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Export Market Development Grants Amendment Bill 2002

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2002

 

 

THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA

 

 

 

 

 

HOUSE OF REPRESENTATIVES

 

 

 

 

EXPORT MARKET DEVELOPMENT GRANTS AMENDMENT BILL 2002

 

 

 

 

 

 

 

EXPLANATORY MEMORANDUM

 

 

 

 

(Circulated by authority of the Minister for Trade, The Hon Mark Vaile MP)



 

 

 

 

 

EXPORT MARKET DEVELOPMENT GRANTS AMENDMENT BILL 2002

 

 

 
PURPOSE AND OUTLINE OF THE BILL

 

The purpose of this Bill is to amend the Export Market Development Grants Act 1997 to increase the minimum grant established by section 63 (2A) from $2,500 to $5,000.

 

This Bill will not affect the entitlements of applicants whose grants would otherwise be assessed as being $5,000 or over, but will benefit those applicants spending between $15,000 and $25,000 on eligible promotional activities during a grant year.

 

 

FINANCIAL IMPACT

 

Expenditure under the EMDG Act is capped through annual Appropriation Acts. The increase in the minimum grant will cost $0.4 million in each of the financial years 2002/2003 until and including 2005/06.

 

 

ABBREVIATIONS

 

The following abbreviations are used in this explanatory memorandum:

 

EMDG Act;    Export Market Development Grants Act 1997

Grant year;      The year in which expenses are incurred by a grants applicant

 

 

NOTES ON CLAUSES

 

Clause 1           This Act may be cited as the Export Market Development Grants Amendment Act 2002

 

Clause 2           The Act commences on the day on which it receives the Royal Assent

 

Clause 3           There is only one Schedule amending the Export Market Development Grants Act 1997



 

 

 

SCHEDULE 1 - Amendment of the Export Market Development Grants Act 1997

 

 

Item 1              This amendment provides that the current minimum grant of $2,500 established by section 63 (2A) is increased to $5,000.

 

                        Example: An applicant incurs $16,000 eligible expenses in a grant year.

 

Applying the standard formula as outlined at subsection 63(1) of the Act to calculate the applicant’s provisional grant:

 

                        $16,000 ΒΈ 2 = $8,000

 

$8,000 - $7,500 = $500

 

Because the applicant’s provisional grant is less than $5,000, this amendment to section 63 (2A) provides for its provisional grant amount to be increased to $5,000, rather than only to $2,500 as currently applies.

 

The other provisions of section 63 are unaffected by this amendment.

 

Item 2                           The amendments made by Item 1 (increased amount of minimum grant) apply in relation to a grant year that commences on or after 1 July 2001.