The Export Market Development Grant (EMDG) scheme will be simplified and reoriented from a scheme providing assistance through reimbursement after expenditure to an upfront grant agreement. This will give eligible exporters funding certainty before they embark on their marketing and promotion activities.
The reoriented EMDG program will maintain features valued by SME exporters and industry bodies, while making it simpler to access.
Unlike the current reimbursement scheme which saw exporters waiting up to two years for payments, eligible SMEs will be able to get upfront funding certainty over multiple years for eligible marketing and promotional activities. EMDG will be changed from a reimbursement scheme to an eligibility-based grants program to encourage export-ready businesses to increase their exports and diversify their markets.
When further details are released – hopefully with the release of the Budget in October – we will be able to better judge the positive and negative impacts of the proposed changes. At a bare minimum the changes will require SMEs to be more proactive in their approach to export grants – applying well in advance of any expenditure. Azure Group will continue advocate for changes to simplify the administration of the scheme and reduce the onerous compliance burden on our clients.
In the reoriented EMDG program, multi-year grants will be available for eligible SMEs at three stages of their export journey:
To be eligible for the EMDG program, SMEs will need to be export-ready and have a turnover of less than $20 million, down from $50 million in the existing scheme.
Assistance to industry bodies or alliances will be expanded to encompass both overseas promotion on behalf of members and supporting members to become export ready.
Benefits of these reforms
Costs of these reforms
For more details, check Austrade Fact Sheet.
EMDG Scheme for financial year 2020-2021
Current EMDG scheme arrangements remain in place the 2020 and 2021 financial years.
Have you noticed our #FridayExpertTips... here's one that relates to EMDG Grant
“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.”