EXPORT MARKET DEVELOPMENT GRANTS ACT 1997
Explanatory Statement
Guidelines for forming an opinion whether an applicant is genuinely carrying on business in Australia
The Export Market Development Grants Act 1997 (the Act) provides non-discretionary grants to Australian businesses which have incurred specified expenses promoting the export of their Australian goods services, intellectual property rights, and know how. The grant is a partial reimbursement of the expenses incurred.
Paragraph 7(l)(a) of the Act requires that Austrade must be satisfied that an applicant for grao.t was, during the grant year, genuinely carrying on business in Australia.
Section 10 l of the Act requires that the minister determine written guidelines to be complied with by Austrade in forming an opinion whether an applicant is genuinely carrying on business in Australia. The guidelines are a disallow able instrument for the purposes of the Acts Interpretation Act 1901.
These guidelines enumerate eleven matters which must be considered by Austrade in fanning its opinion. The matters to be considered range across a number of issues and include the business intention and strategy of the applicant, the perceived commercial return of the activity, the assets of the applicant, as well as considerations related to location.
Overview
The Export Market Development Grants Act 1997 was enacted to provide non-discretionary grants to Australian businesses that have incurred specified expenses promoting the export of Australian goods, services, intellectual property rights, and know-how. This Act addresses the gap by offering a financial incentive to businesses engaged in promoting Australian products and services on the global market, thereby fostering the growth of the export sector. The policy objective of the Act is to support and enhance the international competitiveness of Australian businesses through targeted financial assistance.
The guidelines for determining whether an applicant is genuinely carrying on business in Australia, as required by Section 10 of the Act, are set forth in a disallowable instrument under the Acts Interpretation Act 1901. These guidelines enumerate eleven matters that Austrade must consider, including the business intention and strategy of the applicant, the commercial return of the activity, and the applicant's assets, among other factors. The guidelines aim to ensure that only genuine Australian businesses that are actively engaged in export activities are eligible for the grants.
Scope and Application
The Export Market Development Grants Act 1997 applies to Australian businesses that have incurred specified expenses promoting the export of their Australian goods, services, intellectual property rights, and know-how, offering them non-discretionary grants as a partial reimbursement of these expenses. The Act specifically requires that Austrade, the agency administering the grants, must be satisfied that an applicant was genuinely carrying on business in Australia during the relevant grant year, as stipulated in paragraph 7(1)(a) of the Act. This jurisdictional scope is further delineated by section 10(1) which mandates that the Minister for Trade, Tourism and Investment must determine written guidelines for Austrade to use in forming an opinion on the genuineness of the applicant's business activities in Australia. These guidelines, which are subject to disallowance under the Acts Interpretation Act 1901, encompass eleven specific matters that Austrade must consider, including the business intentions and strategies of the applicant, the anticipated commercial returns, and the assets of the applicant, among other factors. The Act's application is therefore both national in scope and meticulously regulated to ensure that grants are awarded to entities that meet the prescribed criteria of genuine Australian business operations.
Key Provisions
The Export Market Development Grants Act 1997 (the Act) provides a structured framework for Australian businesses to receive grants that partially reimburse expenses incurred in promoting exports of Australian goods, services, intellectual property rights, and know-how. The grant scheme is designed to encourage and support Australian businesses in expanding their export activities. Section 7(l)(a) stipulates that Austrade must ensure the applicant was genuinely carrying on business in Australia during the grant year. This provision ensures that only those who are actively engaged in business within Australia can benefit from the grants.
The Act further elaborates on the process and criteria Austrade must follow to determine whether an applicant is genuinely carrying on business in Australia. Section 10(l) mandates that the minister must establish written guidelines for Austrade to use in forming this opinion. These guidelines are critical as they provide a clear framework for assessing the authenticity of the applicant's business operations in Australia. The guidelines are considered a disallowable instrument under the Acts Interpretation Act 1901, meaning they can be annulled if found to be inconsistent with the Act.
Austrade must consider eleven specific matters outlined in the guidelines when assessing an applicant's eligibility for the grant. These matters encompass various aspects, including the applicant's business intentions and strategy, the expected commercial returns from the export activities, and the applicant's assets. Additionally, location-related considerations are also factored into the assessment. This comprehensive approach ensures a thorough evaluation of the applicant's business operations and their genuine engagement in Australian commerce.
Failure to comply with the provisions of the Act can result in significant consequences. Although the Act does not explicitly outline offences or penalties within the explanatory statement, breaches of the Act could potentially lead to civil or criminal liability. The absence of specific penalties in the explanatory statement does not diminish the importance of adhering to the guidelines and requirements set forth by the Act. Businesses must ensure they meet all criteria to avoid any legal repercussions.