Export Market Development Grants Regulations (Amendment) 1991 No. 45
EXPLANATORY STATEMENT STATUTORY RULES 1991 No. 45
Issued by the Authority of the Minister for Industry, Technology and Commerce Export Market Development Grants Act 1974
Export Market Development Grants Regulations (Amendment)
These Regulations provide for eligible internal services, eligible tourism services, extend the range of eligible services, provide a maximum grant for approved trading houses and repeal redundant Schedules.
Regulation 1: Commencement
Provides that the Regulations are deemed to have commenced on 1 July 1990. This retrospective effect makes the Regulations consistent with the amendments to the Export Market Development Grants Act 1974 (the Act) enacted by the Export Market Development Grants Amendment Act (No. 2) 1990.
Regulation 2: Amendment
This is a declaratory provision.
Regulation 3: Regulation 2 (Interpretation)
Inserts definitions of 'legal service', 'overseas legal service', 'tourist attraction' and 'transfer service' for the purposes of these Regulations.
Regulation 4: New regulation 3
Inserts a new regulation 3 which sets the maximum annual grant under the Act for an approved trading house at $500,000.
Regulation 5: New regulations 7A and 7B
Inserts new regulations 7A and 7B.
New regulation 7A provides that the services specified in new Schedule 1 are eligible internal services.
New regulation 7B provides that the services specified in new Schedule 2 are eligible tourism services.
Regulation 6: Repeal of Schedules 1, 2 and 2A
Repeals Schedules 1, 2 and 2A which are redundant. Regulation 7: New Schedules 1 and 2
Inserts new Schedules 1 and 2.
New Schedule 1 - Eligible Internal Services sets out the types of services which are eligible internal services. These are services supplied in Australia to persons resident outside Australia relating to:
the repair, maintenance, modification or overhaul of goods imported for this purpose;
human health care;
film making and sound recording;
design, graphics, printing, lithographs, painting, drafting and modelling;
scientific or technical testing or analysis, research or trials;
processing of agricultural or mineral products imported for the purpose and subsequently exported; and
legal and dispute resolution services, excluding certain areas such as dealings in real property, matrimonial causes and migration.
New Schedule 2 - Eligible Tourism Services - sets out the services which constitute eligible tourism services, being the provision within Australia to a non-resident of Australia for an all-inclusive price of at least three of the following amenities:
land passenger transport;
water passenger transport;
air passenger transport;
accommodation;
an escorted tour; and
admission to a tourist attraction. Regulation 8: Schedule 4 (Eligible Services)
Regulation 8 adds to Schedule 4 - Eligible Services - new items 10 to 14 relating to the supply outside Australia of the following services:
legal and dispute resolution services, excluding certain areas such as dealings in Australian real property, matrimonial causes and migration;
the repair, maintenance, modification or overhaul of goods owned by non- Australian residents;
environment protection and pollution control services in respect of overseas places;
technical or advisory services in respect of the processing, outside Australia, of agricultural products; and
the recruitment of Australian labour to work on overseas projects.
Overview
The Export Market Development Grants Regulations (Amendment) 1991 No. 45 was enacted to provide clarifications and amendments to the Export Market Development Grants Act 1974. This statutory rule, issued under the authority of the Minister for Industry, Technology and Commerce, aims to update the regulations to reflect changes in the types of services eligible for grants and to streamline the regulatory framework by removing redundant schedules. The primary objective is to ensure that the regulatory framework remains relevant and supportive of Australian businesses engaged in export activities, particularly in the context of expanding the range of eligible services and setting maximum grant amounts for approved trading houses.
These regulations introduce new definitions and categories of eligible services, both internal and tourism-related, and establish a maximum annual grant for approved trading houses at $500,000. By incorporating these updates, the legislation seeks to foster a more dynamic and competitive export market, facilitating growth and innovation in service sectors that contribute to Australia's international trade.
Scope and Application
The Export Market Development Grants Regulations (Amendment) 1991 No. 45 amends the Export Market Development Grants Regulations to align with the changes introduced by the Export Market Development Grants Amendment Act (No. 2) 1990. These regulations apply to entities and persons seeking grants under the Export Market Development Grants Act 1974. They specify eligible services, including internal services such as repair, maintenance, and health care, as well as tourism services like transport and accommodation, provided to non-residents in Australia or overseas. The regulations also set a maximum annual grant of $500,000 for approved trading houses and exclude certain legal services such as real property dealings, matrimonial causes, and migration. The amendments are effective from 1 July 1990 and extend the scope of eligible services to support export market development, while repealing redundant schedules.
Key Provisions
The Export Market Development Grants Regulations (Amendment) 1991 No. 45 amends the Export Market Development Grants Act 1974 by introducing new provisions and repealing outdated schedules. The main sections of this amendment introduce definitions of specific terms such as 'legal service', 'overseas legal service', 'tourist attraction' and 'transfer service' (Regulation 3). It also sets a maximum annual grant for approved trading houses at $500,000 (Regulation 4) and specifies eligible internal services and eligible tourism services in new Schedules 1 and 2 (Regulations 5 and 7). Additionally, it repeals the old Schedules 1, 2 and 2A as they are redundant (Regulation 6).
The obligations and requirements imposed by these regulations on the parties governed by the Act include the adherence to the newly defined terms and the provision of specified services that are eligible for grants. For instance, businesses must ensure that the services they offer are correctly classified as eligible internal or tourism services as outlined in the new schedules. Approved trading houses must also remain within the stipulated maximum annual grant of $500,000. The regulations require that all grant applications be consistent with these new provisions and definitions.
In terms of legal consequences for non-compliance, while the explanatory statement does not explicitly detail offences, penalties or consequences for breach, it is implied that any non-compliance with the provisions of these regulations could result in denial of grants or other legal ramifications under the Export Market Development Grants Act 1974. The maximum penalty for any breach could potentially be severe, depending on the nature and severity of the breach, and would be in accordance with the provisions of the primary Act.