EXPLANATORY STATEMENT
Export Market Development Grants (Significant Net Benefit) Guidelines 2016
Authority
The Export Market Development Grants (Significant Net Benefit) Guidelines 2016 is made by the Minister for Trade and Investment under paragraph 101(1)(baa) of the Export Market Development Grants Act 1997 (the EMDG Act).
Purpose
This Legislative Instrument details Guidelines to be complied with by Chief Executive Office (CEO) of Austrade in determining, for paragraph 24(b) of the EMDG Act, whether Australia will derive a significant net benefit from the sale of goods outside Australia.
Background
The EMDG Act provides for grants to eligible Australian businesses which have incurred eligible expenses promoting the export of their Australian goods, services, intellectual property rights and know-how. The grant is a partial reimbursement of the expenses incurred.
Entitlement to a grant depends on (among other things) whether the goods are made in Australia or for the purposes of section 24(b) of the EMDG Act where the CEO of Austrade is satisfied that Australia may still derive a ‘significant net benefit’ from the export of the goods. A separate guideline exists for goods made in Australia.
These Guidelines will assist applicants to clarify whether their goods are likely to be eligible and will increase the transparency and accountability of Austrade’s decision-making about the eligibility of goods.
Decisions in relations to the eligibility of goods for EMDG purposes are subject to review in the Administrative Appeals Tribunal.
Commencement
The Guideline is made to repeal and replace the Export Market Development Grants (Significant Net Benefit) Guidelines 2006, which is due to sunset on 1 October 2016.
The Guideline is the same in substance as the Export Market Development Grants (Significant Net Benefit) Guidelines 2006.
The Guidelines apply when working entitlement to a grant in respect a grant made on or after 1 July 2016.
Consultation
Austrade conducted extensive stakeholder consultations before remaking this instrument. All stakeholder responses supported this instrument being remade, unchanged.
Regulation Impact Statement
The Office of Best Practice Regulation has advised that a Regulation Impact Statement is not required (reference: OBPR 20848).
This Guideline is a Legislative Instrument for the purposes of the Legislation Act 2003.
This Guideline is compatible with human rights and freedoms recognised or declared under section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011. A full statement of compatibility is set out in Attachment A.
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
Export Market Development Grants (Significant Net Benefit) Guidelines 2016
This Legislative Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2001.
Overview of the Legislative Instrument
The Legislative Instrument allows the Chief Executive Officer of Austrade to determine circumstances in which Australia may still derive a ‘significant net benefit’ from the export of goods that are not made in Australia.
Human rights implications
This Legislative Instrument does not engage any of the applicable rights or freedoms.
Conclusion
This Legislative Instrument is compatible with human rights as it does not raise any human rights issues.
Overview
The Export Market Development Grants (Significant Net Benefit) Guidelines 2016 were introduced by the Minister for Trade and Investment under the Export Market Development Grants Act 1997 (EMDG Act). These Guidelines aim to provide clarity for applicants regarding the eligibility of their goods for export market development grants, ensuring that Australia derives a significant net benefit from such exports. By replacing the previous 2006 guidelines, this legislative instrument maintains the existing framework while enhancing transparency and accountability in Austrade's decision-making process. The Guidelines apply to grants made on or after 1 July 2016, with extensive stakeholder consultation supporting their unchanged remaking. This legislative instrument is compatible with human rights as it does not engage any applicable rights or freedoms.
Scope and Application
The Export Market Development Grants (Significant Net Benefit) Guidelines 2016 applies to the Chief Executive Officer (CEO) of Austrade, a government agency responsible for promoting Australian exports, in their determination of whether Australia will derive a significant net benefit from the export of goods that are not made in Australia. These guidelines are applicable to eligible Australian businesses that have incurred expenses promoting the export of goods, services, intellectual property rights and know-how. The geographical reach of these guidelines is nationwide, applying to all exports of goods that do not originate from Australia. The guidelines are made under the Export Market Development Grants Act 1997 and replace the previous guidelines that were set to sunset on 1 October 2016. The guidelines are effective from 1 July 2016 and have been made after extensive consultations with stakeholders. These guidelines do not engage any of the applicable rights or freedoms under the Human Rights (Parliamentary Scrutiny) Act 2011, and are thus compatible with human rights.
Key Provisions
The Export Market Development Grants (Significant Net Benefit) Guidelines 2016 (sections 1–3) provide the framework under which the Chief Executive Officer (CEO) of Austrade assesses whether Australia will gain a significant net benefit from the export of goods that are not made in the country. This is in accordance with section 24(b) of the Export Market Development Grants Act 1997 (EMDG Act). These guidelines serve to clarify eligibility criteria for businesses seeking grants for promoting their exports, ensuring that the decision-making process is transparent and accountable. The guidelines specifically focus on assessing significant net benefits, distinct from the criteria for goods made in Australia.
Entities and businesses seeking to avail themselves of the EMDG Act grants must adhere to the provisions outlined in these guidelines. The CEO of Austrade is tasked with determining whether the export of non-Australian-made goods will result in a significant net benefit to Australia. This assessment is critical for eligibility under the Act, and businesses must provide sufficient evidence and justification to support their claims. The guidelines are designed to streamline this process, ensuring that the evaluation is thorough and based on clear criteria.
Non-compliance with the provisions of the Export Market Development Grants (Significant Net Benefit) Guidelines 2016 could lead to disqualification from the grant program. While the Act does not explicitly state specific offences, penalties, or civil/criminal consequences for non-compliance, the process of determining eligibility involves stringent scrutiny. Decisions made by the CEO of Austrade are subject to review by the Administrative Appeals Tribunal, providing a recourse for businesses that feel their applications were unfairly rejected. This legal recourse ensures that businesses have a formal avenue to challenge and seek redress for any perceived procedural errors in the eligibility determination process.