Export Market Development Grants Determination of the Payout Factor for Grant Year 2018-19

Overview

The Export Market Development Grants Act 1997 was enacted to facilitate the economic growth and diversification of Australia's export market through financial support for Australian businesses seeking to develop new export markets or expand their presence in existing markets. The Act was introduced to address the need for financial assistance to help businesses overcome the initial costs and risks associated with entering or expanding in overseas markets. This support is intended to leverage private investment and create sustainable economic benefits for the Australian economy. The determination of the payout factor for the grant year 2018-19, set at 1.0 by Dominic Bilbie, Assistant General Manager – Client Programs, Australian Trade and Investment Commission, ensures that businesses receive the full amount of their approved grants without any reduction, thereby maximising the impact of government support on their export activities. This determination was made pursuant to the authority granted under section 69 of the Act and is aimed at fulfilling the policy objective of providing effective and efficient financial assistance to eligible businesses.

Scope and Application

The Export Market Development Grants Act 1997 applies to entities that are eligible for export market development grants, including Australian businesses that are seeking to develop new export markets or expand their presence in existing markets. This Act, which is a Commonwealth legislation, provides financial assistance to eligible entities to support activities that promote the development of new export markets or the expansion of existing markets. The Act applies across Australia and to Australian entities engaged in export activities, regardless of where the markets are located globally. Notably, the Act excludes certain entities from eligibility, such as those involved in the export of certain goods and services that are deemed sensitive or restricted. The application and scope of the Act can be further defined and refined through subordinate instruments, such as regulations or guidelines, which can specify additional eligibility criteria, assessment processes, or reporting requirements. The payout factor for the grant year 2018-19, as determined under this Act, has been set at 1.0, meaning that eligible entities will receive the full amount of the grant they are entitled to for the specified period.

Key Provisions

The Export Market Development Grants Act 1997 (the Act) governs the provision of grants aimed at supporting Australian businesses in developing new export markets. Section 69 of the Act allows the Assistant General Manager – Client Programs of the Australian Trade and Investment Commission to determine the payout factor for each grant year, which effectively sets the maximum allowable amount of grant funding an eligible entity can receive. For the grant year 2018-19, the payout factor has been determined to be 1.0, meaning that eligible entities can receive the full amount of grant funding they are entitled to under the Act (section 69). Under the Act, entities seeking to benefit from the Export Market Development Grants must meet specific eligibility criteria and apply through the prescribed processes. Eligible entities are typically Australian businesses that have a genuine need for assistance in developing new export markets. The application process requires detailed information about the business, the proposed export market development activities, and the expected outcomes. The Australian Trade and Investment Commission reviews these applications and assesses them based on the criteria set out in the Act. Once approved, the grants are intended to support activities such as market research, participation in trade missions, and other initiatives designed to facilitate the expansion of Australian businesses into new international markets. Failure to comply with the requirements of the Act can lead to various consequences, including financial penalties and potential legal action. Section 70 of the Act provides for the imposition of fines for breaches of the Act, with the maximum penalty varying depending on the nature and severity of the breach. Additionally, the Australian Trade and Investment Commission has the authority to recover any funds that have been incorrectly paid under the Act. In more serious cases, breaches of the Act may also have civil or criminal implications, depending on the circumstances and the intent behind the breach. These consequences are intended to ensure that the grant program is administered fairly and effectively, and that funds are used for their intended purpose of supporting Australian businesses in expanding their export activities. In summary, the Export Market Development Grants Act 1997 provides a framework for the distribution of grants to support Australian businesses in developing new export markets. The determination of the payout factor for the grant year 2018-19, set at 1.0, allows eligible entities to receive the full amount of grant funding to which they are entitled. The Act imposes specific obligations on applicants and the Australian Trade and Investment Commission in the application and review process. Breaches of the Act can result in financial penalties, recovery of incorrectly paid funds, and potential civil or criminal consequences, depending on the nature and severity of the breach.