Senate

Explanatory Memorandum

(Circulated by authority of the Minister for Industry, Science and Technology, the Hon Karen Andrews MP)

GLOSSARY

OUTLINE

The purpose of the Industry Research and Development Amendment (Industry Innovation and Science Australia) Bill 2021 (the Bill) is to amend the Industry Research and Development Act 1986 (IR&D Act) to rename the independent statutory board known as 'Innovation and Science Australia' (ISA) to 'Industry Innovation and Science Australia' (IISA), and to make consequential amendments to other Commonwealth legislation as a consequence of the name change.

The amendment to the legislated name of ISA reflects the updated focus of the body on Australian industry and industry's role in innovation and science. The change of name is part of broader policy reform as per the Government's request to the Minister for Industry, Science and Technology to reshape ISA to focus more on Australian industry. Other measures in this policy reform include the appointment of new Board members, a new Statement of Expectations, and the provision of advice to Government on the recently announced Modern Manufacturing Strategy.

FINANCIAL IMPACT STATEMENT

The proposed Bill will have minimal to no financial impact for the Commonwealth. Any minor administrative costs will be absorbed by the Department of Industry, Science, Energy and Resources.

CONSULTATION

The Department of Finance and the Department of the Treasury were consulted in the preparation of the Bill and this Explanatory Memorandum.

Statement of Compatibility with Human Rights

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

Industry Research and Development Amendment (Industry Innovation and Science Australia) Bill 2021 (the Bill)

This 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 this Bill is to amend the Industry Research and Development Act 1986 (IR&D Act) to rename the independent statutory board known as 'Innovation and Science Australia' (ISA) to 'Industry Innovation and Science Australia' (IISA), and to make consequential amendments to other Commonwealth legislation as a consequence of the name change.

Changing ISA's name reflects a request from the Government that the Minister for Industry, Science and Technology reshape ISA to focus more on Australian industry through new members, a new mandate and the provision of advice to Government on the recently announced Modern Manufacturing Strategy.

The effect of the Bill will be to legally amend the name of ISA to IISA in the IR&D Act and make consequential amendments.

Human rights implications

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

Conclusion

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

Notes on Clauses

Clause 1: Short title

1. This is a formal provision specifying that the short title is to be cited as the Industry Research and Development Amendment (Industry Innovation and Science Australia) Act 2021.

Clause 2: Commencement

2. The table in this clause sets out the commencement date of the Bill's provisions. The whole of the Bill's provisions will commence the day after the Bill receives Royal Assent.

Clause 3: Schedules

3. This clause is a machinery clause that gives effect to the provisions in the Schedules to the Bill.

Schedule 1 - Amendments

Part 1 - Main amendments

Industry Research and Development Act 1986

Item 1: Subsection 4(1) (definition of Board )

4. This item amends the definition of "Board" in subsection 4(1) of the IR&D Act.

Item 2: Section 6

5. This item repeals section 6 of the IR&D Act and inserts a new section which specifies that Innovation and Science Australia continues in existence with the new name Industry Innovation and Science Australia. The new section operates in conjunction with section 25B(1) of the Acts Interpretation Act 1901 and includes a note to that effect.

Part 2 - Consequential amendments

Income Tax Assessment Act 1997

Item 3: The whole of the Act

6. This item amends the Tax Income Assessment Act 1997 by replacing references to Innovation and Science Australia throughout that Act with references to Industry Innovation and Science Australia.

Pooled Development Funds Act 1992

Item 4: Subsection 4(1) (definition of Board )

7. This item amends the definition of "Board" in the Pooled Development Funds Act 1992 by replacing the reference to Innovation and Science Australia with references to Industry Innovation and Science Australia.

Taxation Administration Act 1953

Item 5: The whole of the Act

8. This item amends the Taxation Administration Act 1953 by replacing references to Innovation and Science Australia throughout that Act with references to Industry Innovation and Science Australia.

Venture Capital Act 2002

Item 6: The whole of the Act

This item amends the Venture Capital Act 2002 by replacing references to Innovation and Science Australia throughout that Act with references to Industry Innovation and Science Australia.