Export Market Development Grant
The Export Market Development Grant (EMDG) program is an Austrade initiative that assists Australian businesses in expanding into international markets, by providing key funding for the promotion and marketing of goods and services internationally. Austrade has recently announced the amounts for Round 2 of EMDG. Here's what you need to know.
How are EMDG amounts determined by Austrade?
EMDG is an eligibility-based, demand-driven program meaning that the grant amount that businesses receive will vary each round depending on the available budget and the volume of applicants. This explains why the recently announced Round 2 EMDG amounts were less than what was received by applicants in Round 1 of EMDG.
Once EMDG applications have been assessed, Austrade will evaluate the eligibility of all applicants and will subsequently identify their funding capabilities, which will be distributed across all eligible EMDG applicants within Tier 1, Tier 2 and Tier 3.
Following this, EMDG Grant recipients will receive a grant agreement outlining the requirements set out by Austrade, such as the obligation for businesses to match the dollar value of the EMDG Grant received in promotional expenses.
Maximum EMDG amounts
Effective 1 July 2021, the maximum EMDG amounts specified by Austrade for each Tier are as follows:
- Tier 1 – A maximum of $40,000 will be provided per financial year
- Tier 2 – A maximum of $80,000 will be provided per financial year
- Tier 3 – A maximum of $150,000 will be provided per financial year
Round 2 EMDG amounts
The recently announced EMDG amounts for Round 2 are:
- Tier 1 – up to $10,000 per financial year
- Tier 2 – up to $18,000 per financial year
- Tier 3 – up to $28,000 per financial year
- Representative Bodies – up to $50,000 per financial year
Grant agreements
Austrade will commence issuing grant agreements to all eligible Round 2 EMDG applicants from the beginning of November 2022.
Once a Round 2 grant agreement is issued, recipients have 21 days to review and accept it.
Future changes to EMDG agreements
Austrade has acknowledged that many businesses will be dissatisfied with the decreased EMDG Grant funding for Round 2. In response, they have decided to make adjustments to the EMDG program, specifically, by only issuing EMDG Round 2 Grant agreements for a maximum of 2 years, instead of the previously offered 3-year agreements. This amendment was made in the interest of allowing Austrade to better manage the available funding, and also addresses feedback indicating that it can be difficult for businesses to plan for multiple years ahead.
The ability to access EMDG for a maximum of 8 years remains unchanged. To find out more about EMDG agreements, visit the Austrade website here.
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 2 amounts and future changes, please get in touch!
Related: Government Grants and Initiatives: Which one is right for my business?
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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