A comprehensive, independent review of the Export Market Development Grants (EMDG) scheme has found that the grants remain integral to the success of Australia’s international businesses.
Tabled in Parliament by Trade and Investment Minister Andrew Robb, the 2015 Review of the Export Market Development Grants (EMDG) scheme concluded the grants helped exporters create, develop and expand their markets overseas.
“Over 40 years the scheme has helped small and medium-sized exporters cover their promotional costs of expanding into international markets. On coming to office the Coalition injected an additional $50 million into the EMDG,” Mr Robb said.
“Trade and investment are vital for the Australian economy. In 2014–15, Australia’s total exports were worth $319 billion. That represents a lot of jobs and a lot of GDP,” he said.
The Review, carried out Mr Michael Lee, former CEO of Zip Industries, focused on several key areas, including whether the EMDG scheme, as currently structured, was effective in:
- Increasing the number of exporters
- Increasing the sustainability and growth of export markets
- Further developing an export culture in Australia.
The Review also concluded that Austrade should continue its current management of the EMDG scheme, which received funding of $137.9 million for 2015–16.
A consulting division of KPMG was also asked to analyse the net economic benefit of the EMDG scheme. That report found that each dollar of an EMDG scheme grant generated an economic benefit of $7.03 when industry spillovers and productivity gains were taken into account.
Hanrick Curran actively works with our clients to secure EMDGs and other grants and tax incentives to support the ongoing development of business. To determine if your business qualifies for current grants contact your usual Hanrick Curran adviser or speak with our grant expert, Jamie Towers for a no grant no fee Grant Eligibility Assessment.
Michael Lee, the Reviewer of the EMDG scheme provided his written report to Minister Robb which was tabled in parliament in 19 August titled: Certainty and Confidence: Exports and Jobs for a Changing Global Economy. The report can be accessed here. Copies of the associated press releases can be access here.