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2016-2017-2018
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
HOUSE OF REPRESENTATIVES
AUSTRALIAN RESEARCH COUNCIL AMENDMENT
BILL 2018
EXPLANATORY MEMORANDUM
(Circulated by authority of the Minister for Education and Training,
Senator the Honourable Simon Birmingham)
AUSTRALIAN RESEARCH COUNCIL AMENDMENT BILL
2018
OUTLINE
The purpose of the Australian Research Council Amendment Bill 2018 (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 new funding caps for
the financial years commencing 1 July 2020 and 1 July 2021.
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 years funding figures for indexation (for the
financial years starting on 1 July 2017, 1 July 2018 and 1 July 2019) and extend the
forward estimate period to include the financial years starting on 1 July 2020 and
1 July 2021, resulting in an additional appropriation of $1.6 billion for the period of
1 July 2017 to 30 June 2022.
The amendments only impact the administered special appropriation; they do not
alter the substance of the ARC Act or increase departmental funds.
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FINANCIAL IMPACT STATEMENT
This Bill updates the special appropriation funding cap administered by the ARC to
include policy approvals, 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 years funding figures for indexation and
extend the forward estimate period to include the financial years starting on 1 July
2020 and 1 July 2021, resulting in an additional appropriation of $1.6 billion for the
period from 1 July 2017 to 30 June 2022.
2017-18 2018-19 2019-20 2020-21 2021-22
$758,055,000 $759,925,000 $771,932,000 $771,932,000 $771,932,000
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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 2018 (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) to apply current indexation rates to existing appropriation amounts and
insert new funding caps for the financial years commencing 1 July 2020 and 1 July
2021.
The amendments in the Bill seek to increase the general financial support available to
the research programs that the Australian Research Council (ARC) administers.
The amendments only impact on administered special appropriations; they do not alter
the substance of the ARC Act or increase departmental funds.
Analysis of human rights implications
This Bill engages the right to education, contained in Article 13 of the International
Covenant on Economic, Social, and Cultural Rights, insofar as it relates to the
provision of financial assistance 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). The NCGP comprises two main programs--Discovery and Linkage and the
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).
These programs will continue to receive funding as a result of the measures in this Bill
which fund the high-quality research Australia needs in order to address the great
challenges of our time, to improve the quality of people's lives, to support Australian
businesses to become more innovative and to remain competitive in the global
knowledge economy.
To the extent the right to education is engaged, it is promoted by the measures
contained in the Bill.
Conclusion
The Bill is compatible with human rights.
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AUSTRALIAN RESEARCH COUNCIL AMENDMENT BILL
2018
NOTES ON CLAUSES
Clause 1 - Short title
This clause provides for the Act to be the Australian Research Council Amendment
Act 2018.
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.
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Schedule 1 Amendments
Summary
This Schedule amends the Australian Research Council Act 2001 (the ARC Act) to
apply current indexation rates to existing appropriation amounts and insert new
funding caps for the financial years commencing on 1 July 2020 and 1 July 2021.
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 paragraphs (q) and (r) into subsection 48(2), the effect of
which is to provide that Division 1 of Part 7 also applies to the financial years
starting on 1 July 2020 and 1 July 2021.
Item 2 - Paragraphs 49(r), (s), (t) and (u)
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).
Item 2 repeals paragraphs 49(r), 49(s) and 49(t) and inserts new paragraphs 49(r),
49(s), 49(t), 49(u) and 49(v) so that approved annual funding caps must not exceed
the following amounts:
$758,055,000 for the financial year starting on 1 July 2017;
$759,925,000 for the financial year starting on 1 July 2018;
$771,932,000 for the financial year starting on 1 July 2019;
$771,932,000 for the financial year starting on 1 July 2020; and
$771,932,000 for the financial year starting on 1 July 2021.
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