Commonwealth of Australia Explanatory Memoranda Commonwealth of Australia Explanatory Memoranda[Index] [Search] [Download] [Bill] [Help]
2002
THE PARLIAMENT OF THE COMMONWEALTH OF
AUSTRALIA
HOUSE OF REPRESENTATIVES
EXPLANATORY MEMORANDUM
(Circulated
by authority of the Minister for Trade, The Hon Mark Vaile MP)
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.
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.
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
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 ÷ 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.