Export Market Development Grant
The Export Market Development Grant (EMDG) aims to encourage small and medium sized Australian businesses to develop export markets. It is a key Australian Government financial assistance program for aspiring and current exporters which supports a wide range of industries. It opens on 1 July annually.
The program reimburses up to 50% of eligible export promotion expenses above $5,000 provided that the total expenses are at least $15,000. It provides up to eight grants to each eligible applicant (do not need to be in consecutive years).
EMDG supports eight categories of promotional activities, including:
- Overseas representatives (up to $200,000)
- Marketing consultants (up to $50,000)
- Marketing visits (only 65% of first-class airfares and an allowance of $350 per day, capped at 21 days)
- Free samples (up to $15,000)
- IP registration and related insurance (up to $50,000)
- Trade fairs, seminars, in-store promotions Promotional literature and advertising
- Overseas buyers (a total of $7,500 per buyer per visit, totalling $45,000 per application)
To be able to claim for any of the above activities:
- you must have spent the funds to seek out, create, or increase demand for your product in an export market;
- you must be the intended principal in export transactions, i.e. not an agent (exemptions apply for manufacturers or Approved Body applicants, events promoters, suppliers to inbound tour operators or in situations where a company closely related to the applicant owns the product intended for export);
- the expense must have been paid by you during claim year (i.e. it must be taken up as an expense in your books of account, not just in consolidated accounts or in the accounts of a related entity). If this is your first grant application, these expenses may have been incurred during the preceding two financial years being the claim years;
- the item paid for must have been provided to you; and
- you must have evidence of the expense and what it was incurred for (i.e. invoices, bank statements etc.).
The maximum grant for eligible applicants is $150,000, subject to funds available in the scheme. Members of related company groups may apply individually. The maximum payable to a group of related companies in total is $250,000 per annum.
Grants will be paid under a split-payment system in two rounds:
- Round 1: An initial payment of grant entitlements up to the initial payment ceiling amount.
- Round 2: A second-tranche payment of grant entitlements above the initial payment ceiling amount.
Who Can Apply?
Eligible applicants include any Australian individual, partnership, company, association, co-operative, statutory corporation or trust that has carried on export promotion activities during the year for which they seek an export grant can apply. The business must have:
- Income of not more than $50 million in the grant year.
- Incurred at least $15,000 of eligible expenses under the scheme (first-time applicants can combine two years expenses).
- Principal status for the export business (some exceptions apply, such as non-profit export-focused industry bodies).
- Have promoted one of the following:
a) The export of goods or most services.
b) Inbound tourism.
c) The export of intellectual property and know-how.
d) Conferences and events held in Australia.
Eligible products must be one of the following:
- A good made in Australia.
- A good made outside Australia where Australia will derive a significant net benefit from its sale overseas.
- A service except those specified as ineligible in the EMDG Regulations.
- A tourism service (including accommodation, passenger transport or tours).
- An event held in Australia.
- An intellectual property right that mainly resulted from work done in Australia.
- A trade mark first used in Australia, or which has significantly increased in value from its use in Australia.
- Know-how that mainly resulted from work done in Australia.
Applications open on the 1st of July each year, closing on 30 November with an extension to 28 February for applications lodged under the EMDG Consultant Quality Incentive Program.
If you have incurred marketing or sales expenses in relation to markets outside Australia with the intent to, or in support of export, you may qualify for an Export Market Development Grant. Register for a complimentary grant eligibility assessment, contact your usual Hanrick Curran Adviser or call 07 3218 3900 and ask for Angela Winton. For details on other business grants, please visit Grants and tax incentives.
Please note that this publication is intended to provide a general summary and should not be relied upon as a substitute for personal advice.