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2008-2009-2010
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
HOUSE OF REPRESENTATIVES
EXPORT MARKET DEVELOPMENT GRANTS
AMENDMENT BILL 2010
EXPLANATORY MEMORANDUM
(circulated by authority of the Minister for Trade, the Hon Simon Crean MP)
EXPORT MARKET DEVELOPMENT GRANTS AMENDMENT BILL 2010
OUTLINE
The purpose of this bill is to amend the Export Market Development Grants
Act 1997 (the Act) to:
. extend the Export Market Development Grants (EMDG) scheme so that it
applies to all grant years from 2011-12 to 2015-16 inclusive;
. reduce the maximum grant from $200,000 to $150,000;
. reduce the maximum number of grants available for an individual
recipient (other than an approved body or an approved joint venture)
from eight to seven;
. cap intellectual property registration expenses at $50,000 per
application;
. increase the minimum expenses threshold from $10,000 to $20,000;
. increase the income limit for members of approved joint
ventures/consortia from $30 million to $50 million;
. remove approved trading houses as an eligible special approval
applicant category;
. reinstate disqualifying conviction provisions in the Act that were
unintentionally removed when Criminal Code Amendment (Theft, Fraud,
Bribery and Related Offences) Act 2000 rules replaced earlier Act
disqualifying conviction provisions;
. enable Austrade to impose conditions on the accreditation of EMDG
consultants;
. amend the 'form and manner' requirements and claim lodgement deadlines
for applications submitted by accredited EMDG consultants
FINANCIAL IMPACT
Expenditure under the act is set through annual Appropriation acts. A
capping mechanism ensures that expenditure under the scheme is limited to
the amount appropriated.
EXPORT MARKET DEVELOPMENT GRANTS AMENDMENT BILL 2010
ABBREVIATIONS
EMDG Act Export Market Development Grants Act 1997
grant year The year in which expenses are incurred by a grants
applicant
Austrade Australian Trade Commission
the scheme The scheme of financial assistance to exporters covered by the
Export Market Development Grants Act 1997
NOTES ON CLAUSES
Clause 1 This Act may be cited as the Export Market Development Grants
Amendment Act 2010.
Clause 2 This Act commences on the day on which it receives Royal
Assent.
Clause 3 There is one Schedule amending the Export Market Development
Grants Act 1997.
SCHEDULE 1-Amendment of the Export Market Development Grants Act 1997
PART 1- Main amendments
Items 1 & 2
These Items remove the approved trading house applicant category from the
EMDG Act.
Item 3
The Act currently provides for applicants (except approved bodies, approved
joint ventures and approved trading houses) to receive up to eight grants.
This Item provides for applicants currently subject to the eight grant
limitation to now be entitled to receive up to seven grants with no change
to the rules for approved bodies and approved joint ventures.
Item 4
Refer Items 1 & 2
Item 5
Refer Item 3
Items 6 - 9
Refer to Items 1 & 2
Item 10
The Act currently provides for a $10,000 minimum expenses threshold. This
amendment Bill increases this amount to $20,000
Item 11
The EMDG Act currently provides for the expenses of granting, registering
or extending rights under foreign laws in relation to eligible intellectual
property to be eligible for EMDG support - refer Item 8 of the Act's
section 33 claimable expenses in respect of eligible promotional activities
table. This Item limits the expenses claimable under Item 8 of this section
33 table to $50,000 per grant year. Applicants claiming in their first
grant year will be limited to $50,000 expenses based on Item 8 of the
section 33 table expenses that are incurred in the grant year and the
immediately preceding year.
Items 12 - 16
Refer to Items 1 & 2
Item 17
Subsections 7(1)(c) and 7(4)(d) currently provide that EMDG applicants must
earn income that is not greater than $50,000,000 in the grant year.
Subsection 53(1) of the Act currently provides that expenses of an approved
joint venture are excluded if they are incurred by a joint venture member
whose income in the grant year exceeds $30,000,000. This Item aligns the
income limit rule applying to joint venture members with the income limit
rule applying to general EMDG applicants.
Items 18 & 19
Refer Item 10
Item 20
Refer Items 1 & 2
Item 21
Refer Item 10
Item 22
Under the current EMDG Act, all applicants except approved trading houses
are entitled to receive up to $200,000 per grant.
This Item reduces the maximum grant from $200,000 to $150,000. The current
$250,000 ceiling for the combined grants payable for members of related
companies groups will not change.
Items 23 to 31
Refer to Items 1 & 2
Item 32
Section 106A of the EMDG Act currently provides for a Review of the scheme
to be carried out and provided to the Minister not later than 30 June 2010.
This Review has been completed, provided to the Minister and tabled in
Parliament in accordance with this section of the Act.
This Item provides for an equivalent Review to be carried out and provided
to the Minister not later than 30 June 2015.
Item 33
Refer to Items 1 & 2
Item 34
The grant year definition at section 107 of the EMDG Act currently provides
that the last grant year for the scheme is 2010-11. This Item updates this
definition so that all grant years from 2011-12 until 2015-16 inclusive are
years for which EMDG grants can be paid.
Item 35
This Item provides that the Items 1 to 24 amendments of the Export Market
Development Grants Act 1997 in this amendment Bill apply to any grant year
that commences on or after 1 July 2010.
PART 2 - Other amendments
Item 36
The EMDG Act currently requires that grant applicants and their associates
should not be subject to relevant disqualifying conviction provisions at
the time of applying for a grant and at the time of being entitled to
receive a grant. These disqualifying conviction provisions are defined at
section 16 of the EMDG Act.
In an earlier consequential amendment of the EMDG Act resulting from the
passage of the Criminal Code Amendment (Theft, Fraud, Bribery and Related
Offences) Act 2000, its former disqualifying conviction provisions based on
Crimes Act 1914 offences were replaced by Criminal Code offences. This 2000
amendment incorrectly omitted offences against sections 137.1 and 137.2 of
the Criminal Code (formerly included in the Crimes Act 1914) in its cross
referenced list of disqualifying conviction provisions. These sections
relate to convictions of offences related to provision of false or
misleading information and false or misleading documents.
This Item reinstates this offence in its list of relevant disqualifying
conviction provisions offences.
Item 37
Under the current Act, all EMDG applicants must apply for grants within 5
months of the end of the grant year and be subject to 'form and manner'
requirements - subsection 70(2) of the Act refers.
Section 100 of the current EMDG Act provides for a scheme for the
accreditation of export market development grants consultants. No such
scheme is currently in place.
Should an accreditation scheme for export market development grants
consultants be set up, accredited consultants under the scheme may be
granted a time extension for submitting their grant applicant clients'
applications beyond the normal deadline of lodgement within 5 months of the
end of the grant year. This extension will only apply where the accredited
consultant complies with the rules and circumstances contained in a
legislative instrument to be made by the CEO of Austrade - refer Item 38.
Item 38
The CEO of Austrade may make a legislative instrument that specifies the
rules required to be met by the accredited consultants in relation to their
clients' applications. These rules might require, for example, that the
accredited consultant formally advise Austrade within a defined period of
the grant year of an intention to submit particular applications. This
legislative instrument may also specify the additional number of months
after the end of the grant year allowed for the making of EMDG
applications.
Item 39
The same disqualifying conviction provisions referred to at Item 36 also
apply to export market development grant consultants preparing applications
on behalf of their clients - sections 74 to 78 of the current Act refer.
The definition of relevant disqualifying conviction offences is updated as
described at Item 36.
Item 40
Section 100 of the EMDG Act currently provides for a scheme for the
accreditation of export market development grant consultants. No such
scheme is currently in place.
To add certainty about what provisions may be included in such an
accreditation scheme, Item 41 of this Bill broadens the accreditation
framework by enabling the CEO of Austrade to make decisions imposing
conditions on the accreditation of export market development grants
consultants or varying or removing those conditions.
This Item provides that export market development grants consultants have
appeal rights, including to the Administrative Appeals Tribunal, in
relation to any decision under an accreditation scheme to impose conditions
on the accreditation of a consultant or to vary those conditions.
Item 41
Section 100 of the EMDG Act currently provides for a scheme for the
accreditation of export market development grant consultants. No such
scheme is currently in place.
This Item broadens the accreditation framework by enabling the CEO of
Austrade to make decisions imposing conditions on the accreditation of
export market development grants consultants or varying or removing those
conditions.
Item 42
Applicants that are convicted of particular offences or whose associates
are convicted of these offences related to applications for an EMDG grant
are required to repay to the CEO of Austrade any EMDG grant amounts that
have been paid in respect of these applications - refer to current section
103 of the EMDG Act.
The particular offences are currently defined at paragraph 103(1)(a) of the
EMDG Act.
In an earlier consequential amendment of the EMDG Act resulting from the
passage of the Criminal Code Amendment (Theft, Fraud, Bribery and Related
Offences) Act 2000, the former paragraph 103(1)(a) conviction provisions
based on Crimes Act 1914 offences were replaced by Criminal Code offences.
This 2000 amendment incorrectly omitted offences against sections 137.1 and
137.2 of the Criminal Code (formerly included in the Crimes Act 1914) in
its cross referenced list of conviction provisions. These sections relate
to convictions of offences related to provision of false or misleading
information and false or misleading documents.
Item 43
The updated disqualifying conviction provisions described at Items 36 and
39 apply to grant applications made in respect of grant years commencing on
or after 1 July 2010, regardless of whether the conviction of the offence
against section 137.1 or 137.2 of the Criminal Code occurred before, on or
after the commencement of this Item. Applications involving issues of
relevant disqualifying conviction provisions in years prior to the 2010-11
grant year will not be affected by this amendment.
The Item 37 amendment relating to claims lodged by accredited export market
grants consultants applies in relation to applications made after Royal
Assent, that is, once consultants become accredited under an accreditation
scheme.
The updated Item 42 conviction provisions will apply in relation to grants
or advances paid by Austrade on or after Royal assent, regardless of
whether the conviction of the offence against section 137.1 or 137.2 of the
Criminal Code occurred before, on or after that commencement. This Item
will not apply to any grants or advances paid by Austrade prior to Royal
Assent.