EXPLANATORY STATEMENT
Export Market Development Grants (Close Relationships – Events Promoters) Amendment Instrument 2016 (No. 1).
Authority
The Export Market Development Grants (Close Relationships – Events Promoters) Amendment Instrument 2016 (No. 1) is made by the Minister for Trade and Investment under paragraph 101(1)(b) of the Export Market Development Grants Act 1997 (the EMDG Act).
Purpose
This Legislative Instrument amends the Export Market Development Grants (Close Relationships – Event Promoters) Determination 2015 to update a reference to a determination which has been remade.
The Determination provides guidelines to be complied with by the Chief Executive Officer (CEO) of Austrade in forming, for the purposes of 25A(1)(c) of the EMDG Act, an opinion as to whether an events promoter is, or is not, closely related to an event holder.
Background
The EMDG Act provides for grants to eligible Australian businesses which have incurred eligible 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.
Entitlement to a grant depends on (among other things) whether the person has incurred eligible expenses in relation to 'eligible products' (section 4 of the EMDG Act). 'Eligible products' includes 'eligible events' (section 107 of the EMDG Act). Under section 25A of the EMDG Act, an event is an 'eligible event' if it meets certain requirements, including that the events promoter is not, in the opinion of the CEO of Austrade, closely related to the event holder.
With the exception of the change to a reference to the Export Market Development Grants (Close Relationships – General) Determination 2016, the Determination is the same in substance as the previous Determination.
Consultation
No consultation was undertaken in relation to this amendment, as it only updates a reference to the Export Market Development Grants (Close Relationships – General) Determination 2016. However, consultation was undertaken on the Close Relationship – General Determination.
Regulation Impact Statement
The Office of Best Practice Regulation has advised that a Regulation Impact Statement is not required (reference OBPR 20848).
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
Export Market Development Grants (Close Relationships – Events Promoters) Amendment Instrument 2016 (No. 1).
This Legislative Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2001.
Overview of the Legislative Instrument
The Legislative Instrument provides guidelines for the Chief Executive Officer of Austrade to use in forming, for the purposes of 25A(1)(c) of the EMDG Act, an opinion as to whether an events promoter is, or is not, closely related to an event holder.
Human rights implications
This Legislative Instrument does not engage any of the applicable rights or freedoms.
Conclusion
This Legislative Instrument is compatible with human rights as it does not raise any human rights issues.
Overview
The Export Market Development Grants (Close Relationships – Events Promoters) Amendment Instrument 2016 (No. 1), made by the Minister for Trade and Investment under the authority of the Export Market Development Grants Act 1997 (EMDG Act), was introduced to update a reference within the Export Market Development Grants (Close Relationships – Event Promoters) Determination 2015. This amendment ensures that the guidelines used by the Chief Executive Officer (CEO) of Austrade in determining whether an events promoter is closely related to an event holder remain current and consistent with other relevant determinations. The EMDG Act facilitates grants to Australian businesses that have promoted the export of their products, with a specific focus on ensuring that events promoters are not closely related to event holders, thereby maintaining the integrity of the export promotion process. The objective of this amendment is to align the guidelines with the Export Market Development Grants (Close Relationships – General) Determination 2016, ensuring a coherent and updated regulatory framework.
Scope and Application
The Export Market Development Grants (Close Relationships – Events Promoters) Amendment Instrument 2016 (No. 1) amends the guidelines used by the Chief Executive Officer of Austrade in determining whether an events promoter is closely related to an event holder, as required under the Export Market Development Grants Act 1997 (EMDG Act). This determination is crucial for establishing eligibility for export market development grants, specifically in relation to expenses incurred for promoting exports of Australian goods, services, intellectual property rights, and know-how. The scope of the Act applies to Australian businesses seeking grants, with a focus on ensuring that the promoter of an event is not closely related to the event holder, thereby maintaining integrity and avoiding conflicts of interest. The amendment specifically updates a reference to align with the Export Market Development Grants (Close Relationships – General) Determination 2016, reflecting the ongoing legislative intent to refine and clarify guidelines for grant eligibility without altering the fundamental criteria or thresholds for grant applications.
Key Provisions
The Export Market Development Grants (Close Relationships – Events Promoters) Amendment Instrument 2016 (No. 1) amends the 2015 Determination to update a reference to the Export Market Development Grants (Close Relationships – General) Determination 2016. This amendment is made under paragraph 101(1)(b) of the Export Market Development Grants Act 1997 (EMDG Act) and is intended to ensure the guidance provided to the Chief Executive Officer (CEO) of Austrade remains current and aligned with other relevant determinations. The primary purpose of this amendment is to maintain the integrity and applicability of the guidelines used by the CEO in forming an opinion on whether an events promoter is closely related to an event holder, as required by section 25A(1)(c) of the EMDG Act.
The obligations imposed by the Amendment Instrument on the CEO of Austrade are to follow the updated guidelines in determining whether an events promoter is closely related to an event holder. These guidelines are crucial in assessing the eligibility of events promoters for grants under the EMDG Act, ensuring that the grants are awarded to those who genuinely promote Australian goods, services, intellectual property rights, and know-how without undue influence from the event holder. The CEO must use the amended Determination as a reference point in making these assessments, ensuring consistency and fairness in the grant application process.
Failure to comply with the guidelines set out in the amended Determination could result in improper grant eligibility decisions, potentially leading to financial losses for the Australian government and unfair advantages for ineligible entities. While the Amendment Instrument itself does not outline specific offences or penalties, non-compliance with the guidelines could lead to broader consequences under the EMDG Act, including the recovery of improperly awarded grants and potential administrative or legal action against Austrade or the events promoter. The maximum penalties for breaches under the EMDG Act could include financial penalties or other sanctions as deemed appropriate by the relevant authorities.
The Amendment Instrument is also accompanied by a Statement of Compatibility with Human Rights, affirming that the instrument is consistent with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011. This statement underscores that the amendment does not engage any of the applicable rights or freedoms, thereby ensuring that the legislative changes do not infringe upon human rights. Overall, the amendment seeks to streamline the grant application process by updating outdated references, thereby facilitating more accurate and transparent assessments of grant eligibility for events promoters.