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Go global with the new look Export Market Development Grant program

EMDG Cover Photo

Go global with the new look Export Market Development Grant program

In welcoming the new financial year, we now have all the finalised details of the new look Export Market Development Grant (EMDG) program. The EMDG reimbursement scheme has now become a grant program as of 1 July 2021. The changes in the administration of the program reflect the overall mandate which is to give exporters more clarity and surety in knowing what they will receive in funding from the grant.

EMDG is retaining many features and benefits of the program that exporters have been accustomed to, with some key value adds guaranteeing exporters certainty in planning their next few years of export marketing activities.

The key change to the grant is that you now only need to provide one application for the two to three-year period, as opposed to previously where you had to submit an annual retrospective claim. The five-step process is intended to be a streamlined procedure with simplified legislation benefiting applicants as they grow.

    1. Submit your grant application
    2. Austrade will assess your application
    3. Austrade will enter into a grant agreement with you, the grantee
    4. The grantee will undertake promotional export marketing activities
    5. Austrade will make milestone payments

 

To be eligible:

  • you need to have a turnover of less than $20 million for the financial year 2020–21
  • you must be an Australian person within the meaning of the EMDG rules
  • you must have an Australian Business Number.

 

Grants will be available in three tiers, designed to provide different levels of support to you during different stages of your export journey:

  • Tier 1: for eligible SME exporters who are ready to export in the grant year – grants of up to $40,000 per financial year for up to two
  • Tier 2: for eligible exporters who are exporting eligible products and seeking to expand export promotion activity for eligible products – grants of up to $80,000 per financial year for up to three
  • Tier 3: for eligible exporters who are exporting eligible products and seeking to expand export promotion activity and make a strategic shift in the marketing of eligible products in a foreign country – grants of up to $150,000 per financial year for up to three

 

Export journeys of businesses may not be linear following the three tiers as set out by Austrade, however, no matter what stage of your export journey, EMDG is still a great way to help you expand globally. Exporting eligible product(s) must be of substantially Australian origin and be:

  • goods
  • services
  • events
  • intellectual property or know-how
  • software

 

In contrast to the export performance measurement test in the reimbursement scheme, the new EMDG obliges applicants to match at a minimum, the dollar value of the grant monies they receive. Meaning effectively Austrade is supporting you with funding half of the planned marketing expenses capped at one of the three tiers.

All applicants are required to have ‘a plan to market’ and if you enter into a grant agreement with Austrade, you will need to undertake milestone reporting. Expenses marketing to New Zealand are still ineligible and now in a great effort to demonstrate transparency, your grant will be listed on Austrade’s website and the GrantConnect website. The information shown may include your organisation name, industry, ABN, and business location.

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So where to next? Applications will open at 9 am AEST, 16 August 2021, and close at 5 pm AEDT on 30 November 2021.

To understand more about the new look EMDG grant, expenses that are claimable, which tier is right for your business, how to apply, and just what is ‘a plan to market’, the experienced team at ABA is here to assist – connect with us today.

EMDG applications for expenses incurred in the financial year 2020/21 are now open. Speak to us today about this claim and how we can assist you immediately.

 


 

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.

Sofia Braybrook
Sofia Braybrook
Want to know more? Speak to our team of experienced R&D Tax advisors today.


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