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The Federal Government’s Export Market Development Grant (EMDG) program, offering $209 million in funding for small business exporters, is set to close with millions of dollars unspent. While Tier 2 funding was exhausted within hours due to high demand, significant funding for first-time exporters (Tier 1) and industry representative bodies remains unallocated.

Austrade has indicated that leftover funds may be reallocated to high-demand tiers like Tier 2, giving some applicants a second chance. However, the backlog of applications and competition for grants leave many small businesses uncertain about their funding prospects.

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Austrade’s Tier 2 Export Market Development Grant (EMDG) funding was fully allocated within just 3.5 hours of opening. The $62 million pool, designated for businesses expanding into existing export markets, was distributed under a new ‘first in, first served’ model.

While Austrade had advised businesses to be application-ready, many faced technical issues on the portal that delayed submissions. Some exporters reported missing out due to timeouts and system errors, despite having prepared in advance.

Tiers 1 and 3 remain open, targeting first-time exporters and businesses entering entirely new markets. However, the rapid allocation of Tier 2 has sparked criticism from businesses and consultants, who called the process overly stressful and unfair.

Austrade is hosting free Export Market Development Grant (EMDG) webinars next week, on 30 and 31 October 2024. These webinars will guide businesses through the online application process, offering step-by-step instructions on how to complete and submit applications. There will be sessions tailored for each grant tier, including representative bodies, so you can join the one that suits your business needs. Register now to secure your spot and ensure you’re well-prepared before applications open in November.

Additionally, businesses aiming to apply for Round 4 of EMDG should prepare in advance, as applications will open soon across various tiers starting from 6 November. Austrade encourages early submissions as funding is limited, and tiers will close once the allocated funds are exhausted. Make sure to review the necessary guidelines, sample plans, and templates on the Austrade website, and have your digital identity set up to access the EMDG portal.

Austrade has released new videos and webinars to help you prepare for the next round of Export Market Development Grants (EMDG). Applications open soon, with representative bodies starting on 6 November and Tiers 1, 2, and 3 on 12 November. The videos cover eligibility, required documents, and online portal navigation, while webinars provide detailed guidance for each tier. Applications will close when funding is fully allocated. To maximise your chance of success, prepare early and submit as soon as your tier opens.

For details, visit Austrade’s website.

Motium, founded in 2002, specialises in rugged computing technology designed for the toughest environments, including deserts and frozen regions. When existing market solutions couldn’t meet the challenges, Motium developed its own durable products, such as the TUFF panel PCs. These innovations are now integrated into vehicles across six continents, relied upon by industry giants like Fortescue, Rio Tinto, and Tata for their reliability and performance in extreme conditions.

A pivotal moment in Motium’s growth was leveraging Austrade’s Export Market Development Grant. The grant enabled the company to showcase its cutting-edge technology at major international trade shows like Bauma and MINExpo. These high-profile events provided critical exposure, leading to significant global partnerships and opening doors to new international markets.

Through this increased visibility, Motium expanded its customer base and established itself as a global leader in rugged computing solutions for harsh environments. Their journey highlights how targeted financial support, combined with innovative technology, can drive international success.

The Australian Government’s Export Market Development Grants (EMDG) program will reopen for Round Four in November 2024, with significant updates designed to support Australian SMEs in expanding into international markets. With over $200 million in funding allocated across two financial years, grants of up to $80,000 per year will be available on a first-come, first-served basis, making early application crucial.

Key changes include updated eligibility criteria, with minimum turnover requirements set at $100,000 for Tier 1, $500,000 for Tier 2, and $1 million for Tier 3. SMEs must also demonstrate the capacity to spend at least $20,000 annually on marketing from their own funds and have been operating for at least two years under the same ABN. The three grant tiers offer varying levels of support: Tier 1 provides up to $30,000 per year for SMEs ready to export, Tier 2 offers up to $50,000 per year for businesses looking to expand in existing markets, and Tier 3 allows up to $80,000 per year for exporters targeting new key markets.

Applications will open at different times, with representative bodies able to apply from 10 am AEDT on 6 November, and all tiers opening at 10 am AEDT on 12 November. Applications will close once funding is fully allocated, so it is important to apply early. Successful applicants will need to keep detailed records of their eligible expenditures and submit milestone reports to receive payments. For more details on these updates and how to apply, visit Austrade’s website or consult with grant specialists.

The Export Consultant Association Incorporated (ECAI) has expressed concerns over recent changes to the Export Market Development Grant Program (EDGP), arguing that they may exclude many Australian exporters. Announced by Trade and Tourism Minister Don Farrell, the revisions aim to offer larger grants from a reduced funding pool, benefiting about 30% of exporters while potentially disadvantaging the majority.

ECAI warns that approximately 80% of applicants could be negatively impacted, with around 7,000-8,000 businesses losing access to grants in FY25 as their agreements expire. The organization criticizes the first-come-first-served approach and a 30% reduction in funding, stating it introduces uncertainty and increases administrative burdens without ensuring fair grant distribution.

Despite these criticisms, Minister Farrell highlighted that the changes would allow quicker grant payments to eligible businesses, aiming to alleviate financial burdens. However, ECAI remains skeptical, claiming the program fails to provide the necessary fairness or effectiveness in supporting Australian exporters.

Here’s what’s changing:

• Eligibility: Now requires 2 years of trading history and $100K in last year’s revenue.
• Export Spending: Must be able to spend $20K on export promotions.
• Tax Compliance: Grantees need to meet Australian tax obligations.
• Australian Origin: Stricter rules on product origin and benefit to Australia.
• Application Process: More detailed, with a first-come, first-served approach and an export readiness test for Tier 1 applicants.
• Austrade CEO Powers: Expanded to include rule changes and grant eligibility decisions.
• Claim Policy: Failing to claim can result in losing a year of funding eligibility.

These changes mean bigger grants but also tighter rules. It’s crucial for businesses to understand and adapt to these updates.

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