The EMDG reimburses up to 50% of eligible export promotion expenses above $5,000.
The EMDG, administered by Austrade, encourages small- and medium-sized Australian businesses to develop export markets by providing grants for promotional activities.
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
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How much can you get through the EMDG?
The maximum grant is $150,000. But on average it is around $40,000.
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.
How and when is the EMDG paid?
The EMDG is rolled out in a series of payments (tranches) in order to ensure the highest number of eligible applicants receive a grant.
So, once your application is assessed you will receive a grant estimate.
If your grant exceeds the payment ceiling, it will come in two rounds.
What are payment rounds and ceilings?
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 and what is the second 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 do 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:
- Year 3 – 40%
- Year 4 – 20%
- Year 5 – 10%
- Year 6 – 7.5%
- Year 7 – 5%
- Year 8 – 5%
You can just wait until you are earning enough money to justify it.
Get In Early!
2016 was a busy year for all associated with EMDG. 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 2019 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.
The EMDG deadline to lodge an EMDG application is 28 February 2019 if you are using an approved consultant.
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How popular is the EMDG?
The number of EMDG claims received in the 2017 year increased 6.6 per cent above the previous year. Of the 3,771 applications, 1,444 were submitted by first-year applicants, an increase of 13.6 per cent from the number of first-year applicants last year, and approaching double the number recorded in 2013.
This popularity of the scheme among new applicants shows healthy levels of export activity among new exporters.
|Grant year||Years in scheme = 1||Years in scheme = 2+||Total claims||Change from previous year|
Of the total value of EMDG claimants’ markets this year:
- 41% – Asia
- 37% – North America.
- 6% – Oceania, Africa and South America
There were 1452 EMDG claimants active in the US market this year, with a total of $780,218,933 claimed (35 per cent of total claims). China was the next largest market in dollar terms, with 514 businesses claiming $310,568,349 (14 per cent of total claims).
The proportion of claims from the services industries increased from 66.5 per cent last year to 67.5 per cent this year.
Manufacturing and primary industries both decreased slightly as a proportion of the claim population. Manufacturing now accounts for 28.2 per cent of claimants and primary industries account for 4.3 per cent.
Tourism accounted for 12.2 per cent of EMDG applications this year, while the education industry accounted for 5.4 per cent.
Is EDMG grant classified as income?
YES, the Export Market Development Grants are assessable income and need to be included in your company income tax return.
Government payments such as Grants are assessable income. https://www.ato.gov.au/Business/Income-and-deductions-for-business/Assessable-income/What-to-include…
Austrade is the government departmart in charge of the scheme and in the information they provide they specifically state that it is assessable income. https://www.austrade.gov.au/ArticleDocuments/1433/EMDG-In-Brief.pdf.aspx
It is also covered in the EMDG Parlimenatry Bill which is on the Australian Parliment House (aph) website: –
” The current EMDG Scheme provides direct financial assistance in the form of taxable grants to small and medium businesses (SMEs) to assist their export promotion activities. “
Do you need an EMDG consultant.
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Some of the recipients of the EMDG program are:
Freelancer offers a way for employers and freelancers to connect in a global digital space.
Unable to source a local contractor for a simple data entry task, Matt Barrie turned to the Internet and got 74 replies overnight from all over the world.
Barrie sensed an opportunity and, from this start in 2009, the founder of Freelancer.com has built a global online crowdsourcing and freelancing marketplace that enables potential employers to post jobs that freelancers can then bid to complete.
Australian firm HIVERY has solved business problems in the retail and FMCG sectors in Australia, the US, Japan and China using artificial intelligence (AI), helping customers generate ROI never seen before.
In 2014, HIVERY conducted an experiment with a fleet of 60 vending machines in Newcastle to test the ability of machine learning to optimise sales by recommending changes to the product assortment and space-to-sales ratio of available products.
Once the AI system was trained, it made recommendations that were implemented for those 60 machines and, a few months later, the changes had resulted in a 15 per cent increase in sales and an 18 per cent reduction in restocking visits.
When intern Ryan Griffen brought an idea for a children’s show to management at Goalpost Pictures, nobody could have imagined that the adult drama that grew from his concept would achieve one of the highest levels of export sales for a television series in recent Australian history.
First broadcast in June 2016, by the end of 2017 the first season of television show Cleverman had achieved total sales in excess of $4 million.
Tama Berkeljon was at the top of a ladder changing yet another blown light bulb while an entire film crew waited to continue work when he decided there had to be a better way to light a movie set.
So he designed and created a rig of 100 LED ring lights – one of the first high-power, large-scale LED installations to be used in a film industry environment.
The success of that lighting rig was the seed that grew into Outsight, a company that designs and manufactures high-power LED lighting systems for the film and television industry.
From inception, Outsight has focused on designing reliable and innovative equipment that solves problems in the film and television industry, where there is constant pressure to provide more and better content on a reduced budget.
After nearly a century of boot making, EMDG recipient Redback Boots has a rich history of success in finding product needs in the marketplace and delivering quality solutions to meet those needs.
Started by three Greek immigrant brothers in 1927, the business that became Redback Boots remains a family-owned private company that spans five generations.
Redback has been exporting boots since the early 90s and has a solid footing overseas but is moving to take a more considered hand on the reins globally as part of the current refocusing on data-driven market analysis.
The company heard about the funding available through EMDG for companies expanding their presence in overseas markets and felt that it perfectly complemented its current plans.
EMDG recipients feature in export awards
Export Market Development Grants (EMDG) scheme recipients performed well at the 56th Australian Export Awards, with seven of the 13 category winners being current or former clients of the program.
EMDG recipients Aspen Medical and SEAPA were jointly awarded the top prize as Australian Exporter of the Year at a ceremony held at the National Arboretum in Canberra on 27 November 2018.
Recipients who won their award categories came from a wide range of industry sectors, including pharmaceuticals, information technology, clinical research, bridal fashion and mining technology.
Of 112 business categories at state level, 70 of the category winners are or have been EMDG recipients.
The Export Market Development Grants (EMDG) scheme is a financial assistance program for Australian small- to medium-sized businesses.
It provides an incentive for current and aspiring export-ready businesses to increase their international marketing and promotion expenditure to achieve more sustainable international sales.
In 2017–18 the EMDG scheme made a total of 3706 grants, worth $131.6 million, to qualifying Australian exporters.
8 January 2019 – EMDG recipient prosecuted for fraud
An investigation by Austrade’s Special Investigations Unit has resulted in the conviction of a person for offences committed against the Commonwealth with respect to the submission of EMDG applications.
The former principal of an Educational College, which is no longer trading, pleaded guilty in Melbourne Magistrates Court in June to dishonestly obtaining financial advantage and using a forged document, resulting in attempted and actual fraud upon the Commonwealth of $97,486, including $46,486 in grants paid due to fraudulent information.
For making false claims about cheque payments and electronic fund transfers, and for falsifying international money transfer receipts, the court sentenced the person to a five month term of imprisonment, wholly suspended for 18 months with a $5,000 surety bond. He was ordered to pay $46,486 compensation, a sum equal to the fraudulently obtained EMDG funding.
Austrade detected the fraud as part of its risk management and fraud prevention strategies and sought assistance from the Australian Federal Police in executing search warrants.