EXPORT MARKET DEVELOPMENT GRANTS ACT 1997
Export Market Development Grants (Approved Body) Guidelines 2008
Explanatory Statement
Guidelines to be complied with by Austrade in determining, for the purposes of section 89 of the Export Market Development Grants Act, whether applicants applying for approved body status should be approved.
The Export Market Development Grants Act 1997 (EMDG Act) provides for grants to specified 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.
Among other amendments, the Export Market Development Grants Amendment Act 2008 amended the Export Market Development Grants (EMDG) scheme rules, set out at paragraph 88(1)(c) of the EMDG Act, for defining the types of entities able to apply for approved body status under the EMDG Act.
Organisations which promote on behalf of their members but which are not required to be principal or the intended principal in export sales are able to apply for approved body status under the EMDG Act.
The Ministerial guidelines Guidelines for the approval, variation of approval and cancellation of approved bodies (1997 Approved Body Ministerial guidelines) were made on 1 July 1997 pursuant to paragraph 101(1)(c) of the EMDG Act. Under these guidelines, approved body status under the EMDG Act could only be given to peak industry bodies with some national focus.
The amended paragraph 88(1)(c)) of the EMDG Act now enables State/Territory or regional not-for-profit bodies representing an industry, industries or substantial parts of an industry, which promote Australian exporters, to apply to be approved bodies under the EMDG Act. These guidelines are made to give effect to this legislative amendment. The 1997 Approved Body Ministerial guidelines are repealed.
Some of the assessment rules formerly contained in the 1997 Approved Body Ministerial guidelines are included in the Export Market Development Grants Regulations 2008 that are made pursuant to subsection 89(1) of the EMDG Act.
These guidelines, made pursuant to paragraph 101(1)(c) of the EMDG Act, set out the factors that Austrade must now have regard to when assessing applications for approved body status under section 89 of the amended EMDG Act.
These guidelines commence on 1 July 2008 and apply to applications made for the 2008-09 and following grant years.
This legislative instrument is a machinery measure and does not substantially change the law. However, Austrade has consulted with the Department of Resources, Energy and Tourism in the course of its preparation. It has not consulted directly with industry because to do so would have provided undue commercial advantage to a limited number of individuals and organisations.
Austrade’s decisions under these guidelines are subject to review in the Administrative Appeals Tribunal.
This instrument is a legislative instrument for the purposes of the Legislative Instruments Act 2003 and is a disallowable instrument for the purposes of section 46A of the Acts Interpretation Act 1901.
Overview
The Export Market Development Grants Act 1997 (EMDG Act) was enacted to provide grants to Australian businesses that have incurred specified expenses promoting the export of their goods, services, intellectual property rights, and know-how. The Act aims to partially reimburse these expenses, thereby supporting and encouraging the expansion of Australian exports. The Act was amended by the Export Market Development Grants Amendment Act 2008 to expand the eligibility criteria for approved body status, allowing not only peak industry bodies with a national focus but also state/territory or regional not-for-profit bodies representing industries or substantial parts of an industry to apply for approval. This amendment was intended to enhance the diversity of entities eligible for grants under the scheme. The Export Market Development Grants (Approved Body) Guidelines 2008 were subsequently introduced to provide updated guidelines for Austrade in assessing applications for approved body status under the amended EMDG Act. These guidelines outline the factors Austrade must consider in its assessments and have been designed to implement the legislative changes, replacing the previous guidelines from 1997.
Scope and Application
The Export Market Development Grants Act 1997 provides for grants to Australian businesses that have incurred expenses promoting the export of their goods, services, intellectual property rights and know-how, with the grant acting as a partial reimbursement of these expenses. The Act applies to eligible Australian businesses and is administered by Austrade, which determines whether applicants applying for approved body status should be approved. The Export Market Development Grants Amendment Act 2008 amended the Act to expand the types of entities able to apply for approved body status, including State/Territory or regional not-for-profit bodies representing an industry or industries, which promote Australian exporters. These entities can now apply to be approved bodies under the Act. The guidelines, which apply to applications made for the 2008-09 and following grant years, set out the factors that Austrade must consider when assessing applications for approved body status under the amended Act. These guidelines are made pursuant to the EMDG Act and commence on 1 July 2008. Austrade’s decisions under these guidelines are subject to review in the Administrative Appeals Tribunal.
Key Provisions
The Export Market Development Grants Act 1997 (EMDG Act) provides grants to Australian businesses for expenses related to promoting the export of Australian goods, services, intellectual property rights, and know-how. Section 89 of the Act allows for the approval of bodies that can apply for these grants, with the Export Market Development Grants Amendment Act 2008 expanding the types of entities eligible for approval. Specifically, the amended section 88(1)(c) of the EMDG Act now permits state or territory, as well as regional, not-for-profit bodies representing industries or parts of an industry, which promote Australian exporters, to apply for approved body status. This legislative change reflects a broader scope of eligible applicants compared to the original guidelines established in 1997.
The obligations imposed by the EMDG Act on applicants for approved body status include meeting certain criteria as outlined in the Export Market Development Grants (Approved Body) Guidelines 2008. These guidelines, which came into effect on 1 July 2008, require Austrade to consider various factors when assessing applications. Key among these is the applicant’s role in promoting Australian exporters and its representation of an industry or industries. The guidelines also stipulate that Austrade must take into account the national focus and representativeness of the applicant body. Decisions made under these guidelines are subject to review by the Administrative Appeals Tribunal.
Breaches of the requirements set out in the EMDG Act or the Export Market Development Grants (Approved Body) Guidelines 2008 may lead to civil or criminal consequences. While the Act itself does not specify particular offences, penalties, or consequences for non-compliance, the failure to meet the stipulated criteria for approved body status could result in the denial of grant applications. Furthermore, any actions by Austrade in assessing applications that are found to be flawed or improper could be subject to review and correction by the Administrative Appeals Tribunal. The legislative instrument is also subject to disallowance under the Acts Interpretation Act 1901.