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This is a Bill, not an Act. For current law, see the Acts databases.
1998
The Parliament of
the
Commonwealth of
Australia
HOUSE OF
REPRESENTATIVES
Presented and read a first
time
Industry
Research and Development Amendment Bill
1998
No. ,
1998
(Industry, Science and
Resources)
A Bill for an Act to amend the
Industry Research and Development Act 1986, and for related
purposes
ISBN: 0642
379297
Contents
A Bill for an Act to amend the Industry Research and
Development Act 1986, and for related purposes
The Parliament of Australia enacts:
This Act may be cited as the Industry Research and Development
Amendment Act 1998.
This Act commences on the day on which it receives the Royal
Assent.
Each Act that is specified in a Schedule to this Act is amended or
repealed as set out in the applicable items in the Schedule concerned, and any
other item in a Schedule to this Act has effect according to its
terms.
(1) This section applies only to applications made under section 39J of
the Industry Research and Development Act 1986 by the following
companies:
(a) Aussie Diamond Products Pty. Limited (ACN 051 488 656);
(b) Creative Objects Pty. Ltd. (ACN 065 617 781);
(c) Cutler Brands Pty Ltd (ACN 050 166 160);
(d) Futureweld Pty. Ltd. (ACN 053 762 744);
(e) Learning Curve Pty. Limited (ACN 008 658 624);
(f) NSJA Investments Pty Limited (ACN 007 288 637) (previously known as
Strategos Pty. Ltd.).
(2) If, before the commencement of this section:
(a) an application was lodged with the Australian Taxation Office before
the end of the period for making the application; and
(b) the application was received by the Board after the end of the period
for making the application; and
(c) the company was refused registration under section 39J merely because
the application was not made within the period for making the
application;
the Board must take the application to have been made within the period for
making the application and reconsider the application for registration under
section 39J as soon as possible after the commencement of this
section.
(3) If, before the commencement of this section:
(a) an application was lodged with the Australian Taxation Office before
the end of the period for making the application; and
(b) the application was received by the Board after the end of the period
for making the application; and
(c) the Board decided to register the company under section 39J;
the validity of the registration is not affected, and is taken never to
have been affected, by the fact that the application was not made within the
period for making the application.
(4) If, before the commencement of this section:
(a) an application was lodged with the Australian Taxation Office before
the end of the period for making the application; and
(b) the application was received by the Board after the end of the period
for making the application; and
(c) the Board did not register, or refuse to register, the company under
section 39J;
the Board must take the application to have been made within the period for
making the application and consider the application for registration under
section 39J as soon as possible after the commencement of this
section.
(5) In this section:
application includes a copy of an application.
Board means the Industry Research and Development
Board.
The amendments made by items 1, 2, 3, 4 and 5 of Schedule 1 do not affect
the validity of, or the period of, an appointment of a person as a member of the
Industry Research and Development Board, or as a member of a committee of that
Board, that was in force immediately before the commencement of this
section.
1 Section 10
Omit “5”, substitute “3”.
2 At the end of section 10
Add:
(2) A person must not be appointed as an appointed member if the person
has, at any time before that appointment, served 2 consecutive terms as a member
of the Board (whether or not either or both of those terms commenced or ended
before the commencement of this subsection).
(3) Before the Governor-General appoints a person as an appointed member
for a particular period, the Minister must be satisfied that appointing the
member for that period would be appropriate, having regard to the desirability
of ensuring, if practicable, that the periods for which the appointed members
are appointed do not all end at the same time.
3 Subsection 22(2)
After “appointed by the Minister”, insert “in accordance
with subsections (2A), (2B) and (2C)”.
4 Subsection 22(2)
After “office”, insert “, for the periods for which they
are appointed,”.
5 After subsection 22(2)
Insert:
(2A) A member of a committee is to be appointed for a particular period,
not exceeding 3 years, determined by the Minister.
(2B) A person must not be appointed as a member of a committee if the
person has, at any time before that appointment, served 2 consecutive terms as a
member of the committee (whether or not either or both of those terms commenced
or ended before the commencement of this subsection).
(2C) Before the Minister appoints a person as a member of a committee for
a particular period, the Minister must be satisfied that appointing the member
for that period would be appropriate, having regard to the desirability of
ensuring, if practicable, that the periods for which the committee members are
appointed do not all end at the same time.
6 At the end of section 25
Add:
(2) The Board and committees may also be assisted by consultants, or other
persons, engaged by the Commonwealth.
Note: The heading to section 25 is replaced by the heading
“Staff, consultants etc.”.
7 Section 39B
Omit “Companies Act 1981”, substitute
“Corporations Law”.
8 After subsection 39ED(6)
Insert:
(6A) A provisional certificate granted pursuant to an application made
after the commencement of this subsection has effect, and is taken always to
have had effect, as if it had been given to the applicant on the day on which
the application was made.
9 After section 39EE
Insert:
(1) The Board may, on its own initiative, amend or revoke a provisional
certificate given to an eligible company under section 39ED as provided in this
section.
Note: For the Board’s power to amend the provisional
certificate on application by the company, see subsections 39EE(2) and
(3).
(2) If the Board is satisfied that the expenditure (the claimed
overseas expenditure):
(a) on the overseas research and development activities to which the
certificate relates; and
(b) in respect of which the company has claimed a deduction under section
73B of the Income Tax Assessment Act 1936;
exceeds 10% of the total expenditure (the total project
expenditure) incurred by the company on the project of research and
development activities, the Board may, in writing, determine that the
provisional certificate is amended, as specified in the determination, so that
it does not cover so much of the overseas research and development activities as
resulted in the claimed overseas expenditure exceeding 10% of the total project
expenditure.
(3) If the Board makes a determination under subsection (2), the
provisional certificate has effect, and is taken always to have had effect, as
if it had originally been given as amended in accordance with the
determination.
(4) The Board may, in writing, revoke the certificate if the Board is
satisfied that the total expenditure incurred by the company on the project of
research and development activities consisted solely of expenditure on overseas
research and development activities.
(5) If the Board revokes the provisional certificate under subsection (4),
the provisional certificate is taken never to have been given.
(6) If the Board decides to make a determination under subsection (2)
amending the provisional certificate, or to revoke the provisional certificate
under subsection (4), the Board must give notice in writing to the company
setting out the decision and the reasons for the decision.
10 After section 39F
Insert:
(1) The Board may give a body of persons, whether corporate or
unincorporate, that is registered under section 39F as an Australian research
agency a notice:
(a) asking the body if it wishes to continue to be registered under that
section; and
(b) attaching a form to be completed by the body and returned to the Board
if the body does wish to continue to be registered.
(2) The Board must not give the body a notice under subsection (1) within
12 months of when it last gave the body such a notice.
(3) If the body does not complete and return the form within 30 days, or
such longer period as the Board allows, of the body being given the notice, the
registration of the body is cancelled, by force of this subsection, at the end
of that period.
11 At the end of subsection
39G(6)
Add:
Note: The registration of a research agency may also be
cancelled by force of subsection 39FA(3).
12 Subsection 39J(1A)
Omit “and 39JE”, substitute “, 39JE and
39JF”.
13 Paragraph 39J(1A)(c)
After “or a later year of income”, insert “that ends
before the commencement of paragraph (d)”.
14 At the end of subsection
39J(1A)
Add:
; or (d) if the year of income ends on or after the commencement of this
paragraph—unless the application for registration is made after the end of
the year of income but within 10 months after the end of that year.
15 After subsection 39J(5)
Insert:
(5A) The Board may alter the registration of a company in respect of a
year of income if:
(a) the alteration will correct a mistake in the registration;
and
(b) the mistake occurred because the application for registration
contained an error in the information required to be specified, or included, in
the application under paragraph 39JD(1)(a), (d) or (e); and
(c) the Board determines that it is appropriate for the alteration to be
made.
(5B) If the Board alters the registration of a company in respect of a
year of income under subsection (5A), the registration has effect, and is taken
always to have had effect, as if it had originally been made as
altered.
16 Paragraph 39JD(1)(b)
Repeal the paragraph, substitute:
(b) contain the information required by the application form in respect of
the research and development activities in relation to which registration is
sought; and
(ba) contain a declaration, by an officer of the company who is authorised
by the company to make the declaration, stating that the company has, while
carrying on the activities, maintained records that substantiate the
company’s carrying on of the activities; and
17 At the end of subsection
39JD(1)
Add:
Note: Requirements in the application form or the
regulations for the provision of information in respect of an application may be
different for different situations.
18 At the end of section
39JD
Add:
(4) In this section:
application form means the appropriate form approved by the
Board under subsection (2).
19 Before subsection
39JE(1)
Insert:
(1A) This section applies to a year of income of an eligible company that
is:
(a) the 1995-96 year of income of the company; or
(b) a later year of income of the company that ends before the
commencement of paragraph 39J(1A)(d).
Note: The heading to section 39JE is altered by adding at
the end “if application otherwise subject to a 6 month
limit”.
20 Subsection 39JE(1)
Omit “the 1995-96 year of income, or a later year of income”,
substitute “a year of income of the company to which this section
applies”.
21 After section 39JE
Insert:
(1) The Board may register an eligible company under section 39J in
respect of a year of income, despite the fact that the application for
registration was not made within the period for making the application, if the
Board considers that the application was made after the end of the period due to
exceptional circumstances.
(2) If the Board proposes to refuse to register the company on the ground
that the application was not made within the period for making the application,
the Board must give written notice to the applicant advising the applicant
of:
(a) the proposed refusal; and
(b) the right to lodge a statement and supporting evidence under
subsection (3).
(3) Within 30 days of the Board giving notice to the applicant, the
applicant may lodge with the Board a written statement that:
(a) asks the Board to register the company despite the fact that the
application was not made within the period for making the application;
and
(b) sets out reasons why the application was not made within the period
for making the application.
If the applicant lodges a statement in accordance with this subsection, the
applicant may also lodge evidence to support the statement within that 30 day
period.
(4) The Board must wait until the end of that 30 day period before
deciding whether to register the company under section 39J, as mentioned in
subsection (1), despite the lateness of the application. When making that
decision, the Board must take into account any statement and evidence lodged by
the applicant under subsection (3).
22 At the end of paragraph
39M(1)(b)
Add:
or (iii) it would have been reasonable to expect there to have been some
exploitation, after the commencement of this subparagraph, of the results of
those research and development activities but no such exploitation has
occurred;
23 Subsection 39S(1)
After “subsection 39EE(3),”, insert “subsection 39EF(2)
or (4),”.
24 Subsection 39S(1)
Before “39HH”, insert “39FA,”.
25 At the end of subsection
39S(1)
Add:
Note: A decision of the Board whether to register a company
as mentioned in subsection 39JF(1) is a decision of the Board under section 39J
to which this section applies.
26 At the end of paragraph
47(2)(a)
Add “or”.
27 After paragraph 47(2)(a)
Insert:
(aa) a person employed as a member of staff of the Minister under section
13 or 20 of the Members of Parliament (Staff) Act 1984; or
28 At the end of section 47
Add:
(3) In this section:
officer of the Department includes a consultant or other
person providing services to the Department.