EMDG

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What is the EMDG?

The EMDG stands for the ‘Export Market Development Grant’ and reimburses up to 50% of eligible export promotion expenses.

 

How much can you get?

EMDG grants will be given to all who qualify, depending on their export journey stage and tier.
The amount each gets will be decided after reviewing all applications.

The expected EMDG grant amounts for each year are:

  • Tier 1: Up to $15,000
  • Tier 2: Up to $23,000
  • Tier 3: Up to $35,000

The EMDG program gives grants to all eligible applicants, based on available funds.
The amount each gets varies, depending on the number of eligible applications and the total budget for the program.
EDMG Grants aren’t limited to the maximum amounts for each tier.

 

What are the caps?

  • You can receive EMDG grants for 8 financial years.
  • You can only receive a total of $770,000 under the EMDG program. The cap of $770,000 refers to money received, not money applied for.

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Background

Since 1974, EMDG has helped over 51,000 unique small and medium-sized Australian businesses to promote and market their products and services in more than 180 countries. Many of these SMEs received several grants, up to 8 years.

EMDG is a crucial export financial aid program of the Australian Government. Each year, it assists around 4,000 Australian SMEs to begin or grow their export operations.

The EMDG program aims to benefit Australia by promoting the creation, development, and expansion of international markets for Australian products.

It does this by offering financial support for marketing, promotional activities, and developing marketing skills to SMEs and their representative bodies.

 

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What EMDG Tier do I choose?

You can apply for any EMDG tier level that suits your organisation:

  • Tier 1: you will need to be ready to start exporting.
  • Tier 2: you will have already exported
  • Tier 3: you will have already exported
  • Representative body: you will need to be ready to start exporting.

To receive a Tier 3 grant, applicants must demonstrate their eligibility. Where Tier 3 applicants have not given sufficient information, you are likely to offer a Tier 2 grant in line with the grant rules.

You do not have to progress through each Tier.

 

What do I need to spend?

You must match, at a minimum, the dollar value of the EMG grant you receive, noting:

  • Spend more –  If you spend more, you will not receive more grant money. The amount in your grant agreement is the maximum you will receive.
  • Spend less – If you spend less, you will only receive an amount equal to the amount you contributed.

 

What is the eligibility Criteria for EMDG?

To be eligible for the EMDG, some of the conditions are:

  • Not rich – have a turnover of less than $20 million.
  • Aussie – be an Australian person
  • Ex-Con – not have any outstanding disqualifying convictions
  • Broke – not be under insolvency administration

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What are the conditions for each Tier?

Some of the conditions for each EMDG tier are:

Tier 1 – Starting

  • You need to be prepared for exporting.
  • You haven’t exported eligible products before.
  • You should have the necessary skills for marketing these products internationally.
  • This can be shown either by using Austrade’s export readiness tool or by completing export readiness training.

Tier 2 – Expanding

  • You are required to expand your marketing activities.

Tier 3 – Shifting

  • You should be strategically changing your marketing efforts.
  • This change should aim at accessing a new market or market segment, aligning with your business objectives.

Representative Body Conditions

  • You need to be a representative body.
  • Your role is to assist members who are new to exporting, helping them become export-ready.

 

What is a strategic shift?

All tier 3 applicants’ plan to market must show how they are expanding their export promotion activity and making a strategic shift in the marketing of eligible products in a foreign country.

A strategic shift is a change in your business strategy that supports:

  • expanding your marketing or promotional activities to target a new export market in a new country, and/or
  • expanding your marketing or promotional activities to support a substantive change of product, to be exported to a new market in a new country, or an existing export market. A ‘substantive change of product’ is a new and separate eligible product or eligible service that is independent of and substantially different from any previous export product or service.

 

Are you export ready?

Take this short quiz to assess how export ready you are.

  1. Do you have a clear and compelling selling proposition?
  2. Is your product or service selling well in the Australian market?
  3. Do you have the capacity and resources to scale up operations to meet increased demand?
  4. Do you have resources to modify your product or service to suit overseas customers and standards?
  5. Do you have the cash flow to manage longer payment terms from overseas buyers?
  6. Do you know the laws and regulations to get your product or service into an overseas market?
  7. Can someone in your business take time to build the exporting side of your business?
  8. Is your company willing to dedicate staff, time and resources to exporting in the long term (3 to 5 years)?
  9. Do you have people in your network you can contact for advice and support?
  10. Does your business have a website or professional online presence to attract international customers?

 

How do I apply?

When applying you will need to have:

  • a Digital Identity, such as myGovID (see the Application checklist below for details)
  • evidence to show you are eligible for an EMDG grant. This includes that you are Australian (note: you must have an ABN)
  • evidence to show your product is eligible. This includes that it is of substantially Australian origin
  • your plan to market (how you plan to spend on eligible promotional expenses)
  • your most recent balance sheet and profit and loss statement. This is to prove your turnover is less than $20 million.
  • your ANZSIC code. This is the four-digit industry class that best describes your main business activity. If you are unsure, the Australian Bureau of Statistics can help you determine your correct industry classification.
  • compliance with all the relevant Australian Taxation Office (ATO) legislation, rulings and guidelines, that is, meet your taxation obligations. During the assessment process we may require you to obtain and provide a Statement of Tax Record from the ATO. This will help us to check compliance prior to issuing grant agreements.

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Will I get the full amount?

Your EMDG grant agreement may be for less than the amount you applied for.

  • Limited Pool – Each year the Government allocates a set amount of money for EMDG (the appropriation).
  • Not Competitive – EMDG is an eligibility-based program, which means that all applicants who apply and are eligible will receive funding.
  • Too many applications – Where applications total more than the amount provided in the appropriation. Once all applications have been received, Austrade will calculate the distribution of available funds for all eligible applications.

 

Why were applicants able to apply for such high amounts if you were not going to provide those amounts?

The new program has 3 tiers which:

  • enable different grant amounts for different stages of an exporter’s journey
  • are based on maximum amounts. These amounts reflected the previous maximum spent by exporters on eligible expenses over time, noting that the amounts ranged over different years
  • were set much higher-than-average spending.

However, it is not possible to predict the number of applications, business conditions and funding caps set by government over time.

The guidelines clearly advised grant amounts would be set and allocated based on demand. We allocate grant amounts in line with the number of applications and in relation to the tier. This ensures the capped scheme is effectively managed.

We advised applicants to be realistic in their grant requests. This is because applicants must match grant amounts with their own funds. However, some past EMDG grantees have applied for amounts that far exceed their previous spending on eligible expenses.

 

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How should I do a 2–3-year plan with the world changing so much?

We acknowledge businesses may have found it challenging to plan their international promotional activities during border closures. With borders reopening, it should be easier to plan in future.

While having a ‘plan to market’ is mandatory under the new EMDG grant, there is flexibility of what can be provided in your application. 

  • As outlined in section 4.4 of the EMDG Guidelines, a plan to market can be a high-level document which shows how businesses intend to market their product overseas in the next 2 or 3 years and why.
  • Representative body applicants should show how they plan to market their members’ products.

A plan to market could be a one-page statement, a copy of your strategic planning roadmap for marketing, or any other internal planning document that answers the following:

  • Why are you undertaking the proposed marketing? Or, what business goals are you seeking to address through your promotional activity?
  • How will you measure success for your promotional activities?
  • What is your overall budget for each financial year (2 financial years for Tier 1; 3 financial years for Tier 2, Tier 3, and representative bodies)? An overall budget does not need details of individual expenses.
  • Where and what customers or demographic will your promotional activities be targeted towards?
  • What promotional activities will you undertake? This can be as detailed, or as strategic ‘big picture’.
  • You may choose to use the Plan to market template but this is not mandatory.

We understand some small and-medium enterprises (SME) exporters have complex business models and have had to adapt to the changing trading environment. When preparing your applications, refer to these examples:

 

What if I need to change my plans?

A plan to market should be a living business management document, like a business plan, which can be modified and adapted through the life of an exporting business.

Where changes are needed, businesses would include the updated plan to market with their scheduled milestone reporting, as outlined in the grant agreement. 

If grantees demonstrate they still have an eligible product and have incurred eligible expenses, they would be eligible for a payment under the grant agreement, even where plans may have changed.

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What is an EMDG Plan to Market?

An EMDG Plan to Market will demonstrate how you intend to do to market your product overseas in the next 2 or 3 years and why. All EMDG applications from will require a plan to market.

Your EMDG Plan to Market could be a:

  • one-page statement
  • copy of your strategic planning roadmap for marketing
  • internal planning document

Your EMDG Plan to Market should include:

  1. Strategy – Why are you undertaking the proposed marketing? In other words, what business goals are you seeking to address through your marketing?
  2. Measurement – How will you measure success?
  3. Budget – What is your overall budget for each financial year (2 financial years for Tier 1; 3 financial years for Tier 2 & Tier 3)
  4. Customer Analysis Where and what customers or demographic will your marketing be targeted towards?
  5. Activities – What marketing activities will you undertake? This can be as detailed or as strategic as you like.

Your EMDG Plan to Market should emphasize:

  • Tier 1:  Describe the next 2 years of marketing activities.
  • Tier 2: Describe how you are expanding your marketing activities over the next 3 years.
  • Tier 3: Describe how you are expanding your marketing activities and making a strategic shift over the next 3 years.
  • Representative body: Describe your promotional activities on behalf of your members.

 

Is your product eligible?

To be an EMDG eligible product or service, your product must be of substantially Australian origin.

To be of substantially of Australian origin, goods must be:

  • Primary Produce – or mainly made from primary produce (that is mined, harvested, raised or fished) within Australia
  • Made in Australia – manufactured or assembled in Australia partly or wholly from imported materials or components that, in Australia, undergo or are part of a process or operation that does one of:
    1. New – results in the manufacture of a new product
    2. Transforms – substantially transforms the nature of the materials or components
    3. Significant – is an important stage in the manufacture of a product to be produced outside Australia using those goods
  • Made Outside Australia – and at least 3 of:
    1. Assets – the assets used to make the goods ready for sale are mainly or substantially based in Australia
    2. Activities – the activities resulting in the goods being made ready for sale are mainly or substantially carried on in Australia
    3. Value Add – a significant proportion of the value of the goods is added in Australia
    4. Employment – the making of the goods directly generates significant employment in Australia.

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Is software eligible?

To be an eligible product, software must be a work in which copyright subsists, and the work is the result, wholly or substantially, of research or work done in Australia.

 

Eligible EMDG Expenditure

You may claim for EMDG expenditure on specific export promotional activities undertaken during the financial year before the application period.

Nine categories of activities can be claimed in the EMDG Application.

  1. Overseas representatives –  all costs to have an overseas representative act on your behalf
  2. Marketing consultants – the cost of engaging a consultant to undertake export market research
  3. Marketing visits –   the cost of travel such as airfares plus a daily rate for accommodation.
  4. Free samples – the cost of providing free samples of the product you are promoting for export
  5. Trade fairs, seminars, in-store promotions –  the cost of participating in an international trade fair
  6. Promotional literature & advertising – the costs of promotional material, such as brochures and websites
  7. Overseas buyers – the cost of bringing potential buyers who are non-residents to Australia
  8. Registration and/or insurance of eligible intellectual property – payments made to patent and trademark attorneys

 

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EMDG Consultants

If you want professional assistance to submit your application, you may consider engaging an EMDG consultant.

Consultants play an important role in supporting Australia’s current and future exporters by promoting awareness of the Export Market Development Grants (EMDG) scheme, lodging applications on behalf of businesses and supporting the assessment process.

Do you need an EMDG consultant.

Contact us for assistance.

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.

 

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.

Locations

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).

Industries

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.

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Is EMDG 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.

 

 

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Latest News

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.

Source

The Export Market Development Grants (EMDG) program has long been a cornerstone of support for Australian businesses venturing into export markets. However, significant changes over the years have dramatically altered its payout structure and potential benefits.

A Look Back: Solid Support for Exporters In its early years, the EMDG offered a robust support system with substantial payouts to businesses. The maximum grant paid out was consistently high, reaching up to $200,000 in some years.

Evolving Landscape: Fluctuations in Payouts Over time, the maximum grant paid out saw notable fluctuations. Some years saw considerable reductions, driven by changes in the second tranche payout percentage. These variances signaled the start of a shifting trend in the EMDG’s structure.

A Major Shift: Introduction of the Tiered System In 2021, the EMDG introduced a significant change with the advent of a tiered system. This system replaced the previous one-size-fits-all approach and was accompanied by a substantial reduction in maximum grants paid:

🔹 2021/22 Maximum Grants Paid:

  • Tier 1: $15,000
  • Tier 2: $24,600
  • Tier 3: $36,600
  • Representative Body (Tier 4): $90,000

🔹 2022/23 Maximum Grants Paid:

  • Tier 1: $10,000
  • Tier 2: $18,000
  • Tier 3: $28,000
  • Representative Body (Tier 4): $50,000

Rethinking Strategies: The Implications for Exporters These changes, particularly the reduction in maximum grants paid and the complexity of the new tiered system, could significantly impact businesses relying on the EMDG for financial support in their export ventures.

It’s now more important than ever for businesses to reevaluate the value of such programs in their financial and export strategy planning.

The Australian Government has released the findings of its Operational Review into the Export Market Development Grants (EMDG) program, fulfilling its promise to enhance the efficiency and effectiveness of the grants program. Immediate improvements have already been implemented and integrated into the guidelines for Round 3 of EMDG. The review, which involved extensive consultation with stakeholders and affected businesses, revealed that exporters highly value the program.

However, the review identified that the previous government’s decision to run the final round of the old EMDG reimbursement scheme concurrently with the first round of the reformed program caused confusion and uncertainty among applicants.

In response to the review, Austrade has promptly made improvements for Round 3 of EMDG. These include shortening the duration of grant agreements, enhancing communication, and providing a clearer definition of “strategic shift” for Tier 3 applicants.

The government remains committed to continually improving the EMDG program, which is recognised as the most comprehensive and generous program of its kind worldwide. Austrade plans to conduct further stakeholder consultations before Round 4 in 2024 to explore additional enhancements to the EMDG program, ensuring it supports Australian businesses in their growth and expansion.

Source

Nearly all Round 3 Grant Agreements have now been issued. Successful applicants who receive an agreement are given a 21-day period to review and accept it. It’s important to note that extensions to this timeframe cannot be provided. Once the 21-day period expires, Austrade will withdraw any agreements that have not been accepted.

To accept a grant agreement, the individual will need to log in to the EMDG Online Portal using their myGovID. It’s important to understand that an agent or any other third party is unable to accept the agreement on behalf of the applicant.

If the individual does not possess a myGovID, it is strongly advised to promptly establish one in order to accept the agreement.

Issuing Round 3 grant agreements early in the financial year ensures that grant recipients have clarity regarding their grant amounts. This allows them to plan and allocate funds with confidence, knowing the level of EMDG funding that will be provided by the Government if they fulfil their matched spending obligations.

 

The Australian Trade and Investment Commission (Austrade) is seeking public input on options to improve the Export Market Development Grants program, in line with the government’s decision to strategically refocus the program. The consultation period will be open from 5 July to 11 August 2023.

The government aims to enhance the EMDG program’s outcomes by increasing the number of new exporters and supporting market diversification while ensuring the program’s sustainability. Austrade has been tasked with consulting and providing recommendations on how to refocus the EMDG program.

This strategic refocus follows the 2022 EMDG Operational Review, which emphasised the need to balance the program’s popularity with the available funding to effectively support Australian businesses.

To facilitate the consultation process, Austrade has released an EMDG Refocus Consultation Paper, which builds upon the suggestions from the Operational Review. The paper outlines various ways to support Australian exporters in developing new markets, ensuring ongoing support for exporters, and improving the program’s sustainability.

Austrade encourages stakeholders to provide feedback on the options presented in the consultation paper, as well as practical ideas for ensuring the program’s long-term viability. Participation can be done by submitting a written response addressing the questions raised in the paper, attending an online workshop to discuss the proposed options, or completing a survey (opening soon).

The insights gathered through this consultation process will inform Austrade’s advice to the government, leading to informed decisions, the development of new rules and guidelines, and the implementation of program changes.

Funding for Australia’s Export Market Development Grant (EMDG) program will face a reduction of $61 million over the next four years, with the savings redirected towards other federal government priorities, according to the 2023-24 federal budget.

The administered payments for the EMDG program, administered by Austrade, will be cut by $75.8 million overall, with $14.8 million in new departmental payments compensating for the difference.

The Export Market Development Grant (EMDG) program, established in 1974, underwent significant changes known as EMDG 2.0, expanding eligibility and transitioning to a multi-year grants program without an “export ready” threshold. Eligible firms must have an annual turnover of under $20 million and can apply for grants up to 50% of eligible marketing expenses. Concerns were raised about grant amounts falling below expectations, leading to an operational review and planned stakeholder consultations for future improvements.

Despite budget cuts, existing agreements and applications will not be affected. Tech startups have benefited from the EMDG program, and experts call for addressing concerns and enhancing the program’s administration to foster success and potential future investments. The EMDG program is crucial for firms seeking global growth in international markets.

Source

The Australian TV and film industry has been impacted by recent government grant changes, causing reduced funding for production houses like Princess Pictures, which has faced challenges in securing financing for their projects.

One such company affected is Australian Production House, founded by Louise Schultze, who invested heavily in creating interactive kids TV shows and music videos. She received an Export Market Development Grant (EMDG) of $80,000, which she had budgeted for future projects. However, the grant has since been cut by 87%, leaving firms with a maximum of $158,000 over eight years.

Schultze had hired an executive producer, anticipating a 50% return through the EMDG grant, but was left with only $7,000. Despite these challenges, the company is currently in early stages of production for a large feature.

Source

The Australian Government has released the findings of its Operational Review into the Export Market Development Grants (EMDG). The review found that the program is highly valued among exporters, but that the decision to run the final round of the old EMDG reimbursement scheme at the same time as the reformed EMDG program caused confusion and uncertainty for applicants. Immediate improvements have been made and incorporated into the guidelines for Round 3 of EMDG.

Following the Operational Review, Austrade has made immediate improvements to EMDG for Round 3, such as reducing the term of grant agreements, improving communication, and clarifying the definition of “strategic shift”. 

The Government is committed to continually improving EMDG, the most comprehensive and generous program of its kind globally, and will undertake further stakeholder consultation ahead of Round 4 in 2024.

The updated EMDG guidelines and supporting documents are now available so applicants can prepare to apply ahead of the online portal opening to applications.

Source

Recipients

Some of the recipients of the EMDG program are:

endota is Australia’s largest wellness network of day spas and award-winning skincare. The company is famous for treatments that nourish and nurture your mind, body and skin. 

Founded in 2000 by Melanie Gleeson, the endota team is 95% female. They aim to inspire others to connect with themselves, live consciously and give back wherever possible. 

Austrade is proud to support endota’s export journey through its Export Market Development Grants (EMDG) program. The company exports its treatment protocols and skincare products around the world. It recently bought 9 spas in New Zealand.

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.

Export Market Development Grants (EMDG) Milestone Report

In the realm of export and international business, maintaining organisation and complying with grant agreements are pivotal. One essential document that exporters must complete is the Milestone Report, a component of the Export Market Development Grants (EMDG) program. The EMDG program is designed to provide financial assistance to Australian businesses seeking to expand their export markets. In this blog post, we’ll walk you through each section of the EMDG Milestone Report and help you grasp its significance.

Tab 1 – General Requirements

The initial section of the Milestone Report concerns general reporting requirements. Here’s a breakdown of the key items:

  1. Grant Eligibility: In this section, you confirm your compliance with various provisions of the Grant Agreement and EMDG Act, including having a valid ABN, having no disqualifying convictions, and more.

  2. Tax Compliance: You need to declare your compliance with relevant Australian Taxation Office (ATO) legislation, rulings, and guidelines.

  3. Business Changes: Any significant changes to your business that may affect your eligibility should be described in a free-text box.

  4. Employee Count: Report the total number of Australian-based employees in your business for the reporting period.

  5. Annual Income: Provide your business’s annual income (total turnover, including sales) for the reporting period.

  6. Grantee Bank Account: Confirm the accuracy of your bank account details as per Section D of the Grant Agreement.

Tab 2 – Plan to Market

In this section, you will detail any changes to your plan to market, including changes to eligible products, business goals, promotion activities, and planned marketing expenditure.

Tab 3 – Export Income

Here, you’ll report your export income for the reporting period and whether it has increased, decreased, or remained the same since the last reporting period.

Tab 4 – Activities and Expenditure

This section requires you to summarise promotional activities completed during the reporting period and how they align with your goals. If you’re a Representative Body, describe the training activities provided to your members. You’ll also specify how your export promotion activities have helped you achieve your tier requirements.

Tab 5 – Eligible Expenditure

This table is for documenting eligible expenditure categories for which you’re seeking a grant payment. It’s essential to detail your eligible expenses accurately. Make sure your expenditure matches the grant agreement’s dollar value, as any discrepancies can affect your grant amount.

Tab 6 – Overseas Representatives and Consultants

If your expenses include maintaining representation in a foreign country or hiring consultants worth $60,000 or more, provide the necessary information, including cost, name, address, contact details, payment breakdown, and representative agreements.

Tab 7 – Export Earnings

This section requires you to enter your export earnings and expenditure for the reporting period, attributing them to target export markets. You can group markets under a region if necessary.

Tab 8 – Report Finalisation

Before submitting your Milestone Report, review it carefully. Ensure that all fields are completed accurately, that you’ve requested grants only for eligible expenses, and that you haven’t included any expenses subject to trade sanctions.

Additionally, the authorised person of the grantee must confirm the report’s accuracy and compliance with all grant obligations.

Completing the EMDG Milestone Report is a crucial step in ensuring that you receive the financial assistance you’re entitled to as an Australian business engaged in export activities. It’s essential to be thorough and honest in your reporting, as accuracy and compliance are key to a successful EMDG program experience.

For more information and assistance with the EMDG program, you can visit the official EMDG website or contact the EMDG Helpdesk.

 

Plan to Market

When applying for the Export Market Development Grants (EMDG), it’s essential to provide a clear and comprehensive “Plan to Market.” This plan outlines your strategy for marketing and promoting your eligible products or services in international markets. Below are the subheadings and a description of how to answer each section:

1. Name of Applicant, Trading As, and ABN

  • Response: Enter your business’s legal name, any trading name, and your Australian Business Number (ABN).

2. Detailed Description of Eligible Goods

  • Response: Provide a detailed description of the eligible goods or services you intend to market internationally.

3. Business Goals

  • Response: Explain the business goals you aim to achieve through your marketing efforts. Consider objectives like increasing market share, expanding into new markets, or boosting sales.

4. Measurement of Success

  • Response: Outline the key performance indicators (KPIs) and metrics you will use to measure the success of your marketing activities. This could include metrics like increased website traffic, lead generation, or revenue growth.

5. Overall Budget

  • Response: Specify the overall budget for each financial year relevant to your EMDG tier. For Tier 1, it’s two financial years; for Tier 2, Tier 3, and Representative Bodies, it’s three financial years.

6. Proposed Marketing Activities

  • Response: Provide a detailed description of the marketing and promotional activities you plan to undertake to promote your eligible products or services. This should include a breakdown of activities such as trade shows, advertising campaigns, digital marketing, and any other relevant strategies.

Example: Bulletpoint’s Marketing Plan for the USA

Name of Applicant: Bulletpoint Trading As: Bulletpoint Consulting ABN: 85 600 339 795

Detailed Description of Eligible Goods: Bulletpoint specialises in providing expert grant writing services for businesses seeking to claim the R&D tax incentive in Australia.

Business Goals: Bulletpoint aims to expand its international clientele by offering its grant writing expertise to businesses in the United States, particularly on the East Coast.

Measurement of Success: Success will be measured by the number of new US-based clients acquired, the revenue generated from the USA market, and positive feedback from clients.

Overall Budget: For the next three financial years (Tier 2), Bulletpoint allocates a total budget of $100,000 for marketing and promotional activities in the USA market.

Proposed Marketing Activities:

  • Launch a targeted digital advertising campaign on platforms like LinkedIn and Google Ads to reach potential clients in the USA.
  • Attend industry-specific trade shows and conferences on the East Coast to showcase Bulletpoint’s expertise in grant writing.
  • Collaborate with US-based business associations and chambers of commerce to offer educational webinars and workshops on R&D tax incentives.
  • Establish partnerships with US-based consultants and professionals who can refer clients to Bulletpoint.
  • Create informative blog posts and downloadable resources about R&D tax incentives on the Bulletpoint website to attract US-based visitors and leads.
  • Regularly update the Bulletpoint website with case studies and success stories related to US-based clients.

For Tier 3 Applicants (Strategic Shift): Bulletpoint plans to make a strategic shift by targeting a new market segment in the USA – specifically, businesses on the East Coast. This strategic shift involves tailoring marketing strategies to meet the unique needs of this market segment. Bulletpoint will achieve this goal by conducting market research, developing region-specific marketing materials, and collaborating with local industry associations.

Remember that your “Plan to Market” should be tailored to your specific business and market. It should be concise, actionable, and aligned with your EMDG goals and objectives.

The EMDG stands for the ‘Export Market Development Grant’ and reimburses up to 50% of eligible export promotion expenses.

You can receive EMDG grants for up to 8 financial years, with a total cap of $770,000.

You can choose the tier that suits your organisation’s export readiness and experience, ranging from Tier 1 to Tier 3.

You must match the dollar value of the EMDG grant you receive, not exceeding the amount specified in your grant agreement.

To be eligible, you should have a turnover of less than $20 million, be an Australian person, not have any disqualifying convictions, and not be under insolvency administration.

Each tier has specific conditions related to export readiness and goals, such as starting to export or making a strategic shift in marketing activities.

 A strategic shift involves a change in your business strategy to access a new export market or market segment, driven by your business goals.

Your product must be of substantially Australian origin, meeting specific criteria related to its production and value addition in Australia.

Yes, software can be eligible if it meets certain criteria, including being a result of research or work done in Australia.

You can claim expenses related to various export promotional activities, such as overseas representatives, marketing consultants, marketing visits, and more.

Yes, you can consider hiring an EMDG consultant to help with your application.

 Yes, EMDG grants are considered assessable income and need to be included in your company income tax return.

No, grant agreements will not be varied to result in a higher payment as funding is fully allocated when the agreements are made.

No, grant agreements are typically offered for the maximum term for your tier unless it would exceed the caps.

Yes, you can join a free Austrade-hosted webinar to learn more about EMDG and its benefits for growing your export business.

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