Export Market Development Grants Amendment Act 2004

Overview

The Export Market Development Grants Amendment Act 2004 was enacted by the Parliament of Australia to amend the Export Market Development Grants Act 1997, addressing certain gaps in the existing framework. The primary objective of this Act is to enhance the integrity and credibility of the grant program by ensuring that only fit and proper persons receive grants. The Act introduces measures that allow the Australian Trade and Investment Commission (Austrade) to request consents from applicants to obtain necessary information to determine the fitness and propriety of both applicants and their associates. The Act also provides guidelines for Austrade to determine who qualifies as an associate and how to assess the fitness of individuals to receive grants, ensuring that grants are allocated in a manner that aligns with the policy objectives of supporting and developing Australian exports. The amendments apply to grants in respect of a grant year commencing on or after 1 July 2003.

Scope and Application

The Export Market Development Grants Amendment Act 2004 is an Act that amends the Export Market Development Grants Act 1997. It applies to grants in respect of a grant year commencing on or after 1 July 2003. The Act amends the original Act to include provisions that allow Austrade to seek written consent from applicants or their associates to obtain information needed to determine if the applicant or their associate is a fit and proper person to receive a grant. If Austrade forms the opinion that the applicant or their associate is not a fit and proper person, a grant or advance on account of a grant will not be payable to the applicant. The Act also provides that the validity of a payment of a grant or an advance on account of a grant is not affected if Austrade had not formed the opinion at the time of the payment. The Act applies to persons who are determined to be associates in accordance with guidelines determined under the amended Act. The Act applies nationally, as it is a Commonwealth Act. The Act does not specify any exclusions, exemptions, or thresholds. The application of the Act may be extended or restricted through subordinate instruments, such as guidelines or regulations made under the amended Act.

Key Provisions

The Export Market Development Grants Amendment Act 2004 (C2004A01305) amends the Export Market Development Grants Act 1997. The key changes introduced by this Act are contained in Schedule 1, which revises the original Act. The amendments apply to grant years starting from 1 July 2003. For instance, Section 2A is inserted after subsection 72(2) of the original Act, allowing Austrade to request written consent from applicants or their associates to determine if they are fit and proper persons to receive a grant (Section 1). Additionally, Section 87AA is introduced to prevent the payment of grants to individuals deemed unfit by Austrade (Section 4). The Act also mandates that Austrade must follow guidelines when determining who qualifies as an associate and when assessing fitness to receive a grant (Section 7). Under the amended Act, Austrade is obliged to obtain the necessary consents from applicants or their associates to ascertain their eligibility for grants (Section 2A). This involves determining whether the applicant or any associate is a fit and proper person, which is critical for grant approval. Furthermore, Austrade must adhere to the guidelines established for identifying associates and assessing fitness to receive a grant (Section 7). These obligations ensure that grants are awarded only to those who meet the required standards, maintaining the integrity of the grant program. The Act imposes significant consequences for non-compliance. If Austrade determines that an applicant or their associate is not a fit and proper person, the grant or advance on account of the grant will not be payable (Section 87AA(1)). This prohibition extends to any decision made under this section, which is not to be impliedly affected by other decisions under the Act (Section 97(2)). The penalties for breaches of these provisions are not explicitly stated in the Act but could include the withholding of grants or other administrative actions taken by Austrade. These measures ensure that the grant process remains rigorous and compliant with the legislative requirements.