program is a one-off grants program. The Program is administered by the Department in accordance with the Commonwealth Grant Rules and Guidelines 2017 (http://www.finance.gov.au/sites/default/files/commonwealth-grants-rules-and-guidelines.pdf).

The Department will enter into a grant agreement with the grantee that will set out the terms and conditions of the grant. An officer at the SES Band 2 level in AusIndustry, a Division of the Department, will approve the spending on behalf of the Department.

The grant will be $583,333 (plus GST). In addition to the Commonwealth grant, other parties will contribute funds to this project. The total capital value of the laboratory must be at least twice the Commonwealth grant fund amount.

As this is a targeted one-off grant, there are no selection criteria and the Program will not be subject to merits review.

 

Persons who have complaints about the Program will have recourse to the Department. The Department will investigate any complaints about the Program in accordance with its complaints policy and procedures. If a person is not satisfied with the way the Department handles the complaint, they may lodge a complaint with the Commonwealth Ombudsman.

The Legislative Instrument specifies that the legislative power in respect of which the instrument is made is the power of the Parliament to make laws with respect to ‘foreign corporations, and trading or financial corporations formed within the limits of the Commonwealth’ (para 51(xx) of the Constitution) (the corporations power). The corporations power relevantly supports Commonwealth activities which assist the activities of trading or financial corporations formed in Australia. The Program provides funding to the Australian Automotive Aftermarket Association, a trading corporation, to assist it in establishing an automotive aftermarket innovation laboratory.

Authority

Section 33 of the Industry Research and Development Act 1986 provides authority for the Legislative Instrument.

Consultation

In accordance with section 17 of the Legislation Act 2003, the Attorney-General’s Department has been consulted on this Legislative Instrument.

Regulatory Impact

It is estimated that the regulatory burden is likely to be minor.

 


Details of the Industry Research and Development (Automotive Aftermarket Innovation Lab Program) Instrument 2018

PART 1 – PRELIMINARY

Section 1 – Name of Instrument

This section specifies the name of the Legislative Instrument as the Industry Research and Development (Automotive Aftermarket Innovation Lab Program) Instrument 2018.

Section 2 – Commencement

This section provides that the Legislative Instrument commences on the day after registration on the Federal Register of Legislation. 

Section 3 – Authority

This section specifies the provision of the Industry, Research and Development Act 1986 (the Act) under which the Legislative Instrument is made.

Section 4 – Definitions

This item provides for definitions of terms used in the Legislative Instrument.

Section 5 – Prescribed Program

This section prescribes the Automotive Aftermarket Innovation Lab Program (the Program) for the purposes of s 33 of the Act.

The program provides funding to the Australian Automotive Aftermarket Association to establish an innovation laboratory that will support the testing and development of new automotive aftermarket products by Australian advanced manufacturing companies. The laboratory will provide such companies access to special high‑tech tools and equipment, vehicles and vehicle data. The lab will be a bricks and mortar shared facility where businesses from around Australia can come together to utilise services which could include 3D scanning and printing, measuring sessions, technology transfer and computer aided design.

The funding by the Commonwealth for this program is supplemented by funding from other parties.

Section 6 – Specified Legislative Power

This section specifies that the legislative power in respect of which the Legislative Instrument is made is the power of the Parliament to make laws with respect to ‘foreign corporations, and trading or financial corporations formed within the limits of the Commonwealth’ (paragraph 51(xx) of the Constitution).


Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

Industry Research and Development (Automotive Aftermarket Innovation Lab Program) Instrument 2018

This Legislative Instrument 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 Legislative Instrument

This Legislative Instrument provides legislative authority to commit Commonwealth funds for the Automotive Aftermarket Innovation Lab Program.

The Program provides $583,333 (plus GST) in grant funding as part of the Australian Government’s commitment to providing support for developing automotive firm capability. It will provide funding to set up an automotive aftermarket innovation laboratory. The laboratory will support the testing and development of new automotive aftermarket products by Australian advanced manufacturing companies, by giving them access to special high-tech tools and equipment, vehicles and vehicle data. The laboratory will be a bricks and mortar shared facility where businesses from around Australia can come together to utilise services which could include 3D scanning and printing, measuring sessions, technology transfer and computer aided design.

The Commonwealth grant comprises a portion of a larger project which includes provision of funds from other parties.

Human rights implications

This Legislative Instrument does not engage any of the applicable rights or freedoms.

Conclusion

This Legislative Instrument is compatible with human rights as it does not raise any human rights issues.

 

Senator the Hon Michaelia Cash

Minister for Jobs and Innovation