EMDG helping exporters during COVID-19
R&D Tax Incentive - 12 Oct 2020
At ABA we are huge fans of the Export Market Development Grant (EMDG) and how it can help our Aussie companies conquer the world! World domination doesn’t come cheaply which is why the EMDG Grant comes in handy. The grant helps companies to claim up to a 50 per cent reimbursement of expenses that meet certain criteria (to a maximum amount of $150,000 per year).
Administered by Austrade, the grant’s primary goal is to help Australian businesses to grow their business exports by promoting their products or services and by providing a cash rebate in any overseas market (except for our cousins across the Tasman, Iran and in the Democratic People’s Republic of Korea – better known as North Korea).
This is why I’m delivering the news announced by the Minister for Trade, Tourism and Investment, Senator the Hon Simon Birmingham. He has announced that he is waiving the EMDG export performance requirements for 2020–21. This will ensure businesses will not have their EMDG reimbursement reduced should their export income fall due to COVID-19.
To further assist exporters in 2020–21, the Minister has determined the Initial Payment Ceiling Amount (IPCA) to be $100,000. This is the highest IPCA since the scheme’s budget was capped in 1997–98, and a significant increase from the $40,000 IPCA set for the past five years.
What this all means is that for our next generation of world-beating products there is help at hand as you seek to conquer the world. So, if you’re the next world-beating Aussie company seeking to make your mark feel free to reach out to the team at ABA Legal Group as we guide you through the application process and help you on your way to global domination.
For more information about the Export Market Development Grant (EDMG), reach out to Sofia.
The information contained in this blog is general in nature and should not be considered to be legal, tax, accounting, consulting or any other professional advice. In all cases, you should consult with a professional advisor familiar with your factual situation for advice concerning specific matters before making any decisions. By reading this blog, you confirm your understanding of this disclaimer.