EMDG – Export Grants

What is EMDG?

The Export Market Development Grants (EMDG) scheme is a key Australian Government financial assistance program for aspiring and current exporters. Administered by Austrade, the scheme supports a wide range of industry sectors and products, including inbound tourism and the export of intellectual property and know-how outside Australia.

The EMDG scheme:

• encourages small and medium sized Australian businesses to develop export markets
• reimburses up to 50% of eligible export promotion expenses above $10,000 provided that the total expenses are at least $20,000
• provides up to seven grants to each eligible applicant.

To access the EMDG scheme for the first time, businesses need to have spent $20,000 over two years on eligible export marketing expenses.

EMDG Brochure

Who can apply?

To be eligible for EMDG, the business must have:

• income of not more than $50 million in the grant year
• incurred at least $20,000 of eligible export expenses under the scheme (first-time applicants can combine two years expenses)
• principal status for the export business (some exceptions apply, eg. event promoters)

The business also must have promoted one of the following:

• the export of goods and most services
• inbound tourism
• the export of intellectual property and know-how
• conferences and events held in Australia

What is an eligible EMDG product?

To qualify for an EMDG grant, your business must have promoted your product for export and your product 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 tourism service (including accommodation, passenger transport or tours)
• a conference or event held in Australia
• an intellectual property right that mainly resulted from work done in Australia
• a trademark that was owned, assigned or first used in Australia
• know-how that mainly resulted from work done in Australia

What can you claim from EMDG?

You may claim for EMDG expenditure on specific export promotional activities undertaken during the financial year before the application period. For your first grant you may claim expenses incurred over the last two financial years.

1. Overseas representatives

You can claim:

• all reasonable costs that you pay to have an overseas representative act on your behalf on a long-term basis to market/promote your product
• the portion of the fee or expense paid to your overseas representative that relates to promotion of your Australian products. You cannot claim the costs of non-promotional activities your representative carries out for you such as supplying after-sales service, post-contractual training, sourcing of products, arranging clearance, warehousing or collection of goods, importing or promoting products from other countries
• a maximum of $200,000 per application is claimable under this category. However you should include all eligible expenses that you wish to claim in your application to ensure your grant is maximised

2. Marketing consultants

You can claim:

• the cost of engaging an arm’s length consultant to undertake export market research or marketing activities
• a maximum of $50,000 per application is claimable under this category. However you should include all eligible expenses that you wish to claim in your application to ensure your grant is maximised

3. Marketing visits

You can claim:

• the cost of travel during the marketing visit eg airfares, taxi fares, departure taxes, etc (only 65 per cent of first class airfares may be claimed)
• an allowance of $300 per day is claimable for overseas marketing visits to help defray accommodation, entertainment and living expenses

4. Communications

You can claim the costs of communications to promote your product eg fax, emails, phone. Note: if you do not claim your actual communication expenses, you will receive an automatic 3 per cent addition to your grant.

5. Free samples

You can claim the cost of providing free samples of the product you are promoting for export

6. Trade fairs, seminars, in-store promotions

You can claim:

• the cost of participating in an international trade fair, seminar, in-store promotion, international forum, private exhibition, or similar activity
• the money it costs to participate, eg entry fees, stand rental charges and the cost to freight your promotional materials to the trade fair

7. Promotional literature & advertising

You can claim external costs of promotional material, such as brochures, videos, DVDs, advertising and website development.

8. Overseas buyers

You can claim:

• the cost of bringing potential buyers who are non-residents to Australia for an approved export promotion purpose
• up to a maximum of $7,500 per buyer per visit
• up to a maximum of $45,000 per application

9. Registration and/or insurance of eligible intellectual property

You may claim:

• a cap of $50,000 cap per application
• payments made to third parties, e.g. patent and trademark attorneys, for the grant, registration or extension of the period of registration of intellectual property for countries other than Australia or New Zealand
• the cost of insurance premiums paid for protection against possible infringement, in countries outside Australia, of eligible intellectual property.

To make sure you get the maximum EMDG return, contact us to see how we can assist you

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