Your complete Guide to Export Market Development Grant

Export Market Development Grant Australia

The Export Market Development Grant (EMDG) scheme is an Australian Government initiative, that provides key financial funding to current and aspiring exporters. The EMDG was created to incentivise small and medium-sized businesses (SMBs) to develop export markets, which subsequently stimulates the Australian economy.    

Changes to the Export Market Development Grant

Previously, SMBs would incur expenses prior to claiming an export grant from The Australian Trade and Investment Commission (Austrade) in the subsequent financial year. However, changes to the EMDG Grant were recently legislated and have been effective since 1 July 2021.

The EMDG scheme was remodelled from a reimbursement system to a grant scheme with the purpose of providing more upfront certainty. These changes also encourage greater confidence among applicants given that EMDG applications can be submitted in fulfilment of eligible promotional activities that SMBs plan to undertake, rather than export promotion expenses that have already been incurred (as was the case before these changes took effect).

How does the EMDG work? 

The EMDG is administered by Austrade and is separated into 3 stages of a business' export journey, namely:

• Tier 1
• Tier 2; and
• Tier 3.

SMBs should apply for the grant Tier that is most suitable to their particular business needs. These Tiers are outlined below. If you would like to know more, please get in touch with our EMDG consultants.

Tier 1 

For eligible SMB exporters who: 

• Are ready to export in the grant year 
• Have not exported before; and 
• Have appropriate skills in marketing eligible products in a foreign country.

Grant details:

How does Austrade determine how much you will receive for your EMDG?

The export grant amount will vary depending on the demand (defined by the number of eligible applicants in each round), and the available budget for that respective round.

Once EMDG applications have been assessed, Austrade will determine the amount of funding available to all eligible applicants. If you meet the eligibility requirements, you will receive an EMDG agreement containing your grant amount. This agreement will specify that your expenditure must match the dollar value of the EMDG that you receive to be eligible to acquire the funds.

What does "EMDG Round" mean? 

Each round is indicative of the year that that the EMDG application applies to. For example, round 2 EMDG applications opened on the 6th of July 2022 and closed on the 17th of August 2022. Since the changes to the EMDG scheme dictate that EMDG applications will now be submitted prospectively, round 2 EMDG grants will provide funding for eligible export promotional activities conducted between 1 July 2022 and 30 June 2023.

How many times can you apply for the EMDG Grant?

SMBs can apply for 3 different grants over 8 years. To illustrate this, an SMB may decide to apply for Tier 1 once (whereby grant agreements are offered for up to 2 years), followed by Tier 3 twice (whereby grant agreements are offered for up to 3 years, totalling 6 years).

Eligibility requirements for EMDG 

There are several eligibility requirements that SMBs must satisfy to receive the EMDG Grant. To view these in detail, visit Austrade or get in touch with our EMDG specialists.

In general, EMDG applicants must:

• Have had lower than $20 million in turnover in the previous financial year
• Be Australian 
• Have an Australian Business Number (ABN)
• Use the funds for promotional activities in foreign countries or for training activities to develop skills to market eligible products abroad
• Use the funds for an eligible product that is of substantially Australian origin 
• Use the EMDG Grant funds for expenses in one or more of the eligible categories

Here are a few quick tips and steps to follow when applying for EMDG....

5 Quick tips when applying for EMDG

#1 Make sure you are eligible!

#2 Make sure you keep records in real time.

#3 Make sure you have strong documentary evidence ready to support your EMDG application. 

#4 Make sure you get in touch with experienced EMDG Advisor who can apply eligibility criteria to your specific case, review your paperwork, write plans and assess up front that you would be eligible for the EMDG Grant, saving you time and money.

#5 Make sure you submit a completed EMDG application before the closing date.

8 Steps to follow when applying for EMDG 

1. #Step: Assess your eligibility
   
2. #Step: Engage an EMDG Grant specialist
   
3. #Step: Grant application form preparation 
4. #Step: Tailor responses to selection criteria 
5. #Step: Have strong documentary evidence 
6. #Step: Submit application before closing date 
7. #Step: Be audit ready

Applying for an EMDG is a complex process. An EMDG consultant will help to streamline the process by assisting with eligibility and record-keeping requirements, reviewing and collating documents and audit files, expenditure schedules, strategies to optimise funding by choosing an appropriate Tier, devising a market plan and ensuring all compliance protocols are upheld. 

 
About Azure Group

Azure Group deliver Export Market Development Grant ("EMDG") services to our clients in an efficient, proactive and cost-effective manner. Azure Group's EMDG Grant specialists can write and review your application and provide advice on how to maximise your claim, as well as manage reporting and auditing process. Get in touch.

Have you noticed our #FridayExpertTips... here's one that relates to #EMDG

“The Export Market Development Grant (“EMDG”) program has been reoriented from the previous historical reimbursement model to a proactive grants application program. Significant work is now required upfront in order to gain approval from Austrade for a 2 or 3-year forward-looking projection of your export marketing expenditure. Talk to our EMDG experts.”