Export Market Development Grants Act 1974 - Decision-Making Principles Under Section 19A (EMDG DMP 1995/1)

Overview

The Export Market Development Grants Act 1974 was enacted to provide financial assistance to Australian businesses in developing new export markets and expanding existing ones. This legislation aims to address the gap in support for Australian businesses seeking to enhance their presence in international markets, thereby promoting economic growth and job creation. The Australian Trade Commission, established under the Act, is responsible for administering the grants and ensuring they are used effectively to support businesses in their export activities. The policy objective behind this Act is to bolster the competitiveness of Australian goods and services abroad by providing the necessary resources and expertise to navigate and penetrate new markets successfully. The decision-making principles set out in the Act ensure that the grants are awarded based on a comprehensive assessment of the substantial differences between the current and previous business activities, ultimately fostering innovation and growth in the export sector.

Scope and Application

The Export Market Development Grants Act 1974 establishes the framework within which the Australian Trade Commission (Austrade) can provide financial assistance to businesses aiming to develop export markets. This Act applies to businesses seeking to receive export market development grants, with the decision-making principles outlined in the legislative instrument providing a structured approach for Austrade to assess whether a special exemption under section 19 of the Act should be granted. The decision-making principles focus on determining whether a current business activity is substantially different from a previous one, considering various factors such as the products, processes, customer base, management, suppliers, representatives, employees, markets, premises, logos, and assets of the businesses. The principles come into effect upon gazette and apply nationally across Australia. The legislative instrument also allows for the extension or restriction of application through subordinate instruments, ensuring that the decision-making process remains flexible and responsive to the evolving needs of the export market.

Key Provisions

The Export Market Development Grants Act 1974 (EMDGA) provides for the granting of special exemptions under section 19, which allows the Australian Trade Commission (Austrade) to exempt certain business activities from the provisions of the Act. The legislative instrument F2009B00020 sets out the decision-making principles that Austrade must follow when deciding whether to grant such an exemption. Section 19A of the EMDGA mandates that Austrade formulate these principles, and they are detailed in the Schedule to the legislative instrument. The principles require Austrade to consider a range of factors to determine if a current business activity is substantially different from a previous one, which would warrant an exemption. Under the legislative instrument, Austrade is required to examine numerous aspects of a business to decide if it merits a special exemption. These factors include the products, processes, customers, personnel, suppliers, overseas representatives, employees, markets, premises, logos, and assets of the business activities. Specifically, the Commission must assess whether there are significant differences in these areas between the current and previous business activities. The obligation on Austrade is to thoroughly evaluate these differences to ensure that any exemption granted is justified and in line with the Act’s objectives. Breaching the decision-making principles outlined in the legislative instrument can lead to significant consequences. Although the EMDGA itself does not explicitly outline offences, penalties, or consequences for non-compliance with these principles, the authority of Austrade to grant exemptions is contingent on adhering to these principles. Failure to comply with the prescribed decision-making framework could result in the exemption being deemed invalid, potentially exposing the business to the provisions of the Act from which it sought exemption. Additionally, any decisions made in bad faith or without proper consideration of the outlined factors could be subject to judicial review, leading to further legal ramifications for Austrade. In summary, the legislative instrument F2009B00020 establishes clear guidelines for Austrade when considering special exemptions under the EMDGA. The Commission must meticulously assess various aspects of the business activities in question to determine if they warrant an exemption. While the Act does not specify penalties for non-compliance with these principles, the consequences of failing to adhere to the outlined decision-making process can be significant, including potential legal challenges and the invalidation of the exemption granted.