The Federal Government’s Export Market Development Grant (EMDG) program is designed to provide funding and targeted financial assistance for Australian businesses looking to export their goods, services and intellectual property.
As of July 2021, the EMDG provides upfront grants of up to $150,000 for up to 8 grant years for eligible export promotion expenses, as opposed to being a reimbursement scheme. The Export Market Development Grants assists hundreds of Australian businesses in expanding overseas, offering products and services overseas, and marketing in a foreign country and in foreign markets.
If you’re a small or medium-size business looking to take advantage of the Export Market Development Grant, infinity22 can help you get the most out of the grant and the money you receive. Book a consultation and discuss your needs with an expert today.
Are You Eligible for Export Market Development Grants?
To be eligible for the EMDG scheme, as well as being an Australian company, your business must:
- Have an income of no more than $50 million in the grant year
- Have incurred at least $15,000 of eligible expenses under the scheme. (first-year claimants can include two years of expenses)
- have principle status in Australia (some exceptions apply)
As well as fulfilling the above eligibility criteria, you must also have promoted either the export of goods or services, inbound tourism, the export of intellectual property and know-how, or conferences and events held in Australia.
Most small to medium enterprises and business structures are eligible for the grant, including sole traders, partnerships, trusts, companies, co-operatives, and associations.
Once you know you are eligible, you are able to apply for grants in the following areas of operation.
How Much Can You Get from the EMDG?
The Export Market Development Grant is available in three tiers, each paying varying amounts and offering different levels of support for SMEs. Grant payouts are split up over 8 consecutive or non-consecutive years for a maximum amount of $770,000 per applicant. The scheme is designed to support businesses as they expand their exporting activities and grow export markets.
Tier 1: Ready to export
- For first time exporters
- 2 years and maximum $40,000 per financial year
Tier 2: Exporting and Expanding
- For businesses who are exporting and
- Expanding export promotion activities
- 3 years and maximum $80,000 per financial year
Tier 3: Exporting, expanding and strategic shift
- For businesses who are exporting and
- Expanding export promotion activities and making a strategic shift, for example targeting a new market or a new type of customer
- 3 years and maximum $150,000 per financial year
(Information courtesy of austrade.gov.au)
Claimable EMDG Program Expense Categories
There are 8 categories of expenses that are claimable as part of the EMDG.
Overseas Representative
Expenses incurred to set up and maintain one or more foreign representatives on a long-term basis in foreign nations. The job of an overseas representative is to promote and market the firm’s products and services. This category has a cap of $200,000 per claim.
Marketing Consultants
Costs for employing a consultant (either in or outside of Australia) who isn’t closely connected to the applicant. You are eligible to claim expenses to the extent to which the consultant undertakes market research or marketing activities for approved promotional purposes. This can be marketing online using social media, Google, or other channels, or traditional marketing efforts.
Promotional Literature & Advertising
Expenses related to the creation and distribution of promotional literature, digital or otherwise, can be claimed as long as they are obtained for an approved overseas promotional purpose.
Marketing Visits & Travel
This includes your travel costs or a representative’s travel costs for any marketing visit made to any location in or outside of Australia for an approved overseas promotional purpose. Claimable up to the amount of $350 per day for up to 21 days, and covers ground transportation, meals and accommodation.
Free Samples for Customers
Specifically, the manufacturing and freight costs of providing free samples to international businesses. Only applies to eligible products, with a limit of $15,000 per claim.
Trade Fairs and Expos
You can claim costs you or your representative incur for participation in a trade fair, seminar, in-store promotion, international forum, private exhibition or similar promotional event, as long as it’s for an approved promotional purpose.
Intellectual Property Fees
For obtaining patents, designs, trademarks and more for overseas use. Excludes North Korea and New Zealand, and has a cap of $50,000 per claim.
Catering for Overseas Buyers
Any expenses related to bringing overseas buyers who are not residents of Australia to Australia can be claimed, as long as the potential buyer isn’t closely related to the business and is visiting for an approved promotional purpose.
Apply for the EMDG Program
If you’re an online-based business expanding internationally, and you’re looking to apply for the Export Market Development Grant, infinity22 can guide you through the application process. We take care of all the paperwork and preparation required and work closely with you and your team to ensure you can make the most of the grant money available to you.
As well as ensuring you get the best outcomes for your grant submission, our experienced accountants will work with you to manage your books and guide you as to where the grant money would best be spent for optimal results. We take the menial tasks off your hands, leaving you to focus on growing your business.
Discuss your need with an experienced accountant today.
Book Your Free ConsultationFrequently Asked Questions
What are market eligible products?
Market eligible products are products that are of substantially Australian origin and are goods services events, intellectual property, or know-how software.
What is the EMDG reimbursement scheme?
The EMDG reimbursement scheme was the original way the Export Market Development Grants operated, reimbursing Australian businesses for costs rather than providing the funds upfront for businesses to use. It has been changed since July 2021. If you have eligible expenses for the financial year ending 30 June 2021, you can submit an application for reimbursement from 1 July to 30 November 2021. infinity22 can help you work out what you’re eligible for and ensure you receive reimbursement.
