Export Market Development Grants Act 1974

Overview

The Export Market Development Grants Act 1974 (Cth) was enacted to address the need for financial incentives to support Australian businesses in developing and expanding their export markets. This Act establishes a framework for providing grants to eligible claimants who incur specific expenditures aimed at creating or increasing demand for the export of goods and services from Australia. The policy objective of the Act is to encourage and facilitate the growth of Australian exports by providing financial assistance for activities directly related to market development and promotion outside Australia. The Act is administered by the Export Development Grants Board, which is responsible for determining grant entitlements, assessing claims, and ensuring compliance with the Act's provisions. The Board operates under the oversight of the Minister, who has the authority to provide directions regarding policies and practices, subject to certain limitations. The Act also includes provisions for the regulation of claims and the imposition of penalties for false statements or documents submitted in connection with grant applications. The enacting body is the Commonwealth Parliament, which has the authority to appropriate funds for the payment of grants under the Act.

Scope and Application

The Export Market Development Grants Act 1974 applies to eligible expenditure incurred by individuals or entities in Australia for the purpose of developing export markets. This includes expenditure related to government-sponsored promotions, market research, advertising, and other activities aimed at creating or increasing demand for goods and services to be exported. Eligible goods include those manufactured, produced, or assembled in Australia or those with a significant Australian origin, as well as services supplied outside Australia by Australian businesses. The Act also applies to entities carrying on business in Australia and seeking to export goods or services. The Act operates at the Commonwealth level, providing a framework for the administration and distribution of grants by the Export Development Grants Board, which is established under the Act. The Board determines the eligibility of claimants and the amount of grant entitlements based on the eligible expenditure incurred and the export earnings of the claimants. The Act excludes certain types of expenditure, such as capital expenditure and certain travel expenses, and it also excludes certain entities, such as States, authorities, associations (unless prescribed), and corporations constituted for a public purpose by or under a law of Australia or of a State or Territory, from being eligible for grants. The Act allows for adjustments in grant entitlements in certain circumstances, such as when export earnings do not accrue in the same period as the expenditure or when abnormal trading conditions affect export earnings. The application of the Act can be extended or modified through subordinate instruments such as regulations made by the Governor-General under the authority provided in the Act.

Key Provisions

• The Export Market Development Grants Act 1974 (the "Act") provides for the establishment of a scheme to offer grants to eligible entities for export-related activities. Under the Act, the Board—referred to as the Export Development Grants Board—is tasked with determining grant entitlements for claimants who submit valid claims. Grants are intended to incentivize and support activities aimed at developing export markets for Australian goods and services.
• The Act outlines specific types of eligible expenditures, including market research, advertising, technical advice, and the acquisition of industrial property rights outside Australia. The Board assesses these expenditures to determine a claimant's eligibility and the amount of the grant. A claimant may be eligible for higher grants if the expenditure relates to new markets or government-sponsored promotions.
• Entities that are not eligible for grants include States, certain authorities or associations, and corporations constituted for public purposes, unless they are prescribed bodies. Furthermore, grants are not payable for expenditure incurred by a person who was not a resident of Australia at the time of the expenditure. The Act imposes limits on the amount of grants payable to claimants, with a maximum of $125,000 per grant year, subject to certain conditions for groups of corporations.
• The Act also establishes provisions for the administration of the grant scheme, including the establishment of the Board, its membership, term of office, and the delegation of powers. The Board is required to submit annual reports to the Minister, who then table these reports in Parliament. The Act includes penalties for making false or misleading statements in claims, with potential fines of up to $10,000 or imprisonment for six months. Over-payments resulting from false claims are recoverable by Australia as a debt.
• The secrecy provisions of the Act ensure that certain information acquired by Board members or staff in the course of their duties remains confidential and cannot be disclosed except as permitted by the Act. These provisions aim to protect sensitive information related to grant applications and the operations of the Board.

Legal classification tags

Area of Law

Commercial Law

Export & Import Law

Instrument

Act

Concepts

Definitions & Interpretation

Commencement Provisions

Regulatory Standards

Enforcement Powers