INNOVATION AUSTRALIA - Department of Industry, · PDF file96 ANNUAL REPORT 2008–09...

INNOVATION AUSTRALIA ANNUALREPORT 2009 – 10

SECTION 3CORPORATE GOVERNANCE

96 ANNUAL REPORT 2008–09

INNOVATION AUSTRALIAInnovation Australia (the Board), is an independent statutory body established to assist

with the administration of the Australian Government’s industry innovation and venture

capital programs. Through these programs, Innovation Australia seeks to increase and

support the level of investment and innovation activity in Australian industry and improve

the commercial success.

Established on 27 September 2007, Innovation Australia is an amalgamation of the former

Industry Research and Development (IR&D) Board originally established in 1986 and the

Venture Capital Registration (VCR) Board (formerly known as the Pooled Development

Funds Registration Board). On its establishment, Innovation Australia assumed the roles,

responsibilities and powers of the two former Boards and, as such, it carries responsibility

for past decisions taken by the former Boards.

Innovation Australia reports to Senator the Hon Kim Carr, Minister for Innovation, Industry,

Science and Research.

LEGISLATIONInnovation Australia operates under the auspices of the Industry Research and Development

Act 1986 (IR&D Act). The aim of the IR&D Act is to promote the development, and improve

the efficiency and international competitiveness, of Australian industry by encouraging

research and development, innovation and venture capital activities.

The IR&D Act was amended in September 2007 by the Tax Laws Amendment (2007

Measures No. 5) Act 2007, which established Innovation Australia and thereby consolidated

the administration and oversight of the Government’s innovation and venture capital

programs as prescribed in the IR&D Act, the Pooled Development Funds Act 1992 (PDF Act)

and the Venture Capital Act 2002 (VC Act).

The Board also advises Government on income tax law (Income Tax Assessment Act 1936

and the Income Tax Assessment Act 1997) as they operate in relation to those Acts.

FINANCIAL MANAGEMENT RESPONSIBILITIES OF INNOVATION AUSTRALIA UNDER THE IR&D ACT

Amendments were made to the IR&D Act with effect from 11 September 2004 to remove

ambiguity between the Financial Management and Accountability Act 1997 and the IR&D

Act. The amendments removed prospectively the powers of the Board to commit, approve

or recommend expenditure of Australian Government funds and further safeguarded

members from any personal liability stemming from Board membership.

The Board therefore retains financial responsibilities for all grant, loan and licence

agreements which were in place at 10 September 2004. This approach, while avoiding the

need to amend existing program documentation (including agreements), has nonetheless

97INNOVATION AUSTRALIA

complicated the Board’s working environment requiring two operational models until all

existing agreements are concluded. In the case of the now closed R&D Start program,

contractual obligations may run until 2014–15.

FUNCTIONSInnovation Australia has been involved in many key program outcomes which are

highlighted in Section 1.

The Board’s functions are set out in the IR&D Act and associated Ministerial Directions. The

Board’s responsibilities include:

■ administering aspects of the R&D Tax Concession

■ providing expert advice, technical assessments, merit rankings and monitoring

of applications under the Green Car Innovation Fund (GCIF), Commercialisation

Australia program, Climate Ready program, Re-tooling for Climate Change program

and Innovation Investment Follow-on Fund (IIFF)

■ registering, monitoring and revoking of registration of Venture Capital Limited

Partnerships (VCLP), Early Stage Venture Capital Limited Partnerships (ESVCLP),

Pooled Development Funds (PDF), and making determinations in relation to

these entities

■ administering the Commercialising Emerging Technologies (COMET) program,

the Innovation Investment Fund (IIF), the Renewable Energy Equity Fund (REEF),

the Pre-Seed Fund (PSF), the Pharmaceuticals Partnerships Program (P3), the

Commercial Ready and Commercial Ready Plus programs, the Renewable Energy

Development Initiative (REDI), the Industry Cooperative Innovation Program (ICIP),

the Automotive Competitiveness and Investment Scheme (ACIS) Stage 2 Motor

Vehicle Producers (MVP) R&D scheme and the R&D Start program

■ advising the Minister about the operation of the IR&D Act, the PDF Act and the

VC Act and the Commonwealth's income tax laws as they operate in relation to

those Acts.

Additional Functions Ministerial Directions last issued by the Minister to Innovation Australia

on 4 November 2009 directs Innovation Australia to carry out the following activities:

■ study industry research and development, innovation and venture capital, and

provide advice to the Minister

■ promote and market industry innovation activities, programs, and benefits by

acting as Ambassadors for industry innovation

■ collect and analyse data on industry research and development, innovation and

venture capital programs for which the Board has an administrative responsibility,


including the extent to which programs are meeting their objectives, and advise the

Minister of outcomes

■ monitor the administration, delivery and performance of industry research and

development, innovation and venture capital programs for which the Board has an

administrative responsibility, and advise the Minister of outcomes

■ maintain the effectiveness and integrity of the industry research and development,

innovation and venture capital programs for which it has responsibility, including

undertaking legal action if required

■ cooperate with any reasonable independent evaluation of the industry research

and development, innovation and venture capital programs for which the Board has

administrative responsibility and

■ consider options to support the commercialisation of Australian ideas and

technology, address systematic and market failures along the pathway to

commercialisation, and provide advice to the Minister.

Innovation Australia and its committees engage in activities which support its

decision-making and advisory functions. The Board also contributes its views and practical

advice in relation to the programs for which it is responsible to the Minister through regular

correspondence and meetings.

POWERSInnovation Australia derives various powers from the provisions of the IR&D Act. Section 8

of the Act gives the Board power to take all necessary and convenient action to ensure the

proper performance of its functions.

MEMBERSHIPMembers of Innovation Australia are appointed in writing by the Governor-General, through

Executive Council. The IR&D Act provides for a maximum of 15 Board members, including

the Chair and an ex-officio member. At a meeting of the Board, four members constitute a

quorum.

Innovation Australia Committee members are appointed by the Minister for Innovation,

Industry, Science and Research. Committees operate under delegation from the Board and

comprise of a Chair and up to six members. At a Committee meeting, three members are

required to form a quorum.

Board and Committee members are predominantly drawn from industry and academia and

their qualifications and experience cover a large number of commercial and technical areas

of expertise.


Innovation Australia and its Committee members, other than the ex-officio members, are

remunerated in accordance with determinations set by the Remuneration Tribunal.

Appendix X provides details on Innovation Australia and Committee members for 2009–10.

ORGANISATION AND MANAGEMENTInnovation Australia uses a committee structure to help administer and provide expert

advice on innovation and venture capital programs.

On 30 June 2010, seven Committees existed under Innovation Australia; each Committee

has the following specific functions:

■ Tax Concession Committee — determines the eligibility of industry R&D across

all sectors including providing advice to the Commissioner for Taxation about

the eligibility of R&D activities for which the concession is claimed. The R&D

Tax Concession program is jointly administered by the Board and the Australian

Taxation Office (ATO).

■ Venture Capital Committee — assists Innovation Australia to administer the

suite of venture capital investment programs by assessing applications for fund

manager licences and for fund registrations for the following programs; Innovation

Investment Fund (IIF); Renewable Energy Equity Fund (REEF); Pre-Seed Fund (PSF);

Pooled Development Funds (PDF); Venture Capital Limited Partnerships (VCLP);

Early Stage Venture Capital Limited Partnerships (ESVCLP). The Committee also

monitors activities under the Innovation Investment Follow-on Fund (IIFF).

■ Green Car Innovation Committee — provides independent expert advice and merit

ranks eligible applications received under the Green Car Innovation Fund. The

Committee is also responsible for the monitoring of ongoing activity under the

Automotive Competitiveness and Investment Scheme (ACIS) Stage 2 Motor Vehicle

Producers Research & Development Scheme.

■ Commercialisation Australia Board — provides expert advice, technical

assessments, merit ranking and monitoring of projects under the Commercialisation

Australia program.

■ Climate Ready Committee — provides independent expert advice and merit ranks

eligible applications received under both the Climate Ready and the Re-Tooling

for Climate Change programs. The Committee is also responsible for monitoring

ongoing project activity under the former Renewable Energy Development Initiative

(REDI) program.

■ Innovation Grants Committee — monitors and assesses requests for variations and

compliance of activities under Commercial Ready, Commercial Ready Plus and the

R&D Start programs (all closed to new applications).


■ Commercialising Emerging Technologies (COMET) Committee — advises

Innovation Australia on matters relating to the administration of the COMET

program.

During 2009–10 there were an additional three Committees operational:

■ Pharmaceuticals Committee — monitored activities under the Pharmaceuticals

Partnerships Program (P3) including the provision of advice on operational issues

such as variation requests made by successful applicants and conducts annual

company reviews. The Committee was revoked on 27 September 2009.

■ Innovation Investment Follow-on Fund Committee — operational 28 April 2009 to

31 December 2009 provided independent expert advice and merit ranks eligible

applications received under the Innovation Investment Follow-on Fund.

■ Commercialisation Australia Interim Advisory Board — operational from

9 October 2009 to 15 March 2010 to assist with the development and

implementation of the Commercialisation Australia program.

PARTNERS IN DELIVERYAusIndustry, the principal program delivery division of the Department of Innovation,

Industry, Science and Research (DIISR), provides primary support to Innovation Australia.

This support is provided by AusIndustry staff in the national, state, territory and regional

offices and includes AusIndustry Secretariat as well as project report services, technical

assessment and promotional services.

AusIndustry officers also advise customers about other government industry

support programs.

Responsibility for policy aspects of the Innovation Australia’s programs resides with DIISR’s

Innovation and Manufacturing Divisions.

The R&D Tax Concession is administered jointly by Innovation Australia, through

AusIndustry, and the Australian Taxation Office.

The REEF program is administered by Innovation Australia on behalf of the Australian

Centre for Renewable Energy (ACRE). In 2009 the ACRE was established within the

Department of Resources, Energy and Tourism. The ACRE has policy responsibility for the

program and provides specialist advice and support to the Board. AusIndustry manages

the delivery of the REEF program with the private sector fund manager, CVC REEF

Managers Limited.


INNOVATION AUSTRALIA MEMBERS AS AT 30 JUNE 2010

Mr David Miles AM

Company Director

Mr Carlos Broens

Managing Director

Broens Industries Pty Ltd

Ms Margaret Calvert

Partner

Norcal

Dr Laurie Hammond

Director

iQ Funds

Mr Roger Harley

Director

Fawkner Capital Management Pty Ltd

Mr Leslie Hosking

Company Director

Ms Elizabeth Lewis-Gray

Managing Director

Gekko Systems Pty Ltd

Mr Gerard Noonan

Chair

Media Super

Dr Peter Riddles

Director

ViciBio Pty Ltd

Dr Beverley Ronalds

Group Executive Energy

CSIRO Energy

Dr Jonathan Spring

Managing Director

CEOS Pty Ltd

Mr Peter Thomas

Director

TFG International Pty Ltd

Mr Kenneth Windle

Chairman and Chief Executive Officer

Advent Pharmaceuticals Pty Ltd

Mr Bill Peel PSM

Executive General Manager

AusIndustry


STRUCTURE OF INNOVATION AUSTRALIA — AS AT 30 JUNE 2010

The Minister for Innovation, Industry, Science & Research

Senator the Hon Kim Carr

Innovation Australia

Chair: Mr David Miles AM

R&D Tax Concession

Programs

Green Car Innovation Fund (GCIF)(ACIS Stage 2) Motor Vehicle Producer

R&D Scheme

Climate ReadyRe-tooling for Climate Change

Renewable Energy Development Initiative

Commercialisation Australia

Innovation Investment Fund (IIF) Innovation Investment Follow-on Fund (IIFF)

Pre-Seed Fund (PSF)Renewable Energy Equity Fund (REEF)

Pooled Development Funds (PDF)Venture Capital Limited Partnerships

(VCLP)Early Stage Venture Capital Limited

Partnerships (ESVCLP)

Commercialising Emerging Technologies (COMET)

Commercial ReadyCommercial Ready Plus

R&D Start

Tax Concession CommitteeChair: Mr Peter Thomas

Committees

Green Car Innovation CommitteeChair: Mr Leslie Hosking

Climate Ready Committee Chair: Mr Carlos Broens

Commercialisation Australia BoardChair: Dr Laurie Hammond

Venture Capital CommitteeChair: Mr Gerard Noonan

COMET CommitteeChair: Mr Kenneth Windle

Innovation Grants Committee

Chair: Dr Peter Riddles


MEETINGS OF INNOVATION AUSTRALIAInnovation Australia held eight meetings during 2009–10:

1 July 2009 Canberra

12 August 2009 Canberra

23 September 2009 Canberra

28 October 2009 Canberra

9 December 2009 Canberra

24 February 2010 Canberra

7 April 2010 Canberra

19 May 2010 Canberra

Innovation Australia also considered a number of matters out of session.

MARKETING AND PROMOTIONAs well as administering innovation programs, Innovation Australia undertakes other

activities to promote industry innovation in all sectors across Australia.

A range of marketing activities promoting Innovation Australia related programs for

2009–10 included:

■ 110,220 product-related items distributed

■ 2,947,227 general branding items distributed

■ approximately 1.01 million website visits

■ 11,365 hotline inquiries

■ 30 Ministerial media releases distributed, 68 editorials were prepared and

circulated to 165 business publications.

Other key marketing activities for 2009–10 included:

■ cementing strategic alliances with customers and stakeholders to promote

programs such as the Green Car Innovation Fund

■ targeting potential customers to raise awareness of the benefits of all Innovation

Australia programs

■ maximising marketing opportunities for programs such as Early Stage Venture

Capital Limited Partnerships, Green Car Innovation Fund, Innovation Investment

Fund and Re-tooling for Climate Change

■ the Commercialisation Australia initiative officially opened to applications in

January 2010 and several information sessions were held around the country.

A list of media announcements is listed at Appendix Z.


GREEN CAR INNOVATION COMMITTEE

ESTABLISHMENTOn 30 April 2009, the Green Car Innovation Committee was established to assist Innovation

Australia in the administration of the Green Car Innovation Fund (GCIF). The Green Car

Innovation Committee also has oversight of projects under the ACIS Stage 2 Motor Vehicle

Producer Research and Development Scheme (MVP R&D Scheme). The MVP R&D Scheme

ends on 31 December 2010.

RESPONSIBILITIESThe role of the Green Car Innovation Committee is to assess and merit rank applications

received under the GCIF program and provide independent technical advice and

recommendations to the Program Delegate. The Green Car Innovation Committee also

provides advice on grant applications over $5 million to the Board of Innovation Australia

for consideration; provides general advice on the administration of the GCIF program and

may consider requests for variations on GCIF Agreements. In addition, the Committee

assists in providing technical assessment of project variations under the MVP R&D Scheme,

as required.

MEETINGSDuring 2009-10 the GCIF Committee held five meetings and three teleconferences:

4 August Teleconference

21 August Teleconference

4 November Melbourne

3 December Melbourne

16 December Teleconference

10 February Melbourne

25 March Melbourne

12 May Melbourne

A number of out of session matters were also considered by the Committee.

WORKLOADApplications considered

(no.)Applications approved

(no.)Applications approved

($m)

Green Car Innovation Fund applications a, b 11 3 3.86

MVP R&D Scheme applications 0 0 0.00

a Four Green Car Innovation Fund applications were referred to Innovation Australia and two were subsequently supported

b The applications approved figures do not include applications approved where the funding offer was not taken up.


The Committee also met with industry stakeholders, commented on the impact of the

global financial crisis on the take-up of the program and future innovation directions for

the passenger motor vehicle industry.

The Green Car Innovation Committee also considered a number of matters as required

under grant agreements for both the GCIF and MVP R&D Scheme programs, including

variations as listed in the table below.

Variations considered (no.) Variations approved (no.)

MVP R&D Scheme program 1 1

COMMERCIALISING EMERGING TECHNOLOGIES COMMITTEE

ESTABLISHMENTOn 26 May 2009 the Commercialising Emerging Technologies (COMET) Committee was

established to assist Innovation Australia with the ongoing oversight of the Commercialising

Emerging Technologies (COMET) program. It replaced the former COMET/ICIP Committee.

RESPONSIBILITIESThe Committee’s role in relation to the COMET program is to:

■ oversee and endorse the program guidelines and other key governance documents

prior to their consideration by the Board

■ report to the Board on the performance of the program

■ advise the Board (and through it the Department of Innovation, Industry, Science

and Research) on issues and options related to the longer-term directions of the

program for possible input to the policy development process

■ review the progress of the COMET Operational Plan on a quarterly basis and submit

reports to the Board for consideration.

The COMET Committee has no decision making powers and is not involved in the

day-to-day management of the COMET program. It nonetheless ensures that any significant

matters coming to its attention are referred to AusIndustry and reported to the Board as

appropriate.


MEETINGSDuring 2009–10 the COMET Committee held three meetings:


5 November 2009 Canberra

18 May 2010 Canberra

The COMET program closed to new applications from 1 January 2010 and the Committee

was revoked on 30 June 2010.

WORKLOADThroughout the year the Committee was involved in the following operational policy

activities:

■ providing input to the Commonwealth Commercialisation Institute Government

Committee

■ reviewing and finalising the annual COMET Strategic Plan and Operational Plan

■ reviewing and commenting on amendments to the Key Performance Indicators

■ providing guidance on the implications of the closure of COMET

■ monitoring workflow and application rates in light of the challenges presented by

the broader economic environment

■ monitoring commercialisation outcomes achieved by the program.

CLIMATE READY COMMITTEE

ESTABLISHEMENTOn 1 August 2008 the Climate Ready Committee was established to advise and assist

Innovation Australia with its administration of the Climate Ready and Re-tooling for Climate

Change programs.

RESPONSIBILITIESThe role of the Climate Ready Committee is to provide independent expert advice and

merit rank applications received under the Climate Ready and Re-tooling for Climate

Change programs (some smaller Re-tooling for Climate Change grants are considered by a

Departmental Panel). The Climate Ready Committee also monitors ongoing activities under

the Climate Ready and Renewable Energy Development Initiative (REDI) programs.


MEETINGSDuring 2009–10 the Climate Ready Committee held four meetings and three teleconferences:

6 August 2009 Melbourne

26–27 August 2009 Canberra

29 October 2009 Melbourne

4 February 2010 Melbourne

4 March 2010 Teleconference

8 April 2010 Teleconference

6 May 2010 Teleconference

The Climate Ready Committee also considered a number of matters out of session.

WORKLOADDetails on applications considered by the Climate Ready Committee are provided in the

table below.

Applications considered (no.)

Applications approved (no.)

Applications approved ($m)

Climate Ready applicationsa, b 123 31 20.39

Re-tooling for Climate Change

applicationsc115 52 11.41

a Three Climate Ready applications were referred to Innovation Australia and two were subsequently supported.

b The approved applications number does not include applications approved where the funding offer was not taken up.

c Re-tooling for Climate Change includes applications for grants of up to $100,000, which were referred to a Departmental

Panel. The applications approved number does not include applications approved where the funding offer was not

taken up.

The Committee also considered a number of matters as required under grant agreements

for both the Climate Ready and REDI programs, including variations as listed in the table

below.

Variations considered (no.) Variations approved (no.)

Climate Ready program 3 3

INNOVATION GRANTS COMMITTEE

ESTABLISHEMENTOn 1 August 2008 the Innovation Grants Committee (IGC) was established to advise and

assist Innovation Australia with variation requests in relation to the Commercial Ready and

R&D Start programs. This followed the revocation of the three Sectoral Committees — the

Biological Committee, the Engineering and Manufacturing Committee and the Information

Technology and Telecommunications Committee.


RESPONSIBILITIESThe IGC is responsible for monitoring and assessing requests for variations and

other matters as required under grant agreements, such as dealing with Intellectual

Property and change of company control matters under legacy programs, including the

Commercial Ready and R&D Start programs.

MEETINGSDuring 2009–10 the IGC held six teleconferences:

9 September 2009 Teleconference

14 October 2009 Teleconference

10 February 2010 Teleconference

24 March 2010 Teleconference

5 May 2010 Teleconference

23 June 2010 Teleconference

The IGC also considered a number of matters out of session.

WORKLOADDuring the year the IGC considered a number of matters as required under grant

agreements.

TAX CONCESSION COMMITTEE

ESTABLISHMENTOn 27 September 2007 the Tax Concession Committee (TCC) was established to advise

and assist Innovation Australia with its administration of the R&D Tax Concession program.

RESPONSIBILITIESThe TCC assists with the administration of the R&D Tax Concession under delegation from

the Board, discharging its statutory responsibilities under Part IIIA of the Industry Research

and Development Act 1986 (the IR&D Act).

This includes the registration of companies wishing to claim the R&D Tax Concession and

assessment of the eligibility of R&D across all industry sectors, in particular providing

advice to the Commissioner for Taxation on the eligibility of activities claimed for the R&D

Tax Concession.


MEETINGS During 2009–10 the TCC held eight meetings and three teleconference:

8 July 2009 Brisbane

30 July 2009 Out of Session, Sydney


7 October 2009 Teleconference


3 December 2009 Sydney

27 January 2010 Teleconference

5 February 2010 Teleconference


15 April 2010 Melbourne

3 June 2010 Sydney

WORKLOADDuring the financial year, significant activities of the TCC included:

■ statutory determinations on the eligibility of R&D activities and compliance issues

relating to the R&D Tax Concession

■ assessment of R&D eligibility (section 39L of the IR&D Act), provisional certificates

for overseas R&D activities (section 39ED), advance registration (section 39HH) and

requests for internal review of Board decisions (section 39S)

■ provision of advice on standard operating procedures for administration of the R&D

Tax Concession

■ provision of advice on R&D policy, drawing on its experience in administering the

R&D Tax Concession

■ contribution to the Board’s submission on the draft legislation for the proposed new

R&D Tax Incentive program. The TCC Chair attended a Senate Committee hearing

on the draft legislation in June 2010.

The TCC Chair presided over meetings of the R&D Tax Concession Administration

Consultative Group in Sydney and Melbourne in March 2010. The principal role of the

Administration Consultative Group is to provide feedback and comment to Innovation

Australia, the Department of Innovation, Industry, Science and Research, and the Australian

Taxation Office on operational and administration issues, such as application forms,

guidelines and delivery mechanisms, from the perspective of customers and practitioners

of the R&D Tax Concession, in order to improve the delivery of the program.


VENTURE CAPITAL COMMITTEE

ESTABLISHMENTOn 27 September 2007 the Venture Capital Committee (VCC) was established to assist

Innovation Australia administer the programs previously managed by the Fund Management

Committee of the former IR&D Board, and the Venture Capital Registration Board (formerly

the Pooled Development Funds Registration Board). The VCC assists Innovation Australia

by administering the following venture capital tax concession and co-investment programs:

■ Pooled Development Funds (PDF)

■ Venture Capital Limited Partnerships (VCLP)

■ Early Stage Venture Capital Limited Partnerships (ESVCLP)

■ Innovation Investment Fund (IIF)

■ Renewable Energy Equity Fund (REEF)

■ Pre-Seed Fund (PSF)

■ Innovation Investment Follow-on Fund (IIFF).

RESPONSIBILITIESInnovation Australia has delegated to the VCC the functions and powers set out in the

Pooled Development Funds Act 1992 (PDF Act), the Venture Capital Act 2002 (VC Act), and

the Income Tax Assessment Act 1997 (ITAA). They include:

■ registering, monitoring, and revoking the registration of:

— Pooled Development Funds5 (PDF Act)

— Venture Capital Entities (PDF Act)

— Early Stage Venture Capital Limited Partnerships (VC Act)

— Venture Capital Limited Partnerships (VC Act)

— Australian Venture Capital Funds of Funds (VC Act)

— Eligible Venture Capital Investors (VC Act)

■ making decisions in relation to the above entities (PDF Act, VC Act, ITAA)

■ provision of advice to the Minister for Innovation, Industry, Science and Research

on the operation of the PDF Program and related tax provisions (PDF Act)

■ publicising the advantages that flow from a company being a PDF and the

requirements for becoming and remaining a PDF (PDF Act).

5 Registrations under the PDF Act closed on 21 June 2007.


Innovation Australia has also delegated to the VCC a range of responsibilities related to the

management of the IIF, REEF, PSF and the IIFF programs. Innovation Australia’s functions

and powers for these programs are set out in Ministerial Directions and Guidelines.

Members appointed to the VCC are also invited to take up director positions on the

wholly-owned Australian Government companies established to invest the Government’s

capital into the venture capital funds licensed under IIF Rounds 1 and 2 and the PSF and

REEF programs.

MEETINGSDuring 2009–10 the VCC held six meetings and one teleconference and considered a

number of matters out of session.

20 August 2009 Brisbane

9 October 2009 Melbourne

27 November 2009 Melbourne

22 December 2009 Teleconference


16 April 2010 Melbourne

4 June 2010 Sydney

OTHER ACTIVITIESThe VCC continued with its commitment to meet fund managers on a yearly basis, meeting

with IIF and PSF fund managers throughout the year.

On 7 April 2010, Innovation Australia passed a resolution to delegate to the Venture Capital

Committee the ongoing administration of the IIFF program.

WORKLOADThe VCC dealt with the following major issues during 2009–10:

■ finalisation of contracts for two fund managers under IIF Round 3 Tranche 2

■ launch and close of the application process for IIF Round 3 Tranche 3

■ continuous monitoring and engagement with a number of IIF and REEF fund

managers experiencing structural issues.

During the year, the VCC considered eight determination requests from five IIF fund

managers and three PSF fund managers. The types of determinations and number for each

are detailed below:


Type of Determination No. of Determinations

Exceeding the maximum investment in an investee company 6

Other 2

TOTAL 8

DECISIONS UNDER THE PDF ACTThe Board made 38 decisions under the PDF Act.

Type of DecisionNo. of

Decisions

Section 20 — PDF acquiring shares 1

Section 25 — PDF not to commit more than 30 per cent of its committed capital to investee company 2

Section 29 — Board approval for a PDF to enter into a transaction 1

Section 31 — Limit on shareholding in a PDF 1

Section 33 — Direction in relation to approved investment plan 21

Section 45 — Automatic revocation of registration for not being a corporation 2

Section 46 — Revocation or registration on application by PDF 2

Section 47 — Revocation of registration at Board’s discretion 6

Section 55 — Internal review of a Board decision 2

TOTAL 38

DECISIONS UNDER THE VC ACTThe Board made 17 decisions under the Venture Capital Act.

Type of DecisionNo. of

Decisions

Section 11–15 — Period within which application must be decided 2

Section 13–1(1) — Registration of a partnership as VCLP 1

Section 13–1(1A) — Registration of a partnership as an ESVCLP 2

Section 13–5(1) — Conditional registration of a partnership as a VCLP 5

Section 13–5(1A) — Conditional registration of a partnership as an ESVCLP 3

Section 13–10 — Lapsing of registration as a VCLP 3

Section 29–10 — Internal review of decision 1

TOTAL 17


COMMERCIALISATION AUSTRALIA INTERIM ADVISORY BOARD

ESTABLISHEMENTA Commercialisation Australia Interim Advisory Board (CAIAB) was established on

9 October 2009 to assist with the development and implementation of the

Commercialisation Australia (CA) program. Following the establishment of the CA program

the CAIAB was revoked on 15 March 2010.

RESPONSIBILITIESThe CAIAB provided guidance and advice on the early implementation of the CA program.

MEETINGSDuring 2009–10 the CAIAB held three meetings:


6 November 2009 Canberra

8 December 2009 Canberra

WORKLOADThe CAIAB provided advice and recommendations to the Department of Innovation,

Industry, Science and Research on:

■ Program Guidelines and Key Performance Indicators for activities to be delivered

by Commercialisation Australia. This included decisions on eligibility criteria, merit

criteria and reporting

■ the process for repayable Early Stage Commercialisation grants, including terms

and conditions of funding

■ the processes for the recruitment and engagement of Commercialisation Australia

Case Managers, including transition arrangements for COMET Business Advisers

■ application processes for Commercialisation Australia program components

■ linkages with State and Territory Government programs.


COMMERCIALISATION AUSTRALIA BOARD

ESTABLISHMENTOn 4 February 2010 the Commercialisation Australia (CA) Board was established. The

CA Board is responsible for undertaking assessments of applications received under

the Commercialisation Australia program. It is also responsible for monitoring the

performance of the program and providing advice on possible future initiatives to support

commercialisation activity, based on evidence gathered through the operation of the

Commercialisation Australia program. The CA Board performs these functions under

delegation from Innovation Australia.

RESPONSIBILITIESThe role of the CA Board is to provide independent expert advice and merit rank

applications received under the Commercialisation Australia program.

MEETINGSDuring 2009–10 the CA Board held five meetings:

4 March 2010 Canberra

30 March 2010 Canberra

4 May 2010 Canberra

3 June 2010 Canberra

29 June 2010 Canberra

A number of matters out of session were also considered by the CA Board.

WORKLOADThe table below details applications considered by the CA Board.




Commercialisation Australia applicationsa 77 32 11.88

a One Commercialisation Australia application was referred to Innovation Australia and was subsequently supported.


INNOVATION INVESTMENT FOLLOW-ON FUND COMMITTEE

ESTABLISHMENTOn 28 April 2009 the Innovation Investment Follow-on Fund (IIFF) Committee was

established to assist Innovation Australia in its role in relation to recommending projects

for funding under the IIFF program.

The IIFF program was announced on 18 March 2009, as a temporary, targeted fund in

response to the impact of the global financial crisis on the availability of venture capital

funding to early stage companies commercialising research. The program was set up to

provide follow-on funding to selected early stage companies with high potential to enable

them to continue to develop and commercialise research.

RESPONSIBILITIESThe role of the fixed-term IIFF Committee was to act as an independent expert panel

to assess and merit rank eligible applications under the IIFF program and provide

recommendations for support to the Program Delegate.

After the IIFF Committee was revoked on 31 December 2009, the ongoing responsibility for

the administration of the IIFF program now resides with the Venture Capital Committee of

Innovation Australia.

MEETINGSDuring 2009–10 the IIFF Committee held one formal meeting on 7 July 2009 in Canberra.

WORKLOADThe table below details the applications considered by the IIFF Committee.




IIFF program 20 11 64.41

Note: The number of applications considered and approved relates to the number of fund managers who applied and were

approved.


PHARMACEUTICALS COMMITTEE

ESTABLISHMENTOn 27 September 2007 the Pharmaceuticals Committee was established to assist

Innovation Australia as an expert advisory panel and to provide recommendations to

the Minister’s delegate on all matters relating to the functions of the Board under the

Pharmaceuticals Partnerships Program (P3).

RESPONSIBILITIESP3 is a merit-based competitive grants program that provides assistance for a portfolio of

R&D projects to be undertaken in Australia by companies in the pharmaceuticals industry.

During application rounds, the Committee was responsible for assessing, ranking and

recommending P3 applications for grants. As the last funding round of the program was

conducted in 2006–07, the Committee’s responsibilities since then have involved ongoing

monitoring of activities under the program, including the provision of advice on operational

issues such as variation requests made by successful applicants and conducting annual

company reviews including some site visits.

MEETINGSThe Pharmaceuticals Committee held no meetings during 2009–10 prior to its revocation

on 27 September 2009.

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INNOVATION AUSTRALIA - Department of Industry, · PDF file96 ANNUAL REPORT 2008–09...

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