Untitled document
Export Market Development Grants (Export Performance Requirements) Instrument 2018
I, Steven Ciobo, Minister for Trade, Tourism and Investment, make the following instrument.
Dated 8 February 2018
Steven Ciobo
Minister for Trade, Tourism and Investment
Contents
Part 1—Preliminary 1
1............ Name............................................................................................................................. 1
2............ Commencement............................................................................................................. 1
3............ Authority....................................................................................................................... 1
4............ Schedules...................................................................................................................... 1
5............ Definitions..................................................................................................................... 1
Part 2—Export earnings 3
6............ Export earnings of an applicant..................................................................................... 3
7............ Export earnings of an approved joint venture................................................................ 4
8............ Export earnings—adjustments by the CEO of Austrade............................................... 5
9............ Seller taken to export eligible goods in certain circumstances........................................ 5
10.......... Export earnings of related entity.................................................................................... 5
Part 3—Provisional grant amount 6
11.......... Working out the provisional grant amount—an applicant who is not an approved body and who is a grantee for at least 2 previous grant years...................................................................................................... 6
Part 4—Transitional provisions 7
12.......... Savings—old law.......................................................................................................... 7
Schedule 1—Repeals 8
Export Market Development Grants (Export Performance Requirements) Determination 2008 8
Part 1—Preliminary
1 Name
This instrument is the Export Market Development Grants (Export Performance Requirements) Instrument 2018.
2 Commencement
(1) Each provision of this instrument specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.
| Commencement information | ||
| Column 1 | Column 2 | Column 3 |
| Provisions | Commencement | Date/Details |
| 1. The whole of this instrument | 1 July 2018. | 1 July 2018 |
Note: This table relates only to the provisions of this instrument as originally made. It will not be amended to deal with any later amendments of this instrument.
(2) Any information in column 3 of the table is not part of this instrument. Information may be inserted in this column, or information in it may be edited, in any published version of this instrument.
3 Authority
This instrument is made under paragraph 63(3)(f) of the Export Market Development Grants Act 1997.
4 Schedules
Each instrument that is specified in a Schedule to this instrument is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this instrument has effect according to its terms.
5 Definitions
Note: A number of expressions used in this instrument are defined in the Act, including the following:
(a) approved activity, project or purpose;
(b) approved body;
(c) approved joint venture;
(d) CEO of Austrade;
(e) eligible products;
(f) export;
(g) grantee;
(h) grant year;
(i) person;
(j) resident of Australia;
(k) sale;
(l) supply.
In this instrument:
Act means the Export Market Development Grants Act 1997.
export earnings for a grant year has the meaning given by section 6, 7 or 8.
related entity has the meaning given by subsection 37(4) of the Act.
Part 2—Export earnings
6 Export earnings of an applicant
(1) Subject to this section, and sections 7 and 8, an applicant’s export earnings for a grant year is the sum of the applicant’s relevant earnings in the grant year for eligible products.
(2) For the purposes of subsection (1), the relevant earnings for an eligible product described in column 1 of an item of the following table are worked out using column 2 of that item.
| Export earnings | ||
| Item | Column 1 Eligible products | Column 2 Relevant earnings |
| 1 | Eligible goods: (a) made in or outside Australia; and (b) exported by the applicant from Australia; and (c) sold by the applicant at any time to a person that is not a resident of Australia | The amount or value of the consideration received during the grant year for the sale and export of the goods that is attributable to the free on board value of the goods |
| 2 | Eligible goods: (a) made in or outside Australia; and (b) not exported from Australia; and (c) sold outside Australia by the applicant to a person that is not a resident of Australia | The amount or value of the consideration received during the grant year for the sale of the goods |
| 3 | An eligible non‑tourism service sold at any time by the applicant to a person that is not a resident of Australia | The amount or value of the consideration received during the grant year for the sale of the service less the amount of the consideration that is, in the CEO of Austrade’s opinion, paid or payable outside Australia in relation to the service |
| 4 | An eligible event marketed by the applicant under a written contract between the applicant and the event holder | The amount or value of the consideration received by the event holder during the grant year for: (a) the sale of goods to persons attending the event who are not residents of Australia; and (b) services in connection with the event (including participation in the event) |
| 5 | An eligible tourism service sold by the applicant: (a) to an inbound tour operator who is a resident of Australia; and (b) for sale by the inbound tour operator, in the course of trade, to a person that is not a resident of Australia | 20% of the amount or value of the consideration received during the grant year for the sale of the service to the inbound tour operator |
| 6 | An eligible tourism service sold at any time by an applicant who is an inbound tour operator to a person that is not a resident of Australia | 80% of the amount or value of the consideration received during the grant year for the sale of the service |
| 7 | An eligible tourism service sold at any time by an applicant who is not an inbound tour operator to a person that is not a resident of Australia | The amount or value of the consideration received during the grant year for the sale of the service |
| 8 | Eligible intellectual property or eligible know‑how disposed of at any time by the applicant, being a disposal mentioned in section 111 of the Act | The amount or value of the consideration received during the grant year for the disposal |
(3) Any consideration for the sale, supply or disposal of an eligible product in the following circumstances is to be disregarded in working out the export earnings of the applicant:
(a) a sale, supply or disposal of an eligible product in the course of trade with New Zealand;
(b) if the applicant is a member of an approved joint venture—a sale, supply or disposal of an eligible product that relates directly to the approved activity, project or purpose of the joint venture.
(4) In working out the export earnings of an applicant who has applied for a grant in the capacity of trustee of a trust estate, disregard any earnings of the applicant that are not derived from the business carried on for the trust estate.
(5) In working out the export earnings of an applicant who:
(a) has applied for a grant in the applicant’s own right; and
(b) is also a trustee, or a beneficiary, of a trust estate;
disregard any earnings of the applicant from the business carried on for the trust estate.
(6) In working out the export earnings of an applicant, disregard any earnings of the applicant related to trade with a country that the Minister has declared, for the purposes of section 44 of the Act, to be subject to trade sanctions.
(7) For the purposes of item 2 of the table in subsection (2), if the goods are exported from one country to another, the amount or value of the consideration is the free on board value of the goods from the country of delivery.
7 Export earnings of an approved joint venture
(1) This section applies if the applicant is an approved joint venture.
(2) The export earnings of an approved joint venture for a grant year is the sum of the export earnings, calculated in accordance with section 6, of each member of the joint venture whose income for the grant year is not more than $50,000,000, excluding any export earnings of a member that:
(a) are not for the approved activity, project or purpose of the joint venture; or
(b) were earned at a time during the grant year when the member was not a resident of Australia.
8 Export earnings—adjustments by the CEO of Austrade
Despite sections 6 and 7, if the amount of export earnings of the applicant for a grant year is adjusted under subsection 96(3) of the Act, the adjusted amount is taken to be the applicant’s export earnings for the grant year.
Note: The CEO of Austrade may make decisions of an administrative character under section 96 of the Act.
9 Seller taken to export eligible goods in certain circumstances
For the purposes of this Part, if:
(a) the applicant (the seller) sells eligible goods at a time when the goods are in Australia; and
(b) the buyer later exports the goods;
the seller (not the buyer) is taken to export the goods.
10 Export earnings of related entity
For the purposes of this Part, if:
(a) the applicant is incorporated under the Corporations Act 2001; and
(b) the applicant incurs expenses in promoting export sales for a related entity of the applicant; and
(c) the applicant includes the expenses in a claim for a grant;
the amount of any export earnings of the related entity attributable to the promotion of export sales by the applicant is taken to have been earned by the applicant.
Part 3—Provisional grant amount
11 Working out the provisional grant amount—an applicant who is not an approved body and who is a grantee for at least 2 previous grant years
For the purposes of paragraph 63(3)(f) of the Act, the amount for an applicant and a grant year is the amount obtained by multiplying the applicant’s export earnings for the grant year by the applicable percentage set out in the following table.
| Applicable percentage | ||
| Item | Number of grant years in respect of which the applicant is a grantee (including the year for which the amount is being ascertained) | Percentage |
| 1 | 3 | 40 |
| 2 | 4 | 20 |
| 3 | 5 | 10 |
| 4 | 6 | 7.5 |
| 5 | 7 | 5 |
| 6 | 8 | 5 |
Note: This section is relevant only to an applicant who is not an approved body and who is a grantee in respect of 2 or more previous grant years. The amount ascertained in accordance with this section may be the provisional grant amount for the applicant. See subsection 63(3) of the Act.
Part 4—Transitional provisions
12 Savings—old law
Despite the repeal of the Export Market Development Grants (Export Performance Requirements) Determination 2008 by Schedule 1 to this instrument, that determination continues to apply to working out the provisional grant amount of an applicant in relation to an application for a grant made before 1 July 2018.
Schedule 1—Repeals
Export Market Development Grants (Export Performance Requirements) Determination 2008
1 The whole of the instrument
Repeal the instrument.
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