The Round 3 of the Export Market Development Grants (EMDG) program will be open for 4 weeks, from Wednesday, 15 March 2023, and will close on Friday, 14 April 2023.
Changes from EMDG Round 2
Grant Agreements will now be locked in for only one year, with a possibility of extension subject to the availability of funds. This is a disappointing change, with the provision of two and three year grant agreements heavily promoted by Austrade when the changes to the EMDG scheme were implemented in 2021. Combined with the significant scaling back of funds on offer, it is clear that the demand for export marketing assistance has outstripped supply – and the Australian Government’s own expectations.
The Austrade have updated the definition of “strategic shift” for Tier 3 grantees based on feedback that the definition needed to be clearer and to focus on market diversification.
What is a strategic shift?
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.
Read section 4.2.4 in the EMDG Guidelines for more information.
The Austrade also requires that businesses meet their taxation obligations, that is, comply with all the relevant Australian Taxation Office (ATO) legislation, rulings and guidelines. During the assessment process the Austade may ask businesses to obtain and provide a Statement of Tax Record from the ATO. This will help them to check compliance prior to issuing grant agreements and ensure grant funds go to export purposes, not to pay tax debts. We are awaiting guidance as to whether an entity complying with a payment plan against their tax debt will be seen to be meeting these obligations.
Please note that exporters cannot apply in Round 3 of the program if they have an executed grant agreement and there is more than one year remaining in the term of their grant agreement. For more information visit Austrade Eligibility page or email the Austrade EMDG team via: EMDG.Help@austrade.gov.au.
Related: Your complete Guide to Export Market Development Grant
The updated EMDG Grant guidelines and supporting documents are now available so that you can prepare to apply ahead of the EMDG online portal opening to applications.
Contact Azure Group
Azure Group's EMDG specialists can write and review your EMDG application and provide advice on how to maximise your claim, as well as manage reporting and auditing process. To find out more about our services, or for clarification about the EMDG Round 3 amounts and requirements, please get in touch!
Have you noticed our #FridayExpertTips... here's one that relates to EMDG
“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.”
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