What is Export Market Development Grants (EMDG)?
The Export Market Development Grants (EMDG) Scheme is the Australian Government’s principal financial assistance program for exporters. EMDG has operated since 1974/75 and is administered by Austrade. It is designed to encourage small and medium sized Australian exporters to promote themselves overseas, to develop export markets for eligible products substantially of Australian origin.
EMDG provides a partial reimbursement (of up to 50%) of money spent during the financial year on specific export promotional activities, for all overseas markets except New Zealand, Iran and North Korea.
WHO CAN RECEIVE EMDG?
Australian individuals, partnerships, companies, associations, co-operatives, statutory corporations or trusts, carrying on export business in Australia during the year that have:
Sspent at least $15,000 on certain export marketing activities (although first time applicants can combine two years’ expenses to qualify);
A total income of less than $50 million;
Received less than 8 grants (previously 7);
Passed Austrade’s grants entry requirements (for first time applicants);
Principal status in exporting (except for manufacturers, and other specific exceptions);
Not been under insolvency administration.
WHAT CAN BE PROMOTED?
Eligible products substantially of Australian origin, comprising:
Most non-tourism services delivered to foreign residents;
WHAT CAN BE CLAIMED?
Costs of maintaining long-term marketing representation. Expenses include salaries or retainers, office rent, travel and accommodation, communications, entertainment, advertising, and office expenses. No commissions! Maximum of $200,000 per EMDG claim.
Costs (fees and expenses) of retaining an arm’s length consultant to undertake export market research or marketing activities. A limit of $50,000 per EMDG claim.
Costs of travel, including airfares, taxis, hire cars, departure taxes, travel insurance, visa fees.
An allowance of $350 per working day overseas for accommodation, living & entertainment.
Factory, freight and other costs of providing free samples to non-residents.
Costs of trade fairs, seminars, private exhibitions, in-store promotion, and international forums.
Promotional Literature & Advertising:
External costs of promotional material, such as brochures, videos, websites and advertising.
Transport, accommodation and meal costs for visiting overseas buyers (existing or potential), up to $7,500 per individual and $45,000 per claim.
Patent & Trademark Registration:
Costs of granting, registering & extending patents and trademark rights for eligible IP, and insurance to protect the rights, limited to $50,000 per claim.
WHAT CANNOT BE CLAIMED?
Non promotional costs
Expenses subject to reimbursement
Commissions or discounts
Most Australian taxes and levies
Expenses relating to illegal activities or X-rated material
Expenses relating to trade with New Zealand , Iran and North Korea
Sales, after-sales or product development costs
WHAT CAN YOU RECEIVE?
50% reimbursement of eligible expenses exceeding $5,000, up to a potential maximum annual grant of $150,000, subject to available funds. Exporters can receive up to eight grants. Related companies are limited to $250,000 per annum for the group. There is a minimum grant of $5,000. An export performance test applies after two grants, providing incentive to increase export sales.
Total EMDG payments are currently limited to $137.4 million per annum. Grants in excess of a base amount, currently $40,000, may be scaled back, depending upon available funds at year-end.
RULES RULES RULES
-Claim forms must be lodged by 30 November
-Once lodged, claims can only be increased by 10%.
-Keep organised records and documents.
-Early lodgement, faster payment.
This information is provided as a guide and should not be used without obtaining specialist advice.