In January 1916 a Conference was convened by the Prime Minister to formulate a scheme for the establishment of a National Institute of Science and Industry. The outcome of the Conference was the
establishment of the Advisory Council of Science and Industry to take initiatory action and to pave the way for the work of the permanent Institute.
The Advisory Council was appointed by order of the Governor-General in Council on 16 March 1916 and continued in existence for five years. On 14 September 1920 the Institute of Science and Industry Act 1920 established the Institute of Science and Industry, consisting of the Director, which was a body corporate with perpetual succession and a common seal and capable of suing and being sued.
The Institute had power to:
 (a) hold lands, tenements and hereditaments, goods, chattels and any
     other property; and
 (b) acquire by gift, grant, bequest or devise any such property.

The powers of the Institute were, subject to regulations and the approval of the Minister, exercised by the Director on behalf of the Institute.  The Institute was to establish a Bureau of Agriculture (CA 222), a Bureau of Industries (CA 223), a Bureau of Information and such other Bureaux as the Governor-General determined. The Act also stipulated that the Governor-General could appoint a General Advisory Council and Advisory Boards in each State to advise the Director. 
The Director had the following functions:
 (a) the initiation and carrying out of scientific research;
 (b) the establishment and awarding of industrial research
     studentships and fellowships;
 (c) the making of grants in aid of pure scientific research; 
 (d) the recognition of establishments of associations of persons
     engaged in industry for the purpose of carrying out industrial
     research;
 (e) the listing and standardization of scientific apparatus and
     instruments;
 (f) the establishment of a Bureau of Information for the collection
     and dissemination of information relating to scientific and
     technical matters; and 
 (g) the collection and dissemination of information regarding
     industrial welfare.

The staff employed under the Institute of Science and Industry Act 1920 were specifically exempted from the provisions of the
Commonwealth Public Service Act (see Section 14(2) of the Act). 
The formal title of the Institute as set down by the Act was the 'Commonwealth Institute of Science and Industry'. The Institute was referred to on occasion, by other agencies and in the press, as the Bureau of Science and Industry although this was not correct. The Science and Industry Research Act 1926 assented to on 21 June 1926, abolished the Commonwealth Institute of Science and Industry and replaced it by the Council for Scientific and Industrial Research 
(CA 486). The powers and functions of the Director of the Institute were transferred to the Council.
 

Historical agency address
  1921-by1924: Danks' Buildings, 391 Bourke Street, Melbourne
by1921-  1926: 314 Albert Street, East Melbourne
Legislation administered
Creation: Commonwealth of Australia Act No. 22 of 1920, Institute of Science and Industry Act, 1920
Abolition: Commonwealth of Australia Acts No. 20 of 1926, Science and Industry Research Act 1926