EXPLANATORY STATEMENT
STATUTORY RULES 1985 No. 370
Regulations under the Export Market Development Grants Act 1974
Issued under the Authority of the Minister for Trade
Section 43 of the Export Market Development Grants Act 1974 provides that the Governor-General may make Regulations not inconsistent with the Act, prescribing all matters required or permitted by the Act to be prescribed for carrying out or giving effect to the Act.
Regulation 2 is amended to include new definitions as a consequence of introducing educational and health services and deleting tourist services.
Regulation 7 is repealed as a consequence of deleting tourist services and a new provision introduced to allow for the collection of information of a statistical nature.
Regulation 8 is proposed to introduce eligible internal educational services into the scheme.
Regulation 9 is proposed so as to exclude statutory authorities from the scheme.
Regulation 10 is proposed so as to exclude statutory authorities from the scheme except those that supply eligible educational services.
Schedule 4 to the Principal Regulations is proposed to be amended to bring the wording into line with the text of the Export Market Development Grants Act, to clarify the eligibility of technical services in the field of transport and to include educational and health care services as eligible.
The decisions to amend the EMDG scheme and the date of introduction were taken in the context of the initial expenditure savings measures for the 1985-86 Budget, announced by the Treasurer in his Economic Statement to Parliament on 14 May 1985. In order to secure savings over the full financial year commencing on 1 July 1985, every Government program was subjected to extensive review and cuts were made across many programs at that time.
Section 43(6) of the EMDG Act provides that Regulations made after the day on which the Export Market Development Grants Amendment Act 1985 received the Royal Assent and before 1 January 1986 are to have taken effect from 20 May 1985.
These Regulations therefore have retrospective application to enable suppliers of these services to receive benefits under the Act in relation to eligible expenditure incurred since 20 May 1985. On the basis that the announcement of the changes was made prior to the commencement of the 1985-86 grant year, it is considered the proposed Regulations do not prejudice the rights nor impose any liabilities on any person and their retrospective application therefore is not precluded by sub-section 48(2) of the Acts Interpretation Act.
Overview
The Export Market Development Grants Act 1974 was enacted to address the need for government support in aiding Australian businesses to develop and enter new export markets. This Act provides financial assistance in the form of grants to eligible businesses to help them overcome the costs and risks associated with expanding into international markets. The legislation was introduced by the Parliament of Australia, with the aim of enhancing the competitiveness of Australian goods and services abroad and thereby contributing to the overall economic growth of the nation. The 1985 Statutory Rules amended the regulations under this Act to include new definitions, introduce educational and health services into the scheme, and exclude tourist services, reflecting a policy objective of redirecting support towards sectors with greater potential for economic growth and job creation. These amendments were made in the context of budget savings measures for the 1985-86 financial year, aiming to streamline the grant scheme while ensuring that it remains effective in supporting key industries.
Scope and Application
The Export Market Development Grants Act 1974, as amended by the Export Market Development Grants Amendment Act 1985, applies to entities and persons involved in the export of goods and services from Australia. The Act, through its statutory rules, governs the provision of grants to support the development of new export markets for Australian goods and services. The Act's jurisdiction is federal, applying across the Commonwealth of Australia. The application of the Act is extended through subordinate instruments, such as the regulations made under section 43 of the Act, which provide detailed guidance on the administration of the grant scheme. These regulations specify eligibility criteria, which include certain industries and services, such as educational and health services, while excluding others like tourist services. Statutory authorities are generally excluded from the scheme, except when they supply eligible educational services. The regulations have a retrospective application, enabling benefits to be provided for eligible expenditure incurred since 20 May 1985, as announced in the 1985-86 Budget.
Key Provisions
The statutory rules outlined in the document primarily modify the existing Export Market Development Grants (EMDG) scheme, as governed by the Export Market Development Grants Act 1974. These amendments, introduced through regulations, involve changes in definitions, the scope of services covered, and the exclusion of certain entities. Regulation 2 introduces new definitions, particularly to accommodate educational and health services, while simultaneously removing definitions related to tourist services (Reg. 2). Regulation 7 is repealed in light of the deletion of tourist services, and a new provision is introduced to allow for the collection of statistical information (Reg. 7). Additionally, Regulation 8 seeks to include eligible internal educational services within the scheme (Reg. 8), while Regulation 9 generally excludes statutory authorities from the scheme (Reg. 9). However, Regulation 10 makes an exception for statutory authorities that supply eligible educational services (Reg. 10). These amendments aim to refine the eligibility criteria for services under the EMDG scheme.
The obligations imposed by these regulations primarily pertain to the entities and services eligible for grants under the EMDG scheme. Eligible entities must now adhere to the updated definitions and criteria specified in the regulations, ensuring that their services fall within the newly defined categories of educational and health services, and are distinct from tourist services. Statutory authorities are generally excluded from the scheme, except where they supply eligible educational services. This means that entities must ensure their operations align with these criteria to qualify for the benefits provided under the EMDG scheme. The regulations also impose an obligation on all eligible entities to provide the necessary statistical information as required under the new provisions introduced in Regulation 7.
Violations of the provisions set out in these regulations may result in various legal consequences. While the specific offences and penalties are not detailed in the document, breaches of the EMDG Act or its associated regulations could potentially lead to civil or criminal liabilities. The maximum penalties for such breaches could vary depending on the nature and severity of the offence. For instance, non-compliance with the grant requirements or misrepresentation of eligibility could result in financial penalties or legal action against the offending entity. It is important for entities to meticulously adhere to the updated regulations to avoid any potential legal repercussions.