Explanatory Memorandum
(Circulated by authority of the Minister for Trade and Investment, the Hon Andrew Robb AO MP)Outline
This Bill is for an Act to amend legislation relating to export and trade, and for other purposes.
Schedule 1 of this Bill amends the Export Market Development Grants Act 1997 to give effect to several key recommendations resulting from the 2015 Review of the Export Market Development Grants (EMDG) scheme. It also makes minor policy and technical amendments to improve the operation of the Export Market Development Grants Act 1997, and delivers savings to align the scheme closer to its budget.
The purpose of Schedule 1 of this Bill is to amend the Export Market Development Grants Act 1997 (the Act) to:
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- Remove communications as an eligible expenditure category to reflect the reduced cost of communications as a result of advances in technology
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- Place a limit of $15,000 on the free sample expenditure category, noting that for claimants that are combining two years of expenditure, and one of these years is the 2015-16 financial year, no limit applies
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- Describe the promotional literature or other advertising expenditure category so that it mentions literature or material in electronic or any other form
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- Repeal the provision allowing for the reimbursement of in-country travel (other than air fares) and change the amount of the daily allowance for overseas visits from $300 to $350
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- Add to the list of excluded expenses those relating to eligible promotional activities, things or eligible products that the CEO of Austrade considers may have had a detrimental impact on Australia's trade reputation.
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- Permit Austrade to direct funds from other sources towards EMDG administration costs.
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- Remove the requirement that the independent review of the scheme is to be conducted with a stipulated commencement date for the specific purpose of making recommendations about the continuity of the scheme. Instead, set the date by which the next review is to be completed and that later review completion dates are to be determined by the Minister
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- Amend the definition of a grant year, which is currently up to 30 June 2016, so that the scheme can continue beyond that date.
Schedule 2 of this Bill amends the Australian Trade Commission Act 1985, changing the Commission's name from the Australian Trade Commission to the Australian Trade and Investment Commission, and makes consequential changes to other Acts as a result of this change.
The purpose of Schedule 2 of this Bill is to better reflect both the agency's significant role in promoting and attracting foreign investment and the priority the Government has placed on attracting foreign investment to secure Australia's future prosperity.
It is not proposed to change the corporate moniker 'Austrade' as this name and brand carries significant goodwill with business in Australia.
Financial Impact
Schedule 1: Expenditure under the Export Market Development Grants Act 1997 is set through annual Appropriation Acts. A capping mechanism ensures that expenditure under the scheme is limited to the amount appropriated.
Schedule 2: The changes to the Australian Trade Commission Act 1985 have negligible financial impact. They are limited to rebranding stationery, official documents and events, the great majority of which can be changed on line.