Primary Industries Research and Development Act 1989

How the Money Works

Producers pay industry levies (a bit like a membership fee based on production). The Commonwealth collects these and passes them to the relevant R&D Corporation. The Commonwealth also matches some spending dollar-for-dollar. The corporations must spend this money on approved research, development, and marketing activities — not however they like.

How the Corporations Are Governed

• Each corporation has a board of directors (a Chairperson, an Executive Director, and 5–7 other directors)
• Directors are appointed by the Minister, but must come through an independent Selection Committee process — reducing political interference
• There are strict rules about conflicts of interest (e.g., you can't be a director if you're on the executive of an industry representative body)
• Each corporation must publish a 5-year R&D plan and an annual operational plan, both of which require Ministerial approval

Accountability

• Corporations must produce annual reports detailing spending, research outcomes, and industry impact
• In some cases, annual general meetings must be held, where levy-paying producers can question directors, debate motions, and even pass a no-confidence vote (which triggers the replacement of the entire board)
• The Minister can give written directions to a corporation, though these must generally be disclosed publicly

Key Things to Know

• The Act works alongside the Primary Industries Levies and Charges Disbursement Act 2024, which governs the actual flow of money
• Corporations can borrow money, form joint ventures, hold patents, and commercialise research results
• If a corporation is wound up, its assets transfer back to the Commonwealth