Export Market Development Grant

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Export Market Development Grant

The Export Market Development Grant or EMDG is a business development program provided by the Australian Federal Government that offers a reimbursement on export-related expenses incurred by businesses of up to $150,000. The grant was developed to promote and aide small to medium-sized Australian businesses in introducing their products and services to international markets as a way to boost local economy.

The EMDG is overseen by the Australian Trade and Investment Commission or Austrade, an agency that falls under the Department of Foreign Affairs and Trade.

How it works

The scheme of the EMDG works such that up to 50 per cent of eligible export promotion expenses above $5,000 are reimbursed back to the business in the form of cash provided that the total expenses are at least $15,000. To successfully claim the EMDG,  one must provide adequate proof of expenses which will then be reviewed.

Eligibility

To be eligible for the EMDG, the business must:

• have income of no more than $50 million in the grant year.
• have incurred at least $15,000 of eligible expenses under the scheme. First-time applicants have the privilege of being able to combine two years worth of eligible expenses.
• have principal status for the export business. There are however exceptions to this rule, such as non-profit export-focused industry bodies.

Expenses that can be reimbursed

As per Austrade, here are the eight categories of expenses that can be claimed.:

Overseas representatives. Expenses of employees or distributors overseas representing your product can be reimbursed. You cannot, however, claim the costs of commission, non-promotional activities your representative carries, after-sales service, post-contractual training, sourcing of products, arranging clearance, warehousing or collection of goods, importing or promoting ineligible products.

Marketing consultants.

Marketing visits. An allowance of $350 per day while you are overseas to help defray accommodation, entertainment, living expenses and ground transport costs can be declared as claims.

Free samples.

IP registration and related insurance.  The cost of granting, registering or extending copyrights under international laws in relation to eligible intellectual property can also be claimed.

Trade fairs, seminars, in-store promotions.

Promotional literature and advertising. These include print literature like brochures, flyers, tarps, videos and website development.

Reception by Australian Businesses

International Trade in Goods and Services data for 2017-18, released on August 6, 2018 by the Australian Bureau of Statistics show that Australian Exports hit $401 Billion. But statistics show that about 70% of eligible Australian companies either are unaware that they are eligible or simply don’t know how to go about accessing the funding available.

With further education, awareness of the benefit from the government has been increasing. In 2016, 27% of the more than 3,321 businesses accessing the 2015 EMDG program were first year applicants

In July 2017, Austrade commissioned a survey that indicated that 97 percent of respondents considered the EMDG an advantage for their organisation. Also 95 per cent said a grant enabled their business to become more sustainable.

Created a page for Export Market Development Grant

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