On 1 April 2020, the Commonwealth Government injected an extra $49.8 million into the Export Market Development Grant (EMDG) scheme to support Australian small business.
EMDG increase in funding
Funding for the scheme will increase by $49.8 million in the 2019-2020 financial year, allowing exporters and tourism businesses to subsidise their 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 2019-2020 financial year.
Export Performance cap waived for FY2020 EMDG grant year
Any business which has incurred eligible EMDG expenses for promotional activities in 2019-2020 financial year will be able to seek reimbursement for 50 per cent of these expenses without the Export Performance Test applying, when they apply from 1 July 2020.
This is in recognition that many exporters would have spent more on marketing expenses with the expectation they would see export income high enough to meet the export performance test.
Additionally, applications lodged in the financial year 2020-21 can claim expenses even if events have been cancelled due to circumstances beyond a business's control.
What is EMDG?
The Export Market Development Grants (EMDG) scheme is a key Australian Government financial assistance program for aspiring and current exporters. Administered by Austrade, the scheme supports a wide range of industries. It reimburses up to 50% of eligible export promotion expenses above $5,000, and capped at $300,000. 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.
Related: What goes into writing positive Grant application?
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
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.
Have you noticed our #FridayExpertTips... here's one that relates to #EMDGgrant
“Many Australian business owners STRUGGLE WITH EXPORTING A PRODUCT because of the complexities and expense. However, the Export Market Development Grant (EMDG) can help fund your expansion.”