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To get help with the export grant
What is the EMDG?
The EMDG stands for the ‘Export Market Development Grant’ and reimburses up to 50% of eligible export promotion expenses above $5,000.
Do you have a product that can be easily distributed overseas like software or information technology?
If so, why limited yourself to Australia?
The EMDG, administered by Austrade, encourages small- and medium-sized Australian businesses to develop export markets by providing grants for promotional activities.
Eligible EMDG Expenditure
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 $350 per day for accommodation.
- 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
Want to know my EMDG tips?
Find out the tricks to maximise the EMDG
How much can you get through the EMDG?
The way they calculate the rebate is:
Rebate = ([Eligible expenditure] – [$5,000]) x 50%
So, a quick example:
You spend $55,000 on overseas marketing in one year.
Take off the first $5,000 = $50,000
Multiply x 50% = $25,000 cash rebate.
You can claim the EMDG up to 8 times.
EMDG Grant Limit
The maximum grant is $150,000. But, on average, most companies get around $34,000.
In the last financial year, grants worth $131.6 million were paid to 3,706 different companies.
The EMDG grant has had its annual funding of $131 million frozen since 2014.
On 1 April 2020, the Federal Government announced an increase in funding for the Export Market Development Grants (EMDG) scheme. Funding for the scheme will increase by $49.8 million in the 2019-20 financial year, allowing exporters and tourism businesses to get additional reimbursements for costs incurred in marketing their products and services around the world.
This supplements the additional $60 million already committed by the Government, and brings EMDG funding to its highest level in more than 20 years at $207.7 million for the 2019-20 financial year.
In addition to increased EMDG program funding, the Minister for Trade, Tourism and Investment, Senator the Hon Simon Birmingham has waived the EMDG export performance requirements for 2020–21. This will ensure businesses will not have their EMDG reimbursement reduced should their export income fall due to COVID-19.
To further assist exporters in 2020–21, the Minister has determined the Initial Payment Ceiling Amount (IPCA) to be $100,000. This is the highest IPCA since the scheme’s budget was capped in 1997–98, and a significant increase from the $40,000 IPCA set for the past five years.
How and when is the EMDG paid?
The EMDG is paid out in a series of tranches.
- Initial payment is around $40,000
- Second second payment is a percentage of your eligible rebate based on the remaining funds in the grant pool. This can range from 25% to 75%.
Timing of EMDG payments
A payment ceiling is announced at the beginning of every financial year.
If your grant is under this, you will receive all of your payment in the first round.
If it is above the ceiling, you will receive part of your payment (up to the payment ceiling).
Applicants who don’t receive their entire grant will receive a second payment.
When is the second export grant payment?
The second payment comes at the end of the financial year.
It is determined based on your remaining provisional entitlement, and the funding remaining to the EMDG.
It is important to be aware that you may not receive all of your provisional payment.
How much can you get back?
For your first two EMDG grants, Austrade will give you:
Grant = 50% of (total eligible expenses – $5,000)
From your third year onward, you need to be exporting!
As the grant is now related to how much income you are generating from overseas
You will now get the lesser of: