Export Market Development Grants Determination of the Payout Factor for Grant Year 2014-15

Overview

The Export Market Development Grants Act 1997 was enacted to provide financial assistance to Australian businesses seeking to develop and expand their export markets. This Act was introduced to address the need for support mechanisms that would enable Australian businesses to overcome the barriers and challenges inherent in entering and sustaining their presence in international markets. The policy objective behind the Act is to foster economic growth and employment opportunities by enhancing the competitiveness of Australian goods and services abroad. The determination of the payout factor for the grant year 2014-15, as signed by Chris Stamford, Acting General Manager of the Export Market Development Grants (EMDG) at the Australian Trade and Investment Commission, reflects the statutory authority granted under section 69 of the Act to ensure the effective administration and application of the financial assistance provided.

Scope and Application

The Export Market Development Grants Act 1997 applies to entities engaged in activities that involve the export of goods or services from Australia. It provides for the grant of financial assistance to these entities to help develop new and existing export markets. The Act operates on a Commonwealth level, meaning it applies across Australia and is enforced by the Australian Trade and Investment Commission. The geographic reach of the Act is therefore national, and it applies to all entities involved in export activities regardless of state or territory boundaries. The Act provides specific mechanisms for determining the payout factor for grant years, which is a critical component in calculating the financial assistance to be provided to eligible entities. The recent determination of the payout factor for the 2014-15 grant year by Chris Stamford, Acting General Manager of the Export Market Development Grants, is an example of how the Act is applied and enforced. There are no specific exclusions or thresholds mentioned in the text, though the application and distribution of grants may be influenced by various factors and conditions set out in subordinate instruments.

Key Provisions

The Export Market Development Grants Act 1997 (EMDGA) governs the administration of export market development grants, which aim to support Australian businesses in expanding into new and existing overseas markets. Section 69 of the Act allows the Acting General Manager of the Australian Trade and Investment Commission to determine the payout factor for each grant year. This year, the payout factor for the grant year 2014-15 has been set at 0.7266020, as determined by Chris Stamford in the Determination (Gazette C2016G00864). Under the EMDGA, the primary obligation for the Australian Trade and Investment Commission is to administer the grants in a manner consistent with the objectives of the Act. This involves ensuring that eligible applicants receive grants to facilitate their export activities. Section 10 of the Act outlines the criteria for eligibility, including that the applicant must be an Australian business with a demonstrated need for assistance in entering or expanding in an export market. Additionally, the Act mandates that the grants be used for specific purposes, such as market research, participation in trade missions, and promotional activities in target markets. Breaches of the EMDGA may lead to civil or criminal consequences, depending on the nature and severity of the violation. Section 126 of the Act stipulates that individuals or entities found to have misused grant funds may be subject to financial penalties. The maximum penalty for misuse of funds is outlined in the Crimes Act 1914, where a person can be fined up to $21,000 or imprisonment for up to two years, or both, for each offence. Furthermore, section 127 imposes additional penalties for fraudulent conduct, where penalties can extend to $105,000 or imprisonment for up to ten years, or both, for each offence. These provisions ensure that the integrity of the grant program is maintained and that funds are used for their intended purposes. In summary, the Export Market Development Grants Act 1997 establishes the framework for the administration of export market development grants, with the payout factor for the 2014-15 grant year set at 0.7266020. The Act imposes obligations on the Australian Trade and Investment Commission to ensure that grants are awarded to eligible applicants for specified purposes. Violations of the Act, particularly misuse of funds or fraudulent conduct, carry significant civil and criminal penalties, reinforcing the importance of compliance with the legislative requirements.