Export Market Development Grants Amendment Act 2003

Overview

The Export Market Development Grants Amendment Act 2003, enacted by the Parliament of Australia and assented to on 30 June 2003, serves to amend the Export Market Development Grants Act 1997. The primary purpose of this Act is to update and refine the financial parameters and eligibility criteria associated with export market development grants. This legislative amendment was introduced to address discrepancies and inefficiencies within the existing framework, ensuring that the grants remain a viable and effective tool for supporting Australian exporters in expanding their market reach. The policy objective behind these amendments is to enhance the efficiency and effectiveness of the export market development grant scheme by adjusting the financial thresholds and the number of grants available. The changes include reducing the maximum annual grant amount and the number of grants payable, as well as removing provisions related to new markets. These amendments aim to ensure that the grant program remains sustainable and targeted, providing the necessary support to Australian businesses in their export endeavours.

Scope and Application

The Export Market Development Grants Amendment Act 2003 amends the Export Market Development Grants Act 1997 to modify eligibility criteria and provisions for grants aimed at assisting Australian businesses to develop new export markets. This Act applies to entities that are eligible for export market development grants under the principal Act, specifically targeting businesses with a turnover of up to $30 million and those seeking to enter new markets, with the amendments applying to grant years commencing on or after 1 July 2003. The changes include adjustments to income thresholds, the removal of certain export earnings criteria, and modifications to the provisional grant amount and the number of grants payable. This Act has a national reach, as it amends Commonwealth legislation, thereby affecting businesses across Australia. The amendments do not specify any exclusions or exemptions other than those outlined in the principal Act, and no subordinate instruments extend or restrict the application of this Act.

Key Provisions

The Export Market Development Grants Amendment Act 2003 amends the Export Market Development Grants Act 1997, making several significant changes. Under Part 1, the Act reduces the income threshold for the grant year from $50,000,000 to $30,000,000, affecting paragraphs 7(1)(d) and 7(4)(c) and section 11, as well as paragraph 53(1)(b). This change likely impacts eligibility for the grants by making it easier for smaller businesses to qualify. The Act imposes several obligations on entities seeking these grants. Firstly, it mandates that applicants must meet the reduced income threshold of $30,000,000, as detailed in the amended sections. Additionally, by repealing certain provisions related to export earnings (paragraphs 7(1)(e) and 7(2)(b), subsection 7(2) note, paragraph 7(4)(d), subsection 7(4) note, and subsection 7(5)), the Act simplifies the application process by removing the requirement to demonstrate specific export earnings. In terms of penalties and consequences, the Act does not explicitly state any new penalties or civil/criminal consequences for breaches of its provisions. However, failure to comply with the eligibility criteria or the simplified application process could result in disqualification from receiving the grants. For instance, if an entity fails to meet the new income threshold or omits necessary information in their application, they may be ineligible for the grant, which could impact their ability to access financial support for export market development. Additionally, the Act reduces the provisional grant amount from $200,000 to $150,000, as specified in paragraph 63(4)(b), and decreases the number of grants payable from eight to seven, as noted in paragraphs 7(1)(c) and 7(4)(b), and the repealed subsection 8(2). It also removes the requirement for grants to be paid in more than one instalment, as stated in the repealed table item in subsection 63(3). Furthermore, the Act repeals several sections related to 'new market' definitions and provisions, including sections 40, 50, 107, and 113, and amends the Reader's Guide diagram to clarify eligibility criteria. These amendments apply to grant years commencing on or after 1 July 2003.