Dan Tehan (Wannon, Liberal Party, Minister for Education) Share this | Hansard source

Exports make an important contribution to the Australian economy, but we know that the challenges and risks associated with exporting are significant particularly for SMEs at the start of their journey. There is no doubt that EMDG, which helps exporters overcome those challenges, is well loved. Over the last 45 years it has provided valuable assistance to over 50,000 SME exporters to grow export markets for their goods, services, intellectual property and know-how. Last year alone over 4,000 SMEs benefited, employing almost 69,000 Australians and generating exports worth $3.7 billion.

However, time doesn't stand still and, while the EMDG principles still hold true, the way we provide EMDG assistance needs to be modernised and simplified to meet the needs of a rapidly changing economy and global environment. These are unprecedented times, and the world economy that emerges from COVID-19 won't be the same as before. In this time of uncertainty, by changing EMDG from a reimbursement scheme to a more traditional grant program, we can provide Australian SME exporters with more certainty.

Unlike the current reimbursement scheme, these amendments mean SME exporters will know straightaway that they are eligible for EMDG funding and they'll know upfront how much money they will receive if they hold up their end of the bargain. That means they can plan with confidence whether they are exporting for the first time or growing and expanding to reach more customers or move into new markets.

This bill recognises each exporter faces their own challenges and takes their own export path. Together with the EMDG rules, which have been released for public consultation, and the administration guidelines, which are being developed with industry, the new program will take a flexible approach to determining eligibility and what will be required to receive milestone payments while maintaining accountability for spending the Australian taxpayer money.

We will continue to work with industry to shape the processes for the EMDG program before it becomes operational. We want to make the processes as smooth and user-friendly as possible. I table an addendum to the explanatory memorandum in response to comments raised by the Senate Standing Committee for the Scrutiny of Bills. I thank all members who have contributed to this debate. I commend the bill to the House.

Question agreed to.

Original question agreed to.

Bill read a second time.

Ordered that this bill be reported to the House without amendment.

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