Harvey Gartrell (BSI) Michael Plummer(Austrade) Ben Milner (BSI)
Michael confirmed that The Government is committed to continue to integrate Australian Business into the Global Economy, and the EMDG has been a driving force behind the success of many Australian Exporters.
A key objective of Austrade is to increase the number of exporters, increase export value and international business outcomes. To do this Austrade has recognised the important part Consultants have in helping them promote and manage the EMDG Scheme.
Austrade's focus is China, India and USA, with over 1/2 claimants exporting to USA.
There is strong industry support for the EMDG Scheme - specifically on the impact it makes to the SME Exporter. Changes have been made to take into account the Global Supply Chain, and emerging Industries such as ICT, with Austrade recognising the inevitability and the commercial reality of Australian Designs and Innovation being manufactured offshore. These changes have been legislated in S24 of the EMDG ACT
Peter Campbell Chairman CPG), Elizabeth Gamin (Austrade) and Ivan Kaye (BSI)
Elizabeth spoke about the Austrade EMDG Operations based around 4 pillars:-
- Client Service
- Relationships and Alliances - ECG, EFIC, Ausindustry, State Departments
- Minimising and Managing Risk and Fraud and Increasing Efiiciency
Seminars and promotions - EMDG getting known and used by SME Exporters. Austrade sees the Consultants role as a major part in helping with promoting this.
David Cokerell and Peter Sandilands
David spoke about various changes, issues and interpretation of policy, including.
S24 "Substantially of Australian Origin" has been streamlined
- Ministerial Guidelines
- Submission with Application
- Standard Industry Definition - does not matter where raw material is sourced.
- Goods from Primary Australian Production - allowable
- Manufactured and assembled from imp0rted product - (process or operation) - allowable - Goods made overseas from Overseas materials and assembled in Australia - ineligible
- Product sourced in Australia - manufactured offshore and then sold on - eligible (S24B) - Example tops sold to China - made into suits in Italy - eligible.
- Goods not made in Australia - if "net significant benefit to Australia" goods may be eligible.One needs to prepare a detailed, comprehensive and factual submission stating your case, why you should be eligible. Applicant needs to have a real presence in Australia - Assets/Employees/Sales/Tax in Australia
S37 - Companies that are closely related - A related entity incudes:- parent/subsidiary ;test of control ;common shareholders;director of applicant company
- The product service can be owned by a closely related company as long as the expenditure is incurred by the claimant company.
- If a Group's turnover is greater than $30m, a subsidiary with a turnover of less than $30m can still claim a grant
S55 Repealed - where previosly IP sold to a Subsidiary was not eligible. This allows for Companies to set up Subsidiaries overseas and be able to sell their products/services to Subsidiary who then onsells to customers. This is common. In USA, peole generally prefer dealing with American Corporations. One needs to make it as easy as possible for Companies to trade overseas.
S94 - If new and old businesses are similar - one takes on the history of old company - one needs to take into account Ministerial Guidelines - Business Index has been removed.
S96 - Austrade can take initiative to disallow a claim "if sole and dominant purpose of activity is in obtaining a grant." or the "claim does not stack up" or "uncommercial, unreasnable or non bona fide"
Kaye says "Section 3 of the ACT states that the EMDG is designed to help Australian Exporter make a difference." Austrade is there to help, but Exporters need to work within the guidelines of the act to maximise the EMDG. That is why it is important for an Exporter to use a Consultant, so they can work within the guidelines of the Act to maximise his claim ."