The EMDG grant reimburses up to 50% of eligible export promotion expenses above $5,000.
Applications open 1 July 2017
Call 1300 658 508
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 Export Grant:
- encourages small and medium sized Australian businesses to develop export markets
- reimburses up to 50% of eligible export promotion expenses above $5,000 provided that the total expenses are at least $15,000
- provides up to seven grants to each eligible applicant.
Get In Early
2016 was a busy year for all associated with Export Market Development Grants. Austrade received 6.5% more claims than in 2015, up from 3,321 to 3,537 applications. Total claim values also increased from $170 million in the prior year to $184 million (an increase of $14 million (8%)).
The 2017 application round is predicted to be even busier with a greater demand on the program.
Applications will open on 1st July so those of you wishing to apply this round, now is the time to make sure your accounts are up to date, you have reimbursed your personal credit cards from your company account for any relevant expenses and you have your travel diaries up to date.
To ensure you receive your rebate this side of Christmas, please contact us to book in a time and get started. Remember first in, first approved.
You may claim for EMDG expenditure on specific export promotional activities undertaken during the financial year before the application period. For your first EMDG Application you may claim expenses incurred over the last two financial years.
Nine categories of activities can be claimed in the EMDG Application.
- Overseas representatives – all costs to have an overseas representative act on your behalf
- Marketing consultants – the cost of engaging a consultant to undertake export market research
- Marketing visits – the cost of travel such as airfares plus $300 per day for accommodation.
- Communications – the costs of communications to promote your product eg fax, emails, phone
- Free samples – the cost of providing free samples of the product you are promoting for export
- Trade fairs, seminars, in-store promotions – the cost of participating in an international trade fair
- Promotional literature & advertising – the costs of promotional material, such as brochures and websites
- Overseas buyers – the cost of bringing potential buyers who are non-residents to Australia
- Registration and/or insurance of eligible intellectual property – payments made to patent and trademark attorneys
Why Use An EMDG Consultant?
The average claim value of an EMDG consultant prepared claims has been significantly higher than that of self-prepared claims over the past 3 years, with consultant-prepared claims averaging $51,587 and self-prepared claims $47,229 this year.
The proportion of claims prepared by EMDG consultants increased this year compared with the previous 2 years (from 58 per cent to 63 per cent of claims).
There is a marked difference in the proportion of claims prepared by EMDG consultants among different industries, with “other services” and “ICT services” businesses less likely to use an EMDG consultant in the preparation of their claims than businesses from other industries. The highest users of EMDG consultants (relative to self-prepared claims) were in the manufacturing and tourism sectors.
EMDG Application Assistance
1300 658 508
The deadline to lodge an EMDG application is 28 February 2017. The government cannot accept late applications!
EMDG Application Stats
As in recent years, EMDG grant application numbers were again down on the previous year. In 2013-14 Austrade received 2,714 EMDG grant applications with a claim value of $136.6 million. This compares to 3,045 claims received in the previous year, valued at $146.5 million.
For grant year 2012/13 the top 10 countries (by value of EMDG claimed expenditure) were: the USA, the UK, China, Singapore, Germany, Hong Kong, Japan, Canada, India and France. Of the top 10 countries for EMDG claimed expenditure, Germany, Hong Kong and China had the highest proportion of claimed expenditure from consultant-prepared claims. Japan and Canada had a lower proportion of their claim value from consultant-prepared claims (although all countries had at least 60 per cent of claimed expenditure value from consultant-prepared claims).
In grant year 2012/13, the largest claimed EMDG expenditure categories were: 1) advertising, 2) marketing visits and 3) overseas representatives.
The top 10 reasons for EMDG claim adjustments (for grant year 2011/12 claims) in order of magnitude were:
- Export earnings not received in grant year
- Sales to Australian residents
- Applications withdrawn
- Surplus above overseas representative or marketing consultant limit
- Applicants not the principal in export sales
- Export earnings from ineligible products
- Section 94 adjustments
- Incorrect apportionments
- Activities for which the claimant has been reimbursed
- Promotion of ineligible goods, services, etc.
Applications for the 2014-15 grant year increased by four per cent, from 3,195 to 3,321. Of particular note, the number of year 1 claims increased significantly, with year 1 claims constituting 36 per cent of all claims this year. Austrade expects this growth in year 1 claims to have a flow on effect in future years of the scheme, as these claimants progress through the scheme.
Consultants’ share of EMDG claims has increased considerably over the past two years from 63 per cent for grant year 2012-13 to 71 per cent this year. Moreover, the average claim value of EMDG consultant-prepared claims is significantly higher than that of self-prepared claims ($6,600 more on average this year).
The share of EMDG claims lodged by EMDG consultants participating in the Quality Incentive Program (QIP) has also increased considerably over the past two years from 39 per cent for grant year 2012-13, to 48 per cent this year. Since the introduction of the QIP, Austrade has also seen a significant increase in the quality of claims by QIP consultants.
Initial payment ceiling for the 2015-16 grant year is set at $40,000
The Minister for Trade and Investment, the Hon Steven Ciobo MP, has determined that the initial payment ceiling for the 2015-16 grant year for the Export Market Development Grants scheme would be $40,000.
The initial payment ceiling is the maximum amount paid as a first instalment to reimburse exporters who have made eligible marketing expense claims through the scheme.
An initial payment of up to $40,000 provides exporters with a reasonable immediate cash flow, while mitigating the risk of demand exceeding available funding. In addition, it should allow for a reasonable second tranche payment for the 2015–16 grant year.
Recipients for the 2015–16 grant year who have an entitlement up to and including $40,000 will be paid in full. Those with entitlements above this amount will receive a second tranche payment at the end of June 2017, the size of which will be determined at that time.
Changes to the EMDG Scheme for the 2016-17 Grant Year
The changes to the Export Market Development Grants Act 1997 that will affect the eligibility of expenses incurred from 1 July 2016 (and claimed from 1 July 2017) are:
- Communications costs have been removed as an eligible expenditure category
- A limit of $15,000 has been placed on the free sample expenditure category, noting that for claimants that are combining two years of expenditure, and one of these years is the 2015-16 financial year, no limit applies
- The provision for the reimbursement of in-country travel (other than airfares) has been repealed and the amount of the daily allowance for overseas visits has been increased to $350 (from $300)
- The list of excluded expenses now includes those expenses relating to eligible promotional activities, things or eligible products that may have had a detrimental impact on Australia’s trade reputation.
With the exception of the “free sample” cap, these changes apply from the 2016-17 grant year onwards, and will therefore also apply to year 1 claims for that grant year that are combining two years of expenses.