Export Market Development Grants (Close Relationships — Events Promoters) Determination 2015

Overview

The Export Market Development Grants (Close Relationships — Events Promoters) Determination 2015, enacted under paragraph 101 (1) (b) of the Export Market Development Grants Act 1997, was introduced to address the problem of determining the relationship between events promoters and event holders for the purposes of eligibility for export market development grants. This legislation, administered by the Australian Trade Commission, aims to provide clear guidelines for the CEO of Austrade when assessing whether an events promoter is closely related to an event holder. The policy objective is to ensure that grants are awarded fairly and to entities that are genuinely separate, thereby preventing artificial arrangements designed solely to qualify for the grants. The determination came into effect on 1 July 2015 and has been amended to incorporate changes up to and including the Export Market Development Grants (Close Relationships – Event Promoters) Amendment Instrument 2016 (No. 1), which came into effect on 1 July 2016.

Scope and Application

The Export Market Development Grants (Close Relationships — Events Promoters) Determination 2015 applies to the Chief Executive Officer of Austrade when determining if an events promoter is closely related to an event holder for the purposes of granting export market development grants. This applies to entities engaged in promoting events for potential export markets, and the determination sets out the guidelines for assessing such relationships. The instrument is effective from 1 July 2015, with amendments coming into force on 1 July 2016. It does not apply to the Export Market Development Grants (Close Relationships — Events Promoters) Determination 2002, which remains in effect for grant years commencing between 1 July 2002 and 30 June 2015. The scope of the Determination is limited to entities involved in event promotion and is not extended or restricted by subordinate instruments.

Key Provisions

The Export Market Development Grants (Close Relationships — Events Promoters) Determination 2015, as amended, provides a framework for determining whether an events promoter is closely related to an event holder for the purposes of the Export Market Development Grants Act 1997 (section 4). This determination applies to the CEO of Austrade, who must consider various factors in forming an opinion on the relationship between an events promoter and an event holder (section 5). The CEO must take into account the connection between the two parties, the extent of control or influence each can exercise over the other, the duration of the events promoter’s operations, whether the event holder is the only client, whether the promoter actively solicits other clients, and whether the promoter only promotes a single event (section 5(a)-(f)). Additionally, specific circumstances dictate the closeness of the relationship, such as if the promoter is not genuinely separate from the holder, if corporate arrangements are artificially designed to qualify for a grant, or if both parties fall under the Export Market Development Grants (Close Relationships — General) Determination 2016 (section 6(a)). Conversely, the CEO may form the opinion that the parties are not closely related if the promoter is engaged on a competitive commercial basis, if the promoter was not set up solely to promote the event holder’s event, and if there is no mutual control between the promoter and the holder (section 6(b)). The obligations under this determination require the CEO of Austrade to meticulously evaluate the relationship between events promoters and event holders, considering the outlined factors and circumstances. This evaluation process is integral to ensuring that the grant allocation process adheres to the legislative intent of promoting fair and competitive practices within the export market development sector. The CEO must document the rationale behind their opinion, ensuring transparency and accountability in the decision-making process. Failure to comply with the provisions of this determination may not directly result in specific offences or penalties as outlined in the text. However, any misinterpretation or non-compliance could potentially lead to disputes over grant eligibility, which might be subject to judicial review or internal administrative review processes. Such non-compliance could also undermine the integrity of the grant allocation process, leading to broader administrative or reputational consequences for Austrade. In summary, this determination sets clear guidelines for the CEO of Austrade to assess the relationship between events promoters and event holders. It imposes a duty to consider various factors and specific circumstances to form an informed opinion, ensuring that grant eligibility is determined fairly and in accordance with the legislative intent. While the text does not explicitly outline penalties for non-compliance, the importance of adhering to these guidelines is underscored by the potential administrative and reputational impacts on Austrade.