House of Representatives

Explanatory Memorandum

(Circulated by authority of the Minister for Education, the Hon Jason Clare MP)

OUTLINE

The purpose of the Higher Education Support Amendment (Australia's Economic Accelerator) Bill 2022 is to amend the Higher Education Support Act 2003 (HESA) to allow the Minister to make grants to:

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support arrangements to increase industry-led postgraduate research; and

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assist higher education providers to undertake programs of research that:

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progress the development of technologies and services to a state of commercial investor readiness; and

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are in sectors aligned with areas of national priority.

Industry-led postgraduate research

The Bill amends HESA to allow for grants to be made under Part 2-3 to support new industry-led study and postgraduate research. This will provide a basis for new industry-led postgraduate programs that will create a clear and structured career pathway in innovation and commercialisation focused research and drive reform of the existing funding and reward structures in Australian universities. These programs are intended to embed researchers in industry settings, enhancing research commercialisation and translation skills and building research careers in industry.

Australia's Economic Accelerator

The Bill amends HESA to allow for grants to be made under Part 2-3 to support the operation of the Australia's Economic Accelerator program and establishes a new governance framework to support the delivery of this program. The governance framework will include the Australia's Economic Accelerator Advisory Board (AEA Advisory Board) appointed by the Minister, and priority managers who will be engaged by the Secretary to support the work of the AEA Advisory Board. The AEA Advisory Board will be responsible for advising the Minister in relation to the Australia's Economic Accelerator program, including by providing advice on the objectives, conditions of eligibility and conditions of grants. The AEA Advisory Board will also oversee the priority managers and advise the Minister on the commercialisation of research, including through a research commercialisation strategy which is to be developed every five years (with the first strategy to be developed as soon as practicable after commencement of these amendments).

The AEA Advisory Board will also develop an investment plan each financial year for the Australia's Economic Accelerator program outlining the areas of national priority (these areas are to be determined by Government and communicated to the AEA Board and reflected in their research commercialisation strategy and annual investment plan), amount of funding available and any other matters the Board considers appropriate to ensure the program meets the program's objectives.

As soon as practicable after the end of each financial year, the AEA Advisory Board will provide an Annual Report to the Minister for presentation to Parliament. This report will cover the Board's operations during the year, the performance of the Australia's Economic Accelerator program and progress against the research commercialisation strategy. It will detail achievements in commercialising university research in areas of government priority as well as identifying regulatory, financial and cultural barriers to commercialising university research in areas of government priority and suggest how they might be addressed.

The AEA Advisory Board will consist of up to eight members, who will possess experience and knowledge in research and its commercialisation, and represent government, industry and research sectors.

Priority managers will support the work of the AEA Advisory Board and the Australia's Economic Accelerator program more broadly by providing technical and specialist skills and knowledge in supporting projects funded under the program.

The Bill also establishes new information management provisions to provide for how Australia's Economic Accelerator program information is to be handled.

FINANCIAL IMPACT STATEMENT

The measures contained in Schedule 1 to the Bill to establish the AEA as an ongoing grant program under subsection 41-10(1) of HESA will result in a net expense of $432.0 million over four years from 2022-23.

The measure contained in Schedule 1 to the Bill to establish new industry-led postgraduate study programs will result in a net expense of $36.1 million over the period 2022-23 to 2025-26.

CONSULTATION

The measures contained in this Bill respond to extensive public and stakeholder consultation. The consultation paper released in February 2021, and the associated process, focused on how to maximise the social and economic benefits of Australia's university research sector. 171 public submissions were received during this process, which indicated broad support for:

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improving industry-university collaboration;

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mission driven research modes;

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a stage-gated scheme; and

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expert governance.

The measures have also been selectively tested with, and endorsed by, the University Research Commercialisation Scheme Expert Panel. The Expert Panel consisted of key university, industry and science leaders.