Maintaining positive cash inflows are often the bane of businesses and is second leading cause for failure. As a response to assist export-ready businesses, the Australian government offers a financial assistance through the Export Market Development Grant (EMDG).
In 2018-19, more than 3,900 small and medium-sized enterprises (SMEs) successfully applied for reimbursement for promotional expenses under the scheme – to which it generated $4 billion in exports (according to Austrade).
What is EMDG?
The EMDG scheme encourages Australian businesses to develop export markets. It reimburses up to 50% of eligible export promotion expenses above $5,000. The minimum total expenses that can be claimed is $15,000.
For first-time EMDG applicants: You can combine two-years’ worth of expenses to maximise your claim.
Who is eligible?
Any of the following entities with income of not more than $50million in the grant year is eligible to apply provided that they carried out export promotion activities during the year of claim:
- A body incorporated under Corporations Act 2001
- An association incorporated under an Australian law
- A partnership regulated by an Australian law
What can you claim?
You can claim any of the following categories of eligible promotional expenditure:
- Overseas representatives
- Marketing consultants
- Marketing visits
- Free samples
- Trade fairs and promotions
- Promotional literature & advertising and
- Overseas buyers
A practical illustration of what you can claim is described in the example below:
An audio peripherals company in Australia is aiming to expand into the USA market and promoted its products by meeting with potential overseas clients, attending international trade shows where it had display booths, and collaborating with marketing consultants to do marketing strategy research to help increase its international presence. To safeguard its upcoming prototypes to be released in the USA, the company has also filed a US standard patent.
Which costs this company could potentially claim?
Costs that the company could potentially claim are the airfares for overseas travel and the overseas travel allowance, marketing consultant costs, display booths and entry fees for attending the tradeshows, and the cost of filing the US Patent.
Considering to apply for EMDG? There is no better time than now!
Announced in April, the Federal Government proposed a funding increase of $60 million to the EMDG grant scheme over the next three years.
The deadline for FY 2019 applications is 2 December 2019.
Why Azure Group?
At Azure Group, our personal touch is the key to unlocking exceptional outcomes for our clients. To assist you in accessing the maximum possible refund under the EMDG scheme, Azure Group has a team of experienced EMDG specialists who meet with you to understand your product and services in more detail to unlock the true value of your export focused activities.
Azure Group team has assisted many startups and SMEs in claiming the EMDG scheme. We have a 100% success rate. Our EMDG specialists take the time to review and assess each of your expenses to maximise your claim and guide you through the strenuous Austrade audit process.
Feel free to contact Azure Group to check your EMDG eligibility.