Export Market Development Grants (Australian Net Benefit Requirements) Determination 2008
as amended
made under section 10 of the
Export Market Development Grants Act 1997
This compilation was prepared on 1 July 2010
taking into account amendments up to Export Market Development Grants Legislation Amendment Determination 2010 (No. 1)
Prepared by the Office of Legislative Drafting and Publishing,
Attorney-General’s Department, Canberra
Contents
1 Name of Determination [see Note 1]
2 Commencement
3 Definition
4 Australian net benefit requirements
Notes
1 Name of Determination [see Note 1]
This Determination is the Export Market Development Grants (Australian Net Benefit Requirements) Determination 2008.
2 Commencement
This Determination commences on 1 July 2008.
3 Definition
In this Determination:
Act means the Export Market Development Grants Act 1997.
4 Australian net benefit requirements
(1) For section 10 of the Act, the specified requirement is that the applicant must demonstrate, to the reasonable satisfaction of the CEO, that:
(a) a commercial return:
(i) was received in the grant year; or
(ii) is receivable in respect of the grant year; or
(iii) can reasonably be expected to be received in the foreseeable future;
by the applicant as a result of the activities to which the claimed expenses relate and that, having regard to the length of the periods over which those activities have been undertaken, and the amounts expended on them, that commercial return:
(iv) was or would be reasonably commensurate with the quantum of those expenses; and
(v) of sufficient magnitude as to warrant further expenditure of public moneys by way of a further grant; and
(b) the financial position of the applicant’s business, including its reasonable prospects of gaining access to adequate levels of finance, is such that the applicant has reasonable prospects in the foreseeable future of achieving sustainable international business success; and
(c) the applicant’s international business activities do now, or are reasonably likely in the foreseeable future to, generate economic benefits to Australia in 2 or more of the following areas:
(i) employment in Australia;
(ii) new capital investment in Australia;
(iii) introduction of new technologies into Australia;
(iv) new value-added operations in Australia;
being benefits that are reasonably commensurate with the sum of any eligible expenses previously claimed by the applicant and the amount of the eligible expenses being claimed by the applicant in the application.
(2) Section 4, as in force immediately before 4 June 2010, is taken to apply to an application made in relation to the grant year commencing on 1 July 2008.
Notes to the Export Market Development Grants (Australian Net Benefit Requirements) Determination 2008
Note 1
The Export Market Development Grants (Australian Net Benefit Requirements) Determination 2008 (in force under section 10 of the Export Market Development Grants Act 1997) as shown in this compilation is amended as indicated in the Tables below.
Table of Instruments
Title | Date of FRLI registration | Date of
commencement | Application, saving or
transitional provisions |
Export market Development Grants (Australian Net Benefit Requirements) Determination 2008 | 29 June 2008 (see F2008L02330) | 1 July 2008 | |
Export market Development Grants (Australian Net Benefit Requirements) Amendment Determination 2010 (No. 1) | 3 June 2010 (see F2010L01513) | 4 June 2010 | — |
Export market Development Grants Legislation Amendment Determination 2010 (No. 1) | 30 June 2010 (see F2010L01861) | 1 July 2010 | — |
Table of Amendments
ad. = added or inserted am. = amended rep. = repealed rs. = repealed and substituted |
Provision affected | How affected |
S. 4................. | rs. 2010 No. 1 |
| am. F2010L01861 |
Overview
The Export Market Development Grants (Australian Net Benefit Requirements) Determination 2008, made under section 10 of the Export Market Development Grants Act 1997, was introduced to address the need for a more rigorous assessment of the economic benefits that Australian businesses could potentially provide to the nation when applying for grants to develop export markets. This legislative instrument was enacted to ensure that grants are awarded only to those businesses that can demonstrate a reasonable expectation of generating economic benefits to Australia, particularly in areas such as employment, capital investment, technological advancement, and value-added operations. The policy objective behind this Determination is to ensure that public funds are used effectively to support businesses that can contribute to Australia's economic growth and international trade success. The Determination was prepared by the Office of Legislative Drafting and Publishing, Attorney-General’s Department, and commenced on 1 July 2008. It has since been amended to refine the criteria and requirements for eligibility.
Scope and Application
The Export Market Development Grants (Australian Net Benefit Requirements) Determination 2008 applies to applicants for grants under the Export Market Development Grants Act 1997, requiring them to demonstrate certain commercial and economic benefits to Australia. Specifically, applicants must show that their activities result in a commercial return that is commensurate with the expenses incurred and has the potential to be sustained in the future. Additionally, the applicant's business must be in a position to achieve sustainable international success and generate economic benefits to Australia, such as employment, new capital investment, introduction of new technologies, or new value-added operations. This Determination commenced on 1 July 2008 and has been subject to amendments through subordinate instruments, including the Export Market Development Grants (Australian Net Benefit Requirements) Amendment Determination 2010 (No. 1), which came into effect on 4 June 2010. These amendments ensure the requirements remain relevant and effective in supporting Australian businesses in international markets.
Key Provisions
The Export Market Development Grants (Australian Net Benefit Requirements) Determination 2008 (as amended) provides the specific requirements that applicants must meet to be eligible for grants under the Export Market Development Grants Act 1997. Section 4 of the Determination outlines the conditions that applicants must satisfy to receive grants, which include demonstrating that the activities for which they are claiming expenses will result in a commercial return that is reasonably commensurate with the expenses incurred (section 4(1)(a)). Additionally, applicants must show that their business has a reasonable prospect of achieving sustainable international business success and that their activities will generate economic benefits to Australia in at least two specified areas, such as employment, new capital investment, introduction of new technologies, or new value-added operations (section 4(1)(b) and (c)).
The obligations imposed by the Determination on the parties it governs are substantial. Applicants for grants must provide detailed evidence to the Chief Executive Officer (CEO) that their business activities meet the specified Australian net benefit requirements. This includes demonstrating that the commercial returns from their activities are sufficient to warrant further public funding and that the activities will create economic benefits for Australia. Failure to meet these requirements can result in the rejection of the grant application.
In terms of consequences for breach, while the Determination itself does not explicitly outline specific offences or penalties for non-compliance, it is important to note that failure to meet the Australian net benefit requirements could result in the rejection of the grant application. Additionally, any misrepresentation or provision of false information in the application process could potentially lead to civil or criminal liability under other relevant legislation, such as the Crimes Act 1914, depending on the circumstances and the extent of the breach. The penalties for such offences can vary significantly, depending on the severity and intent behind the breach.