Export Market Development Grants Determination of the Payout Factor for Grant Year 2017-18

Overview

The Export Market Development Grants Act 1997 was enacted by the Parliament of Australia to address the need for financial assistance and support to Australian businesses aiming to develop and enter new export markets. This legislation aimed to fill the gap in funding for market development activities, enabling businesses to overcome the significant costs and risks associated with international trade. The Act facilitates the provision of grants to eligible entities to assist in the preparation and execution of export market development activities. In the context of this particular determination, the Assistant General Manager, Client Programs, Australian Trade and Investment Commission, has exercised powers under the Act to establish the payout factor for the grant year 2017-18, ensuring that the allocation of funds aligns with the policy objectives of the Act by providing a transparent and consistent approach to grant distribution.

Scope and Application

The Export Market Development Grants Act 1997 applies to entities, primarily businesses and organisations, that seek to enhance their export activities through the receipt of grants. The Act facilitates the allocation of funds to support initiatives aimed at developing and expanding markets for Australian exports, thereby fostering economic growth and enhancing global competitiveness. This legislation is enacted at the Commonwealth level, thus it has a national reach across Australia. The Act does not specify any exclusions or exemptions; however, it provides for the establishment of various payout factors, which are determined by subordinate instruments to ensure the effective allocation of grant funds. In this regard, the payout factor for the grant year 2017-18 was determined by the Assistant General Manager, Client Programs, Australian Trade and Investment Commission, under the authority vested in them by section 69 of the Act. This determination ensures that the grants are distributed in a manner that reflects the financial circumstances and needs of the entities involved.

Key Provisions

The Export Market Development Grants Act 1997 outlines the framework for providing grants to assist Australian businesses in developing new export markets or expanding existing ones. Section 69 of the Act provides the authority for determining the payout factor for each grant year, which essentially serves as the percentage of the total application amount that will be paid out to successful applicants. For the grant year 2017-18, this determination was made under the authority of the Assistant General Manager, Client Programs, Australian Trade and Investment Commission, who set the payout factor at 0.2459723 (s. 69). This means that if an applicant was approved for a certain amount, they would receive 24.59723% of that amount as a grant. The Act imposes certain obligations on the Australian Trade and Investment Commission and applicants for grants. The Commission must assess applications based on the criteria set out in the Act and determine the payout factor for each grant year (s. 69). Applicants, on the other hand, must provide detailed information about their proposed export activities, including market research and a financial plan, to ensure that their projects are viable and likely to benefit from the grant (s. 67). Furthermore, successful applicants must use the grant funds strictly for the purposes outlined in their application and report back on the outcomes of their export activities (s. 70). Failure to comply with the provisions of the Export Market Development Grants Act 1997 can result in civil or criminal penalties. For instance, applicants who provide false or misleading information in their grant applications may be subject to fines under the Commonwealth Crimes Act 1914, which can amount to up to $222,000 for individuals or $1,110,000 for bodies corporate (s. 13.1). Additionally, the Act itself does not specify any particular penalties for non-compliance, but it does empower the Australian Trade and Investment Commission to take action against applicants who misuse grant funds, including the recovery of any amounts paid out under the Act (s. 70). The seriousness of the breach would determine the specific consequences, which could range from financial penalties to legal action.