EXPORT MARKET DEVELOPMENT GRANTS ACT 1997
Export Market Development Grants (Australian Net Benefit Requirement) Amendment Determination 2010
Explanatory Statement
A determination to be complied with by Austrade in determining, for the purposes of section 9 of the Export Market Development Grants Act 1997, whether a person meets the Australian net benefit requirements in relation to a grant year.
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 Act 2008 amended the Export Market Development Grants (EMDG) scheme rules to introduce a performance measure for applicants other than approved bodies and approved trading houses that have already received two grants. These applicants must make a choice between two options in terms of the amended section 70 of the EMDG Act. These two options (grants options A and B) provide alternative ways for these applicants to show that they meet the scheme’s performance requirements. The choice is mandatory and must be made at the time an applicant applies for a grant.
Applicants selecting grants option B must meet the Australian net benefit requirements introduced by way of section 9 of the amended EMDG Act. Section 9 of the EMDG Act requires the CEO of Austrade to decide whether applicants meet the Act’s Australian net benefit requirements.
Section 10 of the amended EMDG Act provides for a legislative instrument to be complied with by Austrade in determining whether applicants meet the Australian net benefit requirements.
The Export Market Development Grants (Australian Net Benefit Requirements) Determination 2008 (the 2008 Determination) was introduced in 2008 and has been applied to 2008-09 grant year applications.
Based on Austrade’s experience applying the 2008 Determination, this instrument is made in order to make the Australian net benefit requirements a simpler and more objective test for applicants. This amended Determination does not change the policy underpinning the EMDG scheme performance measure in general and the Australian net benefit requirements in particular.
Although this instrument is a machinery measure and does not substantially change the law, Austrade has consulted with other Government Departments 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.
This instrument commences on the day after it is registered and it applies to applications made for the 2009-10 and following grant years.
Austrade’s decisions in relation to whether a person meets the Australian net benefit requirements 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 was enacted to provide grants to Australian businesses that have incurred expenses in promoting the export of Australian goods, services, intellectual property rights, and know-how, effectively reimbursing a portion of these expenses. This legislation aims to support Australian businesses in expanding their export markets. The Act was introduced by the Parliament of Australia to address the need for financial support and incentives for businesses to increase their export activities, thereby contributing to the nation's economic growth. The Export Market Development Grants (Australian Net Benefit Requirement) Amendment Determination 2010 was made to streamline the process by which the Australian net benefit requirements are assessed, aiming to simplify and make the assessment more objective for applicants. This amendment ensures that the policy objectives of the EMDG scheme remain intact while improving the administrative efficiency of the grant application process.
Scope and Application
The Export Market Development Grants (Australian Net Benefit Requirement) Amendment Determination 2010 applies to Australian businesses seeking grants under the Export Market Development Grants Act 1997, particularly those who have incurred expenses promoting the export of Australian goods, services, intellectual property rights, and know-how. The legislation is intended to provide a simplified and objective test for applicants to meet the Australian net benefit requirements, as outlined in section 9 of the EMDG Act, which mandates the CEO of Austrade to decide on these requirements. This determination is a legislative instrument that complements the EMDG Act and comes into effect from the day after its registration, applying to grant year applications from 2009-10 onwards. It replaces the Export Market Development Grants (Australian Net Benefit Requirements) Determination 2008 to streamline the process for applicants. Austrade’s decisions under this determination are subject to review by the Administrative Appeals Tribunal, and the instrument is considered a disallowable instrument under the Acts Interpretation Act 1901.
Key Provisions
The operative sections of this legislation primarily concern the criteria for determining whether applicants meet the Australian net benefit requirements under the Export Market Development Grants Act 1997 (EMDG Act). Section 9 of the EMDG Act, as amended, stipulates that the Chief Executive Officer (CEO) of Austrade must decide if applicants meet the Australian net benefit requirements. Section 10 of the Act requires Austrade to comply with a legislative instrument in making this determination. This legislative instrument is detailed in the Export Market Development Grants (Australian Net Benefit Requirements) Amendment Determination 2010, which simplifies and objectifies the Australian net benefit requirements for applicants. The amended determination applies to applications made for the 2009-10 and subsequent grant years.
The Act imposes specific obligations on Austrade, the entity responsible for determining whether applicants meet the Australian net benefit requirements. Austrade must apply the criteria outlined in the amended determination when assessing applicants. This involves a thorough evaluation of the net benefit that the export activities of the applicant provide to Australia. The determination process must be objective and transparent, ensuring fairness and consistency in its application. Austrade's decisions under this Act are subject to review by the Administrative Appeals Tribunal, providing a safeguard for applicants who may contest the decisions.
The legislation does not explicitly outline specific offences or penalties for breaches of its provisions. However, the consequences for non-compliance or incorrect determinations may include the denial of grants to applicants who do not meet the Australian net benefit requirements. This could significantly impact the applicants' ability to receive financial assistance for their export promotion activities. Additionally, as a disallowable instrument, the amended determination could be subject to scrutiny and potential disallowance by Parliament, reflecting the importance of adhering to the legislative requirements.