Australia’s and development corporations (RDCs) help drive agricultural innovation. They allow the Australian Government and primary producers to co-invest in strategic, collaborative and targeted research and development (R&D). This improves the profitability, productivity, competitiveness and sustainability of Australia's agricultural, fishing and forestry industries. Both industry and government recognise that creating and meeting demand for Australian produce is essential to the competitiveness and profitability of our primary industries and provides benefits for the whole Australian community.
The government-industry partnership model that supports the RDCs has been operating successfully for over 30 years.
The RDCs are funded primarily by research and development levy (or charge) components on various commodities, with matching funding from the Australian Government. The government matches expenditure on eligible R&D, up to 0.5% of the determined industry gross value of production. RDCs are accountable to both industry and government. Our levies webpage contains further information on the levy system.
All RDCs manage R&D services. Many RDCs also undertake marketing activities, funded by a marketing levy component.
There are 15 RDCs:
- 5 Commonwealth statutory bodies
- 10 industry-owned companies.
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, relevant legislation and declared representative organisation(s) are below:
| Commonwealth statutory RDC | Relevant legislation | Declared representative organisation(s) |
|---|---|---|
| Wine Australia | Primary Industries Levies and Charges Disbursement Act 2024 | Australian Grape and Wine Incorporated |
| Cotton Research and Development Corporation | Primary Industries Research and Development Act 1989 Primary Industries Levies and Charges Disbursement Act 2024 | Cotton Australia |
| Fisheries Research and Development Corporation | Commonwealth Fisheries Association RecFish Australia Seafood Industry Australia | |
| Grains Research and Development Corporation | Grains Producers Australia Limited Grain Growers Limited | |
| Rural Industries Research and Development Corporation (trading as AgriFutures Australia) | National Farmers’ Federation Australian Chicken Meat Federation |
Industry-owned RDCs are independent corporate entities with expertise-based boards. The relevant legislation for industry-owned RDCs is the Primary Industries Levies and Charges Disbursement Act 2024 under which they are declared as recipient bodies for levy and matching payments.
The key performance and accountability framework for RDCs is set out in the funding agreements signed with the Commonwealth.
This includes expectations of performance and transparency, as well as accountability to levy payers, the government and the public. In 2024, funding agreements with all RDCs were renewed to align with the new legislative framework which commenced on 1 January 2025.
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:
- Stakeholder engagement – Engage stakeholders (including industry representative bodies) to identify research, development and extension priorities and activities that provide benefits to portfolio industries.
- Research, development and extension activities – Priorities and activities are strategic, collaborative, and targeted to improve profitability, productivity, competitiveness, and preparedness for future opportunities/challenges through a balanced portfolio.
- Collaboration – Strategic and sustained cross-industry and cross-sectoral collaboration that addresses shared challenges and draws on experience from other sectors.
- Governance – Arrangements and practices fulfil legislative requirements and align with contemporary Australian best practice for open, transparent, and proper use and management of funds.
- Monitoring and Evaluation – Demonstrate positive outcomes and delivery of research, development and extension (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 engaging in or funding 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 and specific guidance for each individual RDC.
- 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.
Legislation, regulations and individual funding agreements provide the framework for how RDCs operate.
The Primary Industries Research and Development Act 1989 and the Wine Australia Act 2013 set out arrangements for the establishment of statutory RDCs and the preferred structure for the administration of their R&D program funds.
The two Acts state that the Minister for Agriculture must declare at least one representative organisation for each statutory RDC. Declared industry representative organisations are listed in Statutory RDCs.
The Primary Industries Levies and Charges Disbursement Act 2024 provides for the disbursement of levy and matching payments to RDCs and spending requirements in relation to these payments.
Statutory RDCs are also required to comply with the Public Governance, Performance and Accountability Act 2013.
These Acts, along with the funding agreements, set out the financial, performance, reporting, accountability and industry consultation obligations for statutory RDCs.
Industry-owned RDCs are declared by the Minister for Agriculture as recipient bodies under the Primary Industries Levies and Charges Disbursement Act 2024. They are established under, and must comply with, the provisions of the Corporations Act 2001 which sets out the obligations of companies and their boards of directors.
The Minister for Agriculture is responsible for administering the legislation relating to the RDCs and has delegated some tasks to the department. We assist RDCs to adhere to their legislated obligations and statutory funding agreements and advise the Minister on RDC-related matters. The Minister is ultimately accountable to Parliament.
In supporting the RDCs to meet the legislative requirements and comply with their funding agreements, we:
- provide guidance on better practice administration and stakeholder engagement
- participate in annual performance meetings with each RDC
- assist the Minister to discharge statutory and parliamentary obligations, including providing advice on the operations of RDCs and their accountability of funds
- host regular seminars to promote information sharing and collaboration between government and RDCs
- ensure the RDCs have a framework to deliver research and development and marketing to underpin the profitability, productivity, competitiveness and long-term sustainability of portfolio industries
- administer the flow of levy funds
- implement R&D policies as directed by the Minister.