AgriFutures Australia

There are 15 RDCs. All RDCs manage R&D services. Most IOCs also provide other industry services, mainly marketing. Following legislative amendments in 2013, statutory RDCs are also able to undertake marketing activities at the request of industry, where supported by a statutory marketing levy. Commonwealth statutory RDCs are Australian Government entities with a board of directors appointed by the Minister for Agriculture, based on recommendations from a selection committee. Commonwealth statutory RDCs, their enabling legislation and declared representative organisation(s) are : Wine Australia Cotton Research and Development Corporation Fisheries Research and Development Corporation Grains Research and Development Corporation Rural Industries Research and Development Corporation Industry owned companies: Australian Eggs Limited Australian Livestock Corporation Limited Australian Meat Processor Corporation Australian Pork Limited Australian Wool Innovation Limited Dairy Australia Limited Forest and Wood Products Australia Horticulture Innovation Australia Limited Meat and Livestock Australia Sugar Research Australia Limited The RDCs are funded primarily by statutory R&D levies (or charges) on various commodities, with matching funding from the Australian Government. To expand Australia’s rural R&D efforts, the government matches expenditure on eligible R&D, generally up to 0.5% of the determined industry gross value of production. RDCs are accountable to both industry and government. Levies for R&D and marketing are initiated at the request of industry and are collected and administered by the Department of Agriculture, Water and the Environment. These funds are distributed to the RDCs to undertake R&D and industry services. The department’s levies webpage contains further information on the levy system. The key performance and accountability framework for IOCs and statutory RDCs is set out in the funding agreements signed with the Commonwealth. The main function of a funding agreement between the Commonwealth and RDCs (which is required under legislation) is to specify the terms and conditions for expenditure of R&D and marketing levies and Commonwealth matching payments. Individual funding agreements with RDCs outline what is expected of them. This includes expectations of performance and transparency, as well as accountability to levy payers, the government and the public. In 2019, the RDC funding agreements with all RDCs were renewed using a principles-based approach and cover a 10-year period. The funding agreements make clear the expectation that RDCs govern their own business practices through their Boards and other governance arrangements. The five performance principles in the funding agreements provide a framework to ensure RDCs appropriately spend levy funds and public money and focus on delivering R&D and marketing outcomes for their stakeholders. The five performance principles are: 1 Stakeholder engagement – Engage stakeholders (including industry representative bodies) to identify research, development and extension (RD&E) priorities and activities that provide benefits to portfolio industries. 2 RD&E activities – Priorities and activities are strategic, collaborative, and targeted to improve profitability, productivity, competitiveness, and preparedness for future opportunities/challenges through a balanced portfolio. 3 Collaboration – Strategic and sustained cross-industry and cross-sectoral collaboration that addresses shared challenges and draws on experience from other sectors. 4 Governance – Arrangements and practices fulfil legislative requirements and align with contemporary Australian best practice for open, transparent, and proper use and management of funds. 5 Monitoring and Evaluation – Demonstrate positive outcomes and delivery of RD&E (and marketing) benefits to levy payers and the Australian community in general, and continuous improvement in governance and administrative efficiency. The funding agreements prevent the RDCs from using funds to engage in agri-political activity. In 2021, the Australian government developed a package of documents to support the work undertaken by RDCs: - The Guidelines for Statutory Funding Agreements outlines key performance indicators for each of the five performance principles outlined above. - The Best Practice Guide to Stakeholder Consultation provides a set of guiding principles which apply to all RDCs; each RDC provided their own individualised guide. - The RDC Knowledge Transfer and Commercialisation Guide provides guidance for the management of technology commercialisation to assist driving commercialisation out of the RDCs and bring in extra funding from private sources.