EXPLANATORY STATEMENT

Funding Rules made under section 60 of the Australian Research Council Act 2001
Funding Rules for schemes under the Linkage Program—2017 edition
Issued by the authority of the Minister for Education and Education
Subject:	Australian Research Council Act 2001—Funding Rules for schemes under the Linkage Program—2017 edition 
Authority
Section 60 of the Australian Research Council Act 2001 (the Act) provides that the Minister must approve ARC funding rules.  
Purpose and effect
The instrument is a legislative instrument for the purposes of the Legislation Act 2003 (the LA). These Funding Rules relate to schemes funded under the Linkage Program of the National Competitive Grants Program. The Linkage Program supports the growth of research partnerships in Australia and overseas that generate new knowledge, technologies and innovations. In particular, these rules relate to the Industrial Transformation Research Hubs scheme, the Industrial Transformation Training Centres scheme, the Linkage Projects scheme and the Linkage Infrastructure, Equipment and Facilities scheme.
In accordance with subsection 59 (2) of the Act, the Funding Rules for schemes under the Linkage Program—2017 edition contain:
(a)	the eligibility criteria to be met in order for a proposal to be approved for financial assistance (including criteria relating to the kinds of organisation that may receive assistance and the kinds of research programme in respect of which assistance may be provided);
(b)	how to apply for financial assistance;
(c)	the assessment process for deciding which proposals will be recommended for approval;
(d)	the ways in which, and circumstances in which, a funding approval may be varied; and
(e)	any additional accountability requirements that the ARC thinks desirable.
In accordance with subsection 59 (4) of the Act, the Funding Rules for schemes under the Linkage Program—2017 edition take account of, and are consistent with:
(a)	the funding cap for the year, or each of the years, to which the rules apply; and 
(b)	the funding split determination for the year, or each of the years, to which the rules apply.
The Funding Rules for schemes under the Linkage Program—2017 edition were approved by the Minister for Education and Training, Senator the Hon Simon Birmingham, on 14 August 2017. No amendments have been made. 
Documents incorporated by reference                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
The following documents are incorporated by reference:
•	Australian Code for the Responsible Conduct of Research (2007);
•	National Statement on Ethical Conduct in Human Research (2007, updated 2015); 
•	NHMRC Values and Ethics: Guidelines for Ethical Conduct in Aboriginal and Torres Strait Islander Health Research (2003);
•	Australian Institute of Aboriginal and Torres Strait Islander Studies Guidelines for Ethical Research in Australian Indigenous Studies (2012);
•	Australia Council for the Arts Indigenous Cultural Protocols for Producing Indigenous Music, Writing, Visual Arts, Media Arts and Performing Arts (2007);
•	Australian Code for the care and use of animals for scientific purposes (2013) endorsed by the NHMRC, the ARC, the Commonwealth Scientific and Industrial Research Organisation and UA; and
•	National Principles of Intellectual Property Management for Publicly Funded Research, available from (www.arc.gov.au).

Commencement
The Funding Rules for schemes under the Linkage Program—2017 edition shall take effect upon registration on the Federal Register of Legislative Instruments.  

The provisions include;
Part A—Provides general rules for the schemes under the Linkage Program, which includes; 
•	Name of Funding Rules
•	Commencement
•	Definitions
•	Introduction
•	Organisation General Eligibility Requirements
•	Participant General Eligibility Requirements
•	Funding
•	Submission of proposals
•	Selection and approval process
•	Appeals process
•	Reporting requirements
•	Fundamental principles of conducting research
•	Eligible Organisations

Part B—Scheme-specific rules for Industrial Transformation Research Hubs for funding commencing in 2018
•	Interpretation
•	Important Dates
•	Additional Definitions for Part B
•	Objectives
•	Organisation Eligibility
•	Participant Eligibility
•	RESEARCH Hub Director Operational Requirements
•	Proposal Eligibility
•	Funding
•	Assessment and Selection Process
•	Reporting Requirements

Part C—Scheme-specific rules for Industrial Transformation Training Centres for funding commencing in 2018
•	Interpretation
•	Important Dates
•	Additional Definitions for Part C
•	Objectives
•	Organisation Eligibility
•	Administering Organisation Operational Requirements
•	Participant Eligibility
•	Proposal Eligibility
•	Participant Operational Requirements
•	Funding
•	Assessment and Selection Process
•	Reporting Requirements

Part D—Scheme-specific rules for Linkage Projects for funding applied for in 2018
•	Interpretation
•	Important Dates
•	Additional Definitions for Part D
•	Objectives
•	Organisation Eligibility
•	Participant Eligibility
•	Proposal Eligibility
•	Funding
•	Selection Process

Part E—Scheme-specific rules for Linkage Infrastructure, Equipment and Facilities for funding commencing in 2019
•	Interpretation
•	Important Dates
•	Additional Definitions for Part E
•	Objectives
•	Organisation Eligibility
•	Participant Eligibility
•	Proposal Eligibility
•	Funding
•	Selection Process
•	Reporting Requirements

Consultation 
The ARC consulted with the Department of Finance and the Department of Prime Minister and Cabinet and they have determined the Funding Rules as low risk.

Regulatory Impact Statement
These Funding Rules include a number of measures that reduce regulatory burden on the higher education sector. This includes coordination with the National Health and Medical Research Council (NHMRC) to produce a timeline that minimises the burden on the sector in relation to preparation and submission of proposals

Statement of compatibility with human rights
Section 9(1) of the Human Rights (Parliamentary Scrutiny) Act 2011 requires the rule maker in relation to a legislative instrument to which section 42 (disallowance) of the LA applies to cause a statement of compatibility to be prepared in respect of that legislative instrument. 
The legislative instrument does not engage any of the applicable rights or freedoms. It is compatible with human rights, as it does not raise any human rights issues.