Export Market Development Grant (EMDG)

Is your business looking to export or expand its export revenues? Or are you already exporting and not claiming what you may be entitled to?

 

Austrade facilitates the Export Market Development Grant (EMDG) program, which provides financial support for eligible Australian businesses to start or expand their export markets.

In existence for over 40 years, the EMDG program encourages businesses to increase international marketing and promotion expenditure to achieve more sustainable international sales.

Recent changes to the EMDG program

 

From 1 July 2021, the EMDG reimbursement scheme will become a grant program, providing upfront funding certainty through a grant agreement (of 2 or 3 years), allowing applicants to plan promotional activities with confidence.

The original EMDG reimbursement scheme - now in its final year - allows applicants to claim eligible promotional expenses from the previous financial year (in this case FY2020/21).

 

During the 2021/22 financial year, both the EMDG reimbursement scheme and new EMDG grant program will run concurrently. Depending on the export activities of your business, you may be eligible to apply for one or both of these programs.

EMDG to 30 June 2021 – FINAL YEAR

Through the original EMDG reimbursement scheme, grant funding of up to $150,000 is available, provided that applicants meet the eligibility criteria. Grant funds can be used to claim up to 50% of eligible expenses (after the first $5,000 in expenditure) in retrospect, with first-time applicants able to claim expenses incurred during the past two financial years.

Eligible expenses include:

 

  • Overseas representation - This includes all reasonable costs you pay to an overseas representative acting on your behalf to market/promote your product.
     

  • Marketing consultations - The cost of engaging an external consultant to undertake export market research or marketing activities for your product.
     

  • Marketing visits - i.e. the cost of air travel, or a daily trip allowance to cover ground transport and accommodation for marketing related visits.
     

  • Free samples - The cost for providing free samples of the product being promoted for export, to a maximum of $15,000.
     

  • Trade fairs, seminars, in-store promotions - External costs directly related to international trade fairs, forums, seminars, exhibitions or similar.
     

  • Promotional literature and advertising - i.e. brochures, videos, advertising and website development.
     

  • Overseas buyer expenses - The cost for bringing potential buyers who are non-Australian residents to Australia for export promotion purposes.
     

  • Registration and/or insurance of eligible intellectual property - The cost of granting, registering or extending rights under foreign laws in relation to eligible intellectual property (up to a maximum of $50,000 per application) and insurance to protect these rights.

 

From the third grant onwards, applicants must undergo an EMDG Performance Measure in order to receive subsequent grants.

 

Eligibility Criteria

 

At the highest level, your business must meet the following eligibility criteria to make an EMDG claim:
 

  • Have made an income of not more than $50 million in the grant year.
     

  • Have incurred at least $15,000 of eligible expenses under the program (first-time applicants can combine the last two financial years of expenses).
     

  • Have promoted one of the following:

    • The export of goods or most services, either made in Australia or made outside Australia where Australia will derive a significant net benefit from its sale overseas

    • Inbound tourism

    • The export of intellectual property and know-how

    • Conferences and events held in Australia.

 

If you meet the above criteria, please contact us to discuss how we can support you to access grant funds before this program ends.

EMDG from 1 July 2021 – NEW STRUCTURE

Through the new EMDG grant program, grants are available across 3 tiers, with each tier providing a different level of support to SMEs as they grow their export markets:

 

  • Tier 1: This tier is for first-time exporters, for a maximum of 2 years and maximum funding of $40,000 per financial year.
     

  • Tier 2: This tier is for businesses who are expanding their export promotion activities and is available for a maximum of 3 years and maximum funding of $80,000 per financial year.
     

  • Tier 3: This tier is for those who are expanding their export promotion activities as well as making a strategic shift (e.g. targeting a new market or a new type of customer). A maximum of 3 years and maximum funding of $150,000 per financial year is available.
     

  • Representative bodies are also able to apply for grant funding for a maximum of 3 years with up to $150,000 per financial year.

 

Eligible expenses include:

 

  • Maintaining a representative in a foreign country - Maintaining a representative in a foreign country (for more than 6 months in a financial year) to:

    • conduct research into the market in that country for your eligible products, or

    • undertake promotional activities to market your eligible products in that country.
       

  • Short trips to a foreign country - Up to 21 days’ continuous travel for you or your representative, between Australia and a foreign country. (This includes expenses such as airfares, accommodation expenses, incidentals, ground transport and food.)
     

  • Consultants - Engaging a consultant to undertake either:

    • research into the market in a foreign country for your eligible product, or

    • promotional activities to market your eligible product in that country.
       

  • Short trips within Australia - Up to 21 days’ continuous travel within Australia for you or your representative, to undertake activities relating to marketing your eligible product to potential foreign buyers. (This could include expenses such as food and accommodation, transport, and participation in trade shows in Australia where buyers for overseas markets are present.)
     

  • Foreign buyer visits - Up to 21 days’ continuous travel between Australia and a foreign country, and within Australia, of a prospective foreign buyer of your eligible product so you can undertake promotional activities to market your eligible products to that buyer. (This includes expenses such as airfares to and from Australia, accommodation, food and incidental travel expenses.)
     

  • Soliciting for business in foreign country - Expenses for activities undertaken by you or your representative to solicit for business in a foreign country for your eligible products, where undertaken in a foreign country. This could include expenses such as trade show exhibits.

  • Free samples - Providing free samples of your eligible product either:

    • to a person in the foreign country

    • if your eligible product is tourism services, then in Australia to a person from the foreign country.
       

  • Promotional and advertising material - Producing and providing material to promote or advertise your eligible product in the foreign country. (This includes expenses such as website design and build costs, virtual events, social media marketing, Google advertising, and design and printing of brochures.)
     

  • Intellectual property rights - Seeking the granting, registration or extension of intellectual property rights of your eligible product in a foreign country.
     

  • Training activities (Representative bodies) - If you are a representative body, delivering (or arranging to be delivered) training to members of the represented group so they can better market their eligible products in foreign countries.
     

  • Training activities (Tier 1 applicants) - If you are a Tier 1 applicant, obtaining training so that you or your staff can better market your eligible products in foreign countries. 
     

Eligibility Criteria

 

To be eligible:
 

  • you need to have a turnover of less than $20 million for financial year 2020–21
     

  • you must be an Australian person within the meaning of the EMDG Rules, and
     

  • you must have an Australian Business Number.
     

Eligible products

 

EMDG grant funds must be used for promotional activities to market eligible products in foreign countries, or for training activities to develop skills in such marketing.

 

To be an eligible product, your product(s) must be of substantially Australian origin and be:
 

  • goods

  • services

  • events

  • intellectual property or know-how

  • software

 

If you meet the above criteria, please get in touch with our team to discuss how we can support you to access grant funds.

Why use De Stefano & Co?


Our team has over three decades of experience working internationally and accessing export markets. With our mix of accounting, engineering and management experience, including handling client audits and an exceptional understanding of the EMDG Program, we can manage the entire grant process for you.

 

You can be assured that your claim will be as high as it legitimately can be.

"As we all know “cash is king” in any business. So when De Stefano & Co advised us of the potential to recoup some heavy expenses through EMDG grant funding we thought okay. When the De Stefano & Co team took us through the application, they basically held our hand the whole way through, and we were amazed by the value of the return. We are working with them again on our DISP application, because we trust De Stefano & Co to deliver."
Michael Slattery, Business Development Manager at Rowlands Metalworks

If you’d like to talk to us about supporting your business in accessing a grant, please complete the form below, providing as much detail as possible about the grant program and your business need:

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