Commonwealth Numbered Acts

EXPORT MARKET DEVELOPMENT GRANTS ACT 1974 No. 154 of 1974 - SECT 4

4. (1) Subject to the succeeding provisions of this section, a reference in
this Act to eligible expenditure is a reference to expenditure incurred
primarily and principally for the purpose of creating or seeking
opportunities, or creating or increasing demand, for-

   (a)  the sale for export, or export and sale, of eligible goods that have
        been manufactured, produced, assembled, processed or packed, or graded
        and sorted, in Australia;

   (b)  the sale, outside Australia, of eligible goods that have been
        manufactured, produced or assembled outside Australia (other than
        goods referred to in paragraph (a));

   (c)  the supply, for reward, in the course of carrying on business in
        Australia, to persons resident outside Australia, of services (not
        including know-how, but including technical advice, training or
        assistance other than know-how) outside Australia; or

   (d)  the disposal, for reward, in the course of carrying on business in
        Australia, to persons resident outside Australia, for use and
        enjoyment outside Australia, of industrial property rights or of
        know-how that has, to a substantial extent, resulted from research or
        other work performed in Australia, but does not include so much of any
        expenditure incurred by a person as-

   (e)  has been, or is to be, paid or reimbursed to him by another person or
        by the Government of Australia or of a State; or

   (f)  is incurred in connexion with services, or the doing of any thing, for
        which he has been, or is to be, paid by another person or by the
        Government of Australia or of a State.
(2) For the purposes of this section, "expenditure" means expenditure to the
extent to which it is incurred by a claimant, or an association referred to in
sub-section (3), by way of-

   (a)  expenses of, contributions towards expenses of, or payments made to an
        agent for the purpose of-

        (i)    the carrying out of market research or the obtaining of market
               information; or

        (ii)   advertising or other means of securing publicity or soliciting
               business,

not being amounts paid or payable to-

        (iii)  a person ordinarily employed in Australia by the claimant or an
               associated company, or by the association, as the case may be,
               in respect of services performed by him in Australia or in the
               course of a visit from Australia to a place or places outside
               Australia;

        (iv)   a director of the claimant, where the claimant is a company;

        (v)    a director of an associated company; or

        (vi)   an associated company carrying on business in Australia;

   (b)  expenses (including costs of delivery) directly attributable to
        providing, without charge, samples or technical information to a
        person outside Australia;

   (c)  expenses directly attributable to the making of investigations and the
        preparation of information, designs, estimates or other material for
        the purpose of the submission by the claimant of a tender or quotation
        for the supply by the claimant of services or of eligible goods that
        are not of the same kind and specification as goods that are being
        regularly dealt with by the claimant;

   (d)  expenses directly attributable to the selection or designing of, or of
        materials for, packaging and labelling for use exclusively in
        connexion with the export of eligible goods; or

   (e)  expenses (whether by way of payment of fees or otherwise) directly
        attributable to obtaining, or seeking to obtain, under the law of a
        country outside Australia, the grant or registration of, or the
        extension of the term of, or of the period of registration of, any
        industrial property rights, but not including-

   (f)  expenditure of a capital nature, other than-

        (i)    expenses of the kind referred to in paragraph (d) or (e); or

        (ii)   expenditure incurred in relation to disposals of the kind
               referred to in paragraph (1) (d);

   (g)  expenses, other than fares, in respect of travel, accommodation,
        sustenance or entertainment in respect of or in relation to a visit
        from Australia to a place or places outside Australia by the claimant
        or by a prescribed agent of the claimant or of the association
        ordinarily employed or carrying out duties in Australia;

   (h)  except to the extent provided in paragraph (c), expenses of the
        preparation or submission of tenders or quotations;

   (i)  expenses of advertising in Australia in relation to the supply of
        services outside Australia;

   (j)  commission or other remuneration, paid or payable otherwise than by
        way of salary, retainer or fee, in respect of sales or other
        disposals;

   (k)  remuneration by way of salary, retainer or fee, to the extent that the
        remuneration is determined, directly or indirectly, by reference to
        the extent or value of sales or other disposals made, or business
        obtained by, the person to whom the remuneration is paid or payable;

   (l)  discounts or credits, or amounts in the nature of discounts or
        credits, allowed or paid in relation to sales or other disposals; or

   (m)  amounts paid or payable by way of tax, levy or other contribution
        under a law of Australia or of a State or internal Territory or to a
        prescribed body.

(3) Where-

   (a)  a claimant has paid any moneys to an association, other than a
        prescribed body, as the whole or part of a subscription, contribution
        or levy; and

   (b)  the Board is satisfied that those moneys have been or will be applied
        by the association by way of eligible expenditure, those moneys shall,
        for the purposes of this section, be deemed to be an amount of
        eligible expenditure incurred by the claimant at the time when they
        were so paid.

(4) Where 2 or more persons who are prescribed agents of a claimant and are
relatives of each other travel outside Australia at the same time, the
eligible expenditure of the claimant does not include-

   (a)  if the claimant himself is one of those persons-the fares of any other
        of those persons who is not a permanent employee of the claimant;

   (b)  if the claimant himself is not one of those persons, but those persons
        include a permanent employee of the claimant-the fares of any of those
        persons who is not a permanent employee of the claimant; and

   (c)  if none of those persons is either the claimant himself or a permanent
        employee of the claimant-the fares of any of those persons, other than
        such one of them as the claimant nominates by notice in writing to the
        Board, but this sub-section does not operate to exclude the fares of a
        person if the Board is satisfied that there are special circumstances
        by reason of which those fares should not be so excluded.

(5) Where the amount of any expenditure constituting or forming part of any
eligible expenditure exceeds the amount that, in the opinion of the Board,
would reasonably be expected to be payable, in the ordinary course of
business, for the purpose or purposes for which the expenditure was incurred,
the Board may, for the purposes of this section, treat the expenditure as
being reduced by the amount of the excess.

(6) Where, in connexion with any eligible expenditure incurred by a claimant,
there is or has been an agreement or arrangement between the claimant and
another person or persons-

   (a)  in accordance with which the consideration received or receivable by
        the claimant in respect of the disposal of any goods, services,
        industrial property rights or know-how was or is greater than it would
        have been if that expenditure had not been incurred; and

   (b)  a purpose of which was, or an effect of which would, but for this
        sub-section, be, to enable the claimant to obtain a grant in respect
        of expenditure for which he will be compensated by the increased
        consideration, the expenditure shall, for the purposes of this
        section, be deemed to have been reimbursed to the claimant by another
        person to the extent of, or, where the case so requires, to the extent
        of an amount determined by the Board to be a reasonable estimate of,
        the amount by which the consideration referred to in paragraph (a) was
        or is greater, by reason of that expenditure, than it would otherwise
        have been.

(7) Where an amount paid or payable during a grant year by a claimant that is
a member of a group of corporations to, or to a director or employee of,
another member of the group would, but for sub-paragraph (iii), (v) or (vi) of
paragraph (a) of sub-section (2), be eligible expenditure incurred by the
claimant, the Board may, if it is satisfied that there are special
circumstances to justify its so doing, treat the whole or part of the amount
as eligible expenditure incurred by the claimant during that year.

(8) In this section, unless the contrary intention appears-



"associated company", in relation to a claimant, means a company that is, at
any time during the relevant grant year, a company-

   (a)  the operations of which are, or are able to be, controlled, either
        directly or indirectly, by the claimant;

   (b)  which controls, or is able to control, either directly or indirectly,
        the operations of the claimant; or

   (c)  the operations of which are controlled, or are able to be controlled,
        either directly or indirectly, by a person who controls or is able to
        control, or persons who control or are able to control, either
        directly or indirectly, the operations of the claimant;



"permanent employee", in relation to a claimant, means a person who has been a
full-time employee of the claimant for a continuous period of not less than 5
years immediately preceding the time in relation to which the expression is
used;



"prescribed agent" means-

   (a)  in relation to a claimant other than a company, except where paragraph
        (c) applies-the claimant himself or an employee of the claimant;

   (b)  in relation to a claimant being a company, or in relation to an
        association referred to in sub-section (3)-a director, member of the
        governing body or employee of the company or association; or

   (c)  in relation to a claimant being a partnership-any partner or employee
        of the partnership and, where any of the partners is a company, a
        director or employee of that company;



"relative", in relation to a person, means-

   (a)  a parent, grandparent, brother, sister, uncle, aunt, nephew, niece,
        lineal descendant or adopted child of that person or of his or her
        spouse; or

   (b)  the spouse of that person or of any other person specified in
        paragraph (a).